Business community termed the trade policy 2006-07 announced by Commerce Minister Humayun Akhtar, as a very ambitious policy and 18.7 billion-dollar export target is achievable.
Talking to Business Recorder, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Akbar Abdullah said that export target of 18.7 billion dollars is achievable but required several steps from the government's side to keep the export industries running.
He said that the government must take steps to develop the infrastructure and provide uninterrupted power, gas and water supply to keep the wheels of industries moving. He demanded that the government should further reduce the export re-finance rates. Appreciating allowing imports of second hand machinery, he said that this measure will boost industrialisation in the country.
However, he feared that the import bill may go up drastically due to allowing import of second hand machinery. Former Chairman, Site Association of Industry (SAI) Dr Ikhtiar Baig said that the export target fixed at 18.7 billion is achievable.
He said that government has focused to boost export of non-traditional items and to tap the market of non-traditional items is a welcome step. He appreciated steps to boost the export of jewellery, carpet and footwear. He also appreciated the government's move to conduct sector-wise study of various products.
He said that the minister admitted that exports in 2005-06 remained short of target by 440 million dollars at 16.6 billion dollars against the target of 17 billion dollars. He expressed concern over widening trade gap. The minister in speech has hinted that trade deficit will continue in 2006-07 due to ever increasing prices of oil, he pointed out.
He feared that increasing trade gap may hit Pakistan's foreign exchange reserves and suggested that the government must take steps to curtail this increasing trend.
He suggested import substitution and signing more and more free trade agreement (FTA) and preferential trade agreement (PTA) which may help reduce the trade deficit. He appreciated the establishment of jewellery processing zone.
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