The Trade Policy 2006-07 announced by Commerce Minister Humayun Akhter Khan on July 17, 2006 had a different composition than those policies announced in previous years. The main thrust of the policy has been on a long-term vision, a sort of charting a new course towards attaining the US$ 20 billion by 2008. It is hoped that unlike the previous years, the vision is transformed into action and there is rapid implementation.
The latest trade policy is a “non-textile policy” since ECC had already announced the textile package on Saturday. However the new policy has addressed those non-traditional sectors that should, if well-focused, bring in precious foreign exchange. Pakistan has not fully exploited sectors such as gem and jewelry, fruits, horticulture, ethnic-based products, footwear, fisheries, and many service sectors. A dedicated and concerted effort is required in creating exportable products that can create a niche in new markets abroad and enhance foreign exchange earnings.
One views with skepticism the export target of US$ 18.60 billion as it would not be achieved if it is dependant on textiles since the textile-related sector is likely to remain under pressure for one more year owing to domestic and global problems. The textile package has been rejected by the apparel and knitting sectors and this is bad news. The policy also does not address the situation arising out of substantial increases in international oil prices. Pakistan does not have a defined strategy to adapt to the impact of oil prices. Ad-hocism still prevails.
The warehousing policy definitely needs re-designing as well as sincere realization. The businessmen are sanguine the Minister would devote his concentration on this very essential tool in our export march. Pakistan has not been successful in this respect. Today, the customer wants goods on demand and immediately. Pakistan is losing crucial orders because of lack of seriousness on the part of the government officials in getting this marketing tool in action.
The industries and service sector applaud the decision of the Commerce Minister to remove all obstacles in the import of used and second-hand machinery because in many cases the industrialists were not able to outlay precious financial resources on the latest machinery.
The Trade Organizations Ordinance 1961 has finally been noticed by the ministry. This obsolete and ineffective statute has been misused by many over the years and has resulted in bogus and paper organizations, infightings in associations and chambers, and has created many a rivalry among the business community. However, it would have been worthwhile if MoC had done its homework and the amendments would have been announced in the policy. The way things are going, it seems a long shot whether MoC would be able to prepare draft legislation soon.
To boost up the dismal export figures, the MoC has for the first time included defense sales and service revenue as exports. Thus US$ 275 million in defense related sales and US$ 392 in service sector revenues were added to rake up the export figures to US$ 16.46 billion. The question then arises whether imports of defense equipment and payments to a host of foreign consultants would also constitute part of the import bill? If these are included then the trade deficit would go over the moon.
About three years ago, the Minister had announced the formation of the Export Facilitation Committee at the Ministerial level where four Ministers would be in this Committee and that it would be the forum that would resolve many problems faced by the exporters. Sri Lanka has a nine-member committee and I had proposed to an erstwhile Commerce Minister that this should be emulated in Pakistan. It is hoped that this Committee would finally start functioning.
In the Trade Policy 2003-04, the Minister had also announced that six Regional Trade Commissioners would be appointed to enhance exports. Unfortunately this scheme fell prey to bureaucratic wrangling and has probably been shelved. A good scheme blatantly waylaid.
A vision becomes a pipe-dream if not implemented. A vision becomes attractive to others who then adopt it for their own good. A vision becomes reality when there is peace, stability, and a sense of direction. Pakistan’s trade regime is at a crucial crossroads. The government and the business community must move forward and swim against the tide and not wait for any boat to rescue them. This is the recipe for success.
Chalta rahe jo aabla pai ke bawajood
Manzil ka mushtaiq wahi sehra narvad hai
============
July 18-2006
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment