All Pakistan Textile Manufacturers Association (APTMA) on Thursday came under fire in the National Assembly's Standing Committee on Commerce for getting a large share of export development fund and fleecing poor cotton growers.
The committee, which met under Khurram Dastgir, discussed the following items: (i) delay in announcement of Strategic Trade Policy Framework (STPF) 2012-15; (ii) cotton export Policy for 2012-13; (iii) fertiliser import; and (iv) deliberation on National Tariff Commission (Amendment Bill, 2012) "We have handed over all our powers to APTMA which is very powerful because of which poor growers are suffering," said committee members. Commerce Ministry officials concurred and said that it received only 18 per cent share ie, Rs 4.8 billion out of a total of Rs 27 billion during the previous three years. "Our share should be 45 percent in funds whereas Textile Ministry's share is 65 per cent," the official added.
One of the members proposed that a conference should be organised between APTMA and growers to resolve all issues, including the issue of price. The committee expressed its displeasure on the three-month delay on the announcement of Trade Policy and Strategic Trade Policy Framework (STPF) 2012-15.
The Committee noted with concern that in August 2012 the Prime Minister, the Planning Commission and Finance Division had also expressed reservations on STPF proposed by the Ministry of Commerce. The Committee questioned Ministry officials on the outcome and benefits of STPF (2009-12), and pointed out that the Ministry had utilised only 10 percent of the funds actually spent on trade development during 2009-12.
Members of the committee questioned the new request of Rs 60 billion for export development by the Ministry of Commerce given the background of meager utilisation in the past three years. The Committee argued that the Ministry had unjustifiably projected 40 percent rise in exports - from $22 billion to $33 billion, disregarding the grave energy crisis and law and order challenges.
The standing committee was also briefed on the proposed cotton export policy and urea import for the 2012-13 season. The Committee was informed that the 2009 Export Order was still in effect which regulates but does not restrict export of raw cotton. Committee members expressed concern that unrestricted export of raw cotton will be detrimental to downstream value-added industries, which forms the backbone of the country's textile exports. Committee members questioned the Ministry officials regarding urea import and distribution scandal in 2011-12, which resulted in prohibitively expensive and black marketing of urea to farmers, as well as having negative implications on the national exchequer because of large subsidies. The Committee decided to thoroughly probe urea distribution and summoned Secretary Industries, officials of NFML, besides urging FIA to submit its report on the matter.
The Committee referred to the "National Tariff Commission (Amendment Bill, 2012)", and decided to hold a comprehensive review on this Bill in the next scheduled meeting. The Committee once again expressed its displeasure on the absence of the Minister, Minister of State and the Secretary from the meeting.
The meeting of the Committee on Commerce was held on Thursday at 11pm. It was attended by MNAs Nawab Abdul Ghani Talpur, Yasmeen Rehman, Chaudhry Iftikhar Nazir, Nauman Islam Sheikh, Mr Liaqat Ali Khan, Tahira Aurangzeb, Shireen Arshad Khan, Mr Hamid Yar Hiraj, Jamila Gillani, Hameedullah Jan Afridi, Qudsia Arshad, Shahnaz Seleem, Chaudhry Asghar Ali Jatt and senior officers of the Commerce Ministry.
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