Government decides to declare 2010-11 as ''Export Year''

The government has decided to declare 2010-11 as "Export Year" after exports witnessed a 20 percent growth during the first six months despite the failure of the Finance Ministry to release funds committed in the Trade Policy, well-informed sources told Business Recorder here on Thursday.
In December 2010, Pakistan''s exports exceeded $2.12 billion mark, depicting an increase of 35 percent over the corresponding month of last year, ie December 2009. The sources said Commerce Ministry had sent a summary to the Prime Minister, Syed Yousuf Raza Gilani, requesting him to declare 2010-11 as ''Exports Year''. According to sources, prime minister has accorded approval to the Commerce Ministry''s proposal at a meeting with the Commerce Minister, Makhdoom Amin Fahim on January 11, 2011.
"It is a record in 63 years history of Pakistan. Pakistan''s exports never exceeded the figure of $2 billion in a single month before this," said an official statement. Prime minister, during his meeting directed the Commerce Minister to take precise measures to explore new world markets for enhancing the existing quantum of exports of Pakistani goods, which would help strengthen the economy.
In 2009, Ministry of Finance had approved Rs 16 billion for the implementation of Strategic Trade Policy Framework (STPF) 2009-2012 in the next fiscal year 2010-11 but released very meager amounts to the Commerce Ministry. "Ministry of Commerce is angry with Finance Ministry over non-provision of required funding for implementation of the STPF initiatives announced in the Trade Policy 2009-10," the sources continued.
Former Secretary Commerce, Suleman Ghani was the architect of STPF, which according to some experts, was the player of twenty-twenty. According to official documents, Commerce Ministry had informed the Finance Division that some Rs 3.5 billion amount is pending for payment under the head of Research and Development (R&D) and other heads for the last fiscal year 2009-10 due to non-provision of amount committed at the time of the approval of the Trade Policy 2009-10.
Finance Division had earlier committed Rs 16 billion for funding of trade promotion activities for the current fiscal year 2010-11; however, sources said that due to a drastic cut in development and non-development expenditures by the Finance Division, the committed amount is being slashed drastically downwards for 2010-11.
Commerce Ministry, however, argues that whatever amount the government can release should be released to implement the STPF. Unconfirmed reports indicate that Commerce Ministry is unable to refund the claims of exporters in light of incentives announced in the three years trade policy. Commerce Ministry believes that to achieve the target of Rs 23.5 billion by 2012, total expenditure in three-year STPF is estimated at Rs 35.22 billion.
According to sources, after declaration of 2010-11 as Exports Year, all the public sector stakeholders especially the Finance Ministry will extend all possible co-operation to the Commerce Ministry due to Prime Minister''s personal involvement in this plan. A formal announcement in this regard is expected shortly, but it is unclear who will take the credit of announcing 2010-11 as Exports Year.