The government had announced many support funds for different schemes designed under the Strategic Trade Policy Framework (STPF) 2009-12 for better promotion of exports, but failed to release funds for these schemes, which has disturbed the expansion plans of businessmen.

Therefore, it should take urgent measures to fulfill all its promises made in STPF to restore the shattered confidence of business community in its commitments. This was said by Mr.Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry while chairing a meeting of entrepreneurs at ICCI.

The schemes designed under STPF included setting up of design centre for leather garments, hiring of foreign experts, creation of research & development cell in trade bodies, bearing 25 per cent cost for laboratory in tanning industry and for effluent treatment plant.

He said many exporters had even hired the services of foreign experts in anticipation of promised funds from government, but no-release of official funds has now put them in a quandary. He said making promises, but not fulfilling them has made the businessmen skeptical about future commitments of the government.

Businessmen said that the government had announced a hefty amount of Rs.42 billion for textile export promotion in budget 2009-10 of which 67 percent was to be spent on textile and clothing industry for consolidation and value addition of the sector. However, Finance Ministry released only Rs.9.5 billion to SBP during FY 2009-10 and the balance has lapsed at closure of said FY.

They said that the new budget has reduced the allocation for exports promotion from Rs.40 billion to Rs.10 billion, which will badly hit country’s exports.

Mr.Zahid Maqbool said that though Pakistan’s exports exceeded the target in FY 2009-10 achieving total exports of $19.3 billion against revised target of $18.8 billion and textile exports contributed a value of $10 billion to this figure. However, he said that the increase in exports was due to increase in the prices and not in quantity as quantity of textile exports declined by more than 10 percent.

He was of the view that had the government released all promised funds, our exports would have witnessed many times increase. He said still the time has not lost and government should honor all its commitments made in STPF so that businessmen could feel facilitated in promoting exports up to the country’s true potential.