Senate Standing Committee on Commerce on Tuesday grilled Commerce Ministry for the worst performance in exports, discriminative policy in trade officers' selection and not taking the committee on board in negotiations on trade pacts with other countries. The committee presided over by Senator Syed Shibli Fraz was also angry with the Commerce Minister for not giving due value to the standing committee. Prime Minister's Advisor on Foreign Affairs Sartaj Aziz gave a detailed presentation on the role of Pakistan's embassies in promoting trade.
He said the government's first priority is to promote trade and bring investment into the country. For this purpose the government is focusing on trade diplomacy, he added and Pakistan's top export destinations are the US and China. Sartaj Aziz said he met a Chinese delegation on Tuesday wherein he took the stance that China got more benefit of FTA as compared to Pakistan. He said exports have not increased realistically for the last five years.
He further stated that since the international sanctions have been lifted against Tehran, three important meetings have been held to finalise a strategy. He said, during the recent visit of Iranian President, both countries signed a five-year Strategic Framework on Trade and Investment aimed at increasing the trade volume to $5 billion.
He informed the committee that the United Nations (UN) has lifted sanctions against Iran after which State Bank of Pakistan (SBP) has allowed trade in Euro but American sanctions against Iran are still intact due to which trade in dollar is still prohibited. He said, a list of those Iranian entities have also been provided which are not affected by the US sanctions. According to Sartaj Aziz, progress on the recently signed pact will be evaluated after 10 or 12 months' period.
Senator Salim Mandviwala and Sartaj Aziz exchanged harsh words over the economic performance of ithe ncumbent government and the Iran-Pakistan Gas Pipeline. Sartaj Aziz said that Pakistan's economic indicators are positive and investors are coming to Pakistan after an improvement in the security situation. Mandviwala pointed out that Pakistan's exports declined by $2.2 billion during 2015-16 as compared to the previous year, saying that the government has failed to turn around exports and countries like Bangladesh and Vietnam performed far better. He further stated that the government has also failed to reap the benefits of GSP plus status granted by the European Union (EU) for which PPP government made untiring efforts.
On the issue of IP gas pipeline, Mandviwala criticised the government for not completing the pipeline during the three year period because of American pressure and instead giving priority to LNG import. However, Sartaj Aziz reciprocated by stating that the PPP government did not start work on gas pipeline in 2009 despite the fact that there were no sanctions against Iran at that time.
"The PPP government started the project just two months before completion of its term. If they had started work on the project in 2009 it would have been completed by 2011 but they deliberately delayed it and left it for the next government," Aziz continued. When Chairman Standing Committee felt that arguments and counter arguments between Aziz and Mandviwala were not reaching any resolution, he requested Senator Usman Kakar to pose his question. Kakar also criticised the Commerce Ministry for not giving Balochistan due share in trade officers to Balochistan. He argued that Commerce Ministry regards Balochistan as a stranger and only knows Frontier Constabulary (FC) and Customs. He further stated that Senate Standing Committee is neither being taken on board in negotiations on Free Trade Agreements (FTAs) with other countries nor are its members included in delegations which visit foreign countries. He said the government is doing nothing for Balochistan. Iran is sending its fruits and vegetables to Pakistan due to which the farmers of Balochistan are suffering.
Senator Rubina Khalid suggested that the government should fix a share of trade officers so that each province is represented evenly. Chairman Standing Committee supported this proposal. He then expressed his serious concern at the Commerce Minister Khurram Dastgir for not giving due importance to the standing committee.
"We reprimand the Commerce Minister for not taking the Senate Standing Committee on Commerce on board with respect to negotiations on trade agreements with other countries. The Commerce Minister should keep the committee updated on foreign visits," said Shibli Faraz.
Additional Secretary Incharge, Ministry of Commerce, Azmat Ali Ranjha who attended first meeting of Senate Standing Committee, informed the committee that Pakistan is achieving a modest recovery. He said, the export target of $35 billion was ambitious but achievable by 2018. He also defended the selection process of trade officers. He said, the present government gave 80 per cent weight to written tests taken in LUMS and 20 per cent to interviews.
Mandviwala stated that the selection of trade officers is based on personal likes and dislikes and claimed that the blue-eyed with political backing are given good stations. He further contended that the government recently appointed Trade Ministers on political considerations. He urged the government not to give the impression that only Punjab constitutes Pakistan.
Senator Hilal-ur-Rehman urged the government to open entry point at Mohmand Agency; and on a question he raised Sartaj Aziz responded that "We have decided to allow entry to only those Afghans who will have valid passports or refugee cards. Implementation of this decision will commence after two weeks." Chairman Standing Committee urged the government to focus on new trade centre, the Panama papers and improve trade relations with South Korea. Besides others, senator Mufti Abdul Sattar, Senator Niseema Ehsan and Senator Haji Saif Ullah Khan Bangash attended the meeting.