Senate budget debate: 'out of box' steps urged to boost exports

The opposition in the Senate on Thursday asked the government to take 'out of the box' measures for reducing cost of production to help enhance exports.
The opposition senators argued a sharp increase in the industrial production by minimising cost was the only way to bridge a surging gap between the country's imports and exports.
During a mild and under-attended debate on the budget in the Senate, they also ridiculed the government's claims of maintaining high reserves, bringing about a white revolution and decision of subsidising essential food items through Utility Stores.
Ilyas Bilour of Awami National party (ANP), a noted industrialist from NWFP, said the industry in Pakistan was facing problems due to high production cost.
"I fear the industrialists will transfer their investment to other countries where they find the business more feasible," he said.
Ilyas added the government would have to come up with some 'out of the box' measures for reducing production cost to keep the industrialists from moving to other destinations.
The NWFP nationalist argued that bringing the cost of production down to some reasonable level was the only way to make the industry viable.
And since the industrial production could enhance the country's exports, it would help Pakistan reduce a surging trade deficit that was creating problems for the government, he said.
Bilour also ridiculed the government's decision of subsidising food items through Utility Stores with the view that it could reach only 15 percent population this way.
Anther question he asked was that as to why the government was using privatisation proceeds for financing the current account deficit despite an established fact that this money could only be used for debt retirement and poverty reduction.
He made a passionate call to cap the prices of the petroleum products, electricity and gas. "For God's sake, people can not bear any more burden...they will die," he gave his speech an emotional touch. A widening disparity between the income of poor and rich and an unjust distribution of wealth was another area he said the government would have to look into.
Earlier, some other Senators who spoke on the budget demanded more incentives to help boost various sectors of the economy especially the livestock.
Muttahida Majlis-i-Amal (MMA) Professor Ibrahim was critical of the budget speech by State Finance Minister Omar Ayub and said it looked to be a politically motivated speech.
He also questioned high defence spending.