Karachi Chamber of Commerce and Industry (KCCI) has suggested the government to allow import of finished pharmaceuticals from India.
In its suggestions for Trade Policy for the year 2006-07, KCCI noted that finished pharmaceuticals are available in India at very affordable prices then they are in Pakistan.
The chamber noted that the reason of lower prices of pharmaceuticals in India is because India is producing over 90 percent of its pharmaceutical raw material requirements indigenously whereas Pakistan is almost totally dependent upon its import.
The chamber pleaded that imports of finished pharmaceuticals should be allowed from India, at lest for those finished products, which are not manufactured locally.
The chamber further suggested that the ban on the import of machinery and parts in second hand condition be lifted.
The chamber pointed out that import of machinery and parts in second hand conditions, under the current trade policy 2004-05 Para (4) machinery, specified in appendix C of import policy order are not allowed to be imported. The plea behind this ban is the protection to local engineering industries manufacturing these goods.
The chamber noted that import of iron and steel by commercial importers as well as industrial consumers be allowed in Pakistan. The commercial importers are mainly engaged in import of secondary steel sheets under H.S. code No 70.900, 70,7000 on job lot basis.
As per appendix A , Serial No 10 of current import policy 2005-06, import of iron and steel is banned and it allows import of only the following.
1, Iron and steel (excluding stainless steel) sheets and plates in cut length or coils minimum width 20 inch and maximum length 48 inch.
2, Tin sheets and plates of one side not less than 18 inch.
3, stainless steel sheets, coils, plates and circles of AISI-200. AISI- 300 and or AISI-400 sires only.
The chamber mentioned that if the consignment reveal any sheet or pack of sheets in the size below other than the width and length sizes mentioned in the import policy, apart from the business/ transactional loss, the importer is harassed by the customs on the pretext that the import of this size is banned.
The chamber further pointed out the fact is that when the importer buys secondary material, it is not possible to exclude the small size from the lot of sheets as some containers hold 27000 kilos, and in this lot if 2000 to 3000 kilos of small size sheets are seen, the trouble starts, it is not possible for the exporter at the port of loading to segregate the small sheets from the lot, as it will again increase the price. The secondary is bought on as it is basis and on lot-to-lot basis.
The chamber noted that there is no size restriction for the import of prime material. Besides the importer does not import small size sheets intentionally, because importers would be losing his price value of material because of the small size. This restriction was imposed in the early import days when the import was discouraged, and the government was keen to note that the foreign exchange of the country was not misused.
In this regard the chamber suggested that the anomaly in the import policy be removed and import of steel sheets irrespective of size be allowed.
The chamber demanded abolition of printing of retail price on imported goods.
The chamber noted that different quantities of products are imported. Big importers import their products in bulk and in turn get better prices from their suppliers while small importers who import smaller quantities do not enjoy the befit of competitive prices. Therefore, once the price is printed on the product then no room is left for small imports to adjust to the situation.
Moreover factors like fluctuation in foreign currency ie dollars and Euro lead to changes in prices but the prices cannot be adjusted in proportion to foreign currencies fluctuation if they are printed on the product.