The ministry of finance has approved budgetary allocations of Rs 4.780 billion against the demand of Rs 9.843 billion for the ministry of commerce and its allied departments for next fiscal year, which the MoC feels would hinder implementation of certain export development initiatives in 2011-12.
Officials of the commerce ministry informed the National Assembly Standing Committee on Commerce here on Thursday that the MoC would be unable to implement certain export development initiatives in the upcoming fiscal year. The committee met in the parliament house on Wednesday with Engineer Khurram Dastgir Khan MNA in the chair and reviewed the budgetary position of the ministry.
According to the commerce ministry, the budget provided by the Finance Division to the commerce ministry is insufficient and there is a shortfall of Rs 5.062 billion in the demand of the department and budget approved by the finance for 2011-12. The ministry of commerce has also approached the priorities committee for increase in the budget but no additional allocation was approved.
In a written presentation to the committee it was informed that ministry was allocated Rs 4.919 billion budget for its 10 expenditure heads. However, the ministry of commerce had demanded a budgetary allocation of Rs 9.843 billion for the next fiscal year 2011-12 and an allocation of Rs 4.780 billion has been approved for the ministry leaving a shortfall of Rs 5.062 billion.
It has further informed that the ministry had demanded an allocation of Rs 4.450 billion for 2011-12 for export development fund and finance division has approved an allocation of Rs 1.828 billion for EDF, leaving a shortfall of Rs 2.621 billion in EDF. The MoC had demanded Rs 2 billion for the Trade Development Authority of Pakistan (TDAP) for the next fiscal year 2011-12 and an allocation of Rs 1 billion has been approved for TDAP resulting in a shortfall of Rs 1 billion. An allocation of Rs 2.979 billion was demanded and an allocation of Rs 1.611 billion has been approved for 2011-12 for all the trade missions abroad and there would be shortfall of Rs 1.368 billion in this head.
An allocation of Rs 671,000 was demanded for liaison office Afghan Transit Trade Chaman and the Finance Division has approved Rs 402,000 for this in 2011-12 and there would be shortfall of Rs 269,000. An allocation of Rs 52.209 million was asked for Pakistan Institute for Trade and Development (PITAD) and an allocation of Rs 24.250 million have been allocated for 2011-12 and this will face a shortfall of Rs 27.959 million. The ministry had demanded an allocation of Rs 31.516 million for Directorate General of Trade Organisations and MoF has allocated Rs 26.384 million for it with a shortfall of Rs 5.132 million in 2011-12.
The ministry has demanded Rs 107.021 million for National Tariff Commission and government has allocated Rs 68 million for it and there would be budgetary shortfall of Rs 39.021 million. Rs 221.250 million were required for main secretariat of the ministry and finance has made an allocation of Rs 221.250 million. Discretionary grants by the commerce minister and minister of state for commerce were demanded and an allocation of Rs 600,000 and Rs 400, 000 were approved respectively.
The meeting was informed that an allocation of Rs 8.037 billion was demanded for ongoing fiscal year 2010-11 and an allocation of Rs 4.919 billion was approved and actual releases were recorded at Rs 1.584 billion by March 31, 2011 against the expenditures incurred during this period of Rs 2.657 billion. Balance available for ministry of commerce is Rs 2.261 billion for the ongoing fiscal year 2010-11. Especially the allocation of Rs 2.097 was approved for Export Development Fund and only Rs 839.170 million were released for this purpose.
The committee desired to minimise the EDF Board, Power Looms representatives be included in the Board, one pager performance report on each EDF project be submitted to the committee and a separate allocation be made out of EDF for modernisation of trade crafts. The committee showed concern over Rs 1.5 billion allocation for trade missions abroad and desired review of the performance of these trade missions.