US-sponsored ROZ not expected to deliver
Pakistan needs to adopt a well-conceived plan for US-sponsored Reconstruction Opportunity Zones (ROZ).
At the outset, ROZs appears to be non-starter for many reasons, said President of Pakistan Economy Watch Dr Murtaza Mughal in a statement.
The US would provide tariff free access to textile and apparel products manufactured on the Pakistan-Afghanistan border regions to be called Reconstruction Opportunity Zones (ROZ’s).
He said textile and clothing industry in Pakistan is far from excited on hearing this proposal. He remarked that there is not a single unit remotely connected to the sector in the border areas, so this policy would be a non-starter in the short term.
One more drawback that the policy carries, says Dr Murtaza, is that it excludes the largest variety of products that is exported to the US from Pakistan; Cotton knit shirts and cotton trousers which account for 90 percent of all clothing exports to the US.
he observed the bill envisaging establishment of ROZ also carries with it stringent labour law standards, the adherence to which would be one of the key parameters to getting the duty free access for these products and the Pakistan government would need to file regular reports on the observance of these norms.
Dr Murtaza said we have serious reservations about ROZ and their success. It is going to be another industrial graveyard like Gadoon Amazai. Besides security issues, it is not practical to establish free zones. Like that of Gadoon, if it happens it will have large bearing on industrial activity elsewhere in the country. The immediate result will be substantial decrease in govt revenues.
Instead, he opined, existing businesses in the area may be supported and organized on modern lines with establishment of good communication network.
