Dawood expressing satisfaction over his performance acknowledged that exports increased by $ 3 billion during PML-N tenure.
"I would never ever make a wrong statement. Younus Dagha was Secretary Commerce during the time of Shahid Khaqan Abbasi and a lot of improvement was made in exports primarily due to decisions taken by Abbasi on DLTL. It''s a reality. Our challenge is to build on it," Dawood maintained.
Secretary Commerce stated that a policy is being formulated to release dues of DLTL to exporters within two weeks. FBR has also been asked to release dues of those exporters whose record is not doubtful.
Secretary Commerce stated that the policy is to make all raw materials cheaper which would help export expansion. However, there would be suppression of imports of finished goods or luxury goods which are not required economically.
Secretary Commerce said that in December 2018, trade deficit improved by $ 600 million and is expected to improve by $1 billion in January and the government is hopeful that trade deficit would decline by $ 5 billion to $ 6 billion by the end of current fiscal year.
Dawood further stated that exports will cross $ 25 billion by June 30, 2019, adding that $ 26 billion is a realistic target whereas $ 27 billion is optimistic target which according to businessmen is a stretched target.
Razzak Dawood said market access issue has improved due to recent developments with China, Qatar and Indonesia and now the big issue is refunds and with approval of Finance Bill 2019 in next few days, a very big step will be taken in resolving this issue, ie, with one third cash and two third promissory notes.
The Advisor who personally is satisfied with his performance said that there are a number of issues and government needs time, adding that policy will be clear by June 2019. He further stated that there are some grey areas.
He said, businessmen are very excited due to recent announcements in the second amendment finance bill 2019 by the federal government but they are asking for more steps.
"I don''t understand why everything is negative in Pakistan. When I ask to achieve the mark of Rs $ 27 billion exports, they say it can''t be done but I say it has to be done. We should have positive sentiment not negative," he added.
Replying to a question, he said he had a meeting with the EU monitoring team along with Secretary Commerce and 10 points were consider with the government weak on two or three points; Secretary Commerce stated that the government is working on its weaknesses.
The Advisor said that there was very good presentation on GPS plus to the Prime Minister by Ministry of Human Rights. The meeting discussed each and every point which the government has to do by June next. He acknowledged that there are some issues.
Razzak Dawood said that the draft of new Industrial Policy is almost ready and would be shared with the stakeholders for their comments prior to submitting to the federal cabinet for approval. In reply to a question, he said that if he had simply "cut and paste" the Industrial Policy prepared in 2011, it would have been completed in one week time.
According to Razzak Dawood, he along with Pakistan Business Council (PBC) held a meeting with the then Prime Minister, Shahid Khaqan Abbasi in 2017 and asked him to take measures to stop de-industrialization. He said, industry is shutting down and this can be witnessed in Faisalabad.
Replying to a question on opting for protectionist policy, he said today situation of industry is totally different from 2003 when he was Minister for Commerce and Industries which is why he is suggesting anti de-industrialization measures. He said, there is progress towards one billion dollar market access from China - China is very positive and Pakistan will achieve it.
Answering another question, Razzak Dawood said that sugar industry must stand on its own feet like other sectors, ie, cement, yarn, rice and tractors etc. He said, sugarcane needs a lot of water. The government has allowed export of one million tons of sugar; saying that he honestly feels sugar should be exported without any subsidy.
Secretary Commerce revealed that the government has approved release of Rs 2 billion subsidy to sugar mills against their claims of Rs 6-7 billion.
In reply to a question about Export Development Fund (EDF), Secretary Commerce said that it is a very important issue, as total dues of EDF have touched Rs 30- 35 billion. He said, Finance Minister, Asad Umar has written a letter in this regard and the Finance Ministry is sitting with Commerce Division to reconcile last year''s amount which will be released next year. He said, clarity will be available within a week.
In reply to another question, Razzak Dawood said that Finance Division and Commerce Division are on the same page with respect to policy rate. He said, both Ministries debate on the way forward and this debate will always happen as there are different strategies for increasing exports and compressing imports; reducing the trade gap is going in the right direction. The government also wants import substitution, Dawood maintained.
Answering another question, Abdul Razzak Dawood said that he is not satisfied with the current state of affairs of auto industry with respect to "on money" in sale of cars. He said, it must be eliminated and car assemblers should cancel the dealerships of those dealers who are involved in such practice. He said new players are coming in this sector.
In reply to a question regarding Pakistan Steel Mills (PSM) he said committee is finalizing its report and the Ministry will look at each option, ie, privatize it, lease it or ''right it ourselves''. Three Chinese parties and three Russian parties have shown their interest, Dawood stated.
