Secretary Commerce, Younus Dagha, Secretary Industries and Production, Maroof Afzal and Secretary Board of Investment (BoI) Jahanzeb Khan are expected to give detailed briefings to the Advisor during this week on their achievements and challenges.
Informed sources told Business Recorder that Secretary Commerce will brief the Advisor on trade performance, reasons for the widening of the trade deficit, decline in exports and increase in imports, measures taken by the Ministry to promote exports, the five year Trade Policy, Generalised System of Preferences (GSP) plus granted by European Union (EU), impact of Free Trade Agreements (FTAs) with China, Malaysia and Sri Lanka and Preferential Trade Agreements (PTAs). FTAs with China and Malaysia have not favoured Pakistan whereas FTA with Sri Lanka, initiated by Dawood when he was Commerce Minister, is in Pakistan''s favour. He would also be provided details of FTA talks with Turkey and Thailand.
The country''s exports declined by 12.71 per cent to $ 1.646 billion in July 2018 from $ 1.887 billion in June 2018 however exports posted a growth of 1.17 per cent in July 2018 as compared to July 2017. Secretary Commerce will also brief the Advisor about performance of attached departments of Commerce Division which include Trade Development Authority of Pakistan (TDAP), State Life Insurance Corporation (SLIC), National Insurance Company Limited (NICL), Pakistan Horticulture Development & Export Company (PHDEC), School of Fashion Design etc.
Secretary Industries and Production, Maroof Afzal will give a detailed presentation on the performance of the Ministry, new Industrial Policy and attached departments and organisations including Pakistan Steel Mills (PSM), non-operational for more than two years, Engineering Development Board (EDB), a certified corrupt organisation headed by incompetent acting CEO, Utility Stores Corporation, (USC), National Fertilizer Corporation (NFC), National Fertilizer Marketing Limited, NFML), Export Processing Zone Authority (EPZA), Pakistan Industrial Development Corporation (PIDC), Small and Medium Enterprises Authority (SMEDA) and National Productivity Organisation (NPO) etc.
According to insiders, USC, PSM, EDB, NFC/ NFML and PIDC are serious concerns of the Advisor who has been tasked to improve governance. During his previous term as Federal Minister, Dawood had proposed privatisation of one of the corrupt organisations ie USC on the plea that business is not the area of government. Since then, USC''s financial position has declined due to unchecked corruption and the presence of a mafia style management.
What to do with respect to Pakistan Steel Mills would be another headache for him. As a businessman he may prefer to recommend privatisation "as is where is basis" but he would face resistance from Finance Minister, Asad Umar who has publicly stated that he would run turn the entity around through improved management and injecting state funds. EDB would be another major issue for the Advisor who is also on its Board. Nawaz Sharif and then the Abbasi led government had decided to dissolve it due to rampant corruption. Former Additional Secretary Incharge MoI&P Mian Asad Haya-ud-Din had submitted a summary for review of the cabinet decision on EDB''s dissolution which was turned down. PAAMA and EDB''s employees have challenged the cabinet decision in Islamabad High Court (IHC).
The closure of NFML which is filled with loyalists of Speaker Punjab Assembly is also on the cards since long due to corruption and sufficient production of urea and other fertilizers domestically. A number of corruption cases against NMFL officials are pending with NAB and FIA. Secretary BoI Jahanzeb Khan will give a presentation on current investment climate in Pakistan and reasons for low investment, apart from Chinese investment, in different projects covered under CPEC as well as Special Economic Zones (SEZs).
The officials of Textile Industry Division will also brief the Advisor about issues being faced by the domestic textile industry which contributed over 55 per cent to exports. A delegation of APTMA is expected to meet him in a couple of days in this regard. The caretaker Minister for Commerce Mian Misbah-ur-Rehman had requested the caretaker Prime Minister for allocation of Rs 10 billion for duty drawback to the textile sector that was earmarked in the federal budget 2018-19.