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  • Aug 3rd, 2004
  • Comments Off on Trade Policy 2004-05: Sarhadi demands incentives for Afghan traders
The Trade Policy for the financial year 2004-05 has disappointed Zia-ul-Haq Sarhadi, Chairman Frontier Customs Agents Group and Sarhad Chamber of Commerce & Industry (SCCI) Standing Committee on Railway Dry port, saying that the policy is not up to the expectations of the business community.

Talking to Business Recorder, he said that the ministries of commerce, industries and production should have announced special package of incentives for the Afghan traders enabling them to export their products through Pakistani exporters.

"The step would have brought economic development and positive effects on both imports & exports in NWFP. It should have based on the same pattern like foreign investors from developed countries," Sarhadi added.

He said that the business community of NWFP had welcomed the repatriation of Afghan refugees. However, along with it, we also suggested announcement of incentives for Afghan businessmen. He said that the suggestion was given in the larger interest and protection of the exporters of the backward province of NWFP.

Justifying his demand, Sarhadi said that during stay in Pakistan last year, the Afghan refugees have exporters goods worth 60 million dollars through the exporters of country in general and NWFP in particular. Those exported goods were including carpets, gemstones, handicrafts, food items and leather garments. However, he said that now the export of Afghans traders through Pakistan have come to and end.

"In such a situation, the government should have framed a trade policy not affecting the exporters of NWFP and the country should have also earn good foreign exchequer," said Sarhadi and added that still a lot of Afghan refugees are residing in Pakistan in general and majority of them are living in NWFP.

Zia-ul-Haq, chairman of the SCCI standing committee on railway dry port, said that government on the directives of international monetary institutions has increased both taxes and prices of the daily used items, resulting in bringing the industrial and trade activities of the country into standstill situation. He said that every day increased in the prices of petrol, diesel, gas and electricity is injurious for the industries of the country increasing cost of production and final result would be expulsion of Pakistani products from competition of world markets.

He said that instead of increasing the prices of petrol, diesel, gas and electricity the government should provide resources to Wapda for establishment of hydel power stations. He said that ignoring the potential of 40,000-megawatt cheap hydel electricity, the government has allowed foreigners to generate costly thermal power. He said that such steps have caused inflation in the electricity charges creating unprecedented difficulties for exporters, saying that they have continued their business even in such a difficult situation.

Sarhadi, who is also chairman of the Frontier Customs Agents Group said that the exporters of NWFP play major role in the development of the national economy and exports, therefore, he said that federal government should have also paid attention to the resolution of their problem, which would have brought good results on the economy and NWFP would have converted into a Golden Gateway to Central Asian Republics.

He said that government should have exempted exports with all kind of taxes and export development surcharge (EDS) should be abolished. He said that for the promotion of export culture, central board of revenue (CBR), ministry of commerce and other concerned departments should join hand to revive thousand of closed industrial units. Similarly, he said that commercial attaches should also be reactivated.

Replying a query, he said that business community was expecting abolition of ban on the import of reconditioned vehicles in the new trade policy. However, he said that federal minister for commerce uttered nothing about the matter, which means that he wants protection of the domestic auto industry. "No doubt, the protection of the domestic industry is prime important, but when people borne such burden, then it is responsibility of the government to compensate them," remarked Sarhadi.

He said that due to the monopoly of the domestic car-manufacturers the price of vehicles in Pakistan is higher than other countries of the region. He said that the fates of the people of country are in hands of the few car-manufacturers, which have established their monopoly. He said that former prime minister Mir Zafarullah Khan Jamali have strictly directed his cabinet to abolish ban on the import of reconditioned cars.

For this purpose, a special task force headed by Finance Minister Shaukat Aziz was also constituted. Other members were Federal Ministers Hamayun Akhtar Khan, Liaquat Jatoi, Faisal Saleh Hayat, Sheikh Rashid Ahmad, Deputy Chairman Planning Commission Dr Akram Sheikh, Secretary Commerce Kamal Afsar, Additional Secretary Finance Dr Ishfaq, Chairman CBR Abdullah Yousaf, automobiles manufacturers, importers and car dealers.

The task force in its meeting decided that the monopoly of the domestic car manufacturers would be brought to an end asking them to announce maximum cut in the prices of the automobiles. The meeting have also pledged that ban on the import of the reconditioned cars would go shortly.

The member of SCCI said that the new trade policy on one hand has once again sent the purchase of automobile out of the reach of middle class and on the other hand deprived the government of handsome revenue leaving the people on the mercy of the local car manufacturers. Resultantly, the prices of the vehicles would further go up.

Copyright Business Recorder, 2004


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