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.