Mark-up rate be reduced to a single digit: Sherani

Islamabad, July 30, 2012 (PPI-OT): Haji Fazal Kadir Khan Sherani, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Government of Pakistan to prepare a roadmap to accelerate exports of our country from the existing (2011-2012) export of $23.5 billion against the target of $ 26.0 billion.

The FPCCI Chief elaborated that the export trade suffered a shortfall of $2.5 billion mainly due to short supply of gas and power to the industrial sector. Moreover, he added that the deteriorating law and order situation are also responsible for a slowdown of industrial and investment activities in the country.

Therefore, the FPCCI would propose to the Ministry of Commerce to ensure implementation of one point agenda for the promotion of export activities. This was stated by him at the inauguration of the 1st meeting of FPCCI Standing Committee on Export Trade, convened by its Chairman, Dr. Mirza Ikhtiar Baig.

The FPCCI President proposed that Pakistan economy is under tremendous pressure therefore, State Bank of Pakistan must play a proactive role in promotion of economic activities and immediately take measures to slash the spread between lending and deposit rates to a single digit.

Dr. Mirza Ikhtiar Baig, Chairman of the FPCCI Standing Committee on Export Trade highlighting poor state of export affairs said that the FPCCI would submit its proposals to increase the export, in consultation with the leading/ prominent exporters.

He identified energy shortfall, power and gas loadshedding, battered infrastructure, poor law and order situation, money extortionist (Bhatta Mafia) in Karachi and kidnapping for ransom in the upcountry are the main road blocks in promotion of exports and urged for their removal on priority basis for increase in investment, production and consequent export of value added goods as Pakistan is gradually leading to become an import country.

He disclosed that, due to poor law and order situation, the foreign buyers avoid visiting Pakistan, depriving Pakistan from export orders. Dr. Mirza Ikhtiar Baig lamented for placing industry at 4th position in priority list for supply of power and gas and proposed that after residential units, industry should be ranked second in the priority list, commercial consumer, IPP and CNG should be at 3rd, 4th and 5th position respectively.

Dr. Baig urged the Textile Ministry to implement the fiscal incentives of Textile Policy 2009-14 in letter and spirit and immediately release of funds for the payment of outstanding huge amount of refunds claims to exporters lying pending for the last two years as the textile industry, due to unnecessary delay in payment, is suffering from financial crunch.

Shaikh Shakeel Ahmed Dingra, Vice President said that the country has a potential to enhance export from present level of $25 Billion to $40 billion, provided that the consultation process with all the stakeholders is strengthened. He informed that throughout the world, the power and gas is supplied to industry on first priority basis whereas the situation is different in Pakistan.

Mr. Zubair Tufail, Former President FPCCI and Begum Salma Ahmed also spoke on the occasion and gave

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332