Government urged to bring down cost of doing business

Vice President Federation of Pakistan Chambers of Commerce and Industry, Zubair Ahmad Malik and other representatives of the business community have called upon the government to bring down the cost of doing business in order to make Pakistani products competitive in the international market. Speaking at the meeting of the Advisory Council of the Ministry of Commerce here on Wednesday, they pointed out that their regional competitors were providing electricity free of cost or on cheap tariff to their industrialists in addition to a number of other concessions in duties and freight charges which have placed Pakistani industrialists at disadvantageous position, and demanded that the government should also make efforts in providing them level playing field.
Addressing the meeting, which was presided over by the Commerce Minister Humayun Akhtar, State Bank Governor Dr Ishrat Husain stressed the need for enhancing the productivity of the industrial sector since the government has provided the enabling environment to the business community by introducing export financing scheme and streamlining loan procedures. Humayun Akhtar Khan welcomed all the proposals brought by various stakeholders and assured them that their proposals would be considered with great care and concentration in the formulation of coming Trade Policy.
While summing up the meeting, the minister presented an overview of the trade regime of Pakistan. He said that Pakistan's foreign trade was growing at an exponential pace from a mere $18.88 billion in 1999-2000 and would cross $33.50 billion at the end of this fiscal year.
He said that against an official target of $13.7 billion the exports would cross $14 billion in 2004-05, an increase of 79.9 percent over $7.78 billion in 1998-99.
However, the minister said that Pakistan was faced with the challenges of shortage of skilled manpower, infrastructure deficiencies, conformity to quality and standards and low productivity of the industrial sector. Humayun Akhtar said that the government was providing an enabling business environment and had launched various trade policy initiatives to encourage the business community. He made a mention of GSP Plus and antidumping issues and said that the government was fully alive to the vitality of these issues and engaged in negotiations with the domestic stakeholders as well as the concerned authorities in the European Union.