Plan prepared to raise engineering industry exports to $ two billion

The government has prepared a plan to increase exports of engineering industry from existing 864 million dollars to $2 billion in the next five years by offering various incentives to the industry, Business Recorder has learnt.
Sources said that the plan has been prepared by the Engineering Development Board (EDB) after extensive consultations with the engineering industry and is now at consultative stage with the State Bank of Pakistan, the Federal Board of Revenue and other departments of the government. It envisages export houses, market surveys and information, trade fairs/exhibitions, trade delegations, investment needs, engineering industry venture capital fund management company, Exim Bank of Pakistan, export credit insurance corporation of Pakistan, export refinance, occupation of domestic space for enabling exports, and amendment of customs exemption SRO 575(I)/2006, compliance by all procurement agencies and PPRA with SRO 827(I)/2001 in letter and spirit.
It has also proposed withholding income tax on exports, waiver of levy of federal excise duty on technology acquisition, zero rating of sales tax, common facility centres for manufacturing of quality exportable, testing laboratories and standard certification, business support centres, energy efficiency audits, trade agreements and training and skill development of management staff in private sector.
The proposed measures would help in achieving the targets set in the engineering development plan. The performance targets for the engineering industry have been fixed wherein the exports are expected to grow to $2 billion by 2016-17, $5 billion by 2022-23 and go beyond $10 billion by 2026-27. The engineering industry has proved to be robust and dynamic and shown promising growth during the last few years, even in difficult times when other sectors of economy did not perform well.
According to the plan, the huge potential of export growth in engineering goods remains unutilised largely because of government negligence. The plan, based on private-public model, is aimed at mitigating this general neglect. A well-structured debate on all issues faced by the engineering industry ensued for a period of eight months wherein vision and mission for industry were agreed and adopted. Methodology and work plan for the exercise were developed; issues were framed & articulated and institutional arrangements for solutions to problems were discussed and proposed.
The needed resource allocation always falls short due to their flow towards traditional export sectors. The support structures are not enough. The existing technical and managerial capabilities do not match the needs of an expanded operation. Finally, the governmental structure is non-functional. Therefore, the engineering industry felt discouraged to make export growth efforts in the past. Consequently, the potential remained dormant.
After discussions on sub-sectors and product groups, the industry has listed the thrust products of engineering industry for exports. The industry has also been able to identify potential markets for the thrust products.