ISLAMABAD: The National Assembly Standing Committee on Commerce has given go ahead to the Ministry of National Food Security and Research to issue fumigation licences for 57 companies, aiming to break the monopoly of four companies in a transparent manner.
The committee also called for action against officials from the ‘notorious’ Department of Plant Protection (DPP) and rice exporters responsible for damaging the country’s reputation.
This recommendation came after a detailed discussion led by Committee Chairman Jawed Hanif Khan, MNA, regarding the alleged collusion between DPP officials and the four companies importing raw materials for fumigation. The issue was initially raised in the National Assembly by MNA Sharmila Faruqi.
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Additionally, the Committee decided not to alter the minimum requirements for rice consignments to Africa, despite concerns raised by PPP MNA Khurshid Ahmed Junejo. He argued that these changes would negatively impact the export of Irri-6 rice, harming Sindh’s farmers.
The Federal Investigation Agency (FIA) is currently investigating the scandal, and the Technical Director General of DPP has already been suspended due to allegations of corrupt practices. The Ministry of National Food Security and Research representative informed the Committee that 17 DPP officials previously jailed for colluding with rice exporters have now been released on bail.
The Committee was also informed that the Prime Minister has issued directives to ensure that no DPP official involved in discrediting the country will be appointed to any position within the department. However, the Chairman of the Committee expressed skepticism about how these measures would be enforced.
Representatives from the Rice Exporters Association of Pakistan (REAP) attempted to defend the 17 suspended DPP officials, shifting blame to the four companies operating from a single address. However, Ministry officials rebutted this claim, stating that some of the suspended individuals had admitted to issuing fake clearance certificates.
REAP also requested that the government relax the stringent requirements for rice exports to Africa, arguing that this would increase costs and make Pakistani rice less competitive, especially since the price difference with India is currently only $2 per ton.
Special Secretary of the Commerce Ministry, Shakeel Ahmed Mangnejo, informed the Committee that interceptions in rice exports have been reduced by half due to better implementation of government measures.
He added that there are no issues with rice exports to the European Union (EU), though challenges remain with other markets. REAP further requested that inspection rules for African markets be relaxed, as there are no similar conditions for rice exports from other countries. They also claimed that rice exports had declined by $800 million over the last two months due to an 18-day export ban.
During the meeting, the Committee reviewed multiple alerts issued by the European Union concerning excess pesticide residues in rice exports. The Chairman emphasized the need for strict adherence to legal and quality standards and called for accountability for any individuals or groups responsible for the disruptions.
According to an official statement, the Committee also highlighted monopolistic practices in the fumigation sector that have been negatively affecting rice exporters. The Chairman stressed the need for immediate measures to dismantle these monopolies and ensure a fair environment for exporters. As a result, the Committee decided to close the calling attention notice, with a follow-up meeting scheduled in 30 days to review progress on the issue.
The Committee also discussed various budgetary proposals for the Public Sector Development Program (PSDP). Among the key issues addressed was the delay in completing the Export Center in Quetta, a project initiated in 2017. Committee members expressed dissatisfaction with the slow progress, particularly due to poor coordination between the federal and Balochistan governments regarding land allocation.
The Export Accelerator program for small and medium-sized enterprises (SMEs) was also discussed. The Committee was informed that the PC-1 document for the project would be submitted on February 28, 2025.
The meeting was attended by MNAs Muhammad Mobeen Arif, Usama Ahmed Mela, Dr. Mirza Ikhtiar Baig, Asad Alam Niazi, Muhammad Ahmed Chattha, Muhammad Atif, Tahira Aurangzeb, Kiran Haider, Choudhary Iftikhar Nazir, Rana Mubashir Iqbal, and Khurshid Ahmed Junejo in person, while Muhammad Ali Sarfaraz, Rana Atif, and Farhan Chishti attended virtually.
Sharmila Faruqi attended as the Mover virtually and Ali Musa Gillani was present in person as a Special Invitee. Senior officials from the Ministry of Commerce, NICL, PakRe, SLIC, TDAP, DPP, PSQCA, Ministry of National Food Security and Research, and the Chairman of the REAP were also present.
Copyright Business Recorder, 2025
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