Increasing exports only way to overcome trade deficit: minister
Sunday, April 13, 2008
By our correspondent
LAHORE: Federal Commerce Minister Shahid Khaqan Abbasi has said the increasing exports is the only way to plug the trade deficit as checking it through import restrictions would not be a prudent measure in this regard.
He was talking to the media after meeting with the members of All Pakistan Textile Mills Association. He suggested reducing cost of doing business in areas where competitors have an edge. However, he clarified that the higher costs due to high energy and power rates are global phenomena and impact the cost of doing business.
In his interaction from APTMA Lahore office through videoconference with APTMA members from Sindh and NWFP he asked the members to apprise him about their difficulties and suggest ways to increase exports. He was non-committal on all their queries stating that he is new at the job and would assess the situation after getting input from them and his staff at the Ministry of Commerce. He said that since he is from private sector he would try to address all their genuine concerns.
The textile industry representatives complained that the textile exports from Pakistan are under pressure due to multiple factors. These include low cotton production, as Pakistan has not adopted the new BT cotton technology. They said the cotton production in Pakistan and India was at the same level in 1992, however Indian production has doubled after shift to BT cotton while Pakistan’s cotton production is even lower than 1992 level.
They also demanded RND grant for the spinning sector as all other sectors of textile were getting these subsidies. The APTMA members protested the cross subsidies of Rs30 billion that the industry pays, as domestic and fertilizer sectors are heavily subsidized. They also deplored high electricity tariff. The members urged the government to give preference to the industry over other sectors in continued supply of electricity and gas. The NWFP members deplored higher cost of electricity for NWFP industries than Punjab.
Abbassi assured the members that their point of views would be considered and all genuine impediments would be removed to increase exports. He told the newsmen that the countdown on restoration of judges has already started.
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