KARACHI: Faraz-ur-Rehman, President of the Korangi Association of Trade and Industry (KATI), has urged the government to provide special incentives to the export industry to enhance the country’s exports.
He emphasised the need for the government to focus on Pakistan’s major export sectors and ease the restrictions and conditions imposed on exports. He said that the government is in urgent need of foreign exchange, and supporting the export industry is crucial in this regard.
He specifically highlighted the textile sector and urged the restoration of subsidised electricity and gas tariffs, as well as the provision of affordable and uninterrupted natural gas supply to industries.
He also emphasised the importance of restoring SRO 1125(1) of 2011, which would have a positive impact on the export industry.
The KATI chief underlined that relying solely on loans from international financial institutions or friendly countries will not resolve the ongoing economic crisis. Urgent measures are needed to pay interest on loans and diversify revenue sources.
He further pointed out that Pakistan possessed significant potential to earn foreign exchange through the textile, IT, pharmaceutical, and horticulture sectors.
He called on the government to develop a comprehensive 10-year policy in consultation with stakeholders from these industries, aiming to boost exports and foreign exchange earnings. Additionally, he stressed the importance of reducing production costs for industries to remain competitive.
Regarding the government’s approach, Faraz suggested that if approaching the International Monetary Fund (IMF) is not feasible, the government should restore the abolished subsidies on electricity and gas, while complying with the IMF’s conditions.
This move, he believed, would help restore the export sector’s reputation and facilitate an increase in exports under a comprehensive policy framework.
Faraz expressed hope that the government would take proactive steps in consultation with stakeholders to achieve economic stability and stimulate export growth.
Copyright Business Recorder, 2023
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