FAISALABAD: Advisor to Prime Minister on Commerce, Textile, Industry &Production and Investment Abdul Razak Dawood on Monday said Pakistan hadremained a net loser in the FTAs with Indonesia, Malaysia, Turkey and evenChina.
Addressing the Faisalabad Chamber of Commerce and Industry, he lamentedthat during the last decade, many industrial units had been closed down dueto which Pakistan’s export dwindled from $25-20 billion.
Moreover, he also acknowledged that signing Free Trade Agreements (FTAs)with multiple countries has proved counterproductive for Pakistan’sindustrial sector and the government is currently renegotiatingChina-Pakistan agreement.
Mr Dawood said that Indonesia currently provides duty-free access to 20items including denim and urged exporters to take advantage of thisopportunity.
Regarding the FTA with Malaysia, he said that Federal Secretary CommerceYounus Dagha would visit Kuala Lumpur to renegotiate the agreement.Malaysia exports $1bn worth of goods to the country, whereas Pakistan onlyexports $150 million
He said industrialization through import substitution coupled with exportgrowth through diversification was imperative to put the country on road toprogress and prosperity.
Addressing the Faisalabad Chamber of Commerce and Industry, he lamentedthat during the last decade, many industrial units had been closed down dueto which Pakistan’s export dwindled from $25-20 billion.
He said, “Our exports remained restricted to textile, however, we areplanning to give a comprehensive industrialisation policy, wherein, thefocus will be on engineering, chemical, IT and agriculture sectors insteadof the textile sector alone.” He said that Pakistan had developed a cultureto import everything irrespective of its manufacturing within the country.
“We must shun this trend and encourage ‘Made in Pakistan’ to give asupporting hand to the industrial sector,” he said.
The government is working to fine tune this policy in the light ofproposals and recommendations made by the private sector, he said askingthe business community to submit their recommendations so that governmentcould take appropriate measures to promote ease of doing business and cutdown the cost of doing business.
Read Top Stories
“We will give a framework for the industrial policy to ascertainstrategically important industries so that the government can supportthem,” he remarked adding that some experts approached him that thedevelopment of industrial sector should be left on market dynamics withoutgovernment interference.
“However, I think, it is not the right time as we have to boost ourindustry which is passing through tough internal competition and squeezingthe market,” he added.
Suggesting measures to rationalise the tariff structure, he said thatcontrary to its purpose of discouraging imports, the structure is beingmanipulated to encourage imports. He informed that the government iscurrently revisiting the entire tariff structure which would be included inthe supplementary budget to be announced next year.
Pakistan’s industrial sector is crippled due to poor utility deliverance onpart of the government. Mr Dawood said that the gas problem affecting thesector has been resolved whereas the notification for the provision ofelectricity at 7.5 cents per unit to the zero-rated export sectors wasstill awaited.
He added that in the next meeting of cabinet’s energy committee, he wouldpresent the recommendations of the private sector to the members as itwould help bring down the cost of doing business in the country.
“We have to get International Monetary Fund facility due to our weakeconomic conditions but we hope the rapid industrialisation within the nextone to two years will stabilise national economy,” he explained.
He cited the example of Japan, Korea, Malaysia, Vietnam and Cambodia andsaid that they had supported their industrial sector to achieveself-sufficiency. – APP
