‘Absence of planning destroying domestic market’

LAHORE: Indians are using a dual strategy to weaken Pakistan by engaging the armed forces through frequent border violations and crippling the Pakistani industry by providing Indian exporters additional rebates on exports to Pakistan, experts said on Saturday.
Pakistani planners, on the other hand, are very slow in taking remedial actions to save the domestic industry.
The Indian government gives 9-11 percent rebate on most of its exports that include refunds of national duties on inputs made in India.
Further, in order to increase its exports the Indian government has come up with the concept of focus market and focus products. The Indian exporters are entitled to 3-5 percent additional rebates, if they export their products to focus market. “Pakistan incidentally is included in the focus market countries,” they revealed, adding it as the main reason Pakistan market is flooded by Indian yarn and fabric.
Group Leader APTMA Gohar Ejaz said the Pakistani textile industry enjoys no support from the state and is in fact bleeding financially due to struck up refunds on exports.
“Indian exporters are enjoying all kind of export incentives, cheaper power and cheaper labour,” he said, this focus market incentive has armed them with ammunition to wipe the Pakistani spinners out of even their domestic market.
He said when Pakistan was granted GSP plus status by EU from January 2014, making its textile exports zero-rated, the Indian government immediately announced almost equivalent rebate on textile exports to EU to nullify the Pakistani advantage.
Similarly, when China reduced the duty on Pakistani yarn to three percent from normal 7.5 percent under Free Trade Agreement, the Indians negotiated a bilateral deal with China to come at par with Pakistan.
Now, the Indians have gone a step further and the entry of their yarn in Chinese market will be at zero duty from next year.
“We are still negotiating the revision of the Free Trade Agreement (FTA),” he regretted.
“During the trade matters, the timing of the decision is crucial,” he said, “The regulatory duty on Indian yarn and fabric after the focus market incentives to Indian exporters by the Indian government has been unduly delayed.”
He said any further delay would make 50 percent of spinning industry sick, and its revival would be an uphill task if protection to the industry is provided after total damage is done.
“Indian business community is laughing at the way Pakistani government is throwing open its market for the onslaught of Indian Products,” said engineering entrepreneur Syed Nabeel Hashmi.
The Indian side has done its homework and with over two decades of participations and intensive negotiations at the WTO and GATT forums, their manufacturing sectors and industries are well protected behind engineered non-tariff barriers,” he added.
The Pakistani commerce ministry in all its wisdom is doling out excuses to the industrialists that they need to be economical, competitive, global players. Moreover, they add that the Pakistani public deserves cheaper medicines, cars, plastic toys, bed linens, cloths etc.
“These excuses are being mentioned without a scant consideration that successive governments have taken steps to increase the cost of business in Pakistan,” he said, adding that this approach including the absence of planning to build raw material base has ensured that our industries remain uncompetitive.
Hashmi said he asked an Indian trader about what would he buy from Pakistan.
The Indian trader laughed and said, “Oh brother, we are patriots and buy Indian products only.
It is your Pakistani public and Pakistan traders who have an import phobia. Let them buy Indian products.”
Progressive farmer Hamid Malhi said the agriculturists have long been pleading the government to check import of subsidized vegetable and fruits.
The Pakistani farmers are not provided any subsidy and cannot compete with heavily subsidized agricultural produce by India.
The Indians have successfully destroyed the value added agriculture sector in Pakistan through subsidized exports.
Pakistani government cooperated with them by allowing many vegetables at zero duty.
“Now, the Indians are diverting their attention toward our industries and would soon raid the services sector as well,” he added.