ISLAMABAD: The ministry of commerce would begins consultation with stakeholders on Trade Policy 2007-08 in an advisory board meeting, which is scheduled on April 26, an official at the ministry told here on April 20.
The official told that the New Trade Policy 2007-08 would be aim at enhancing the competitiveness and to build capacity of the exporters to market their products according to the best international market.
The Federation of Pakistan Chamber of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association and all other exporters associations have been participated and invited their recommendations.
Export refinance rate in Pakistan has surged from 3% to 9%, banks interests rates on loan has been surged up to 14%.
The main reasons for impeding Pakistan exports are the high cost of electricity, gas, petroleum, tariff barriers such as higher import duties by United States.
Pakistanís textile sector has lost its competitive edge as its regional competitors like China, India and even Bangladesh enjoys more incentives.
They have stressed the need for improvement in the areas like: high interest rates for spinning, weaving, processing; high trash content in cotton; low labour productivity; and technological obsolescence in open end spinning and a small shuttle-less weaving base to make the industry competitive and take advantage of the real potential Pakistani textile sector.
However the labour in Pakistan is cheaper than India, China, Indonesia, Egypt, however, yet the productivity is comparatively low due to skill gap. Cost of labour in Pakistan is 43 cents, India 47 cents, China 57 cents, Indonesia 52 cents, Egypt 60 cents, and while in Bangladesh and Vietnam it is 27cents and 29cents respectively.