ISLAMABAD, July 10: The government requires $65 billion investment in the manufacturing sector to double its declining exports.

Sources said that the Planning Commission had been assigned a task to early develop a new strategy to increase exports by facilitating local and foreign investors in the manufacturing sector, which recorded the “weakest growth” during the just ended financial year 2007-08.

The overall manufacturing sector has posted a growth of 5.4 against the target of 10.9 per cent in 2007-08 and 8.1 per cent of 2006-07.

The investment of $65 billion will include textile & garments $20-23 billion, (spinning $4bn, weaving $7bn, finishing $5bn and downstream industry $5bn), steel and engineering goods $13-16 billion, chemical and pharmaceuticals $5-8 billion, leather and leather products $3-6 billion, sports and surgical instruments $3-5 billion, gems and Jewellery $2.5-4 billion, marble and granite $2-3 billion, rice $23 billion and fish and fish products $1-2.5 billion

Officials concerned said that the export plan (2007-13) of the Planning Commission needed to be implemented in letter and spirit to encourage massive investment with a view to increasing the country’s exports.

Sectoral growth strategies and targets provided in the export plan were aimed at promoting core and development categories of country’s exports to be implemented by the concerned agencies. Keeping in view the policy recommendations, concerted efforts are needed to achieve the desired objectives and goals of the export plan.

Although during the past eight years Pakistan’s exports have more than doubled from $7.2 billion in FY1999 to $16.4bn in FY2006, however, presently country’s exports are 13 per cent of GDP.

To enhance exports to 15 per cent of GDP in next six to seven years, the Planning Commission prepared the export plan in consultation with the stakeholders from both public and private sectors. The plan gives a detailed review of all major exports, highlighting constraints impeding exports and presents a strategic framework to achieve a quantum leap in exports from $16.4 billion in FY2006 to $40-45 billion by FY2013.

Besides, sectoral action plans covering both traditional and developmental exportable, cross sectoral policy recommendations were also recommended.

The strategic thrust to achieve the export target is focused on enabling policy environment. The need is of consistency, stability and continuity of the economic policies. Higher investment in high value-added export-oriented manufacturing and agriculture activities is required.

Investment in the productive agriculture and manufacturing sectors is to be encouraged through tax and investment incentives on the pattern of Malaysian Model. State-of-the-art infrastructure and technology support centres are to be established. Besides, simplification of laws, regulations was needed to ease doing business and building strong confidence between public and private sectors.

The plan sought to raise the skill base and competitiveness by establishing more technical and vocational training institutes. Capacity of the existing public sector training institutions will be enhanced. Institutional measures are also needed to strengthen industry/academia linkages.

Revamping the existing industrial estates was also proposed. The need is to establish and operate new industrial estates/export cities/industrial parks. Common Facilitation Centres (CFCs) and dedicated utility services are to be provided. Effluent treatment plants also need to be established. Reconstruction Opportunity Zones (ROZs) are to be launched at the earliest to take advantage of exports from less-developed areas to the US on preferential terms.

Similarly, trade and transport logistics chain is to be improved to reduce the cost of doing business and increase competitiveness. Needed fund are to be ensured for the speedy implementation of the National Trade Corridor Implementation Programme (NTCIP).

Trade handling issues along key export corridors in relation to streamlining procedures and improving services were to be addressed to maximise efficiency gains. Production of quality products will also be encouraged. The national quality standards to be conformed to the international standards. Accredited labs are to be established and strengthened for quality certification.

There was a need for aggressive regional, country and product-specific marketing strategy. Focus should be on key fast growing markets and export diversification. Effective trade diplomacy is required for market access with particular emphasis on China, USA, EU, Latin America and CARs.

To ensure WTO and bilateral compliances, sectoral task forces will be constituted to help create awareness and formulate time-bound implementation plan to address the issues of trade and social compliances.