Investment deals: Pak business leaders’ team leaves today for UAE

ISLAMABAD: Pakistan’s business delegation, headed by Federal Minister for Commerce, investment and Industries & Production Dr Gohar Ejaz, leaves today morning (Thursday) for the UAE to hold talks in the Bilateral Investment Treaty (BIT) on goods and services.

Pakistan has already finalised the template of the FTA (Free Trade Agreement and Bilateral Investment Treaty with GCC (Gulf Cooperation Council) countries. "Yes, we are going to UAE today for BIT talks," Federal Minister for Commerce, investment and Industries & Production Dr Gohar Ejaz confirmed to The News.

The minister said, “The government is working on a new industrial policy to achieve every month exports of $8 billion target which will be possible only when the electricity tariff is set at 9cents per unit across for export and non-export industry. “Ensuring the 9cents per unit for every kind of industry across the board will be the major postulate of the forthcoming Industrial Policy which will put the country on a path to sustainable progress.”

The Industrial Policy would soon be approved after getting the go-ahead from SIFC (Special Investment Facilitation Council), stated the minister.

“When I joined the government, the country’s per month exports stood at just $2.068 billion which has now scaled up to $2.212 billion per month. Alhamdulillah, with great endeavors, the sitting regime has jacked up the per month exports by $511 million from July to December.”

Right now the industrial sector is providing a cross-subsidy of Rs16 per unit to the domestic sector which is too high and right now the industrial tariff exists at 14cents per unit and at this tariff, Pakistan products are no more competitive in the international market where the industrial tariff in Bangladesh, India and Vietnam stands at 9-10cents per unit.

“Uncompetitive energy tariffs have hindered industrial development, foreign and domestic investment in productive activities, and export growth. Export capacity of over $600 million/month is going unutilized. In the industrial policy, the priority order for gas supply would be changed to give first preference to industrial sectors. Unless gas price for the domestic sector is rationalized, unnecessary consumption and wastage will continue to squander our natural endowments.”

The minister disclosed that under the Make in Pakistan Initiative, he is going this month to the USA to bring in footprints of major international brands in Pakistan for more sourcing with Pakistan’s enterprises in their joint ventures, and to this effect, international brands and retailers would be provided office spaces for their business outlets (offices) to incentivize their physical presence in Pakistan.

“Only 48% of US apparel firms are sourcing from Pakistan, compared to 97% from China and Vietnam, 83% from Bangladesh, and 76 percent from India. However, in the wake of the perpetual trade war between the US and China, US firms are visibly shifting their sourcing from China to other countries, and keeping in view this fact, the authorities in the commerce ministry have accelerated their efforts to allure more US companies to go for more sourcing from Pakistan.