Trade policy 2005-06: export target set at $17 billion, import $21.79 billion

The government has set $17 billion export and $21.79 billion import targets in the Trade Policy 2005-06, forecasting a $4.79 billion trade deficit. The policy also laid emphasis on market access, attention towards neglected regions, strengthening of trade offices, skill development and infrastructure. The Commerce Ministry had proposed $16.3 billion export target on the assumption of 16 percent growth, but the federal cabinet revised it upward to $17 billion, expecting about 18 percent growth.
According to an official, some of export-related proposals have been rejected by Prime Minister Shaukat Aziz, one of which was export of ghee/cooking oil to Afghanistan, adding that the federal cabinet, however, approved all the proposals contained in the policy.
Announcing the Trade Policy on radio and television here on Thursday evening, Commerce Minister Humayun Akhtar said that a Textile Garments Skill Development Board (TGDB) would be created to extend support to the textile garment sector and implement the initiative of skill development and training of workers.
Regarding Pak-EU trade, he said that a special focus is required for enhancing exports with the European region for which EU-specific detailed market research study is required for Pakistani exportable products.
He proposed access for Pakistani exporters to be arranged to an interactive EU trade information portal so that they are able to get latest supply and demand information regarding exportable products to the EU.
He said that a specialist firm, having particular expertise in marketing, should be engaged which, according to him, would be able to procure more export orders for our textiles. A lobbying firm will also be hired to facilitate trade with the United States, besides initiation of a special programme in this regard.
The minister announced that pharmaceutical exporters with duly registered products would be provided funds for the salary of three medical representatives for a period of two years at $500 per medical representative per month.
AFGHANISTAN: To facilitate exports to Afghanistan from Balochistan, a new land customs station at Qamar-ud-Din Karez would be opened.
The prevalent system of verification of exports to Afghanistan, in which the exporter had to bring a certificate from Pakistani embassy to claim duty refund, was being replaced with the verification of Pakistani exported goods to Afghanistan on the basis of copy of import clearance document.
To remove an existing anomaly in Pak-Afghanistan trade regime, it has been decided that items in negative list of Afghan Transit Trade (ATT) will not be allowed for re-export.
The commerce minister announced that the government would hire the services of a consultant of international repute for developing best practices for production of organic cotton in the country. For this purpose, training will be imparted to interested farmers. Farmers producing organic cotton will be ensured a guaranteed procurement price through the Trading Corporation of Pakistan (TCP).
Humayun said a consultant of international repute would be hired through the Export Promotion Bureau (EPB) for modernising practices in mining/quarrying.
To encourage export of leather garments, he said that it has been decided that exporters may send 100 samples in a year as against 50 samples allowed.
To encourage promotion of Pakistan quality products in foreign markets, the government has decided that Pakistani exporters who register their products with Pakistani trademarks in foreign countries for export purposes will be provided subsidy equal to 50 percent of official fees of such registration.
DEVELOPMENT OF FOOTWEAR SECTOR: The commerce minister said that the government has decided to hire a consultant of international repute to advise measures which could help in attracting foreign direct investment (FDI) to Pakistan and transform the local industry to become a major player in the world market.
It is also decided that Footwear Development Centres (FDCs) will be set up by the footwear association in Lahore and Karachi with financial assistance from the Export Development Fund (EDF).
Humayun said that since export of agriculture products to the EU will be facilitated by certification of "Eurepgap", it has been decided that 50 percent subsidy would be provided on cost of certification for this purpose in addition to various other certifications like ISO-14000, ISO-17025, Haccp certification, Wrap certification and ECO labelling.
Other steps/incentives, which have been announced to facilitate exports included reduction in cost of freight forwarding, capacity-building on WTO and free trade agreements (FTAs), besides review of National Tariff Commission (NTC).
The minister said that in order to facilitate exporters, it has been decided that 75 percent of the certification cost of the internationally accepted laboratories, verified by the concerned Pakistani embassies, will be borne by the EDF, subject to a maximum of $2,000 per certification.
A special textile garments package in the form of Research and Development(R&D) at 6 percent, besides enhancement of capacity of Karachi Expo Centre by constructing two additional exhibition halls and concessional rates of withholding tax for export services has also been announced.
IMPORT STRATEGY: Humayun said that it has been decided to allow import of equipment temporarily on case-to-case basis for the Pakistani nationals working in international media.
He said that import of parts of pressure horns have been banned, while import of chemicals, precursors such as acetone, acetic, anhydride, anthranilic acid, etc, has been allowed to the pharmaceutical units for which Import Policy will be amended.
It has also been decided to reduce shelf life of food items by 50 percent. Import of palm stearin with blue colour has also been allowed.
The minister announced provision of low-cost raw material to local producers. Import of granules made by recycled plastic waste has also been allowed.