The Progressive Group within the Lahore Chamber of Commerce & Industry (LCCI) has advocated for the establishment of an “Export Raw Material Authority” in Pakistan to bolster industries capable of producing raw materials for export-oriented sectors.
Muhammad Ejaz Tanveer, a central leader of the group and an LCCI Executive Committee member, emphasised the potential benefits of such an authority. He highlighted that efficient management of the country’s natural resources could be achieved by regulating and controlling raw materials, ensuring their sustainable use and preventing rapid depletion.
Speaking to some journalists, Tanveer noted that the authority could encourage or mandate the processing of raw materials domestically before export. This approach could result in the creation of value-added products, fetching higher prices in international markets and generating domestic employment opportunities.
To incentivise industries producing raw materials for export, Tanveer proposed a 10-year tax exemption, priority loans at low interest rates, a one-time duty exemption on machinery imports, and access to factory plots with ten-year easy instalment plans.
He also suggested that the government could generate revenue through export taxes or royalties on raw materials, which could be allocated for public services, infrastructure development, or other national priorities.
Additionally, Tanveer highlighted the potential roles of the Export Raw Material Authority, such as developing sustainable strategies for raw material industries, identifying markets and technologies, and enforcing quality standards. The authority could also play a crucial role in ensuring environmentally sustainable practices during raw material extraction.
However, Tanveer emphasised that effective governance, transparency, and alignment with the country’s economic goals are essential for the success of such an authority. He underlined the importance of minimising bureaucracy and corruption while maximising benefits for the nation and its citizens. The proposal for an Export Raw Material Authority reflects efforts to enhance the country’s industrial capabilities and harness its abundant natural resources to drive economic growth and competitiveness in the global market.
Published in The Express Tribune, September 27th2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.