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Export plan 2006-2013: Major incentives for foreign airlines in the offing

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Thursday, December 07, 2006

Export plan 2006-2013: Major incentives for foreign airlines in the offing

* Cut in landing charges, fuel prices envisaged

By Sajid Chaudhry

ISLAMABAD: The seven-year action plan which has been finalised to enhance the country’s exports, envisages rationalising high-landing charges and fuel prices for the foreign airlines to increase the commercial cargo lifting capacity of the country, a senior official at Planning Commission told Daily Times on Wednesday.

A committee headed by Dr Akram Sheikh, Deputy Chairman Planning Commission has recently finalised the Export Plan for Pakistan 2006-2013 to enhance current exports GDP ratio from 13% to 15% of GDP aiming at increasing exports from $16.5 billion to $43.3 billion by 2013.

Prime Minister Shaukat Aziz taking notice of the drop in the targeted exports of the country had constituted a high level committee in the chairmanship of Dr Akram Sheikh, Deputy Chairman Planning Commission to prepare a plan fore enhancing exports from 13% of the GDP to 15% of the GDP for the medium term in consultation with all stakeholders.

The committee, which finalised the Export Plan for Pakistan 2006-2013, while analysing constraints impeding exports due to cargo handling capacity of the country has included in action plan “capacity to lift cargo be increased by rationalisation of high-landing charges and fuel prices for foreign airlines”. The committee was informed that as less number of airlines is operating, cargo lifted from Pakistan is constrained.

The committee was informed that time involved in completion of various business processes, especially the customs, at the airports is unduly long. The committee recommended that the Pakistan Customs Computerised System (PACCS) may be extended to all airports and all services providers may be networked to function as a single window.

The committee was informed that most of the airports do not have adequate capacity to handle commercial cargo. As an action it was recommended to expand and modernise the commercial cargo terminals of the Karachi, Islamabad and Peshawar Airports.

It was brought to the notice of the committee that airports also lack cargo-scanning facilities and physical examination causes damage and pilferage. The committee in its recommendations for action plan that modern cargo scanning equipments capable of detecting explosives are to be installed for handling of cargo at all international airports.

One of the constraint impeding exports was identified as during peak season of exports of certain commodities like rice, shipping companies each year increases kinnow and mangoes shipping freight. It was included in the action plan that saving on foreign exchange can be achieved through low freight charges by allowing ‘flag of convenience’ to 150 vessels registered by Pakistani expatriates abroad.

The committee also included in the action plan, facilitating the setting up of cold storage facilities near the international airports by private sector to address the issue of losses of perishable commodities before exports.

By implementing action plan the textile and garment sector’s exports are projected to be increased from 9.98 billion in the fiscal year 2006 to $24.36 billion by fiscal year 2013. Rice exports, which stand at present at $1.11 billion, would be enhanced to $2.5 billion by year 2013. Leather and leather products had fetched $1.09 billion last fiscal year, which would be increased to $2.26 billion. The exports of engineering sector, which at present stand at $0.21 billion, would be enhanced to $2.40 billion.

The fruits and vegetables are projected to be increased from $140 million to $370 million, meat and meat preparations from $20 million to $100 million, fish and fish preparations from $200 million to $990 million, carpets, rugs and tapestry $250 million to $370 million, sports goods from $350 million to $920 million, surgical instruments from $160 million to $420 million, cutlery from $30 million to $110 million, furniture from $10 million to 500 million, pharmaceutical products from 80 million to 290 million, marble and granite from $20 million to 680 million and gems and jewellery $20 million to $690 million and other products including services and defence exports from $2.89 million to $6.32 million.

http://www.dailytimes.com.pk/default.asp?page=2006\12\07\story_7-12-2006_pg5_2
 

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