Exports target impossible to be achieved: Ghani

KARACHI - Secretary Commerce Suleman Ghani Tuesday said that the target of exports was impossible to be achieved this year.
He invited suggestions from Karachi Chamber of Commerce and Industry on procedure/modalities to implement Hedge Fund being created from Government equity to support exporters and the utilities like Discos selling their services to the people.
Through this Fund, we want to support exporters and power distribution companies without coming into clash with IMF which is against subsidies. We want to promote domestic commerce, the Commerce Secretary said in a session with members of KCCI here at the Chamber.
The meeting discussed the draft trade policy and incorporate any recommendations to make this national document more practical and result-oriented enjoying support of all the stakeholders.
He said a meeting with business community representing all major trade organizations and Chambers will be held in Islamabad in next few days to give the trade policy a final shape and get wide support for the policy. The policy would be announced by mid of July. The government was trying to provide a breathing space to industry by maximum support and facilitation.
Among others, the meeting was attended by Leader of Businessmen Group in KCCI Siraj Kassam Teli , President KCCI Anjum Nisar , Chairman SITE Association of Industry and former vice president FPCCI Engr. M.A. Jabbar, Advisor to Sindh Chief Minister on Provincial Investment and former president KCCI M Zubair Motiwala , KCCI Senior Vice President Muhammad Jawed Bilwani, Vice President KCCI Mohammad Ali were present.
The Commerce Secretary assured KCCI leadership that the Government was re-negotiating Afghan Transit Trade for certain reasons and new agreement would be to the satisfaction of the business community who have reservations on this account.
He said the Government was working on to engage certain local insurance companies to provide insurance cover to foreign tourists and those visiting Pakistan for business purpose to encourage them.
KCCI members urged the Secretary to improve mechanism to use Export Development Fund (EDF) with the help of foreign exchange manual and that it should be inquired from State Bank Pakistan how many new people companies are financed through EDF facility.
Preident KCCI Anjum Nisar emphasized the productive /need-based financing by the Government institutions.
KCCI members urged that inter-ministerial committee set up by former Commerce Minister Humayyun Akhtar be activated to play its role of facilitating the businessmen who are compelled to visit various offices of different Ministries to get their business related issues resolved.
The Secretary also agreed to the proposal by KCCI that maximum participation of Pakistans businessmen be arranged in World Agri-Trade exhibition scheduled to be held in October 2009 in Malaysia.
Yes, TDAP would work on this agenda, he assured.
Chairman Site Association of Industry , Engr. M.A. Jabbar invited attention of Federal Commerce Secretary that we have to develop strategic trade policy on the needs of import substitution and improving the exportability of our products to contain the deficit in trade. The objectives of trade policy in addition also encompasses the promotion of domestic commerce and local industry, he said.
He said that local industry can be rescued against wrath of competing imports through providing market access in the public sector development programmes. The improvement of quality through increase in absorption of the product by the PSDP will be introducing surplus products for export markets.
He said that industry is confronting the hassle and harassment of inspections agencies, in specific labour levies related institutions make interferences in the smooth working of industry.
He suggested that Corporate social responsibility should be eased by self clearances through payments by the industry as of last year bench mark to suffice the need of no inspection which can be also progressive with the progress of turnover of industry.
Engr M A Jabbar also advised Commerce Secretary to send SOS notes to Federal Bureau of Revenue (FBR) which is in the process of budget making and issuance of SROs. He said that the target of trade policy to help the SME growth needs market space through SROs.
Projects, plant, equipments and machinery for the investment imported from 0-10pc custom duty should provide inputs at zero percent custom duty on raw materials for those SMEs who can provide parts and components for these projects to serve the cascading of tariffs. He said that this will be not dictating policies for foreign investors but it will be facilitating policy for SMEs to improve the cost competitiveness, on the basis of which products would be sold to the projects, he said.
The Chairman SAI maintained that SBP has discriminatory policies for industries at large and it only makes policies for few influential sectors such as recently concessional cost of financing for captive powers. He said that this facility should be available to SME also if its growth is focused in the trade policy paper disseminated for the consumption.
Engr. M.A. Jabbar invited the attention of commerce secretary on steel import issue which has created conflicts and contradictions in customs clearances due to no clear divide line of identifying primary and secondary on the basis of its value.
He said that the value of secondary is kept close to the value of primary with 1-2 of difference in custom duties and all these are without any logics. These needs to be resolved as the raw materials in whatever form are ultimately used in some manufacturing.
He requested commerce secretary to resolve this issue on urgent basis so that the exchange links between facilitation and business are supportive for doing business.
Leader of BMG Group in KCCI and former president KCCI, Siraj Kassam Teli urged the Government that only genuine business representatives be taken on board during consultations and policy making process for better economic results and in the interest of the country.
Advisor to Sindh Chief Minister on Provincial Investment and former president KCCI Muhammad Zubair Motiwala.
He welcomed the Secretarys suggestion that business community through their representatives should evaluate the performance of Commercial Attachees in various countries and forwards the findings/suggestions to Ministry of Commerce for further improvement or the replacement to strengthen exports.