Target 15 sectors for uplift: Three-year export policy announced

The government Thursday announced the three-year Export Policy 2006-09, targeting 15 sectors for development to generate employment and alleviate poverty. "Measures to support their (15 sectors) development will be reflected in the next budget," Finance and Commerce Adviser Dr Mirza Azizul Islam said, announcing the new policy at a press conference at the Commerce Ministry conference room.

He hoped that the 3-year policy, to be effective immediately after the gazette notification soon, would play a strong role in creating huge employment opportunity, alleviation of poverty and achieving the Millenium Development Goals (MDGs).

Commerce secretary Firoz Ahmed and senior officials were present at the crowded press conference.

The policy elevated pharmaceutical sector from the previous list of special development sector to extend the existing list of highest priority sector to six, considering its export potentials offered by the exemptions of patent rights under World Trade Organisation (WTO).

The existing sectors are agro-products and agro-processing items, light engineering products including auto-parts and bicycle, shoes and leather products, software and ICT products, and home textile. The policy also recast the special development sectors to reduce the list at nine from existing 10 by axing few sectors and inducting new ones considering their respective potentials.

The adviser said the exclusion and inclusion of the sectors were decided through consultations with the stakeholders in the process of formulating the policy.

Finished leather, frozen fish production and processing, fresh flower and foliage, jute products, textile items by indigenous people and diamond polishing are the new sectors added in the list with handicrafts, electronics and herbal medicine and plants. Items excluded from the special development sectors are cosmetics and toiletries, luggage and fashion products, CR coil, cards and calendar, stationary items and rayon fabrics.

"Special measures to promote the sectors will be reflected in the next budget," the Finance Adviser said, replying to a question whether the policy has envisaged required measures to really boost the highest priority and special development sectors. He added that whether or not the cash incentive is being given to the target sectors would also be reflected in the budget. Given the incentive, the government would ensure administrative requirement to stop leakage of the incentives.

Besides, facilities provided under the previous policy and beyond would continue as the new policy assured.

Replying to another question, Dr Aziz said the new policy did not make any projection of export growth during the policy period as the government considered that the private sector would make efforts to increase exports taking advantage of the measures provided by the government.

"We considered to what extent we can provide them the necessary support," he added.

Asked whether previous policies succeeded in diversifying export items, he said the number of items have increased but their share as percentage of total exports is not so prominent. "It'll take time and further initiatives are needed from the private sector." Replying to another question, the Adviser said the policy was formulated in keeping with the WTO policies, not considering any bilateral strategy that could help solve bilateral problems like non-tariff barriers.

The new policy allowed each individual exporter to export samples, other than export-prohibited items and pharmaceuticals, worth maximum US$ 5,000 (FOB basis) annually.

The allowable limit of pharmaceutical samples is US$ 10,000 and RMG samples US$ 7,500.

The policy also offered incentives to get ISO certification, yearly awards for the women exporters and selection of women CIPs (Commercially Important Persons), and would declare "product of the year" to promote one product a year.