Traders firmly believe that the country $22.1 billion exports' target for the current fiscal will likely fall short by at least 15 percent (likely to reach $18 billion by June 30) only because of the persistent power and gas shortage, soaring input cost, global economic downturn and the deteriorated law and order situation.
Expressing concerns over the present state of trade and economy, they said that the country's exports during the first 10 months of the current fiscal (FY09) shrank by 3.1 percent despite a contraction of 16 percent or $2.6 billion in trade deficit. It may be mentioned that exports had grown 8.5 percent during the same period of the last fiscal year.
Presently, total exports stand at $14.762 billion during the period of Jul-Apr FY09 against the fiscal target of $22.1 billion, which is unlikely to stretch to the proposed target, they said, adding that the import bill could be scaled down with regulatory duties on luxury products from 25 percent to 50 percent.
They said that the government will have to make exports of $7.4 billion in two months (May-June) to hit the country's historic exports target, which, in present situation was next to impossible as the country's per month average exports have been $1.5 billion so far.
Keeping in view the poor economic situation, the country is unlikely to even reach the last fiscal year's exports target of 19.2 billion, they maintained. Former Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Ijaz A. Khokhar told Business Recorder on Friday that the country may also face double shortfall in exports in the next fiscal year, if overall situation remains unchanged.
He urged upon government to introduce long and short terms policies for the growth of small and medium enterprises in the coming trade policy if it really intends to augment the country's exports manifold. "Future investment in SME sector is seemed unlikely due to rising cost of input, law and order situation and surrendering of banks to lend money to the industry, he said.
For putting the in order, the government has to resolve all the outstanding issues, which were also highlighted by the central bank of Pakistan, including the power shortage, he said, adding that the trade policy should carry long and short term policies so that survival of ailing industrial units could be made possible.
He proposed to the government to evolve the next trade policy, which is likely for a three-year period, in such a way that it should deal with every sector separately as problems of all are not the same in many ways.
The government should promote industrialisation in the country by providing the same investment facilities which it has been giving to foreign direct investors in the country, he demanded, adding that the local businessmen are ready to invest in the $dollars instead of Pak rupees.
Ijaz Khokhar urged the textile ministry to first provide all the stakeholders with a copy of textile policy draft before holding talks with them so that they could properly read it and present their views on issues of textile industry more effectively.