ISLAMABAD: Senate Standing Committee on Commerce has directed Commerce Ministry to probe factors which led to export of spoiled meat to United Arab Emirates (UAE) besides seeking detailed reports on monetary effect of misuse of Afghan Transit Trade (ATT).
Presided over by Senator Zeshan Khanzada, the committee discussed anomalies in Regulatory Duties, measures being taken to rationalise RDs on different tariff lines considering growth potential of trade sector, ban imposed by UAE on import of meat and seafood from Pakistan, export potential of G1 garlic, export and import data for the last five years, initiatives taken for its GI Registration along with future plan to boost export of G1 garlic in the international market; and latest status of 2nd phase of China Pakistan Free Trade Agreement.
Secretary Commerce, Sualeh Ahmad Faruqui explained that Afghan exports are around $1 billion and imports in the current financial year have jumped to over $6 billion.
Afghanistan transit trade agreement: MoC allows transportation of goods already landed at Karachi
“This difference is huge and we have conveyed this along with statistics to the Afghan government. Pakistan government has also taken measures, including the prohibition of certain items and the imposition of a 10% processing fee by FBR on sensitive goods in order to rectify anomalies in the Afghan Transit Trade system,” he said adding that these measures exclude essential commodities, and ongoing collaboration with Afghan authorities is in progress.
The government of Pakistan has mandated a bank guarantee for Afghan imports, aligning with the requirements imposed by Afghan authorities for Pakistani products transiting through Afghanistan to Central Asian Republics.
The commitment to supporting Afghan Transit Trade remains unwavering, with comprehensive statistics promptly shared with the Afghan side. The government has made policy decisions and the current challenge lies in effective enforcement on the ground, he said.
Taking part in discussion, Chairman Standing Committee asserted that he has been informed that ban on transit trade of some items would have an impact on local businesses.
The Committee directed Commerce Ministry to submit a detailed report on monetary effect of misuse of Afghan Transit Trade.
The Committee extensively discussed the UAE government’s ban on the import of meat from Pakistan. The Director General of the Agro Ministry of Commerce clarified that there is no ban on meat exports to the UAE. Pakistan’s Trade Counsellor is in contact with UAE authorities, addressing a specific incident where a consignment failed to meet standards and was returned.
The UAE recently revised its requirements for sea transportation of fresh chilled meat from Pakistan, restricting it to vacuum-packed and modified atmosphere-packed meat. Senator Danesh Kumar expressed concerns about substandard meat exports, prompting the Ministry of Commerce to commit to a thorough inquiry and the sharing of details on the specific returned consignment.
Additionally, a third-party audit of transport, storage, and processing facilities for meat products in Pakistan will be conducted in coordination with the Animal Quarantine Department.
Regarding seafood exports to the UAE, it was clarified that there is no ban.
Senator Danesh Kumar raised concerns about the smuggling of fisheries worth 3 to 4 billion dollars by foreign trawlers with built-in processing plants. The Secretary of the Ministry of Commerce explained the government’s focus on the fisheries and seafood sector, with a comprehensive policy expected by January next year.
One Pakistani company has already begun exporting seafood to the EU, and three more companies are awaiting permits. A renewed focus on this sector could help bridge the gap between exports and imports.
“We are in contact with UAE authorities on the issue of meat. Third-party audit will be conducted on the return of meat consignments,” said Commerce Ministry officials.
Senator Danesh Kumar enquired if spoiled meat consignments have been destroyed in UAE or sent back to Pakistan? He criticised Commerce Ministry officials for saying that the Ministry is not responsible for this issue. “The country is defamed due to spoiled meat and you people are not ready to accept any responsibility. I fear consignment has been returned to Pakistan and the meat sold in the local market,” he added.
During discussion on ban imposed by UAE on import of meat and seafood from Pakistan, Commerce Ministry officials noted that UAE officials have asked for proper packaging of meat.
The committee directed an investigation into meat exports to the UAE including consignment returned from UAE - destroyed or not. Ministry of Commerce will also submit inquiry report on meat recall.
The Committee was further informed that UAE has not imposed a ban on Pakistani seafood, adding that seafood is being exported to all Gulf countries. Pakistan is also exporting seafood to China.
Senator Danesh Kumar said that seafood products amounting to Rs 2-3 billion are being smuggled from Gwadar. Secretary Commerce endorsed the viewpoint of Senator Danesh Kumar.
The Committee was also briefed on the export potential of G1 Garlic. Representatives of G1 Garlic growers highlighted its advantages, including a better shelf life and four times larger than other local varieties. With government support, this product could be developed for export within 3 to 4 years.
The Ministry expressed its commitment to supporting farmers through agricultural extension services and providing initial funding for training and capacity building. Potential export markets include Africa and Indonesia, following self-sufficiency in garlic production.
The latest status of the second phase of the China-Pakistan Free Trade Agreement was presented to the Committee. The Secretary of Commerce emphasised the need to address anomalies and enhance the benefits of the agreement.
A review committee is being activated to address issues within the framework of the Free Trade Agreement. The Secretary highlighted challenges in realising the full benefits of the agreement, citing inconsistencies in policy and the need for long-term planning.
The Committee acknowledged the need for supporting local industries for value addition and reducing the export of raw materials.
The Committee meeting was attended by Senators Danesh Kumar, Palwasha Muhammadzai Khan, Nuzhat Sadiq, Secretary Ministry of Commerce, DG Agro, officials from TDAP, and NARC.
Copyright Business Recorder, 2023
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