Advisor to Prime Minister on Commerce, Textile, Industry & Production and
Investment Abdul Razak Dawood on Monday said Pakistan had remained a
net loser in the FTAs with Indonesia, Malaysia, Turkey and even China.
Addressing the Faisalabad Cham--ber of Commerce and Industry, he
lamented that during the last decade, many industrial units had been closed
down due to which Pakistan’s export dwindled from $25-20 billion.
Moreover, he also acknowledged that signing Free Trade Agree-ments
(FTAs) with multiple countries has proved counterproductive for Pakistan’s
industrial sector and the government is currently renegotiating ChinaPakistan
agreement.
Mr Dawood said that Indonesia currently provides duty-free access to 20
items including denim and urged exporters to take advantage of this
opportunity.
Regarding the FTA with Malaysia, he said that Federal Secretary Commerce
Younus Dagha would visit Kuala Lumpur to renegotiate the agreement.
Malaysia exports $1bn worth of goods to the country, whereas Pakistan only
exports $150 million He said industrialization through import substitution coupled with export
growth through diversification was imperative to put the country on road to
progress and prosperity.
Addressing the Faisalabad Cham--ber of Commerce and Industry, he
lamented that during the last decade, many industrial units had been closed
down due to which Pakistan’s export dwindled from $25-20 billion.
He said, “Our exports remained restricted to textile, however, we are
planning to give a comprehensive industrialisation policy, wherein, the focus
will be on engineering, chemical, IT and agriculture sectors instead of the
textile sector alone.” He said that Pakistan had developed a culture to import
everything irrespective of its manufacturing within the country.
“We must shun this trend and encourage ‘Made in Pakistan’ to give a
supporting hand to the industrial sector,” he said.
The government is working to fine tune this policy in the light of proposals
and recommendations made by the private sector, he said asking the
business community to submit their recommendations so that government
could take appropriate measures to promote ease of doing business and cut
down the cost of doing business
“We will give a framework for the industrial policy to ascertain strategically
important industries so that the government can support them,” he
remarked adding that some experts approached him that the development
of industrial -sector should be left on market dynamics without government
interference.
“However, I think, it is not the right time as we have to boost our industry
which is passing through tough internal competition and squeezing the
market,” he added.
Suggesting measures to rationalise the tariff structure, he said that contrary
to its purpose of discouraging imports, the structure is being manipulated to
encourage imports. He informed that the government is currently revisiting
the entire tariff structure which would be included in the supplementary
budget to be announced next year.
Pakistan’s industrial sector is crippled due to poor utility deliverance on part
of the government. Mr Dawood said that the gas problem affecting the sector
has been resolved whereas the notification for the provision of electricity at
7.5 cents per unit to the zero-rated export sectors was still awaited.
He added that in the next meeting of cabinet’s energy committee, he would
present the recommendations of the private sector to the members as it
would help bring down the cost of doing business in the country.
“We have to get International Monetary Fund facility due to our weak
economic conditions but we hope the rapid industrialisation within the next
one to two years will stabilise national economy,” he explained. He cited the
example of Japan, Korea, Malaysia, Vietnam and Cambodia and said that
they had supported their industrial sector to achieve self-sufficiency.
Source: The Pakistan Today, Pakistan Wednesday, 26 December 2018