Pakistan Horticulture Development and Export Company (PHDEC), which is mandated to enhance the export of Pakistan's horticulture products, has, like other public sector enterprises (PSEs) degenerated into a state of profligacy and appears in messy disorder.
Its poor performance is reflected in the results which show that despite unlimited opportunities and "hungry markets" awaiting Pakistan's horticulture products, exports have remained stagnant over the years due to lethargic and un-professional approach of the people manning the Company.
According to leading exporters and stakeholders it is estimated that the country has the potential to earn around one billion dollar annually through the export of fruits and vegetable, provided proper market access and required facilities are made available. During 2012-13, India exported fruits and vegetables worth Indian rupee 5730.85 crore, according to figures available here.
They explained opportunities in following sectors which have not been fully exploited to the advantage of Pakistan.
-- Dates exports could fetch around $250 million, subject to established proper infrastructure. Kinnow export sector has the potential of $300 million subject to better market access in Asean region, Africa and Central Asia, and mango may fetch up to $100 million easily subject to availability of ample air space, and processing facility at producing hubs.
-- Similarly Pakistan is 10th largest producer of apples and due to non-availability of infrastructure facility Pakistan imports apple from New Zealand & China which costs consumer Rs 250 per kg to 400 kg. Pakistan experiences massive post harvest losses in this crop. Balochistan province has 102,300 hectares under cultivation and produces 220,000 tons of apples per year besides KP also has a massive share in apple production.
-- Pakistan has negligible share in world-wide floriculture trade despite having fertile lands and best irrigation system to venture in this enterprising business which not only generates rural employment, but also fetches precious foreign exchange. Pakistan earns almost Rs 35 million but the room for growth is still there.
-- Pakistan's guava production increased from 19,000 tons in 1958 to 552,000 tons in 2008; an annual growth rate of 6.9 percent. Its major exports of guava are to UAE, UK, Saudi Arabia and Qatar whereas Canada is the largest importer of guava from Pakistan accounting for 26 percent of the total guava exports.
-- Although country earns from guava about Rs one billion annually, a large portion of the crop is wasted due to short shelf life which could be saved, if value addition and processing plants are set up in the guava producing areas. We also have golden production of fruits available in Gilgit-Baltistan & Swat Valley areas.
Stakeholders regretted that corruption is escalating unchecked in Pakistan for decades and as a result, gap between the rich and the poor is widening day by day. This state of affairs is not only adversely damaging the economy; it is resulting in price escalation of every commodity and also creating social ills in the society.
Public sector and private sectors trade corruption charges against each other. According to reports, the estimated cost of corruption in large public sector corporations is more than a trillion rupees every year but these reports do not take into account the cost of corruption in many small public sector companies which somehow escape clutches of law.
Knowledgeable sources highlighted the anomalies in not-for-profit companies functioning under the government as under: All companies incorporated under Section 42 of Companies Ordinance 1984 and established by the government are categorised as Public Sector Companies (PSCs). Such companies have independent boards, a combination of private and public sector directors all of whom are approved by the Prime Minister. The funding to these companies is provided by the government and therefore there is no stake of the private sector in these companies.
In one such organisation under federal government, the appointment of Chief Executive Officer was made on the strong desire of a former federal minister although the said officer had throughout his career served a completely different field and having no exposure / knowledge of the sector in which the company was operating. In the very first meeting of the board of directors of this company, the board members objected to the appointment of the gentleman as CEO. However despite strong opposition from board, the will of the former minister prevailed, and the said gentleman was appointed as CEO.
According to sources within the company, the said CEO had assigned targets to the senior management of the Company to provide him booty at the close of each month. A through investigation into the affairs of PHDEC would reveal startling cases in which public money was squandered, sources said.
The PHDEC CEO established six new offices in Islamabad, Peshawar, Quetta, Multan and Hyderabad and Faisalabad. According to the source, all these offices are un-manned and without any furniture / fixture/ equipment, although on books, all the assets were procured and payment made to vendors. A large number of non-technical people were recruited either to win political support or to earn money by selling these jobs. Out of around 110 staff strength, only 60 people attend offices while the remaining are said to be paid salary every month while they remain at home.
These are some of the incidents of corruption reported in a small sized public sector company. Although the government has established several institutional checks to minimise such incidents in public sector organisations such as "The Federal Audit", "Commercial Audit", Standing Committees of National Assembly and the Senate, "Public Accounts Committee", however despite these checks, there has rather been an increase in corruption cases going unchecked. The Finance Division, Government of Pakistan has recently introduced new rules for corporate governance. These rules if properly implemented should certainly be helpful in reducing corruption.