SCCI for setting up 'support industry' to substitute import

President Sialkot Chamber of Commerce and Industry (SCCI), Majid Raza Bhutta, has urged the government to take drastic steps for setting up "Support Industry" in the country and government should encourage the businessmen and investors to invest in support industry which could ultimately lead to substitute import.
Talking to Business Recorder on Sunday here he said that export sector of the country heavily relies on import of raw materials especially from China for further value addition and re-exports. Pakistan has seen many industrial surges where industries were established but no work has ever been done to invest in Support Industry to complement the existing manufacturing set up of the country, he was of the opinion.
The SCCI President suggested that government should encourage foreign and local investors enabling them to invest in support industry like accessories of textile and clothing, printing and packaging, etching and polishing chemicals used in surgical instruments industry and others. He said that government should adopt measures for setting up EXIM Bank (Export import bank of Pakistan) on priority basis to facilitate the export sector of the country in terms of financing and other related issues. The EXIM bank should be given practical shape in the larger interest of export sector of the country he said.
He underscored the need to identify high priority sectors and potential sectors to generate a big boom in the exports of the country. The government should take drastic steps to provide special incentives to encourage the export of respective sectors he said. The SCCI President further added that in this regard government should devise a sound sector specific strategy and vision with defined objectives. High priority sectors are textile and clothing, surgical and dental instruments, leather products, sports goods, footwear, gems and jewelry and furniture while potential sectors are surgical implants, composite products, printing and packing, light engineering products, handicrafts, sportswear and fitness apparel etc he pointed out.
He suggested that government should take initiatives for setting up sector specific Export Promotion Councils in the country. The proposed councils should be established for all the export sectors to enhance their exports and these councils should work under Commerce Ministry for the betterment of export industry he added. The Commerce Ministry in collaboration with Pakistan Standards and Quality Control Authority should introduce standards and ensure compliance of local vendor industry supplying raw material to export sector of the country he suggested.
Majid said the main reason for the import of foreign made raw material is either lack of availability in the local market or sub-standard quality produced by the local vendors. Pakistan's export he said cannot experience a quantum jump until and unless raw material of international standards is produced locally. The SMEs that for the certain time use the local raw material have to compromise on quality and face negative feedback from international market which also bring a bad name to Pakistan he said.
Majid said that with rapidly changing economy and market dynamics, the world is now moving to stiffer standards which would ultimately affect the exports of the country if those standards are not complied with. The only way out is to revamp the whole supply chain structure and to encourage vendors to produce quality raw materials and comply with standards by PSQCA as a preemptive and proactive measures. The SCCI President further added that this also is one of the major reasons for ever declining exports of the country as we are slowly losing the status of "High Quality Produce" to other countries those are active in their pursuit to snatch market away from Pakistan. It is high time that we rethink our strategies and work for the better future of the industry and create sustainable systems to promote "Made in Pakistan" in true spirit he said.
There was great need to set up "Marketing Intelligence Cell" at Trade Development Authority of Pakistan (TDAP) to provide assistance to the manufacturers and exporters in obtaining information pertaining to international demands for commodities, competitive price index, expanding markets and other essential trends he said. The cell he said would also serve to disseminate updated information to the exporters on export markets and technology to facilitate diversification of exports Majid added. Majid proposed that government should provide interest free loans of 10 percent of the total exports for the import of new technology enabling exporters to upgrade their industrial units for enhancing production inefficiencies.