Reconstruction Opportunity Zones: Zafar hints at advancement during Obama's visit

Meaningful advancement on Reconstruction Opportunity Zones (ROZs) is likely to take place during the visit of President Obama to Pakistan in 2011, said Secretary Commerce Mahmood. He was speaking to the select group of textile entrepreneurs at All Pakistan Textile Mills Association (Aptma) Punjab office on Saturday. Chairman Trade Development Authority Tariq Iqbal Puri and Chairman APTMA Gohar Ejaz also spoke on the occasion.
However, no exact date of visit of President Obama to Pakistan was clear yet, he told Business Recorder after the meeting. He also disclosed that the Indian Secretary Commerce is due in Pakistan on first or second week of April and issue of the import of contracted cotton from India is likely to be resolved in the meeting. He reassured the participants that the government was fully alive to the issue, leaving no stone unturned for its early resolution.
Zafar also proposed an APTMA delegation under Chairman TDAP to visit and look into the possibility of importing cotton from Central Asian States to meet domestic shortage of two million cotton bales. He also backed the proposal of Chairman APTMA Gohar Ejaz on setting up Economic Advisory Board, with public and private sector representation to involve the business community in medium and long term projects to kick start change in existing business environment.
Secretary Commerce said that absence of funds and political will were behind policy-implementation divide, adding: Sometimes it is due to the fact that the private sector stresses only on pleading and not partnering with the government in resolving issues. Zafar, who has also served as Secretary Textile, termed the industry of textile as "a difficult ballgame" because of its value chain, saying each chain of industry has different issues, and the stakeholders are not ready to each other eyeball to eyeball on some of them.
He said value added sector has failed in Pakistan due to non-serious attitude of provincial governments on developing infrastructure and human resources since industry became a federal subject. On import of Liquefied Natural Gas (LNG) to meet gas shortage to textile industry, he said he was fully supportive to expeditious implementation of the project. He added that the decision making was not with the Ministry of Commerce.
Regarding the issue of market access, he said putting Bangladesh as successful example is wrong, as the Bangladesh has market access facility with the EU and not the whole world. He said the Commerce Ministry was fully supportive to free market and all decisions of National Tariff Commission are challengeable before the higher body to it.
Chairman TDAP Tariq Iqbal Poori said $2 billion exports every month is unprecedented and there is also quantitative increase besides the common perception that only value has increased. He said there is an immediate need of public sector partnership with private sector on sustainable basis to continue lobbying on external and internal fronts, as it is all about how you position yourself and pitch in the international market.
On the issue of credit lines to the textile industry, he said he was to engage SBP to facilitate the areas where people have order in hand. He stressed on dealing with the situation in a structural manner by preparing a proper case. He also suggested a cost-benefit analysis on the part of government on continuous basis to steer the economy out of crisis.
He urged the businessmen to focus on China for selling even value added products. He said he was also focusing on China and regional markets to promote trade, the US and EU is mature markets. He said he was holding a meeting in Karachi on 17th March to find out options. According to Chairman TDAP, some hidden hands, besides the visible culprits like India and Bangladesh, were also active behind the delay in approval of market access for 75 items to Pakistan in the EU.
Speaking on the occasion, Chairman APTMA Gohar Ejaz said the policy-implementation divide has become a big issue and urged the Secretary Commerce to incorporate businessmen in policymaking. On market access, he stressed on hiring lobbyists in international markets and extended Aptma co-operation on image building. He said exports of knitwear, once a major player in Pakistan with leading entrepreneurs like Khawja Bilal and Awais Ahmed, have tumbled down due to Bangladesh phenomenon. Market access of Bangladesh has put us down, he said, adding: The knitwear sector of Pakistan has shrunk to five players now and the myth of Silicon Valley is over.
We've lost best of our entrepreneurs; he said and feared that fabrics may also be affected due to market due to energy crisis. He deplored that buyers are not coming to Pakistan and the textile millers are fighting for gas, electricity and free market mechanism, duty drawback, and high mark up rate. He said the APTMA was rushing to President of the country for gas supply, a phenomenon happening nowhere in the world. He said the industry was running short of 2 million cotton bales but no one is looking ready to help the industry. He said India has committed doctoral default by design on cotton contracts with Pakistan.
Gohar said there is 12000 ton per month shortage of polyester today as a substitute fiber. He said imposition of 12 percent anti dumping duty for five years besides protection of six percent on import stage is posing horrible situation, as no new factory of PSF is likely to set up for two years. He urged for an Ordinance from the government against such a protection. "If they (PSF manufacturers) have invested in Pakistan, Aptma members have also invested in Pakistan," he said, adding: "What's our fault?"
He urged for a new way out and stressed for fresh investigations by the NTC and said that APTMA was ready to pay fee on behalf of 12 companies. He said APTMA has proposed Pakistan Cotton Research and Development Board and Rs 1 billion to be invested every year.