Commerce Secretary Younus Dagha Wednesday said Pakistan has entered into the club of countries which are achieving high growth in exports. He made this claim at the first meeting of the reconstituted Senate Standing Committee on Commerce and Textile headed by Senator Syed Shibli Faraz for the second term. The country's exports have posted 14 percent increase during the first 10 months (July-April) of financial year 2017-18.
Secretaries of Commerce Division and Textile Division gave a detailed briefing to the committee about their working and attached organizations functions. Minister for Commerce and Textile, Pervaiz Malik, who is retiring on May 31, 2018 also attended the meeting and appreciated the committee's work and efforts in providing guidance to the Ministry on different issues.
Dagha apprised the committee that Commerce Ministry has decided to formulate Strategic Trade Policy Framework (STPF) for five years instead of three years as was done in the past, so that the policy should remain in place till the entire tenure of a government.
However, Chairman Standing Committee observed that the existing and previous STPF's were a failure due to lack of coordination within public sector stakeholders. The members of the committee wanted details from both the Divisions but Chairman barred them from going into details, saying that the first meeting is introductory.
The Commerce Division, in its presentation informed the committee that contraction of the global market, commodity crunch, currency overvaluation and competitiveness crisis were the main reasons behind decline in exports.
He further stated that low labour productivity, liquidity crunch, stuck up refunds and high cost of input costs i.e. custom tariffs, energy, labour are major structural issues. Low FDI inflows and FDI in non-manufacturing sector is also a concern.
While sharing a glimpse of short-term strategy (2020), Commerce Secretary said that tariff rationalization of 303 raw materials, making energy tariffs comparable with regional competitors and continuation of PM package with modifications for only value added textiles and non-traditional items will be key measures to restore competitiveness and to recover export loss of $ 5 billion. He argued that improving liquidity, sales tax refunds and customs duty drawbacks are critical measures to post growth in exports.
He apprised the committee that Commerce Division is also bringing National Tariff Policy, first time in history, aimed at proposing key role to National Tariff Commission on custom tariff's fixation. Presently, this role is with FBR, which is a tax collecting agency.
Secretary Textile Industry Hassan Iqbal gave a detailed briefing about the functions of Textile Division and its attached organisations.
Senator Nauman Wazir said that Commerce Ministry should resent Key Performance Indicator's of each of its organisations as well as of Ministry's sections so that their performance maybe evaluated.
Senator Dilawar Khan proposed that Pakistan should not allow sale of land to Chinese nationals, adding that if this practice begins China will buy the whole of Pakistan. The issue of dispute resolution mechanism between Chinese and Pakistani businessmen also came under discussion.
Chairman Standing Committee raised the issue of NICL employees who are protesting that their salaries have not been raised for some time. Chairman Standing Committee pointed out that NICL Board members increased their attendance fees to Rs 50,000 but did not increase salaries of employees.
Minister for Commerce informed the committee that he has talked with Secretary Commerce to sort out this issue. Secretary Commerce said that he has directed CEO NICL to sit with employees and resolve their grievances.
However, an insider told this scribe that the employees' salaries were increased two years ago by more than 100 per cent during the tenure of Ayaz Niazi (who is currently under arrest) and their salaries are quite high.
"A driver in NICL is earning about Rs 100,000 per month. NICL has already given them three bonuses for 2015. They want five bonuses which is too much. First bonus of 2016 has also been given to them," he added.
There are 300 illegal appointees in NICL from Niazi's time - all relatives and friends.
"The employees don't want the Board to take any action against them and are in fact demanding that their employment be regularised," he maintained.
In reply to a question, Secretary Commerce said that Commerce Ministry has also asked FIA to start a fresh inquiry into the property purchased in Dubai at a very high price in 2013 as Commerce Ministry's own team found irregularities in that purchase.
The committee also decided that those Senators who do not attend three consecutive meetings will be replaced.
Besides others, Senator Nuzhat Sadiq, Senator Rana Mahmood ul-Hasan, Senator Ahmad Khan attended the meeting.