Export Promotion Bureau (EPB) Chairman Tariq Ikram informed the business community on Wednesday that EPB is contemplating to prepare national roadmap of all sectors of products to boost exports.
Addressing a seminar on 'Scheme for long-term financing for the export-oriented projects', organised jointly by EPB and Karachi Chamber of Commerce and Industry (KCCI) here, he said that during a recent presentation on exports before the Prime Minister he had presented this idea, which was appreciated by the prime minister.
He said that in preparation of national roadmap for exports all related government departments should be associated, including ministries of commerce and industry and federal and provincial governments.
The roadmap would include infrastructure facilities, supply line, production capacity, availability of raw material etc.
Giving example, he noted that Pakistan has huge reserves of marbles, but it has failed to attract foreign buyers and boost its exports due to small quantity of marble being excavated in the country due to use of old method of using dynamite.
Pakistan marble exports could be many times more if Pakistan would start using modern methods and establish continuous supply line.
The EPB chairman said that warehousing scheme in Kenya has been finalised. The warehouse has been acquired on rental basis and it can be vacated on three months' notice
Now the business community has the facility to store goods, collect orders and then supply the same, he added..
He said that now the EPB is working to have warehousing facility in Poland, Russia, UK and USA.
He said that the government has provided Rs 1 billion freight subsidy this year. This subsidy can be provided under law for export to those countries where Pakistan's exports are less than $5 million. Pakistan is providing freight subsidy for export to 26 countries, he added.
The EBP chief said that in the last five years Pakistan's exports increased by 85 percent from $8 billion to $14 billion due to positive policies of the government. Exports increased by 96 percent to East Europe.
This year Pakistan exported around 1005 new non-traditional items. He said that Pakistan is now focusing on more exports to Africa and East European countries.
Regarding high mark-up rates in Pakistan he said that the State Bank of Pakistan was making efforts to control inflation. He noted that mark-up rates were around 14 to 15 percent a few years back. They were reduced to 3.5 percent to 4 percent. Now they once again have started rising.
He said that EBP would provide consultation to exporters who want to enhance production, establish new units for export, improve quality etc EPB will pay 50 percent of consultation charges.
EPB Trade and Finance Consultant Tahir Jameel Naqvi said that long-term financing scheme has been launched to enhance production capacity of existing projects, including small and medium enterprises (SMEs) or establish new units by importing machinery.
He said that a separate scheme has been introduced to finance those projects that intend to purchase locally made machinery.
SBP Senior Joint Director, Banking Policy Department, Qasim Nawaz, said that under long-term financing scheme project financing is allowed for both new and existing units whose exports are around 50 percent of their total production.
He said that under the scheme 50 percent of the financing limit should be used for SME projects.
He said under the scheme finances can be used for upgradation of various projects, quality improvement, relocation of projects from abroad to Pakistan and establishing units in Export Processing Zones (EPZ).
He said that spinning sector, that is already getting adequate finances under textile vision, is not eligible for financing under the scheme, whereas weaving sector is eligible.
Welcoming the guests, KCCI President Khalid Firoz said that the country is facing both cost-push and demand-pull inflation, but the component of cost-push inflation is much larger than the demand-pull component.
The persistent increase in the prices of petrol, gas etc do have a cost-escalating impact both on investment and production through various channels.