The committee headed by Leader of the House in Senate, Senator Syed Shibli Faraz discussed trade related issues informally for a very short time due to lack of quorum. The government is expecting 5 per cent growth in exports during the first seven months (July-January) 2018-19 based on trends of first 20 days of January, 2019.
In the trade figures of first 20 days of January 2019, available with Commerce Division, exports have shown 9 per cent growth from $ 1.221 million in January 2018 to $ 1.325 million in January 2019. Imports have declined by 25 per cent to $ 2.750 million in January 2019 from $ 3.661 million in January 2018. On the basis of available figures and import trends, Commerce Ministry has assumed that trade deficit would decline by $ 1 billion in January.
The government is expecting that the country's exports would cross the mark of $ 25 billion achieved during PPP government, hoping exports would remain between $ 26 billion to $ 27 billion. Commerce Division also expects that it would succeed in reducing trade deficit by $ 5-6 billion at the end of current fiscal year due to increase in exports, reduction in price of petroleum products and suppression of imports.
An official told Business Recorder that at a recent meeting presided over by the Prime Minister Imran Khan it was decided to revive Textile City Karachi and Garments City Lahore. Chairman Standing Committee expressed his anger at the Ministry of Commerce and Textile for not taking measures to increase exports of textile sector , saying that textile sector has not been given due attention by the government.
He further argued that the country imports as input up to $ 4 billion for the textile sector, adding that textile exports are almost stagnant which implies this sector has not been promoted. He said cotton crop has been replaced by some other crops. Senator Shibli Faraz further stated that textile sector exports have to be taken to $ 25 billion. He said Textile Division cannot do anything alone, and urged all Ministries to work collectively to achieve this goal.
"The reasons of no value addition in textile sector should be examined," he maintained. The Commerce Division, sources said is raising issues being faced by the exporters and business community at every level, but it is still facing resistance from other fellow Ministries like Finance and the Federal Board of Revenue (FBR).
Prime Minister's Advisor Razak Dawood maintained that both Finance Division and Commerce Division are on the same page but may be their arguments to achieve the goal are different.
