Effective enforcement of government policies may help boost industrial sector: traders

Traders and industrialists have linked industrial revival with the implementation of the government policies and the ability of its economic managers to fulfil the promises they made with the industrialists at different forums.
The representatives of the various trade associations expressed these views while addressing a programme on capacity-building of journalists, which was organised by the Lahore Economic Journalist Association (LEJA) here on Wednesday.
The representatives of Pakistan Readymade Garments Manufacturers Association (Pragea), Pakistan Hosiery Manufacturers Association (PHMA), All Pakistan Textile Mills Association (Aptma), Pakistan Industrial Traders Association Front (PIAF) and Lahore Chamber of Commerce and Industry (LCCI) gave their views on current economic scenario.
They pointed out that the economic turmoil in the country is due to the inability of the government to implement its policies effectively, and global recession is nothing to do with this economic instability. They said many policies failed in the past, though formulated in consultation with the stakeholders, because there were flaws at the implementing stage.
The interpretation of bureaucracy on many policy matters was not in line with the spirit of the policy, they observed. Naseer Malik, Pragmea former chairman (Punjab), said that the textile policy formulated with input from all textile stakeholders was an excellent document. However, he added, the facilitation provided under the textile policy linked with the registration of all exporters with the Textile Ministry through their respective associations.
"Some of SMEs were not in a position to fulfil all the requirements incorporated by the ministry for registration." He said that it should be made mandatory for all associations to fulfil the requirements within 3 to 6 months so that they could avail the facilitation and help boost exports.
Shahzad Azam Khan, PHMA Former Chairman, said Federal Finance Minister Shaukat Tarin has been promising since last one year that R&D refunds held for the last two years would be immediately released but the promise has not yet been executed.
Moreover, he said that it was unjust to withhold genuine refunds of the exporters, which has caused damaged the creditability of the government. He added that former advisor to PM on Petroleum Dr Asim promised that apparel and knitwear units would be exempted from natural gas load shedding, a promise that has not been fulfilled. Aptma Vice Chairman Mohammad Akber said that power and energy shortage has crippled the basic textile industry. He said that the prime minister and other government functionaries promised that textile spinners would be treated at par with fertiliser units, but the SNGPL has already notified Aptma of gas cuts for three months, beginning in November. "For the last six months textile sector was subjected to daily five hours load shedding. Financial constraints of basic textile units have been compounded by the high mark-up of the banks," he added.
PIAF Chairman Irfan Qaiser Shiekh said high mark-up, high energy cost and its shortage, deteriorating law and order situation and political instability have played havoc with the manufacturing sector.
"Electricity tariff for industrial sector in Pakistan is Rs 9 per unit against Rs 6.50 in India, Rs 6 in Bangladesh and Rs 7 in Sri Lanka. Bank mark up in Pakistan is 16 percent whereas in India it is 7 percent ," he added.
Farooq Iftikhar, representing LPG distributors, said that the government should grant licenses for 900 tonne of LPG gas, in order to save natural gas. He also said the government should address the legal issues that have stalled opening of tenders for installing LPG production plants at the sites where LPG could be produced.
Meanwhile, LCCI President Zafar Iqbal Chaudhry said that audit of corporate sector at their premises is not acceptable to the traders and industrialists. He praised the Kerry Lugar Bill and said that conditions detrimental to Pakistan's interest were removed with the passage of time. He also said power shortage is a regional issue; electricity shortage in the Indian Punjab is to the tune of 8000 mega watts and industries there were mostly run on furnace oil run generators.
"Pakistan should concentrate on producing electricity from Thar coal to reduce the cost and shortage of power," he added. LEJA President Mansoor Ahmad, Vice President Itrat Bashir, General Secretary Sudhir Chaudhry and Treasurar Imran Adnan also spoke on the occasion. Later, the trade bodies representatives distributed 23 laptops to the economic journalists of Lahore.