Pakistan to offer life insurance to international buyers

[Naveed Yaseen]

By Sajid Chaudhry
ISLAMABAD: Pakistan would offer life insurance cover to international buyers intending to sign import contracts with local exporters in. a step to attract the international buyers and enhance exports, Salman Ghani, Secretary Commerce told 60th meeting of Advisory Council held to solicit proposals from trade bodies for finalising trade policy 2009-12.

The meeting of advisory council was well attended and top office holders represented Chamber of Commerce and Industry and Exporters Associations from all parts of the country. However, no provincial government representative was present in the meeting to propose measure for province specific exports potential.

Salman while responding to queries raised by participants of the meeting informed that it is important to encourage international buyers so that local industries are able to fetch export orders. He said that in the course of policy formulation, the ministry is examining to provide insurance cover to international buyers intending to visit Pakistan for signing import export contract with local export oriented industries. An arrangement should be in place that local insurance companies should underwrite the insurance cover for the companies, which do not make available insurance cover for visitors intending to visit Pakistan. Export oriented industries would be allowed to approach ministry bearing the cost of insurance cover to international buyers, he added.

Responded to the issues highlighted by the exporters and said that Afghan Transit Trade Agreement (ATTA) of 1965 is under review and there is no proposal before us to grant transit facility to India under this. He, however, made it clear that Pakistan is demanding other side to allow transit facility for Central Asian republics.

He said that MoC is in favour of eliminating all the regulatory duties imposed on items as such measures have promoted smuggling of the such items.

While listening the export potential of pharmaceutical industry, the Secretary said that this sector has potential to enhance exports and trade policy might include some measures for promoting investment in this industry for utilising its potential.

Replying to a question on livestock exports, he said that Pakistan wants to create exportable surplus first so that local demand is managed along with meeting export orders.

APTMA: Representative from All Pakistan Textile Mills Association (APTMA) demanded the government to tap the demand being made available due to the closure of textile units in China, India and other competitor countries. Salman termed global recession as an opportunity and said that government’s help can yield results at this crucial time.

PAMA: Representative from Pakistan Automobile Manufacturers Association (PAMA) emphasised ban on import of used cars and other vehicles as well as amnesty schemes allowing legalisation on smuggled vehicles. He asked the government to reduce the incidence of tax burden that runs in to 35 percent at present for decrease in cars prices.

SITE: Representative from SITE Association demanded separate policy for leather export oriented industries and demanded zero rating of sales tax and customs duty on imports of its inputs. He Asked elimination of LC margins, reduction in mark up rate to 3 percent on export re-finance, allowing duty free capital goods and making adjustable 1 percent federal excise duty.

Pharmaceuticals: Pharmaceutical industry representative demanded the government transfer of this industry from health ministry to industry ministry and said that due to corruption in health ministry the industry is facing multiple difficulties. He also demanded end to Central Research Fund that, according to him was being misused.

PSMA representative demanded to allow import of raw sugar to NWFP mills for meeting refine sugar export demand of Afghanistan. PLGEA asked the MOC to reduce the rate of export re-finance mark up and ensure hurdle free taxation policy in place. LPG association asked the government to reduce the tax duty burden on LPG imports for the benefit of population at large.

KCCI: President Karachi Chamber asked the trade managers to look for increased market access through FTAs and other initiatives for enhancing exports to Central Africa, Central Asian republics along with major trading partners.

Karachi Cotton Association representative emphasised to continue open cotton import and export policy and demanded to allow hedge trade of cotton. Cotton Ginners Association asked the government to implement its decision of declaring this industry as zero-rated industry.

Pakistan Apparel Forum demanded clearance of R&D dues blocked and implement its own decision of extension in R&D for one more year. Pakistan Tea Association demanded collecting taxes and duty on black tea imported under Afghan transit trade and pay it back to Afghan government. He also demanded limiting green tea imported under this agreement. Furniture exporters asked the government to arrange warehousing facility abroad and its cost is born through EDF its exhibitions.

http://www.dailytimes.com.pk/default.asp...2009_pg5_5