Mian Shaukat Masud, President, Islamabad Chamber of Commerce & Industry (ICCI) while presiding over a meeting of ICCI Sub-Committee on Exports said that factors like power outages, high interest rates, and law & order problems are foiling all efforts to improve productivity and exports and government should take urgent measures to resolve these issues for improving exports..

He said Pakistan is in dire need of enhancing exports to provide some cushion to its sagging economy. However, due to these factors, exports are suffering right from the beginning of current financial year 2009-10 as during the month of July 09 export proceeds remained 10 percent short of its target. Pakistan exported $1.489 billion worth of goods in July 09 against the set target $1.646 billion and recorded a shortfall of $157 million.

Businessmen said the severe energy crisis in the country, which is causing prolonged power outages, has almost devastated the manufacturing and industrial sectors in the entire country rendering export units dysfunctional and this situation is resulting in the loss of production and cancellation of export orders.

They said the other big factor hurting business expansion and exports is the high financial cost due to high interest rate and added that mere 100 bps cut in latest policy rate discount is just eyewash as it will not lessen the sufferings of businessmen.

Mian Shaukat said though the government has announced many incentives for exporters in recently announced trade and textile policies due to which both the policies look good on the papers, however, past record shows that when it comes to the implementation, the results mostly prove quite contrary to claims.

He called upon the government to take all possible steps to resolve these problems as without overcoming these issues the export target of $18.86 billion set for this year looks harder to be achieved in the prevailing conditions.