ISLAMABAD: The Senate Standing Committee on Commerce on Friday directed the Commerce Ministry to allocate Export Development Fund (EDF) resources on export enhancement initiatives instead of infrastructure projects like Peshawar Expo Centre.
Chairperson Standing Committee on Commerce, Senator Anusha Rahman conveyed these instructions to Minister for Commerce, Jam Kamal, who attended the Committee meeting on the third day.
The officials of Commerce Ministry argued that infrastructure projects are within the ambit of EDF rules, developed after approval of EDF Board and are helpful in enhancement of exports. They said that Rs 4 billion have been approved for Peshawar Expo Centre which is already 60 per cent completed.
Impact assessment of EDF-funded projects ordered
However, the chairperson of the Committee maintained that such projects should be developed through Public Sector Development Program (PSDP) as no one approves funds for initiatives of Commerce Ministry including funding of international exhibitions.
The Commerce Minister endorsed the viewpoint of Chairperson on utilization of EDF resources, adding that Commerce Ministry has submitted a summary to the Prime Minister for reconstitution of EDF Board which will now be further expanded with representation from other sectors who contribute 0.25 per cent of their export proceeds.
The Committee was informed that the government is considering winding up Textile Commissioner Office, as its functions are just to collect cess on cotton and fund National Textile University Faisalabad. The Committee directed Commerce Ministry to expedite the winding up process and adjust its staff in other government departments.
Commerce Ministry’s officials further informed the Standing Committee that smuggling of imported goods from Afghanistan through transit trade has reduced substantially due to punitive measures taken by Islamabad. They said that since both countries have not evolved a consensus on new trade pact, the existing ATT is extended annually on its expiry.
Additional Secretary Commerce further stated that Pakistan is also using Afghanistan’s infrastructure for transit to export its goods to Central Asia.
The Director of the Trade Dispute Resolution Organisation (TDRO) informed the committee about the organization’s work. He stated that the primary role of TDRO is to resolve disputes between companies and it also serves as the secretariat for the Trade Dispute Resolution Commission, whose act was passed in 2023 but is still operating without a Chairman and Board. The Committee raised concerns over the non-appointment of the Chairman and Board of TDRC. The Director of TDRO mentioned that the Chairman and Board of TDRC have not been appointed because the rules have not been passed by the Cabinet. Senator Anusha Rahman asserted that members of the Board could be appointed through a resolution. The Committee also expressed concern over the vacant post of DG of TDRO for the last three years, stating that it reflects poorly on the government’s commitment, given the importance of the role.
Copyright Business Recorder, 2024