Federal Minister for Commerce Humayun Akhtar Khan will announce Trade Policy 2007-08 on Wednesday after formal approval by the federal cabinet. Informed sources in Prime Minister House told Business Recorder that export target is most likely to be $19 billion minus plus envisaging 8 percent growth in exports during the year.
However, final approval will be given by the federal cabinet to be chaired by the Prime Minister Shaukat Aziz. Target for imports during the current fiscal has not been fixed as was done last year, because the government could not control imports.
"Our imports consist mainly on machinery, raw material, petroleum products and food items whose import cannot be curtailed without impacting economic growth and prices. These imports are essential for sustaining economic activities and stabilisation of prices by augmenting supply position," said an official of Commerce Ministry.
The sources said that the policy has been finalised at a meeting in the Prime Minister House attended by Governor State Bank of Pakistan (SBP), Prime Minister's Advisor on Finance, Dr Salman Shah, Commerce Minister Humayun Akhtar Khan and Chairman Federal Board of Revenue (FBR), Abdullah Yusuf.
Ministry of Commerce, which has miserably failed to achieve the export target of $18.7 billion for the fiscal 2006-07 was focusing on two major proposals in the trade policy, ie incentives for Export Oriented Units (EOUs) and long-term export financing facility for the exporters.
On Tuesday, the ministry officials confirmed that exports hardly crossed $17 billion but did not have any information on imports. However, unconfirmed reports suggest that imports were of $30.7 billion against the target of $ 28 billion.
Humayun Akhtar Khan, who is very vocal against the SBP and Finance Ministry for not taking him into confidence on monetary policies which affect foreign trade, gave a presentation to the meeting and recommended several measures to increase exports and provide incentives to exporters. The sources said that the minister would reveal the steps taken so far to increase exports to the US and European Union (EU) and the reasons of decline in exports.
He would also mention progress on RoZs to be funded by the US in tribal areas and expected fruits of Free Trade Agreement (FTAs) especially with China and Sri Lanka, besides on-going negotiations with other countries.
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