Efforts in place to boost exports: Pervaiz Malik

LAHORE, Apr 04 (APP):Federal Minister for Commerce & Textile Muhammd Pervaiz Malik has said that concrete measures are being taken to boost the country’s exports, while focusing on new and unconventional avenues for Pakistani merchandise to yield the desired results.
He was talking to Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javaid, in an exclusive meeting. Commerce Secretary Javed, Trade Policy Director General Muhammad Ashraf and LCCI Secretary General Shahid Khalil were
also present, according to LCCI spokesman here Wednesday.
Pervaiz Malik said that role of the business community was important for economic stability of the country which was top priority of the present government that had opened all economic areas to achieve the goals of economic growth.
He urged the private sector to become proactive to meet international standards and better marketing of products to
compete effectively. He also assured that regulatory duty on steel would be be abolished and second phase of FTA with China
was deferred on demand of the Lahore Chamber.
The minister added that businessmen should identify hurdles in the way of value addition of products and share with
government to address these problems.
He also advised businessmen to explore the untapped markets of Middle East and Europe which offered good potential for improving trade and exports. Businessmen should also come up with creative solutions for improving tax revenue.
He assured that the government would provide infrastructure and play the role of facilitator while entrepreneurs had to take
the lead to improve trade and exports and the economy.
On this occasion, LCCI President Malik Tahir Javaid recommended a value addition (through technological advancement
and skilled labour) push, adding that Pakistan had to move from low value-added to technology-intensive high-value-added manufacturing in order to get its share in international trade.
The government must facilitate this process through new industrial reforms and trade facilitations to promote exports of high value added and sophisticated products; Pakistan’s existing exports basket (product mix) and exports destinations needed to be enhanced, he maintained.
By providing a broad base of exports and diversification, he opined, Pakistan could lower instability in export earnings, expand export revenues, upgrade value-addition and enhance growth through many new markets and products.
He said, Pakistan also needed to get free or preferential market access in Africa, Latin America, Central Asian Republics (CARs), Russia and Australia etc. as African and Central Asian Republics (CARs) countries were emerging economies and there was immense potential of exports for Pakistan.
Malik Tahir said that timely and adequate banking facilities should be enhanced especially in Africa, Russia, Central Asian States and South America to meet the exports commitments. Exporters should be allowed pre and post-shipment credit at competitive interest rates. Pakistan had to strictly follow the technical standards under Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) standards to increase its exports to developed countries.
The country should take all possible measures to meet international quality standards and certifications for its exports,
while development of human capital and skilled labour was of immense important to overcome the problem of low productivity,
low value added and thus low exports, he said.
“The government should work on priority basis to improve the ease of doing business ranking and cut down the duties and
taxes on raw material to lower the cost of doing business,” he urged.
He said there must be cheap energy supply to the industry and the problem of multiplicity of taxes had to be addressed for industrial development. Exports of raw materials (e.g. limestone; salt; silica sand, etc.) must be discouraged through imposition of duty or other non-tariff barriers, while exports of value added products only should be allowed and encouraged and there should be
complete ban import of high value added manufactured products that would protect domestic industry.
However, inputs which were not produced or available locally should be duty free. For example, to protect and encourage domestic textile industry, import of readymade garments should be discouraged, he added.
Malik Tahir Javaid said, Pakistan should also impose standardization requirement for discouraging unnecessary and sub-standard imports especially in food, textile, etc. and it could be made mandatory for the importer to inspect the factory at the expense of the exporter, which was a lengthy and costly procedure.
He said that by lifting regulatory duties on raw material and capital goods, domestic production could be enhanced. Through increasing domestic production, the demand and supply gap could be filled which would also control smuggling and consequently, some sustainable improvements in balance of trade and balance of payment could be achieved, he concluded.