950818

Exports committee for

setting up chain

of dry ports, EPZs

RECORDER REPORT

FAISALABAD: The special committee on exports has emphasised the need for creation of export culture in the country and proposed that a chain of dry ports and export processing zones should be set up in every province of country to improve the infrastructure facilities for promotion of exports.

In a report, presented to the Prime Minister Benazir Bhutto by its convenor Mian Mohammad Latif (Chairman Faisalabad Dry Port Trust), it was also demanded that exports should be completely exempted from the levy of octroi and stamp duty imposed in Sindh on export documents and bills of exchange and the 0.5 percent turnover tax which tends to make the export goods uncompetitive in the international market.

The special committee observed that the present procedure of registration of trade mark in Pakistan is very cumbersome and urged it should be simplified and streamlined to boost export of our registered products to the international markets.

Generally observed weekly off-days in most of the countries leave us have only 4 days in a week to contact our foreign buyer, this committee, therefore, recommends that banks weekly off-day may be observed on Sunday.

According to the report, a major portion of Pakistan's export bill is spent on import of machinery, edible oil and POL. The government, therefore, would be well advised to re-fix its priorities in such a manner that adequate attention is paid to the development of these three basic requirements as early as possible so as to make the country self-sufficient and able to conserve valuable foreign exchange through import substitution.

The committee proposed that the EPB shoould undertake studies to identify non-traditional commodities, e.g. horticultural products like fruits, vegetables, dried flowers and fragrances and other items like mushroom, furniture, food products and stuffed toys, etc, and conduct intensive survey and research about their markets and make this information available to prospective exporters.

According to the report, service charges levied by banks, e.g. L/C advice charges etc are very high, which ought to be rationalized. Banks should also be motivated to provide confidential performance reports and market reputation of foreign buyers at nominal charges. The committee proposed that the labour intensive industries e.g., garments and shoe-making units, powerloom units, hosiery, textile processing and foundry engineering units should be provided BMR facilities as special incentives for better production. This would generate employment opportunities.

Commission earned on export sales by agents/representatives should be treated as export income, visa duration for expatriates employed as experts should be allowed on yearly basis and their salary should be allowed to be paid in foreign currency without paying any tax.

Jewellery has a substantial export potential. Anti dumping measures are needed to allow this labour-intensive industry to grow.

According to the report Central Asian countries have a tremendous export potential after decades of Soviet subjugation and emergence of CIS as free states, a whole new pattern of export and joint ventures has evolved. A special edge must, therefore, be given to thsi virgin market while planning our future export strategy, proposed the special committee.

The committee proposed that a chain of dry ports and export processing zones (EPZ) should be set up in the country to improve the infrastructure. The Federal Government had introduced a scheme of export processing units (EPU) which could not fructify due to too many complications and formalities. The scheme may be made functional and the bottlenecks and impediments be removed.

Pakistan Railways, PIA and NLC may be asked to arrange priority booking and allow special concessional rates of freight on export consignments. PIA may be asked to set up cargo clearance centres and airconditioned containers at all important industrial centres. Likewise, the proposed increase of 100 percent in the foreign post charges, airmail letters and parcels may be withdrawn.

In our country the weekly off-day is observed on Fridays. This makes our export business suffer heavily because the next two days (Satudary and Sunday) are generally observed as weekly off-days in most of the countries. So we have only 4 days in a week to contact our foreign buyers this committee therefore recommends that bank weekly off-day may be observed on Sunday.

According to SCE's report, before aspiring for a major break-through in export trade, an entirely new and radical transformation has to be evolved which may be styled as export culture. lethargic attitude of government functionaries, especially bank officials, and procrastination shall have to be done away with. Government functionaries should, henceforth, be directed to accord high priority to the matters relating to exports and treat exporters with respect, and show consideration in redressing their grievances.

The committee observed with great concern that international buyers have of late been complaining about substandard quality of our products. In order to eliminate such complaints it is imperative that Pakistan quality control and standard authority be established immediately. This authority should ensure that the quality of our products is compatible with international standards. Training institutions may be established in every major city of the country to train workers. Quality control and its procedures should be upgraded to meet the stipulations of ISO 9000.