The government has planned to restructure the Trade Develop-ment Authority of Pakistan (TDAP) and induct a new lot of professional and competent commercial consulars to project Pakistani goods in regional and international markets, especially in new ones.
"Soon we are going to select a new phase of commercial consulars who can efficiently carry forward the government''s programme to increase exports on a very fast track by occupying more space in regional and international markets and exploring new potential ones such as South Africa and Asean," said Federal Minister for Commerce and Textiles, Khurram Dastagir Khan here on Thursday.
The minister was speaking during an interactive session with members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at the Federation House. He assured the business leaders that the Federal Ministry of Commerce was studying different successful models of trade promoting organisations (TPOs) like that of in Turkey and Germany for the reconstruction of TDAP to make it capable enough to play its efficient and matching role to the vision of the government led by Prime Minister Nawaz Sharif to double the country''s exports during the current fiscal year by extending maximum facilitation and support to the trade and industry and duly projecting Pakistani goods in the world.
President FPCCI Zakria Usman and Vice President of the Confederation of South Asian Chambers of Commerce and former FPCCI president Tariq Sayeed and other FPCCI officials and senior business leaders were of the opinion that the TDAP was doing very little for promotion of trade. Instead, they alleged, it has blocked billions of rupees of exporters in the name of Exports Development Fund (EDF) and has failed to make right use of the huge amount. Billions of rupees are allocated to the EDF to be spent on research and development and for providing technical support to the industries meant for exports. However, they maintained, nothing visible has been done in this regard.
"Over the years, we are contributing one percent of our exports proceeds to the TDAP besides huge funds it gets from the government. But it has done nothing for trade and the country," the business leaders said. Tariq Sayeed suggested that TDAP''s job including holding of exhibitions and sending trade delegations abroad be assigned to FPCCI, which is the apex trade body of the country, for at least one year. "If FPCCI succeeds in fulfilling the responsibilities and gets the required results, it would be proper to wind up the TDAP as we private sector people can do this job better."
The FPCCI leaders also raised the issue of stuck up billions of rupees with Federal Board of Revenue (FBR) owned by exporters of the country in the name of sales tax refunds and customs rebates. Even a small unit is deprived of millions of working capital on this account and facing serious liquidity problem. If these refunds are immediately paid back to the exporters, the exports would witness a big jump, they argued. The Federal Minister for Commerce and Textiles said the government has planned to do certain reforms in FBR and revise SROs culture, taxation system and tariffs. "FBR authorities have been asked to develop a mechanism where trading of the country can be monitored on daily basis so that we can duly benefit from GSP Plus.
He sought recommendations and suggestions from private sector, especially from FPCCI being the apex trade body, for reconstruction of TDAP, to bring reforms/changes in FBR, to remove all hurdles on government''s side especially regulatory hurdles and on other important economic issues even help the government in bridging its knowledge gap. He assured that the input received from FPCCI and other trade bodies would reflect in the coming annual federal budget as well.
"My job is to remove all hurdles in trade and industrialisation in the country and strengthened the role of private sector," he said, adding that the government and private sector would have to work hard to fulfil the requirements and reaping the benefits of GSP-plus status/facility granted to Pakistan by the European Union. He said that the credit for GSP-plus goes to the economic diplomacy initiated by Prime Minister Muhammad Nawaz Sharif and described it as a big achievement for Pakistan.
He highlighted the government''s economic policies/programmes especially for increasing exports and resolution of energy crisis and for ensuring better law and order situation in the country. He showed his confidence that with the help of private sector, the government would succeed in overcoming all social and economic challenges.
He underlined the need for opening up economy as the entire world is going in this direction. Pakistan should also increase trade with India; taking care of our national interests. He said that instead of MFN, now new term non-discriminatory market access (NDMA) has been introduced and Pakistan and India were engaged in dialogue to materialise this at the earliest possible. He said the Prime Minister wanted peace in Afghanistan for trade up to Central Asian States besides running a train up to Turkey via Iran. The government was also going to sign an agreement with CARs for developing strong roads network. Strong connectivity is needed for trade and co-ordination in other economic sectors.
"We want trade not only in goods but in services also," he remarked. The minister informed the business community that the government was going to create a strong structure within next 18 months based on transparency, efficiency and strong check over corruption and misuse of resources. "We need to mobilise our resources including mineral ones," he added. Former vice president FPCCI and member of Board of Governors of Sustainable Development Policy Institute, Engr M A Jabbar suggested that present economy was factor-driven and this should be converted into an efficient economy. He said: "we need diversification and value-addition to be driven by policy interventions by allocating more resources for diversified and value added products. He proposed that it is the job of Ministry of Commerce to formulate SROs and tariffs for rationalised growth of the economy.