Pakistan Chemists and Druggists Association (PCDA) has suggested that the trade policy be made for a minimum period of five years, said Chairman of PCDA Research and Development (R&D) Committee Dr Mushtaq Noorwala.
He said that trade policy was normally announced for one year as per practice, but a 12-month period was not sufficient for long-term planning and investment.
He noted that Pakistan's economic growth by and large had been impressive over the last six years and projected growth rates were six to seven percent. However, due to a lack of proper infrastructure, especially facilities of port and warehousing industry, the trade was severely impacted, he said, adding that not only the cost of doing business was high, but it was difficult to be globally competitive.
He suggested that the government should give top priority to the development of proper infrastructure to minimise the cost of doing business and to achieve export targets.
Regarding utility cost, he noted that the utility cost of local industry in the recent past had touched high levels, which led to Pakistani products uncompetitive. Similarly, the power tariff rates had gone very high for the industrial sector, thus raising the cost of production.
TO ENCOURAGE THE LOCAL INDUSTRIES TO MEET THE INTERNATIONAL CHALLENGES, IT WAS PROPOSED THAT THE FOLLOWING TARIFF POLICY BE ADOPTED:
-- High productivity achievements.
-- Leakages be controlled.
-- Government control be minimised.
-- Import of all types of power generation plants should be made duty-free and duties on industrial raw materials, spare parts and machinery, not manufactured locally, be reduced to zero rate.
He said that in July 2008, the government allowed import of pharmaceutical raw material and finished goods on the condition that these materials and goods should have at least 75 percent shelf life at the time of filing the import general manifest (IGM).
He said that 75 percent shel flife restriction was very difficult to follow, as sometimes the manufacturers did not have materials, goods available with 75 percent shelf life and they had to wait for fresh batches for many months.
This restriction delayed the production and shortage of essential pharma products in the market, which ultimately led to sufferings of the common people, he said.
It is suggested that the condition of 75 percent be totally done away with or alternatively this might be reduced from 75 percent to 35 percent minimum shellife for the purpose of the filing the IGM, because the shelf life only mattered when applied to finished form of product to be used by the consumers.
He noted that in the case of pharma products this would facilitate the timely availability of life-saving pharmaceutical preparation to the suffering patients as well as the smooth operations of pharma plants with uninterrupted supplies of raw materials.
Referring to sales tax and customs duty, he noted that there was a 20 percent customs duty and a 15 percent sales tax on composite diagnostic re-agents being used in the laboratory for medical tests. He said that prior to 1997-98 finance bill, there was only 15 percent customs duty and a 12.5 percent sales tax on composite diagnostic re-agents. He said that the government was committed to providing maximum help to the common people in the area of medical coverage. To further this objective, it was suggested to lower the customs duty from 20 percent to zero with sales tax exemption.