On 13th June, 2003, a memorable day of national pride, the President of Pakistan, General Pervez Musharraf personally attended a Ceremony at Port Qasim when the container carrying export goods crossing the $10 billion mark was loaded at Port Qasim Container Terminal.
In 2003-04 again, we achieved and exceeded the target of US $12.1 billion to $12.3 billion. For the current year 2004-05, the target is $13.7 billion. This should be achieved comfortably. In fact, we are eyeing the figure of $14 billion.
The export strategy is multidimensional. First and foremost effort is to do better in what we are already good at. This means enhancement in Pakistan's world market share of its core product categories through increased penetration of our best performing core products in the top ten respective market counties and selective increased penetration in the next top ten countries. The core categories are all the textile products, rice, leather/products, sports goods, carpets, surgical instruments and petroleum products.
Next to the core categories, EPB gives attention to product diversification, focusing on what are called 'developmental categories'. These are those where the world demand is large and where Pakistan has a comparative edge or can create one.
These are fisheries, meat and poultry, fruits and vegetables, I.T. products, marble and granite, gems and jewellery, selected engineering goods, chemicals, health care and services. Good progress has been achieved in these with focused approached to export promotion and improved supply chain abilities.
Another thrust of the export strategy is the need for geographic expansion to countries in Africa.
South America, Eastern Europe, CARS, Australia and New Zealand where current levels of export are very low. Currently, in the interest of focused resource application, efforts are mainly behind Africa and Eastern Europe. In response to the developments in our neighbouring countries, efforts are being enhanced to include CARS and Russia. In the last four years, excellent growth has been achieved in Africa and Eastern Europe.
The strategy also aims to leverage international trade blocks and bilateral agreements. Several such agreements are in various stages of negotiations with USA, Sri Lanka, Singapore, Bangladesh, Turkey, Iran, Morocco, Kazakhstan. An economic co-operation agreement (ECA) has been concluded with the European Union. In the SAARC, a preferential trade agreement is already in place and Free Trade Agreement will be concluded soon. The co-operation with ECO countries has been strengthened. Joint Economic / Business Commissions have been established with several countries.
In the increasingly competitive and trade-liberal world, particularly in our core and developmental product categories, it is vital to strengthen the capacities and capabilities of our exporters leading to cost efficient production, world class quality, increased product range and in turn value addition. To support our exporting stakeholders is a major thrust of the export strategy.
In pursuit of this strategic need, EPB has offered services of International consultants. EPB will share the cost of world-class consultancy services in the ratio of 50:50, and for the leather sector and carpets, EPB will contribute upto 75%.
The sectoral international consultants engaged for enterprise capacity building, will also identify joint venture possibilities around the world. They will advise export enterprises on entering into joint ventures with compatible J.V. partners in foreign countries on 50:50 sharing of the cost of consultancy services.
In the post-quota environment, from 1st January 2005, the textile and clothing industries in USA, EU and Canada are expected to opt for relocation to Pakistan for lower production costs. EPB will provide financial assistance for such relocation of textile and clothing industries, also of industries in other sectors with export potential.
The assistance will cover the transfer expenditure, on 50:50 cost sharing basis. It will be available also to Pakistani entrepreneurs who purchase outright running plants in industrial countries and relocate these in Pakistan.
To promote the exports of products made in Pakistan of world-class quality, EPB will arrange retail sale outlets in high traffic shopping malls abroad, again on 50:50 charge basis.
Brand name is an Important component in export marketing and carries the image of the product, its quality and service. Established brand names in foreign markets are often available for purchase or franchising. A new scheme will enable exporters to acquire/franchise foreign brand names.
A good deal of work has been done already for the implementation of all the promotional schemes announced in the Trade Policy for 2003-04. All the schemes have been notified. Eligibility criteria for each scheme have been developed and announced.
The implementation mechanisms have been put in place in the EPB. A management firm has been selected to help in the selection of exporters and monitoring the implementation plans of each. Necessary funding for the scheme projects has been approved from the Export Development Fund. A number of applications and expressions of interest have been received from the exporters. It is expected that many more exporters will sign up or the assistance programmes. Expressions of interest have also been received from reputed international consultants to be hired by EPB.
All the applications and expressions of interest are being evaluated and work will begin on the capacity building and other schemes. First such effort was in the leather garments sector where Korean Consultants have provided excellent advice to manufacturing industries in Pakistan. The technology upgradation plans and other programmes would all require new investments by the entrepreneurs. To meet their investment needs, a Long Term Financing scheme was launched in May, 2004.
It will allow the required borrowing by the enterprises at affordable mark-up rates, on medium to long term basis, up to 7 ? years, with fixed interest rates that will be protected against possible future escalations in the capital market.
To develop women entrepreneurship in Pakistan is a strategic thrust. Excellent progress has been made in identifying, training and providing international exposure to genuine, willing and able women entrepreneurs. A scheme to launch a 'Women Entrepreneur City' is currently on the drawing board.
The Trade Policy 2003-04 provided a series of promotional measures for capacity building of exporters at the enterprise level, and these have been continued in 2004-05, the Trade Policy 2004-05 aims at improvement of infrastructure for providing a congenial and conducive environment to the exporters for production of goods meeting the requirements of competition in world markets.
The projected improvements in infrastructure cover the rehabilitation of industrial estates across Pakistan, establishment of combined effluent treatment plants, establishment of Textile Cities, Communication Cities, Garment Cities, a Furniture Village and a Dazzle Park for the jewellery sector.
In the horticulture sector, quality standards are being established for export of fruits and vegetables. For selected priority export sectors and developmental sectors, sectoral development plans are being developed.
For certification of standards like ISO-9000, ISO-14000, HACCUP, WRAP, SA-8000, financial assistance will be provided to the exporters. Information access will be provided to the exporters through EPB website and international websites at all the Export Information Centres in all the EPB offices across Pakistan. Particularly for the garment sector, to enable it to meet the upcoming new competition after the abolition of textile quotas, a special package has been developed. Women entrepreneurs would be further facilitated through cost-free participation in international trade fairs and trade delegations.
(The writer is Consultant, EPB).