In the backdrop of persistent increase in trade deficit, the Ministry of Commerce should take immediate steps towards initiating a consultation process before finalising trade policy so that country's exports could be enhanced. The Lahore Chamber of Commerce and Industry (LCCI) former President Irfan Qaiser Sheikh stated this while talking to Business Recorder here on Wednesday.
He urged the government and the Ministry of Commerce to take the representatives of the business community, export oriented industries, chambers of commerce and industry on board for evolving an effective, result-oriented and practicable trade policy that could help achieve desire goal of increasing exports, he added.
Irfan Qaiser Sheikh said that since trade of almost all the major items are going to be opened with India from January, 2013 and the Custom duties are also being reduced to the level of 5-percent only, therefore it is very important to take the business community into confidence immediately and devise a trade policy according to the requirement of business community.
He further said that at present there is a huge difference in the cost of doing business in India and Pakistan while the discount rate in India is at 8 percent against 10-percent in Pakistan. The rate of electricity in India which is mainly produced from coal is just Rs 8 per unit whereas in Pakistan it is at Rs 12. Therefore we must need to address the issues of business community in the forth coming Trade Policy before we practically start doing trade with India.
He also asked the government to focus on promotion of regional trade for being more efficient in terms of cost and logistics. The inputs from the stakeholders would be more useful to develop a strategy of engagement with the regional countries which could benefit Pakistan's economy, he maintained.
Irfan Qaiser Sheikh said that serious efforts on the part of government functionaries that could enable Pakistan to take advantage of its strategic location. "No doubt, Pakistan can play a pivotal role in transforming the region into a trade and manufacturing hub but that requires sincere commitment on the part of our commercial attachees who should play an active role rather than doing their routine and formal jobs" he maintained.
In view of the ongoing power outages, high mark up and electricity tariff, worsening law and order situation, our industry is facing tough time in their survival. How it can compete with the regional countries, particularly India whose government is providing all kinds of facilities to the export industry, he added. He was of the view that the trade policy designed in consultation with the exporters and the stakeholders would help minimise negative impact on the country's economy. He said that the government, in the upcoming trade policy should focus on the exports non-tradition items, in view of their huge potential.