Trade Development Authority

Prime Minister Shaukat Aziz has rejected several proposals contained in the draft for metamorphosing the Export Promotion Bureau (EPB) into Trade Development Authority of Pakistan (TDAP), to inject greater efficiency in the organisation.
The proposed Authority will be so structured as to be able to handle the country's export sector for the next 30 to 40 years. The idea behind formation of TDAP is to allow the organization to work as an autonomous body for improvement of exportable goods, without the usual bureaucratic hassles. Among others, the proposals rejected by the Prime Minister include constitution of a separate cabinet committee for TDAP, and the fixing of tenures for its officers through legislation.
The Prime Minister believes that this will only create operational hindrances. He has further made it clear that no appointment in TDAP will be made by relaxation of the existing rules, or beyond the sanctioned strength, and that the strength of the proposed 30-member board should not exceed a maximum of 20.
A Recorder Report, quoting official sources, says that the number of federal secretaries would be curtailed only to those relevant to the core functions of the organization. In another appreciable move, the Prime Minister has fixed the maximum number of senior most positions in the organization at six. This will discourage the entry of "lateral entrants".
The changes proposed by the Prime Minister to the draft are all geared towards trimming the flab in order to make TDAP a lean and efficient organization. According to the organization chart prepared earlier for the proposed Authority, it was estimated that TDAP would require 415 officers at various tiers, while the tentative strength of support was put at 200.
There was also a perception that about 250 employees in grade 16 and below might become surplus, and might either be assigned to a surplus pool or be absorbed in other departments.
The reshaping of EPB as TDAP has apparently been prompted by Pakistan's widening trade deficit. This is also clear from the fact that the total quantum of exports in the last fiscal year was projected at 13.7 billion dollars while imports were fixed at 16.7 billion dollars. Shifting focus to the export sector by activating our trade missions abroad can bridge the gap.
Under the government's new strategy, TDAP is likely to put greater emphasis on holding trade fairs inside Pakistan and organising single-country exhibitions abroad. This showcasing of Pakistan's manufacturing potential can help us enhance our export earnings.
The TDAP formation got impetus with the start of 2005 when EPB lost its two departments ie Quota Supervisory Council and the Textile Directorate after the elimination of textile quota. Aside from other sectors, Pakistan has also been losing around 2 billion dollars a year in marble and granite exports alone, owing to the absence of infrastructure development mechanism, institutional support, regulatory framework and an efficient management system.
Pakistan has been exporting only three percent of its production in this sector as compared to 52 percent by India. This represents only one sector where the country has fallen woefully short of its full potential.
There are many other sectors where we can improve our performance through a more focused approach. Viewed in the long-term perspective, shortage of trained manpower is probably the greatest threat to realisation of our export growth potential. Diversification is a strategy that can be applied to achieve greater economic progress.
This is so because in the process the skills of the workforce also get polished, and an array of dormant resources are utilised. TDAP will be restructured on more functional basis with the distribution of responsibilities, to gear up export promotion activities. Improved product packaging is another area where Pakistan has to do a lot to gain a competitive edge in the international market. Another strategy to gain a competitive edge is the grant of freight subsidy. Last year the subsidy had amounted to one billion rupees.
The subsidy can be provided under law for export to those countries where Pakistan's exports are less than 5 million dollars. Constitution of TDAP is one of the major steps the present government has initiated to impart a fillip to the country's exports. The amendments proposed by the Prime Minister to TDAP draft will surely help the new body to function more efficiently and productively.