A vibrant strategy must to propel exports growth

The Export growth of Pakistan during last eight years     has remained dismal and could not progress beyond     3 to 3.5 percent per annum because the economic     managers of the country failed to capitalize the     advantage of Pakistan's strategic influence as a front rank influence of the country. During that period India, Bangladesh and China has maintained their export growth rate at 20 to 25 percent per annum. Pakistan's major export depends on textile and ancillary goods, to European Union and USA markets. However, the Pakistani textile industry could not follow the trend of changing fashions, colours, and fabrics, composition needed in these markets. As a result, textile export remained stagnant, said M. Shariq Vohra, Chief Executive Shazil Pakistan (Pvt) Ltd, in an interview with the Money Plus. When asked who was responsible for this state of affair, he said textile industry itself was partially responsible but the commerce ministry and TDAP could not be absolved of its responsibilities. Unfortunately the government not only failed to provide institutional support to this important Export sector, but anti-dumping duty and market excess issues were also grossly mishandled. He added. Shariq Vohra, who is chairman of Export Sub-Committee of Karachi Chamber of Commerce and Industry and for the last two decade is involved in export to China. He said China being one of the world's biggest import markets worth 800 billion Dollars and located in close proximity of Pakistan's oceans as well as land routes.  Out of this huge market if Pakistan was able to get only 5 percent share, its export would have gone up. There were several items, which Pakistan can export significantly to China at a competitive price. The export capacity can be built in short span of time by creating awareness among the policy formulators, so that the opportunities related to such products can be availed by the private sector. He said during the last 8 to 10 years the European Union, ASEAN, India, South America had focused on one strategy and that is to find raw material / intermediary goods / finished products which can be consumed by the Chinese industry. Unfortunately, Pakistan has not been able to even initiate a discussion on this big market, which is just 12 days of sea travel and worth just 15 dollars a ton. Citing example, he said Karachi to Shanghai the freight charges are only 200 dollars while from Karachi to Lahore it cost around 1000 dollars. The reason behind it is that thousand of containers from China reach at Karachi port to unload goods and on their return they have to carry Pakistani goods at the cheapest rate. Vohra who frequently paid business visits to China said that during the next 20 years or so, China would be the world's largest importer for almost everything including the textile related products. We should on emergent basis form a task force, which will focus on the products, which are desperately needed by the Chinese industry as well as for the consumption of China's domestic consumer market, he added. Responding a question, Shariq Vohra said China is such a market at present in the world, which needs every thing, which helps their industries to produce low cast products. China had imported plastic waste worth 5 billion dollars last year. The neighboring countries have been able to convince the big recycling companies in US and EU to relocate their recycling plants in their countries. Many companies in US and EU has helped these countries to provide employment and foreign exchange through plastic waste recycling, but irony is that we failed to explore the plastic market in China. Throughout the world there is a serious concern that the raw material resources should be saved and concept of recycled goods must be encouraged, so that the accumulation of waste is reduced / to improve environment and to reuse the waste. As a matter of fact recycling of plastic is considered as most sensitive and important industry in the world because of its potential in reuse and to stop accumulation of plastic waste in the landfills. The recent increase in crude oil prices has made this industry even more important. In Pakistan rate of duty on plastic waste must be reduced to maximum 5 percent so that the import of primary polymers is substituted by recycled materials and that too by promoting domestic industry, he maintained. He said the economic wisdom of Chinese policy makers realized the importance of this industry much earlier and they have build the industries on the basis of imported waste plastic, which include manufacturing of toys, automotives spare parts made of plastics, manufacturing of industrial spare parts, plastic furniture, electronics, manufacturing of electrical appliances, synthetic fibers and host of other goods. Responding to a question, Vohra said Pakistan economic policy makers should realize that raw materials for above industry is not produce by China itself and they rely on the imported waste and recycled materials. On the same pattern we can also in the first stage groom our recycling industry and then subsequently provide raw materials for the above-mentioned value added industry. Elaborating about recycled rubber and tires, he said with the increase of production in automotive vehicles and its use the problem waste tires had become a big problem for the world. Through their research EU and the US have now been able to recycle the used tires for a number of industrial and consumer applications which has not only resolved the issue of storage, pollution, logistics etc but have also provided the world fascinating opportunities to produce new product from the recycled rubber some of which including manufacturing of tire, filler materials for synthetics sports turf/matting, flooring materials, manufacturing of cement, chemical solutions, industrial parts, water boats, sports goods and several other industries. Talking about value added products of cement, he said as of today Pakistan is the world's cheapest source of cement supply. This is the proper time to encourage manufactures and producers of the manufacturing of tiles, pavers, precast cement structure/panels, production of cement fibers, decorative cement products and several other industries. Replying a question, he said in last 10 years the world has seen strategic relocation of industries especially from western world and USA. India and China relocation consist of such industries other than textile, recycling of plastic, rubber whereas the economic manager of Pakistan miserably failed to capitalize this opportunity. But the Pakistani authorities have failed to tap this opportunity due to criminal negligence. He said that since we have agro based economy so steps should be taken for promotion of various agro commodities' exports. Pakistan is producing various pulses, grains, spices and oil seeds but due to ineffectual policies, the country is not earning substantial amount from the exports of these products, he said. Substantiating his claim, he citied that last year, Pakistan harvest bumper crop of grams but could not reap the benefits of the good harvest due to wrong strategy as Pakistan exported whole grams to India at throw away prices of US 300 dollars per ton while India earned almost double from Pakistan's gram after processing Gram Daals by exporting it worldwide. He suggested that Pakistan government needs to devise mechanism where un-processed Moong, Urid, Masoor etc are imported into the country and after processing into daals, these should be allowed for export in consumers packing up to 25 kg bags under brand names. Export of whole gram, moong must be discouraged.  Besides that duty free import of agro commodities should be allowed in Pakistan from Afghanistan, which can be exported all around the world. The economic mangers also failed to improve industrialization in Pakistan especially SME. We cannot make any progress in engineering sector, which has great vistas of job opportunities. Since there was no industrialization there was no surplus goods produced and not single new item was added on the export list, he underlined. He said Karachi Chamber of Commerce and Industry has done a great job by giving innovative presentation to the commerce ministry. The high cost of doing business in Pakistan is not only the utility charges and other usually discussed factors but also the cost of doing business in Pakistan is due to non-availability of skilled human resources. The government has not only been able to provide vocational training and skilled human resources to industries. This primary responsibility of the state is to establish training schools so that on the one hand it helps resolve the chronic problem of unemployment, while on the other hand the industrialists can take benefit from the skilled manpower. Unfortunately the government has failed to establish any new university in the city of Karachi, which used to be biggest source of educated and skilled manpower. He said Karachi is the Economic hub and financial lifeline and has a great potential, its work force is educated, and areas around the mega polis are best suited for industrialization.

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