Hyde
SENIOR MODERATOR
- Joined
- Oct 20, 2008
- Messages
- 20,543
- Reaction score
- 20
- Country
- Location
ISLAMABAD (July 27 2009): Commerce Minister Amin Fahim is unveiling three years 2009-12 Strategic Trade Policy Framework (STPF) today according to which 29 percent in exports growth will be projected ie 6 percent in 2009-10, 10 percent and 13 percent in the successive years, sources in Cabinet Division told Business Recorder.
They said that 25-30 percent inland freight subsidy would be announced for cement, marble and engineering goods, official sources told Business Recorder. They said that Commerce Minister would also announce 7-10 percent subsidy on export of seafood items, as this sector is facing hardships due to stringent conditions of the European Union (EU), which is the major buyer.
"Four other major measures to be announced in the Trade Policy are: establishment of a hedge fund to suck up any revision in interest rate; insurance of foreign buyers; credit availability for the industrial sector; and compulsory contractual obligation by Wapda regarding power supply to the industrial sector," sources said. They said that to boost exports, customs duty on import of manmade fibres, other than polyester staple fibre, would be reduced to zero, besides withdrawal of customs duty on import of sizing chemicals.
"Warehouses will be established in major markets for brand development program to launch domestic and international brands. Rationalisation of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading is also part of the STPF," sources added.
Before the announcement, the Trade Policy framework will be presented to the Cabinet for formal approval. The Cabinet is expected to grill Commerce Ministry''s top brass for failing to achieve exports target for 2008-09. Earlier, Commerce Ministry had planned to announce the Trade Policy on July 29, but it was rescheduled as the Commerce Minister will accompany President Asif Ali Zardari during his tour to Tajikistan from July 28. This means that Commerce Secretary Suleman Ghani will address the post-Trade Policy press conference on July 28.
The current year''s export target will be more or less $19.6 billion.
A couple of days ago, Prime Minister Yousaf Raza Gilani had also expressed dismay over the performance of Commerce Ministry in not achieving the export target despite spending most of the time on foreign tours .
The Prime Minister had also turned down a proposal of Commerce Ministry regarding import of three years old sports motorcycles by paying nominal duty. However, disabled persons are being allowed to import used cars on subsidised rate of duty.
In reply to a question, sources said that there would be no change in import policy for used cars despite pressure from the local car manufacturers.
Replying to a question, sources said that there would be nothing special in the Trade Policy with regard to trade with India, like the past. Instead; the Commerce Minister would announce a ban on import of vaccine from India directly. Pakistani companies would be directed to import vaccine from only those Indian firms which are certified by the World Health Organisation (WHO).
Sources said that Commerce Ministry would also envisage signing of Free Trade Agreements (FTAs) with the European Union(EU) and the United States of American(USA). They said that for diversification of exports mixed customs duty would be reduced to zero on import of manmade fibres, other than polyester fibre.
According to sources, initiatives will be taken for greater market access, developing and enlarging acceptability of Pakistan''s textiles and clothing in niche markets and diversification of exports to newer destinations. For this purpose, Free Trade Agreement(FTAs) would be proposed with the EU and USA.
The government would try to get special dispensation under the EU-GSP Scheme. The establishment of Re-construction Opportunity Zones (ROZs) will provide facility of exports to US at zero duty.
After the finalisations of the sites of Zones, the Ministry would set up a dedicated organisation with functional linkages with the provincial governments to ensure efficient utilisation of the facilities, and enforce the compliance issues.
According to sources, initiatives to promote more effective holding of local and participation in foreign exhibitions Pakistan is undertaking concrete measures for the greening of the economy and would see the climate change talks succeed but would resist any effort to misuse the climate change concerns as an NTB or TBT. "Meat and meat products, services sector gemstone and jewellery, agro processing and dairy are also at the centre of STPF, sources added.
