President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Riaz Ahmed Tata described the Trade Policy 2004-05 as realistic, trader facilitator and growth-oriented.
Tata, while giving his comments to APP on national trade policy here, was very optimistic about achievement of export target. "13.7 billion export target was easily achievable especially due to end of textile quota when WTO would come into effect in January 2005," he noted.
He said textile sector had great potential and would take lead in this regard. It has already registered 11.1 percent growth in 2003-04 and would boost remarkably if the government takes for proper care.
He said although export of non-traditional items has increased over last fiscal year, but it is traditional items, which could turn the export target set for 2004-05 into reality.
The FPCCI chief, however, expressed reservations over the announced scheme for rehabilitation of infrastructure in industrial and trading estates like SITE and Korangi industrial areas.
It would be quite unaffordable for the businessmen to contribute in this scheme as they were already over-burdened with huge taxes and duties besides high cost of doing business, he said
He said over all the trade policy was very good and would encourage investment and trade.
Vice President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and in-charge WTO Resource Centre of FPCCI Engr. M. A. Jabbar said on Thursday that the trade policy has rightly recognised doing business under international trading laws.In his reaction to trade policy 2004-05 Jabbar, pursuing the basis of trade policy said it has also recognised the need for compliance of trade and environment multilateral agreement, he observed while talking to APP here.
He said this correction was identified by promising timely setting up of combined effluent treatment plants.
The motivations for industry to set up pollution treatment plants is based on providing incentives by picking up 6 percent mark-up from Export Development Account.
The policy has also recognised the need for reducing the cost of doing business by ingredients other than subsidies such as reducing regulatory framework burden and reforming tax system.
Trade policy has also come up for encouraging trade through bilateral agreements and regional trade agreements that showed trade policy would provide rescue for promoting trade through agreements other than multilateral agreements, which is moving very slow for consensus on development agenda.
The indication given for strengthening National Tariff Commission was appreciable as it could use best of trade defence laws for putting anti-dumping duties on dumped goods causing injury to domestic producers.
The policy has recognised enforcement of intellectual property rights in context of trade related intellectual property rights agreement of WTO to save our exports from any likely sanction due to weak compliant position of country.
The policy recognising promotion of trade with OIC member countries was right direction thinking.
The policy also looks forward for proposing support for agro-processing zones due to ongoing negotiations on agreement of agriculture of WTO wherein the developing countries were pressing for reducing subsidies by developed countries on their agreed products.
Former chairman, Rice Exporters Association of Pakistan (REAP) Abdul Rahim Janoo on Thursday welcomed the trade policy saying that it will boost exports.
Commenting on trade policy announced by the Commerce Minister Humayun Akhtar Khan on television and radio, he said that rehabilitation of infrastructure in various industrial estates in the country would boost industrial production.
He said this would also increase country's exports and revive sick units. The revival of sick units will generate employment opportunities in the country, which is the need of the hour.
Janoo said the EPB should be asked to clear payments against the sponsoring of delegations that made visit to explore new markets within one month. He said that delay in payments creates problems for trade associations.
Chairman, Garments Manufactures and Exporters Association Pakistan M. Zubair Motiwala has termed the trade policy 2004-05 as proactive and growth oriented. Motiwala who is also an ex-president of Karachi Chamber of Commerce and Industry, giving his reaction on the policy to APP, here on Thursday said the policy would boost trade in traditional as well as non-traditional sectors.
"Very good job has been done regarding removal of non-tariff barriers," he observed.
He said the export target was easily achievable. After implementation of WTO regime, textile quotas would he abolished and Pakistan would be beneficiary of the situation, he added. "We would have more sales and meeting of the export target is no problem," he remarked.
He noted that setting up of effluent treatment plant was a vital step especially in the wake of WTO, which calls for better environment.
The government's move for improvement of infrastructure in industrial and trading estates would prove a milestone towards accelerating industrialisation process and make the local industries compatible in global market.
However, he said, the federal, provincial and district governments should arrange the money for this scheme as the businessmen have lost affordability for paying multiple taxes and duties, due to high cost of doing business including exorbitant utility bills.
He pointed out that besides Wapda, KESC has also reduced its tariff as earlier announced by the government. He called for uniformity of power tariff throughout the country.
Chairman, Korangi Association of Trade and Industry (KATI) Mian Zahid Hussain termed the budget very good as a whole. He especially lauded the cutting of duties to 5 percent on import of plant machinery and equipment and making the import of industrial raw materials duty free.
He also praised the government for bearing the expenses of holding exhibitions in abroad by women entrepreneurs of the country who were otherwise felt handicapped in this regard.
This would help boost trade and meeting exports target as well, the KATI chief remarked.
Small and medium enterprises (SMEs) will be benefited more due to incentives announced in the trade policy 2004-2005 by the Commerce Minister Humayun Akhtar Khan.
This was stated by President, Union of Small and Medium Enterprises (UNISAME) Zulfikar Thaver while commenting on the new trade policy here on Thursday.
He said SMEs were the backbone of economy and these will benefit from the incentives in the policy.
He said that very realistic approach has been adopted in framing the trade policy, which will boost industrial activities in the country.
He was of the view that most of the steps announced in the policy had reasons and logic. These were the outstanding demands of trade and industry, he added.
However, Thaver said that some of the anomalies, which existed in the budget, were also ignored in the trade policy.
He said the duty on imported raw materials for industrial use was still higher than the finished products.
Citing example of aluminium foil, he said that the raw material has a duty of 20 percent while finished aluminium foil was imported at 10 percent duty.