FCCI expresses doubts over $95 billion export target

Export target of $95 billion would be difficult to achieve, envisaged by the Strategic Trade Policy Framework (STPF) 2012-15, without uninterrupted supply of electricity and gas and improving the law and order situation, said Mian Zahid Aslam, President Faisalabad Chamber of Commerce & Industry (FCCI) on Saturday.
He continued that statistics reveal unhealthy trend in the growth of Large Scale Manufacturing (LSM) and relocation of industries to other countries notably Bangladesh is getting hot due to load-shedding, high input costs and low credit availability to the private sector - an engine of growth, due to heavy borrowings by the government from banking sector.
It is evident that natural gas plays a dominant role in the country's energy mix and textile sector largely depends for full scale production process on the uninterrupted supply of gas also, he added. Depending on the forecasts for gas demand - supply gap in the following years, he apprehended that production capacity utilisation of industries will remain hostage to the lowest ebb if load-shedding of gas and electricity is not overcome by the government now and in future.
He appreciated the positive steps as to establish Exim Bank, Pakistan Land Port Authority and other export-oriented measures in STPF 2012-15. He, however, said that $95 billion export target would be difficult to achieve without uninterrupted supply of electricity and gas and improving the law and order situation in the country.
Chamber Chief stated that textile sector is the largest contributor in the national exports, out of $14 billion exports of textile, $10 billion are originated from Punjab where Faisalabad contributes to $4 billion per annum. He said that 80 per cent textile industries are located in Punjab. Owing to this severe shortage of electricity and gas, it will be difficult even to meet the export target of $16 billion for the year 2012-13, which is evident from 60 per cent less orders received by Pakistani exporters in the recent 'Heimtex' Germany as foreign buyers lack trust for on time shipment of their orders.
He urged the government to provide uninterrupted supply of gas and electricity to the textile industries particularly in Punjab, lowering the cost of doing business, reduced cost of raw materials and improved law and order situation to achieve the export target envisaged in the STPF 2012-15.