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Exports-led industrial policy being framed: Dawood

JAVED MEHMOOD

ISLAMABAD: Minister for Commerce and Industries & Production Abdul Razak Dawood said that an exports-led industrial policy is being framed to develop the culture of exports in Pakistan.

In the past the focus was given only on the imports substitution and no efforts were made to promote the exports of value-added and non-traditional items. "But the new industry policy, to be announced in April 2000, would focus particularly on the development of exports and its allied industries in the country", said Abdul Razak Dawood while talking to a small group of newsmen.

The minister spoke at length on various issues being discussed by his ministry and future plans pertaining to exports, industry, etc.

"We have started from the largest industrial sector in Pakistan, textile, and hectic consultations with the stake holders in this sector such as cotton growers, ginners, spinners, weavers, knitwear, bedwear, are going on to firm up a strategy to address the grass root level problems of this industry so that it could play a key-role in the growth of exports-base," he said.

Razak Dawood said, "we are developing a vision for the year 2005 when the quota system will be over and the international markets will be open for competition and quality".

Tariq Sehgal, a leading Lahore-based businessman, is heading the committee, having nine groups, to look into the various problems of textile and industry and agriculture sector.

Next to textile would be the exports industry, agriculture, chemical, engineering, cement, fertilizer, software and construction sectors which would be deeply studied and strategy would be evolved to promote their exports and domestic production, said the minister.

Razak Dawood said that as soon as this exercise completes another special analysis on the industrial inputs would be undertaken to identify problems to manufacturers.

So far, he said, the problem of Sales Tax on exports, complications in refund of rebates and Income Tax have emerged as the major issues which would be looked into by the government.

The minister was optimistic that the target of $9 billion exports for 1999-2000 would be achieved as, for the first time, the textile-products of Pakistan have been very competitive in the world markets following availability of cotton at the record low prices.

Not only the textile, but cotton, rice and leather export would also show better performance this year, he said, adding "we will be able to properly assess the volume of exports once we get the trade data of the month of January". Because, he said, in November last the pace of exports was satisfactory, but the results of December were not much encouraging.

When asked whether or not there was any short-term policy to boost exports, the minister said "we do not have short-term policy, but we are giving much attention to increase the export of textiles, cotton, rice, potatoes and onions which we have in surplus".

APP adds: Dawood said, Pakistan has become internationally competitive in case of textile for the first time owing to withering cotton prices in the international market.

"Things have to be streamlined from raw cotton upto garments to ensure no link of the entire chain is missed to prop up textile exports", he added.

Marathon meetings will be held to seek proposals and suggestions of the best brains from these sectors to formulate effective export, industrial and cotton policies, he stated.

More investment and restructuring of the textile is direly needed to exploit the potentials of this sector effectively, he said.

Export culture needs to be fostered as there was export surplus of textile products, rice, leather, engineering, chemicals etc, the minister observed adding, engineering industry was not running on full capacity.

To a question, the Minister said that special and detailed analysis will be worked out on the high cost of inputs which was also one of the stumbling blocks toward exports' growth.