Commerce Minister Humayun Akhtar will announce the 'Trade Policy 2006-07' on Monday evening, prepared much in line with the directions of President Pervez Musharraf communicated to the Commerce Ministry on Saturday.
Official sources told Business Recorder that a lot of changes had been made in the original draft of the trade policy in the light of the guidelines given by the President, who also set the export target of $19.5 billion for 2006-07.
"The President has given export target of $19.5 billion and the directions, which are being incorporated in the trade policy.
We have changed all sectoral export targets as per the new target but last-ditch efforts will be made to bring the exports down to $19 billion," said an official of Commerce Ministry on Sunday.
Commerce Ministry was expecting export target of more or less $18 billion, but it has been given a wishful target, which somehow the ministry has to accept, he said.
Another official said that Commerce Secretary gave a revised presentation to Commerce Minister on Sunday to finalise the summary for the Cabinet, which would accord 'ceremonial' approval to the policy.
He said that the Commerce Minister would announce a re-export scheme, according to which those exporters would be encouraged who would import goods for re-export purpose.
He said that measures would be announced to encourage cottage industry on recommendations of Sindh Chief Minister, while special export processing zones would be established in Balochistan.
"We have proposed to the Cabinet to import second-hand construction machinery, airport handling machines, chillers, medical equipment, fire fighting vehicles and garbage carrying vehicles," the official added.
However, import of cars under the baggage scheme would be more tightened through reduction in depreciation from two years to one year, he said.
According to foreign trade data of 2005-07, exports remained short of the target by $440 million--at $16.56 billion--against the target of $17 billion, showing a growth of 14.9 percent.
The country's imports jumped all time high to $28.2 billion, showing an increase of 36.7 percent when compared with $20.627 billion imports of last year.
The trade gap reached an alarming level of $11.64 billion during 2005-06, but, according to Commerce Minister, the import level might remain the same during the current fiscal year.
Sources said that Commerce Minister would also announce establishment of much-awaited Trade Development Authority of Pakistan (TDAP) which would replace Export Promotion Bureau (EPB), and added that several proposals of the initial draft have been withdrawn, including inspection of warehouses and brokerage houses.
It is expected that President would promulgate an ordinance to replace EPB with TDAP, as approval from the parliament would take time.
While reviewing the Trade Policy 2005-06, analysts say that several export-related initiatives, announced in Trade Policy 2005-06 did not materialise due to one reason or the other.
For example, Commerce Ministry announced that trade lobbying firms and consultants would be hired to enhance export and market access in the United States and the European Union (EU).
Quinngillespie Associates, an American firm, had been hired for lobbying for Free Trade Agreement (FTA), Bilateral Investment Treaty and Trade and Investment Facilitation Agreement (TIFA), which has been given a chart of tasks to be completed in one or two years.
However, the name of marketing company has not been finalised which would be given the task of match-making and procurement of orders for Pakistani exporters in the EU member states. Pakistani embassy has dispatched the names of three companies, but the matter is still undecided.
It was also announced that retail sale outlets would be established in major importing countries for introducing and exporting high quality and brand-name exports of Pakistan, but no one is ready to act one the scheme.
The Commerce Ministry had also promised that steps would be taken to reduce cost of transportation but there was no substantial reduction in freight forwarding.
The scheme of promotion of Pakistani trademarks announced in the policy did not attract the exporters.
In the scheme, it was announced that exporters who registered their trade marks abroad for export purposes would be provided subsidy equal to 50 percent of registration fee, sources said, adding that the scheme was announced but no exporter was prepared to follow it.
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