Gulzar Firoz, Chairman PTA said the trade policy lacked of incentives for exports and particularly there is hardly any incentive for the leather sector. He said that the export target of $35 billion for the next three years is too ambitious and without a proper oriented export policy. He said that even some important and necessary incentives which were in previous trade policy are missed out.
For example, in environment sector there was matching grant allowed for individual tanneries for setting up of effluent treatment plants. Also there was facility of sharing 25 percent financial cost for setting up of labs in individual tanneries, while the third facility which was allowed was "Assistance/reimbursement of 75 percent cost for Mandatory Certifications/Lab Testing from Internationally accepted Labs." All these facilities were allowed in trade policy in 2005-06, but there is no mention about these facilities in the new Strategic Trade Policy.
Gulzar Firoz said that like other value added export sectors including leather products, the same incentive of 4 percent of the FOB value for enhanced exports may also be allowed to "Finished Leather" which is also highly valued item. Gulzar Firoz appealed to the Minister of Commerce to meet the PTA delegation as soon as possible to discuss the issues.-PR