Tarin pledges incentives for sectors with export potential

[Naveed Yaseen]

By Sajid Gondal
ISLAMABAD: Advisor to the Prime Minister on Finance Shaukat Tarin has said that the new multi-dimensional industrial policy will be announced before the federal budget so that its impact is reflected in the next fiscal year.

Talking to Dawn Shaukat Tarin said that the ministry of finance in collaboration with ministry of industries and production had been working on an incentive-based forward looking industrial policy.

‘How can we talk about growth in exports when there has been no industrial policy for the last 10 years and the country has been transformed into a security state,’ Tarin said.

He said unlike the previous policies, which were solely focused on textile sector, the new policy would include measures for each sector, describe directions, and announce incentives for all those industries where the country has a competitive edge.

The advisor hinted at incentives in the new policy for pharmaceutical, leather, gem and jewellery, marble industry and light engineering sector. In these areas, the country has the competitive edge and the potential to increase exports.

For instance the pharmaceuticals have the entire infrastructure and potential to boost exports, Tarin said and added that another, neglected area was leather industry where exports stand at $1.2 billion a year.

The leather exports could be grown to $5 billion if the industry gets some relaxation and incentives in next five years, he explained.

Similarly, the marble industry, gem and jewellery, light engineering sector and all those areas where ‘we foresee potential we would give incentives and strategy,’ he said.

Tarin said that the exports of non-textile sector grew by 29 per cent during the first half of current fiscal year whereas the textile sector has depicted a negative growth of 1.5 per cent. ‘We are not providing incentives to the sector, which has provided bulk of the growth rather we are bailing out an ailing textile sector,’ he remarked.

The textile sector has remained an apple of the eye for the economic policy-makers for the last sixty years and has won all sorts of possible incentives; he said and added that this time the government will introduce a balanced industrial policy that would address the concerns of all the potential sectors, including the textile sector.

Several committees have been constituted comprising representatives of the private sector associated with industries in the country for formulating appropriate recommendations for the long-term industrial policy which is under preparation by the government.

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