Finalisation of ''negative list'' for trade with India: ministry asked to conduct sectoral consultations with stakeholders

National Assembly''s Standing Committee on Commerce on Thursday directed the Commerce Ministry to carry out extensive formal sectoral consultations with the stakeholders before finalisation of new negative list. The Committee, which met here with MNA Eng. Khurram Dastgir Khan in the chair, also recommended to the Ministry to appoint permanent Chairman and Board of Directors (BoD) of National Insurance Company Limited (NICL) to run its affairs transparently.
The Committee also invited representatives of Faisalabad Chamber of Commerce and Industry (FCCI), who portrayed a dismal picture of Faisalabad-based textile industry due to non-availability of gas. FCCI representative Shaikh Abdul Qayyum briefed the committee that volume of exports from Faisalabad has declined almost by 50 percent due to energy crisis, saying if the present government does not take energy situation seriously Pakistan will become Somalia. He argued that their cost of doing business is increasing with every passing day that''s why Faisalabad''s industry is unable to compete with exporters of Bangladesh and China.
According to him, a commitment was made with Faisalabad that available gas quantity will be distributed fairly but now Karachi is being given priority. "We also live in Pakistan, government should not discriminate against us," he continued. He pointed out that local industry pays mark up on loans for 365 days whereas industry operates only for 150 days a year, which implies that this burden is also being swallowed by industry. Qayyum stated that Faisalabad which was a peaceful city is now witnessing high crime rate including cases of abduction for ransom and labourers, who have lost their jobs, are apparently involved in street crimes.
With regard to preparation of negative list for India, he informed the committee that Commerce Ministry did not take stakeholders into confidence before finalisation of the list. Rana Muhammad Farooq Saeed, former Minister for Textile Industry, also supported the representative of FCCI on fair distribution of gas and negative list, saying that local industry is not opposing trade normalisation with India but stakeholders should be taken into confidence.
"All chambers especially the textile sector should be consulted properly before moving forward on negative list as once it is finalised Pakistan cannot reverse the decision," he continued. When Chairman of the committee, Khurram Dastgir inquired from Additional Secretary Commerce, whether meaningful consultation was done with the stakeholders, he replied that stakeholders had been taken into confidence and Secretary Commerce personally visited different chambers to consult with them on negative list.
However, some of the stakeholders felt that they have not been consulted on this critical issue, adding that Textile Minister also took up this issue in the cabinet meeting. "We have started inter-ministerial consultations on this issue in the light of Cabinet''s directives," he maintained.
After hearing the arguments of Additional Secretary Commerce, Rana Farooq Saeed Khan used harsh words against the bureaucracy. "You people sit in offices and know nothing about ground realities. Please don''t take decision in haste. Take textile related people from Karachi, Faisalabad, Multan, Lahore, Gujranwala and Sialkot on board before finalisation of negative list," he maintained.
MNA Tahira Aurangzeb and Yasmin Rehman also supported textile industry but complained that with the decline in the price of cotton from 6500 per maund to Rs 1500 per maund prices have not yet been decreased. Kashmala Tariq, came into the committee room, sat a couple of minutes, signed the attendance sheet to ensure air ticket and TA DA and left.
The committee also discussed progress on Rs 5 billion NICL scam and asked different questions from the Acting Chairman, Tariq Iqbal Puri and FIA officials who came from Lahore and Karachi. NICL and FIA officials claimed that the entire amount has been recovered except 20 Kanal of land near Lahore airport, which is in the custody of NICL. Puri informed the committee that he has invested the amount in Treasury Bills and received reasonable mark up, adding that the company''s profit will be about Rs 3.5 billion instead of Rs 2 billion.
Chairman and committee members inquired how the two principal accused of NICL have been released from jail or exonerated. Director FIA from Lahore informed the committee that Monis Elahi, son of Chaudhry Pervez Elahi, has been exonerated by the court after the bank officials, in their statements, stated that the accounts were opened legally. Chairman of the committee also inquired how internal control of NICL failed in identifying such a huge scam. NICL Acting Chairman replied that oversight of company''s affairs was the responsibility of the SECP. "Now SECP has tightened its rules to monitor the affairs of the company on a daily basis," he maintained.