Proposals put before PM Imran Khan to increase exports

KARACHI: According to World Bank, export orders to Pakistan were disrupted in the range of 25 to 50 percent, and it is expected that the exports might face loss in the range of $2 to $4 billion.

Pakistan’s exports that showed improvements in recent months are now again at risk.

In a letter to PM Imran Khan, Hasan Tariq of VClear Group of Companies has proposed several measures to arrest the declining trend in exports, and even increase the exports.

Pakistan Government is  very clear  in  development  of  Exports  from  Pakistan  and  has  provided  different regimes and  reliefs  for  exporters  to  compete  in  the  world  but  such  schemes  had  not  fully  utilized  because  of  the  current system  and Pakistani  exporters  are  still  uncompetitive  in  the  world.

Pakistan  is  ranked  108  among  190  economies  in  the  ease  of  doing  business  but  it  is  more  difficult  to  run industry  in  Pakistan  as  compared  to  running  business  and  even  impossible  to  establish  an  Industry,  obtain  an EOU License  and face  tax authorities.

Encouragement  for  new  Export  Oriented  Industries  is  only  possible  through  simplification  in  legislation especially  for  developing  and  operating  licensed  E.O.U,  D.T.R.E  or  Manufacturing  Bonds.

The  dream  can only  come  true  if there  is  no  fear of  mis-use  which  is  only  possible  through  an  efficient  system.

If the  target  is  to  issue  D.T.R.E/E.O.U/Bond  license  in  1  day  with  minimum  procedural  issues  than  we  may dream  of  prosperous  exporting Pakistan.

Simple  parameters  for  all  new  Export  Oriented  Schemes  will  allow  new  exporters  and  will  promote  Value Addition  in  Pakistan.

For  example  in  Pharmaceutical  it  is  not  impossible  to  achieve  40  to  50  percent  value addition.

He recommended immediate  allow  for  E.O.U  Licenses  provisionally,  and  regulate  import  and  export  with  parameters  such  as value  addition  and  input  output  ratios.   Reforms  in  F.B.R.

Efficient  Input  Output  Department  can  become  backbone  for  simplification  in  any  Export  Promotion  Regime  and can  reduce  fear  of  misuse.

An efficient system  will  not  create  any  fear  of  misuse  but  will  run  on  parameters of Goods Imported  and  consumed  for  export  as  per  ratio.

Hasan Tariq underlined the need to Encouraging  new  sectors  with  better  value  addition.

With an efficient system  and  parameters  it  will  be  possible  to  decide  which  sector  can  improve  the  Foreign Exchange  with  less  cost  of  exemption.  So  the  Government  will  be  able  to  target  sectors  with  prospects  and require  support  and  care  from  the  Government.

In the absence  of  parameters  of  value  addition,  investment  and  cost  of  exemption  it  is  not  possible  to  determine which  sector  is  beneficial  for  the  country.

He criticised that instead  of  encouraging  new  sectors,  it  is  practice  of  department  to  discourage  new  sector  and  encourage existing  sector  even  if  rusted.

After  Corona  Pandemic,  it  will  be  golden  opportunity  to  Export  Services.

He say labour intensive  industries  such  as  recycling  industry  can  be  developed  as  it  has  huge  potential  with  maximum value  addition  occurred  in  Pakistan.

Tariq pointed out the E-Commerce  policy  of  Pakistan  (Draft)  does  not  support  prospects  in  International  Trade  as  the  proposal  is not  specific  for  Online  Shopping.  Proper policy  is  required  to  provide  platform  for  online  shopping and warehousing, more payment gateways, an arbitration  body  and  Toll  Manufacturing.
Moreover,  absence of  policy  and  regulation  also  encourages  fabricated  transaction.

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