The policy, announced on radio and television by
Commerce Minister Abdul Razak Dawood, offers incentives for special
zones and rewards to exporters for introducing new products and
capturing new markets.
The import target has been nudged up by $100 million,
and that of export, by $300 million, from last year's targets. This
means that imports are seen to grow by 7.4 per cent, and exports by 13.4
per cent, over the targets set for the recently-ended fiscal year.
The government has fixed this target on positive
assumptions like greater market access, spin-off from investments in
textile sector, and a continued inventory build-up in Europe and the
USA. The government also presupposes greater access to export finance,
stable prices of raw cotton in the international market and a stable to
favourable exchange rate. Implicit in the government's estimation is its
confidence that the trade environment will not be faced with any
The minister said that prices of Pakistani products
will remain under pressure and further squeeze exporters' profit margins
due to inadequate physical infrastructure, high price of utilities, and
uncompetitive interest rates.
To face this challenge, Duty and Taxes Remission for
Export (DTRE) Rules, 2001, would be revised to make them more
user-friendly in consultation with the CBR to find a way to allow duty
drawback and sales tax refund on domestically-procured, tax-paid inputs
in sectors where there is an unavoidable reliance on substantial
EXPORTS TO AFRICAN COUNTRIES
The government on Monday announced to launch a
special campaign for enhancing exports by around 20 per cent to the
Trade Policy 2002-03, says that this year, the
government would initiate a campaign to focus on Africa, where
Pakistan's current export level did not match the growing potential of
the African markets.
The government has earmarked sufficient funds for
this special effort, said the policy.
Through a combination of market access, enhancement
initiatives, strong promotional measures and supplier credit
arrangement, it was proposed to increase the share of African market in
Pakistan exports by at least 20 per cent.
TURKISH TEXTILE QUOTA HIKE TO BOOST EXPORTS
Access to additional textile quota of $11 million
granted by Turkey will serve as catalyst towards bolstering country's
textile exports. Briefing the media on Monday , the denim manufacturers
termed the grant of extra 3,000 tons of textile related exports quota as
major achievement of the commerce minister.
Aggressive policy pursued by the government towards
getting new market access, they viewed, would jack up exports to new
Seven leading denim manufacturers said that enhanced
production capacity of denim material would enable the country to
exploit the opportunity in an effective manner to export up to 2,000
tons of extra denim to Turkey.
PAKISTAN, S. LANKA FREE TRADE BY 2005
Pakistan and Sri Lanka finalized on Wednesday a
three-year plan to phase out existing duties that would finally
culminate into a completely free bilateral trade regime by 2005.
Authentic sources told that under the phase-out plan,
34 per cent of prevailing duties on the import of each others products
would stand eliminated during the current year.
The remaining duties would be done away with at the
rate of 33 per cent each during next year and the year after. In this
way the free trade agreement (FTA) between the two countries would be
fully in place by 2005.
The minister for commerce and industries, Abdul Razak
Dawood on Tuesday said for the first time in Pakistan's history the
government had taken an action under anti-dumping laws to protect the
local industry. Addressing post-trade policy press conference, he said
that Pakistan had imposed 23 per cent extra duty on import of tin-plates
from South Africa as a provisional action and had called for an
explanation from that country before imposing a final penalty. Tin-plate
constitutes around 36 per cent of total imports from South Africa.
PALM OIL IMPORTERS NOT BOOKING
Pakistan's palm oil market remained mixed to bullish
over the past week but importers were reluctant to book new orders
because of high international prices, dealers said on Tuesday.
"The importers are cautious on daily
fluctuations in palm oil prices at international market," said
Akber Puri, a palm oil importer in Karachi. "It (the market) is
likely to follow a mixed trend in coming days."
EXPORTS TO AFGHANISTAN MAY GO UP
The import value of Afghan Transit Trade (ATT)
increased by 6.787 per cent in the financial year 2001-02, and is likely
to register growth in the current fiscal year.
Officials sources told on Saturday that the value of
ATT during the previous fiscal year stood at Rs13.594 billion against
Rs12.730 billion in the year 2000-01, showing an increase of over six
SECOND HAND GARMENTS IMPORT TOUCHES RS2BN
A double digit inflation, enormous rise in stitching
charges by the tailors, falling living standards, rising utility bills
cost, soaring prices of essential commodities and increasing prices of
locally made fabrics and readymade garments have pushed up the demand of
used garments in the markets.
As a result of this, import of second-hand clothing
from Europe and America has touched to nearly Rs2 billion in 2001-02 as
compared to Rs1.4 billion in 2000-01.