Next budget to shift policy focus from imports, trading: adviser

MULTAN: The next budget will shift government's policy focus from reliance on imports and trading towards exports-led growth, Prime Minister Adviser for Commerce said on Thursday.

“The objective of the (next) budget and government policy is to change the direction of the economy towards the export-led growth,” PM Adviser for Commerce Razak Dawood said, while inaugurating a PepsiCo’s snacks manufacturing facility.

Dawood said the government would continue pursuing the policy of fair returns to farmers, investors and businesses in the next budget by bringing down cost of doing business and taking ease of doing business initiatives.

The PM adviser said the government planned to reduce duties on raw materials and intermediary goods in the upcoming annual budget to increase exports, productivity and change the direction of the economy from trading and imports.

Dawood said the PepsiCo’s $63 million foreign direct investment in high-tech manufacturing facility is a testament to the confidence of foreign investors in Pakistan.

The PM adviser asked manufacturers to help farmers improve their lifestyles. PepsiCo more than doubled procurement prices for the growers this season despite potato prices crashed.

On ease of doing business, Dawood, citing Prime Minister Imran Khan, said local and foreign investments would not grow until foreign investors would get adequate returns.

“So, the government’s focus is on ease of doing business and to reduce cost of doing business,” he added. “We want to make sure companies grow and grow so that economic growth improves.”

The adviser said it is very positive that multinational companies like PepsiCo would export their products made in Pakistan to other countries.

PepsiCo launched its new snacks manufacturing facility built at a cost of $63 million to cater to the country’s growing consumer market.

PepsiCo Asia Middle East and North Africa CEO Mike Spanos said Pakistan is an important market for the company “and Multan is an important location within Pakistan”.

“Over the years we have grown by taking a long-term view, making investments in both infrastructure and the communities we operate in,” Spanos added. “We strive to be a development partner with Pakistan and look forward to a bright future in Pakistan, for Pakistan, with Pakistan.”

The company’s executive said the facility was built in line with the criteria established by leadership in energy and environmental design, the world’s leading green building standard. It uses advanced technologies and processes to conserve natural resources and reduce operating costs.

The new plant created 1,500 direct and indirect job opportunities. The company has employed 20 percent women in the facility besides creating enabling environment for them such as baby day-care and pick and drop facilities.

The plant, located at the Multan Industrial Estate, is in close proximity to PepsiCo’s agricultural partners. The plant spreads over approximately 10 hectares.

PepsiCo works with 246 Pakistani farmers to purchase only locally-grown potatoes and corn. The system including company-owned snacks business and franchised bottling partners and distributors brings more than 60,000 direct and indirect employment opportunities in the country.