Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Friday that Trade Development Authority of Pakistan (TDAP) has lost its relevance because of the country's changing export base.
According to a press release, FPCCI said that the objective of the establishment of TDAP in 2006 was to facilitate exports. However, over the years, the organisation has turned from being an export promotion department into an event management company, said Chairman Regional Standing Committee on Trade & Industry of FPCCI and Former Vice President Riaz Khattak.
He said that authority has failed to deliver on its mandate mainly because of wrong priorities and changing export patterns over the years.
The press release further quoted a leading exporter without naming him, as saying that Prime Minister Nawaz Sharif was also not satisfied on the performance of CEO TDAP. Before announcing exporters incentives package for textile last month, PM showed displeasure to CEO TDAP on decline in exports in three years.
According to FPCCI's media cell, official data shows the government allocated Rs 1.1 billion for TDAP in 2015-16. About Rs 750 million, or 68 per cent of the total budget, was spent on salaries and managing the offices of TDAP. The operational budget for the export promotion was just Rs 350m, or 32pc of the total budget, in the last fiscal year.
The breakup of the development budget reveals that Rs 315m, which is 90pc of the development expenditure, was spent on holding more than 115 exhibitions abroad in the last fiscal year. Only Rs 35m, or 10pc of the total development budget, was spent on export promotion functions in the domestic market, but output showed none.
The press release issued by the PSO Khalid Haider (Regional Office) said that FPCCI has claimed that the uneven allocation of the development budget for external and internal markets has created a vested interest for employees.
TDAP has more than 1,000 employees. Only 50 of them are directly involved in holding exhibitions abroad. This means 90pc of the development budget is spent through only 5pc of employees. "This is why most employees in TDAP try to become part of the exhibition department.
Additionally, the authority spent Rs 650m from the Export Development Fund (EDF) on three exhibitions: Aalishan Pakistan (Rs 250m), visits of Caravans to Central Asian States (Rs 150m) and Expo-Pakistan (Rs 250m), sources said.
Former FPCCI VP also said TDAP has lost its importance as exports have been falling for the last three years. He said the authority was established to promote exports - something it has failed to do.
"I think the government should reform TDAP," he suggested, adding that spending millions of rupees on foreign visits will not promote exports. The focus should be on the domestic market and its supply chain, he stated and said TDAP did not pay attention to the supply side and domestic commerce, he added. It has also been accused that top officials of TDAP and the Ministry of Commerce are the major beneficiaries of TDAP's foreign trips, he said. Similarly in the agriculture sector, $2bn in rice exports originates from Punjab. Similarly, the production of Irri-6 is in Sindh and Punjab. The association of rice exporters is headquartered in Lahore.-PR