Pakistan boosts exports in Trade Policy for 2004-05
Pakistani government has set an export target of $13.7 billion and import target of $16.7 billion in its incentives-laden Trade Policy for 2004-05 (July-June), as announced by Commerce Minister Humayun Akhtar Khan, last week. The last financial year has seen exports of leather and leather products rise by 4% to $723 million.
Mr Fawad Ijaz Khan, Chairman of PLGMEA (Pakistan Leather Garments Manufacturers and Exporters Association), has welcomed the export promotion measures. Several of these have been transferred from last year's trade policy.
Among the new incentives is the correction of the 2000 Import Policy that restricted the import of furs. PLGME members import fur trimmings mostly from European and other developed countries. As these countries follow international conventions strictly and adhere to the CITES appendices, which regulate the trade of wild animals and plants, disallowing imports of such fur trimmings had been regarded unjust and harmful by Pakistani importers. However, the trade policy for the use of domestic furs as fur trimmings in leather garments production will not be relaxed.
Other significant measures of export promotion include the increase in the monetary limit of export samples from $10,000 to $25,000 annually. This is to offer exporters greater flexibility in sampling for foreign buyers and allow them to form strategic alliances with prominent international buyers.
The incentive for effluent treatment plants will also prove beneficial to the leather industry, Mr Khan said, as will cheaper 'bulk' rates and 'off-peak' rates to exporters, in reducing their costs and boosting their competitiveness in international markets.
The scheme to enhance labour productivity is to bring labour-intensive export industries, like leather and cotton garments, abreast with latest skills and technologies worldwide.
The long-term financing scheme for exporters, announced by SBP (State Bank of
According to Mr Fawad the various schemes announced in the Trade Policy 2004-2005 for infrastructure development will have a positive impact on export performance but he criticised the decision to fund mega projects like Expo Pakistan 2005 from EDF (Enterprise Development Facility). Such infrastructure developmental projects of capital financing nature should be undertaken with the help of budgetary allocations like social development projects of health, education, utilities etc., said Mr Fawad.
