Import of non-prohibited arms, ammunition: commerce Division fails to get Cabinet''s approval

Commerce Division has reportedly failed to get approval from the federal cabinet to allow commercial import of non-prohibited arms and ammunition, well informed sources told Business Recorder. In the past, Commerce Ministry had faced charges of massive corruption in issuance of arms import licences and some of the importers claimed on oath before the former Commerce Minister that they bribed Commerce Ministry''s dealing officers and money was transferred in Dubai. However, such claims were not confirmed.
The sources said that the cabinet has gone one step ahead and directed Commerce Division to place a summary before the next meeting of the cabinet regarding abolition of quota for the commercial import of prohibited and non-prohibited arms and ammunition.
Commerce Division in its summary stated that in pursuance of a decision of the cabinet on a summary of February 7, 2013 and the recommendations in the report of One Man Commission of Supreme Court of Pakistan, constituted in suo moto case No 16 of 2011, the Commerce Division announced a new Arms Policy for import of arms and ammunition by commercial importers through SRO 1112(1)/2014 of December 16, 2014. The SRO envisaged substitution of Value Based Authorizations (VBAs) for import of arms and ammunition, by an authorized importer with Quantity Based Authorizations (QBAs). Moreover, Para 5(6) of SRO, under the heading "Procedure for Issuance of QBAs, provided that after the scrutiny of the application and verification of documents if any, the Federal Government would issue the QBA and Category Pass Book (CPB) to the bank of an importer for opening letter of credit.
The cabinet was apprised that under the new policy, Commerce Division had invited applications through public notice for the issuance of QBAs to substitute the VBAs, and a total of 190 applications had so far been received from provincial Home Departments in respect of commercial importers of arms and ammunition (who were already VBA holders) for the issuance of QBA.
According to Commerce Division, the formula/criteria for substitution of VBA to QBA had been finalized for processing applications for the issuance of QBA to the applicants who were previously possessing VBAs. Likewise, the CPB, after incorporating inputs from the State Bank of Pakistan and FBR, had also been finalized. In order to make the formula and CPB public and to start process for issuing QBAs, Law & Justice Division had advised to amend SRO 1112(1)/2014 after the approval of Federal Government.
The summary was submitted in accordance with Supreme Court of Pakistan''s judgment reported as PLD 2016 SC 808 for approval of the Federal Government ie Federal Cabinet, for amendment in SRO 1112(1)/2014, Dated 16-12-2014 for commercial import of prohibited and non-prohibited arms and ammunition.
After detailed discussion, the federal cabinet rejected the summary of Commerce Division. However, when contacted an official stated that banning legal imports will leave only arms smuggling as the last resort.