An Additional Secretary of Commerce Ministry, Mian Asad Hayauddin, disclosed that the government is winding up Pakistan Horticulture Development & Export Company (PHDEC) and hinted that its funds may be transferred to TDAP. Secretary Commerce Younus Dagha also heads TDAP's team but is still an observer being new in the Ministry.
Chairman Standing Committee, a former banker, gave a tough time to the Commerce Ministry's officials due to poor performance including Strategic Trade Policy Framework (STPF) 2015-18 which, according to him, is written in fine words but with no impact on actual exports.
Addressing Younus Dagha, Chairman Standing Committee said that the Commerce Ministry is the Ministry with no focus and urged the Secretary to do for the Commerce Ministry what he did in his previous appointment as Secretary Power. "It is normal for you as a Secretary to be transferred from one Ministry to another but you have brought a wealth of experience to the Commerce Ministry and I believe Commerce has no focused role because of different reasons. I hope you will make deliver in a constructive manner," Faraz addressed the new Secretary. Minister for Commerce Engineer Khurram Dastgir who has dealt with at least three Commerce Secretaries, Qasim Niaz, Shehzad Arbab and Azmat Ali Ranjha before Younus Dagha did not attend the meeting.
On a question regarding presentation of draft Free Trade Agreements (FTAs) and Preferential Trade Agreement (PTAs) before the committee prior to signing with other countries, Commerce Secretary assured the committee that the Ministry would take the committee on board and carry out a consultation process with stakeholders. "We don't know technicalities of the pacts but we just want to have an idea what is going on. We will not able to give technical input but will certainly provide some input," Faraz maintained.
Commerce Ministry argued that the consultation process of FTAs and PTAs is very exhaustive, adding that the Ministry would present it before the committee prior to signing them. During a discussion on STPF 2015-18, the Chairman of Standing Committee observed that whether it was STPF 2012-15 or 2015-18, they were implemented one and a half years later, and the focus was not on exports.
"STPFs are just beautifully worded and the focus is not on issues. A number of initiatives announced in 2012-15 and 2015-18 have not been implemented or implementation is negligible and if a roadmap is not implemented then what is its benefit. It's a waste of time and merely filling the blanks," he continued. The committee also discussed mid course review of STFP 2015-18 and termed it a futile exercise. However, Secretary Commerce said that the purpose of this exercise was to identify which direction it was progressing.
The Chairman Standing Committee inquired about the progress on initiatives announced in the STFP 2015-18. Director General (Trade) Muhammad Ashraf informed the committee that the Ministry has initiated mid-course review of STPF and is approaching each stakeholder including Chambers and Associations to get their feedback and this process will be completed in two months. He further stated that Commerce Ministry has already identified few shortcomings.
Secretary Commerce, however, apprised the committee that the mid-course review would comprise two parts. In part one, those initiatives which are required to be made part of the Finance Bill 2017 will be sent to Finance Minister to make them part of budget speech. He said consultation on second part of the mid-course review would continue.
The Chairman Standing Committee argued that this would be the last budget of incumbent government, and political governments always include such things in the last budget to attract votes which cannot be implemented. He urged the Commerce Ministry to avoid the inclusion of such initiatives in the budget which are difficult to implement.
Commerce Secretary informed the committee that Commerce Ministry is also looking for an advisory role of TDAP in addition to participation in international exhibitions.
Giving an update on Exim Bank, Additional Secretary Commerce, Mian Asad Hayauddin who is representing Commerce Ministry on the Board, said that the Bank will be functional at the end of current year. He said Finance Ministry has already released Rs 7 billion for the bank, adding that $ 100 billion are required for the Exim Bank. Islamic Development Bank is extending technical help to set up the institution with head office in Lahore and sub offices in provincial headquarters.
The committee directed Commerce Ministry to chalk out a plan for processing and packing of Pakistani dates, which, according to a Senator are being sold at Rs 700 per 40 kg in Balochistan. The committee was informed that a desk has been established in the Commerce Ministry on China Pakistan Economic Corridor and the Ministry is in contact with Board of Investment (BoI). Economic Zones will be established in four provinces, Islamabad, Gilgit Baltistan, FATA and Azad Kashmir.
Senator Naseema Ehsan registered her protest by saying that local people in Gwadar have not been given jobs in Gwadar, adding that out of $ 46 billion of CPEC funding, only 0.6 per cent has been spent in Gwadar. Besides others, Senator Mufti Abdul Sattar, Senator Robina Khalid and Senator Saif Ullah Bangish also attended the meeting. Chairman Standing Committee also expressed his concern on Commerce Minister for not including Standing Committee members in foreign visits despite clear instructions. He was of the view that the parliament should be informed about the benefits of foreign visits.
He said trade deficit is on rise, agriculture sector is on very of collapse, industries are shutting down and poverty is increasing day by day. He further stated that serious issues of food security exist, adding that a policy should be devised to export agriculture produce and value addition.
Copyright Business Recorder, 2017