Chairman, Korangi Association of Trade and Industry (KATI), Syed Johar Ali Qandhari has suggested that the government should declare 2011 as "Export Year". Talking to Business Recorder he urged government to devise a comprehensive plan in consultation with trade bodies to boost exports in the country.
He said that due to wrong policies of the government, industrial sector was facing huge problems and a large number of industries have already been closed down whereas volume of non-performing loans has gone up to Rs 500 billion. Qandhari said that how exports would improve in such circumstances when prices of utilities are always being increased.
He said that achieving 22 billion dollar export target seems impossible in present prevailing circumstances. The chairman noted that during present government's tenure power tariff increased by 104 percent and gas tariff by 87 percent which had serious negative impact on industrial production. Citing State Bank of Pakistan (SBP) annual report, he said that Foreign Direct Investment (FDI) has recorded reduction of 40 percent. All these factors have increased unemployment at alarming rate.
When asked what should be done to overcome these problems, he suggested that the government should assure availability of raw material on cut price, provide industrial plots on 15 years easy instalment. Loans should be provided on 6 percent mark-up for construction of factories.
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