An inter-ministerial meeting to be held in Commerce Ministry and chaired by Planning Commission Deputy Chairman Dr Akram Sheikh on Tuesday, will discuss the causes of decline in exports and devise strategy to keep the growth momentum in line with the target set for the current fiscal year, sources told Business Recorder.
"Commerce Ministry is in serious trouble after exports figures of October showed decline as compared with the figures of last year's October and this year's September," sources said. Commerce Minister Humayun Akhtar acknowledged a few days ago at a press conference here that there was decline in exports growth, and also claimed increase in overall exports.
But his claim proved unfounded when the Federal Bureau of Statistics (FBS) data, released the same day, showed 9.5 percent decline in October from September, and 3.24 percent against October 2005, sources added. They said that the meeting would be attended by all concerned Federal Secretaries including Minfal, Industry, and Revenue Division, and Chief Executive Officer of Trade Development Authority of Pakistan (TDAP).
They said that all Secretaries would be asked to present their reports on sectoral exports, reasons of decline and their viewpoint on future strategy. According to sources, Commerce Secretary Asif Shah is expected to bring about some changes in the foreign trade wing, as the head of this wing is more interested in foreign tours rather than taking measure for improvement in exports.
Sources said that Prime Minister Shaukat Aziz, who is continuously monitoring the performance of Commerce Ministry, had assigned Planning Commission Deputy Chairman to hold brainstorming session with all public sector stakeholders and devise a strategy to boost exports. Commerce Ministry is also conducting a study to evaluate the impact of subsidies on exports, and an officer visited different districts to hear the viewpoint of exporters before finalising the report.
Sources said that Commerce Ministry is of the view that subsidies on export-oriented goods should be phased out as the exporters were paying more attention to cash subsidies than to improving quality, which is essential to compete in international markets.
An analysis of Commerce Ministry has shown that per unit prices of Pakistan's textile products are declining, substantially, while prices of same products in two neighbouring countries, China and India, are improving. "We are suggesting to the government to phase out subsidies, so that the exporters can improve their quality to compete with other countries," Commerce Ministry officials said.
Sources said that Planning Commission Deputy Chairman would submit his report to the President and Prime Minister, after discussing the current exports situation with stakeholders.