The aims and targets that are to be part of the Trade Policy are: (i) sustainable export growth through improved supply at home and better market access abroad; (ii) improved competitiveness; (iii) enhanced share of engineering goods; (iv) higher value-addition of cotton; (v) increased regional trade; (vi) FTAs with the USA and EU; and (vi) merchandise exports of $23.5 billion.
Commerce Ministry will give a presentation to Prime Minister Yousaf Raza Gilani on Trade Policy, after which it will be formally tabled before the Cabinet. Sources said that the Trade Policy tools would include improved regulatory framework through policy amendments, research and development support, compliance cost subsidies, technology up-gradation support, supporting presence in foreign markets, and reducing cost of exports through subsidisation.
Providing rationale for amendments in the much-talked about STPF and import export policies, sources said the adjustments were necessitated subsequent to the non-release of budgetary support, culling of unviable initiatives and demand by stakeholders.
Commerce Ministry, which gave the given final touches to the Trade Policy, will have to revise its export and import targets after the damage needs assessment report will be finalised by the Asian Development Bank and World Bank. Sources said that the Commerce Ministry is also proposing substantial expansion of appendix G (list of items importable from India), especial permission to import machinery spare parts which are already being imported, import of raw material/inputs ie MEG, sodium bichromate.
The list of proposals received from different quarters for the expansion in the list of 22 items importable from India includes: empty aluminium milk can, polypropylene caps, laboratory glassware of all sorts, cream bleach and hair removing cream, 12-hdroxi satiric acid regular, spares for weft winding machines, rice seeds & paddy seeds, cotton seeds, mobile set, tools for tapping, heparin injection, plant and machinery for extraction and refining of rice bran oil and spare parts for compressors, all types of human vaccines, master batches, parts of machinery/equipment specified in SRO 678 relating to petroleum sector companies, pharmaceutical machinery, its accessories & spare parts viz capsule polisher, table machine, blister packing machine and sachet testing machine, laboratory testing equipments for pharmaceutical industry, HVAC system for pharmaceutical industry--chiller cooling tower, air handling unit & dehumidifiers and air brakes equipment & spares. An amendment in import policy order with respect to duty exemption on CKD kits and gadgets used for assembling of cars for disabled persons is also proposed. Currently, duty exemption is on CBU vehicles.
Enhancement of age limit on import of used cars by two years making five years old cars eligible for import under personal baggage, gift and transfer of residence schemes is also being proposed. The Federal Board of Revenue (FBR) is to allow depreciation at 2 percent per month for 24 months.