Summary Business community says the exports target of $95 is not achievable in present situation.
KARACHI: Business community termed the exports target of $95 billion envisaged by the Strategic Trade Policy Framework (STPF) 2012-15 unrealistic and unachievable in prevailing law and order situation and energy crises.
They said that the main goals of STPF making export sector the engine of growth; enhancing Pakistan’s export competitiveness in the short as well as the long term and increasing Pakistan’s cumulative exports to 95 billion dollars in 2012-15, could not be achieved without improving gas and power supply and improving law and order situation in the country.
They said that the period of trade policy had been set three years but in last five years business and trade witnessed sharp decline and at present were at worst position in Pakistan’s history.
However, they appreciated the move to establish Export-Import (Exim) Bank and establishment of Pakistan Land Port Authority (PLPA).
Former vice president FPCCI, Zubair Tufail, said that export target fixed by the government was not achievable in prevailing environment.
He said that the industrialists and exporters were capable to meet these targets but these could not be achieved without ensuring better working environment.
He noted that in the month of January 2012 industries remain closed for more than a week due to strikes, mourning Youm-e-Soag, power and gas supply outage and low gas pressure.
He said that the prevailing law and order condition was worsening with the passage of every day. Everyone in the city was living in fear, he added. He opined that the policy itself was good but the prevailing environment was not favorable to attain the set goals.
Vice president KCCI, Nasir Mehmood, termed the export target unruliest in present circumstances. He pointed out that when Pakistan achieved 25 billion dollars export target the conditions were much better as compared to prevailing one.
At that time industries were operating on self-power generation incase of power outage. At present they have no gas to operate generators and continue production, he mentioned. He said that law and order situation was worsening day by day and investors were hesitating to make any new investment.
He was of the view that Pakistan can achieve more that 100 billion dollars export if the government provide working environment, reduce cost of doing business, ensure continued gas and power supply and reduce cost of raw materials.
Chairman, Law & order sub committee Korangi Association of Trade and Industry (KATI), Nadeem Khan, termed the policy and its targets as impractical and unachievable.
He expressed grave concerns over the worsening law and order situation, which, he said, was leaving negative impact on exports and most of the buyers were even not prepared to come to Pakistan.
He said that the government should concentrate on improving law and order situation, provide uninterrupted power and gas supply and reduce cost of doing business before fixing export target.
Referring to Exim Bank, he said that the industrial sector was already facing serious financial crisis and those who had already obtained loans from different banks were making efforts to pay them back.
He referred to textile sector and said that those textile units which obtained loans have already gone out of business. Export oriented industries are no more interested to obtain fresh loans, he added.
He expressed that high cost of manufacturing was hitting Pakistani exports adversely. He urged the government to rationalize utility tariffs.
