Mango export to Chicago: millions spent from EMDF on inaugural launch against PPRA rules

The government spent millions of rupees from the Export Market Development Fund (EMDF) on the inaugural launch of mangoes in Chicago on July 27, 2011, United States of America. The Auditor General of Pakistan recently unearthed massive financial irregularities in utilisation of Export Market Development Fund (EMDF) of Commerce Ministry, including hiring of event manager firm for 'World Expo China 2010', in violation of PPRA Rules.
In a letter to the Chief Executive of Trade Development Authority of Pakistan, Washington-based Trade Minister, Azmat Ranjha said that initially planned for third week of August last year, the shipment and the festivities scheduled around it had to be postponed on account of some last-minute regulatory difficulties on the US side, and the devastating floods around this time in Pakistan.
The embassy's top trade officer said the successful launch this year has opened up the way for large scale, commercial export of mangoes to the US. It will also help encourage other fresh produce exports, and provide access to farmers to the largest and most attractive food market in the world. However, he added that the funds needed for the handling of the consignment and the reception hosted by the Ambassador in Chicago to celebrate the occasion was debited from EMDF. According to the Consulate General in Chicago, a total amount of $47,969.73 was spent on activities connected to this initiative.
"I will appreciate if TDAP could remit this amount to the Chicago Consulate's EMDF account. There are still outstanding liabilities relating to this event that the Chicago Consulate needs to discharge," said Ranjha in his letter written on August 17, 2011.
Asad Hayaddin, Pakistan's Commercial Counsellor in Chicago, is in the process of sending a detailed event report to the TDAP which, according to Azmat Ranjha, would also outline some of the key things that need to happen before the government can realise the full potential of this market access opportunity.
The embassy acknowledged that there is no doubt that the success of the endeavour would not have been possible without his support and encouragement. PHDEC had selected Chaunsa variety of Ali Tareen Farms and dispatched it to the USA, and the first consignment was of 1200 kg. The consignment was sent in reefer containers to maintain temperature, as advised by supply chain experts. Official documents show that arrangements were lined up in collaboration with United States Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS), Ministry of Food & Agriculture (MinFA), National Plant Protection Organisation (NPPO), Ministry of Commerce (MoC), Commercial Section,Chicago, and GlobalGAP certified orchard owners, but the exercise was called off at the last moment, and the decision was taken at the inter-ministerial level and PM Secretariat.
For this season, PHDEC had made all preparations for June 8, 2011 and intimated the same to the Pakistan Embassy in the US, but Commercial Section of the Embassy asked for certain funds for the preparation and arrangements in the United States. PHDEC endorsed Consulate letters and sent them to Ministry of Commerce for approval of funds, and kept a follow-up letter in MOC. Recently, Commerce Minister Amin Fahim appreciated Pakistan Horticulture Development and Export Company (PHDEC) for its important role in export of mangoes.