Aziz directs PC to chalk out plan for increasing exports

ISLAMABAD: Reiterating the governments resolve to facilitate the private sector enhance and diversify exports, prime minister Shaukat Aziz has directed the Planning Commission to come up with a plan to increase country’s exports from the present 13 % of the GDP to 15% of the GDP.

The Prime Minister said this while chairing the newly constituted Export Promotion Board Saturday, which is the highest policy formulation forum that considers matters pertaining to Pakistan’s exports. It includes representatives both from the public as well as the private sector.

The Prime Minister said exports are a major mechanism to drive the economy, earn foreign exchange and generate employment and the government wants serious input from the private sector with a view to enhancing country’s exports.

He emphasized the need to take further steps to increase the volume of exports and said the Planning Commission should interact with all the relevant government ministries/departments and the private sector. It will study the best international practices and do benchmarking with other countries to achieve best results.

The Prime Minister said it is gratifying to not that the export of both rice and leather and leather goods has crossed the $1 billion mark. He congratulated the exporters of rice and leather goods for doing us proud.

Shaukat Aziz emphasized the need to tap the vast potential for export available in the agri-business leather goods, rice and engineering goods.

The Prime Minister said that the government is making all-out efforts to arrange maximum market access for exporters to enable them to enhance and diversify their exports all over the world.

He said: "the government’s job is to open market access as exports are done by the private sector."

The government has signed Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) with several countries and many more are in the pipeline to provide new markets for exports, the Prime Minister said.

The Prime Minister said that finalization of FTA is a time consuming process and the government has therefore signed early harvest agreements with several countries covering a limited number of items on, which the agreement exists. This, he said, has been done to provide exporters immediate access to foreign markets.

The Prime Minister said that the government is also in the process of finalizing Reconstruction Opportunity Zones (ROZs) to provide access to the goods produced in the commercially depressed areas to the United States on preferential basis.

The Prime Minister informed the meeting about the efforts being made by the government at the Doha Round and the WTO to obtain better market access for our exporters.

He called upon the private sector to increase its competitiveness and productivity and ensure quality and standardization of products without, which a quantum jump in exports is not possible.

The Prime Minister said that there is a need to tap the huge market available in China and Japan, which is mainly looked at as sources of importing machinery.

Similarly the private sector needs to improve foreign market research and analysis capability to increase exports, the Prime Minister said. "We believe in public-private partnership to establish Pakistan Inc," he said.

The government will be guided by the feedback from the private sector which will enable it to devise a long-term policy to increase exports, the Prime Minister said.

The Prime Minister said we have totally revamped our visa policy by allowing issuance of visas to businesspersons at the airport.

Pakistan, he said has potential to become a regional hub for the export of agri-business especially livestock dairy products and horticulture.

Secretary Commerce made a presentation about Pakistan’s export performance and informed the meeting that total exports of the country July to May 2005-06 stood at $14.9 billion during the previous fiscal year which is 16.35% increase over the previous year. Mentioning major export achievements of last year he said that during July-May 2005-06 exports increased by $2.1 billion and the momentum of export diversification strategy was successfully sustained. He said the growth in exports was driven mainly by substantial rise in volume during this period. The increase in quantity indicates greater market access in the international market.

He said that during July-May 2005-06 increase in non-textile sector was mainly in rice, fish & fish preparations, petroleum products and leather. He said six product categories joined the US $1.0 billion club. These include Bed wear ($1.8 billion), Knitwear ($1.56 billion), Readymade Garments ($1.2 billion), Cotton Yarn ($1.2 billion), Cotton cloth ($1.94 billion) and Rice ($1.03 billion).

Giving an overview of the import profile of the country Secretary Commerce said that during the last financial year imports were projected at $21.8 billion as against actual imports of $20.6 billion registered during 2004-05 envisaging a growth rate of 5.8%. The imports during July 2005 and May 2006 were recorded at $25.6 billion as against imports of $18.4 billion during the corresponding period last year showing an increase of 39.4%, he said.

The representatives of the private sector made several suggestions and proposals to remove hurdles in enhancing exports. The Prime Minister said the government will give their suggestions a serious consideration.

The meeting was attended by Minister for Commerce Mr. Humayun Akhtar Khan, Minister for Food & Agriculture Mr. Sikandar Hayat Bosan, Minister for Textile Industry Mr. Mushtaq Ali Cheema, Minister for Privatization Mr. Zahid Hamid, Minister of State for Commerce Mr. Hamid Yar Heraj, Advisor to PM on Finance Dr. Salman Shah, Governor State Bank, Chairman EPB, Dy. Chairman Planning Commission, Secretary Commerce, Acting Secretary Finance, Chairman Engineering Development Board, Mr. Younus Tabba (CE Younus Textile Mills), Mr. Ali Abbas (Abbas Corporation), Mr. Farrukh H Sheikh (MD Hub Leather Products), Mr Bilal Mulla (Chairman Pakistan Readymade Garments) Khawaja Muhammad Yousuf (Chairman Pakistan Tanners Association), Mr. Bashir Ali Muhammad (MD Gul Ahmad Textile Mills) Mr. Naseem A Sattar (Chief Executive Al-Abid Silk Mills), Mr. Sanaullah Khan (Chairman All Pakistan Marble Industries), Mr. Kamal-ud_Din Ahmed (Chairman SIKA), Haji Abdul Majid (Chairman Rice Exporters Association of Pakistan), Mian Muhammad Latif (Chief Executive Chenab), Mr. Ahmad Kuli Khan Khattak (Chairman APTMA) Ch. Muhammad Saeed (President FPCCI) and senior government officials.