Export expected to decline up to $4 billion: Razak

Prime Minister's Advisor on Commerce, Industries and Production and Investment, Abdul Razak Dawood said on Friday that Pakistan's export are expected to decline up to $4 billion due to spread of Covid-19 across the world.
Talking to Business Recorder he said that during early weeks of March 2020 exports were showing 13 per cent or 14 per cent growth but as Coronavirus spread throughout the world including Pakistan, exports started showing declining trend and in the end negative growth was over 8 per cent.
"I don't know about exact decline in exports as we are working on different scenarios but it would be between $2 billion and $4 billion. I don't think exports will decline by more than $4 billion," he added.
Answering another question, Abdul Razak Dawood confirmed that he is being asked to reconsider his decision about textile mills who want compensation of Rs15 billion against selling of US dollars forward.
Explaining the issue, Dawood said he raised this issue at a meeting and argued that he opposed compensation and has disallowed it. His views were appreciated, he further contended as the right decision.
"They are pressurizing but this pressure will not work. How can a huge amount be given to a few people. With Rs15 billion, a huge number of unemployed people can be supported for a couple of months. It is not possible to give this huge amount only to 15-20 people. This is the time to support the country," he maintained.
Razak Dawood said he has requested the provincial government to let those industries start their operations whose workers reside within the factory boundary, adding that he also asked the administration to open cement plants and chemicals which are in rural areas. He said, cement plants and ICI's plant in Khewra salt mine have started production.
Provincial governments have conveyed that they are ready to allow those industries to start functioning whose lists have been shared with them.
Answering another question, he said that reports he is getting from industries indicate that Commissioners and Deputy Commissioners are tougher compared to military and paramilitary forces who are assisting local administration to control peoples' unnecessary movement.
He added that he would give the list of Sialkot-based industry to the administration so that factories are opened.
He stated that two or three more days are required to bring things in order, adding that Chief Secretaries of Punjab and Sindh are fully cooperating with the government. He hoped that by the end of April, business will be back to normal but it all depends on the projections of Ministry of Health.
"If the trend of deaths is within our projected range, then I hope business will be back to normal by the end of current month," he continued.
Answering a question regarding Afghanistan, Abdul Razak Dawood said that he has talked to Afghan Commerce Minister, saying that there is no issue in allowing containers to enter Afghanistan - the issue is that Coronavirus is not transmitted to Pakistan through the consignments.
However, now both the countries have almost agreed that Pakistani drivers will take the trailers to no-man's land from where Afghan drivers' will take those containers. He said, Afghan drivers will not be allowed to enter Pakistan's territory.
"This mechanism will be in place any time now as Army has agreed and SOPs are finalised to allow regular trade and Afghan transit trade," he continued.
Abdul Razak Dawood supported the idea of Ijaz Khokahr of PREGMEA that if the factory owners are ready to match the government's allocations for the workforce, it would be a good idea. He promised to contact Ijaz Khokhar.
He maintained that a framework has been formulated to distribute Rs200 billion amongst the unemployed people of which daily-wage workers are in millions who were working in shops and small factories etc. He has asked big industrialists to give salaries to their employees at least till May so that they can buy things for Ramazan and celebrate Eid.
"There are industrial labour, commercial labour and other workers," he maintained, adding that it is unclear if businessmen are asked to pay the workers, for how long they will do it.
The workers will nonetheless be supported through EOBI, workers welfare funds, workers participation funds and social security funds, he concluded.