ISLAMABAD - The PPP-led coalition government has unveiled a three-year trade policy framework, at a time when few weeks have left of its ongoing tenure.The much-delayed Strategic Trade Policy Framework (STPF) 2012-15 envisages, among other things, exports target of $95 billion, establishment of an Export-Import (Exim) Bank and establishment of Pakistan Land Port Authority (PLPA).The policy framework, which was supposed to be announced in July or August last year, was approved by the federal cabinet in its Thursday meeting chaired by Prime Minister Raja Pervaiz Ashraf.According to the draft, the main goals of STPF are: making export sector the engine of growth; enhancing Pakistan’s export competitiveness in the short as well as the long term and increasing Pakistan’s cumulative exports to $95 billion during 2012-15.As part of this policy, an Export-Import Bank (Exim Bank) will be established that, with the help of provincial governments, would provide export credit as well as supplier’s credit and export credit guarantees. It will help reduce cost of borrowing for the export sector on long term basis and help reduce their risks.The government has also planned Pakistan Land Port Authority (PLPA) to effectively curb human trafficking and informal trade (smuggling) by converting it into formal trade through choking the sea, border and land routes. The proposed authority would be a focal centre for all federal and provincial anti-smuggling agencies and would ensure enhanced coordination among them at borders, ports, land routes and waterways to curb smuggling to and from the other countries. The PLPA would be responsible for cohesive management of cross-border movement of goods and people. It would be vested with powers on the lines of other such bodies as port authorities and the civil aviation.State Bank of Pakistan will start Long Term Financing Facility (LTFF) to provide relatively concessional financing to manufacturer cum exporters to increase their production capacity. To encourage fresh investments in export oriented industries in a tough economic environment, it is proposed to provide mark up support to selected sectors by making available LTFF at 2 percent lower than the prevailing rates. The eligible sectors would be: leather, engineering, horticulture, processed food, marble and granite, sports goods and computer related services.To ease the constraints on running capital, it is proposed to provide a further markup reduction of 1.5 points from the prevailing rates to these focus sectors: fish and fish preparation, processed foods, meat and meat preparations, sports goods, footwear, leather products, surgical goods, cutlery, onyx products, pharmaceuticals, electric fans, transport equipment and electrical machinery.To offset the increasing cost of utilities, especially those due to electricity and gas outages, it is proposed that selected non-textile exporting sectors may be provided ad-hoc relief of 3 percent of the FOB, in order to stay in the export business. The proposed sectors are fish and fish preparations, processed foods, meat and meat preparation, sports goods, footwear, surgical goods/ medical instruments, cutlery, electric fans, auto parts and furniture.To reduce the wastage of produce, increase income of the farmers and foreign exchange earnings, it is proposed that the government may provide 50 percent subsidy in the cost of plants and machinery for dates and olive processing. To incentivise establishment of fruits processing plants in GB, which is at greater distance from major ports and urban centres, it is proposed that government may also provide 50percent subsidy in the cost of plant and machinery for establishing processing plants for fruits and vegetables in Gilgit Baltistan.In order to increase processed meat exports it is proposed to provide mark-up subsidy at 50 percent of the prevailing markup rate for setting up of meat processing plants in KP, Balochistan and Gilgit Baltistan. This initiative will go a long way in increasing meat preparation exports from the under developed regions of Pakistan and will also create job opportunities in these areas.To ensure that only quality rice is exported, it is vital that labs testing quality of rice are well equipped and recognised. There is a need to upgrade these labs and get them accredited with international bodies. This would help establish a mechanism, which is transparent, cheap and smooth for rice exports.To save the local tyre industry and to encourage the use of tyre scrap as alternate fuel, the following proposals have been submitted: (i) import of waste and second hand tyres may be allowed only in “at least two completely cut, detached from each other pieces form” to industrial consumers only subject to fulfilment of environmental requirements of using tyres as a fuel to be prescribed by Federal/Provincial Environmental Authorities and ;(ii) other types of rubber waste and scrap may continue to be imported with the same condition of completely cut into pieces.