An embarrassing mix-up

The issue of 35 percent regulatory duty clamped on the export of yellow split peas last month that had resulted in some 600 containers being stuck up at Karachi port, has finally been resolved with the government's "go ahead" signal to exporters to resume shipments.
But the embarrassing bureaucratic mix-up has caused needless delay in complying with orders placed by pulse importers from South Asian and Middle Eastern countries. According to a Recorder Report, the containers carrying approximately 15,000 metric tonnes of yellow split peas valued at $4.5 million, will now be examined and allowed to be shipped without payment of 35% regulatory duty to the intended destinations from Karachi port in a few days.
The CBR, after getting approval from the government, has issued a fresh notification allowing local exporters to proceed with the sale of split yellow peas after producing the letter of credit (LC), a copy of the contract or any other document, to prove that the deal predates the imposition of regulatory duty.
The waiver will be applicable only to the orders placed prior to the imposition of regulatory duty that was essentially meant to discourage export of pulses in view of the skyrocketing prices and an acute shortage of the commodity.
Unabashed hoarding and black-marketing by middlemen and market manipulators, many of whom are believed to wield considerable influence in the corridors of power, are said to have been the main architects of the crisis that has since put even pulses beyond the purchasing capacity of commoners in Pakistan.
The CBR order clamping 35 percent regulatory duty on export of pulses that resulted in the stranding of as many as 600 containers at Karachi port seems to have been issued without first ascertaining its possible repercussions, or whether or not any export orders were in the pipeline.
This reflects a cavalier mindset that has since seeped through bureaucratic functioning. According to the Recorder Report, some of the exporters whose consignments were stuck up at the port had already dispatched 50 percent of the orders, while others had received advance payments as well. Under international trade protocols, these exporters could receive the outstanding payments only after dispatching the remaining consignments. In the worst case scenario, the orders could have been cancelled.
Since this has not happened, a less injurious alternative for the affected exporters could now be the payment of an additional Rs 6 per kg as a sort of penalty. If this happens, it will cause their exports to lose the competitive edge in the international market. Further, the image of the Pakistani exporters, already not so bright because of a number of factors, may get further battering, and dent their credibility.
Despite the present government's claims to the contrary, governance in Pakistan continues to be dogged by bureaucratic corruption, sloth and inefficiency. Even the enforcers of discipline and good governance seem at places to have got infected by the virus! Clearly, speeches at five-star hotels are not going to solve our problems.
Determination and solid hard work with sincerity of purpose alone can set things right. Why not apply accountability to those who have caused this embarrassing mix-up, for instance? The system still suffers from administrative snags that need to be eased out. The government should hold a thorough inquiry into the incident to forestall its repetition.