MUHAMMAD RIAZ

LAHORE: “Former minister for commerce Engr Khuram Dastagir Khan has failed to introduce export-friendly policies that resulted in persistent decline in the country’s exports on one hand and increase in the imports on the other side.”

Pakistan Tanners Association’s former chairman Agha Saiddain told Business Recorder on Friday that he has also written a letter to Federal Commerce Minister Pervaiz Malik to apprise him about the ground realities of the country’s trade.

He claimed that the country’s exports recorded persistent declines from 2013-14 to 2016-17. The exports went down from US 25.110 billion dollars in 2013-14 to $23.667 billion in 2014-15, $20.787 billion in 2015-16 and $20.187 billion in 2016-17.

On the contrary, Pakistan’s imports rose from $45.073 billion of 2013-14 to $53.00 in 2016-17. As a result, trade deficit increased from $19.963 billion to $22.159 billion in 2014-15, $23.897 billion in 2015-16 and $32.813 billion in 2016-17. The Ministry of Commerce’s poor performance is evident from the dismal exports of the country.

Agha Saiddain further said that the exports of Bangladesh in 2013-14 were US 17 billion dollars as against exports of Pakistan $25.110 billion but in 2016-17 the exports of Bangladesh rose to $37.61 billion while our exports dropped to $20 billion. Pakistan exports registered a drop of 20 percent during last four years. On the contrary, Bangladeshi exports increased by 121 percent and same is the case of the Vietnam, Sri Lanka and India.

Pointing out the main irritants in increasing the country’s exports, he said the government sucked all working capital of exporters in shape of refunds of sales tax, duty drawback and income tax. The cost of doing business in Pakistan is very high as compared to our competing countries. Moreover, the export items are overloaded with direct and indirect taxes.

He said the tariff structure of Pakistan with other countries is not favourable. For example, the import duty on import of leather in Japan from Bangladesh and India is zero percent and four percent respectively whereas an importer in Japan will have to pay eight percent to 16 percent if imported from Pakistan.

In South Korea import duty on finished leather for India and Bangladesh is 2.50 percent and zero percent, respectively whereas import duty on Pakistani leather is 5 percent. The industry is also facing frequent electricity and gas load shedding, the PTA former chairman added.

He said that Strategic Trade Policy Framework 2009-12, 2012-15, 2015-18 were not implemented in letter and spirit. He quoted the Indian Commerce Minister Kamal Nath’s statement wherein he said: “We have decided that all products and services leaving Indian borders will shed all duties and taxes direct or indirect within the Indian borders.”