Chairman Senate Standing Committee on Commerce and Textile, Senator Shibli Faraz on Thursday hinted at ridding all politically appointed board members of public sector companies as soon as his party forms the next federal government.
He made these comments at a meeting of the standing committee during discussion on boards of National Insurance Company Limited (NICL) and Trade Development Authority of Pakistan (TDAP) which are known corruption-tainted companies.
The Abbasi-led cabinet accorded approval of new Boards of different public sector companies for three years on the recommendations of respective ministries, which were later notified by the companies. However, the board members of a few companies have yet to elect their chairmen.
"As PTI forms the government, politically appointed board members will be no more. We will appoint professionals of different sectors," said Senator Shibli Faraz and Senator Nauman Wazir Khattak. Both Senators maintained that Pakistan's exports are not performing due to which trade deficit is widening day by day.
Senator Nauman Wazir, who threatened to stay away from future meetings as his suggestions were not being taken seriously, said that Pakistan's trade deficit with China is around $13 billion per annum; and asked concerned officials of Ministry of Commerce and Textile whether the former government raised this issue with China at the highest level. He said, only 10 per cent of products covered in FTA enjoy zero duty and after reaching the threshold of 10 per cent, the remaining exports of that item are exported at 55 per cent tariff. He argued that China had imposed Non Tariff Barriers (NTBs) against Pakistani items covered in the FTA.
Senator Shibli Faraz said that this issue has already been discussed in the past and the Senate Committee had termed the FTA with China flawed.
"Commerce Ministry's officials are heading in the wrong direction. Pakistan has to come out from exports of rice and mangoes and focus on value addition besides conducting value chain analysis," Faraz added. The committee also discussed issues faced by the power looms sector in Faisalabad, an issue raised by Senator Mian Ateeq Shaikh in the Senate on May 25, 2018.
The officials of Textile Division informed the committee that power looms are not feasible and running only after getting orders as their production is not as per international standards. Senator Ateeq Shaikh maintained that with shutting down of power looms in Faisalabad unemployment will increase. Senator Ateeq Shaikh asked if power looms were being extended their share in PM's Export Package, Secretary Textile said that export package is being implemented in letter and spirit.
The committee was informed that an official of the Sindh Revenue Board (SRB) committed a dacoity of over Rs 1 billion from NICL's account. Under the illegal recovery notice, the SRB officer coerced and unilaterally withdrew Rs 1,014,150,868 from NICL's bank account despite the fact that no recovery order or demand notice was served to NICL which was legally required. Moreover, the order passed by the SRB officer, reference of which has been made in the recovery notice to HBL, was also not served to NICL before recovery. The whole event of illegal recovery is highly tainted with misuse of authority, haste, lack of due process of law and deliberate unlawful maneuvering on part of SRB so that NICL was unable to exercise its legal rights. The chairman standing committee expressed his annoyance at not being informed of this issue to which Additional Secretary Commerce, Syed Tariq Huda stated that he is scheduled to have a meeting with SRB next week after which he would provide an update to committee members.
The chairman standing committee argued that the NICL management transferred those officials who shared information regarding withdrawal of over Rs 1 billion by the SRB. The Executive Director NICL (North) Dr Kausar Zaidi denied the charges, saying that the employees who have been transferred displayed banners against the management. He said, NICL employees are demanding confirmation from 2003 along with arrears.
Both the chairman standing committee and Senator Nauman Wazir Khattak expressed their annoyance at the apathetic attitude of the bureaucracy, saying that Pakistan Administrative Services (former DMG) considers itself Brahman (superior caste). The chairman standing committee said that all the ministries and divisions should have database so that officers from other ministries may benefit.
He said he would request the Chairman Standing Committee on Finance and Revenue to seek information from the FBR as to how much amount has been withdrawn from the accounts of different public and private companies through "window screening" to achieve revenue target. He concluded that with precisely such actions, the country is defamed. According to a press release, he mover while explaining the issue said that power loom units are being shut down in Faisalabad and employees are suffering as a consequence. The ministry, however, responded that as of now only six power loom units are closed and the rest are working as per previous practice and the statistics show that production of yarn and cotton produced and exported has been consistent.
The mover of the matter as well as the committee were not satisfied with the reply provided by the ministry and decided to dig deeper into the matter as to what number of power looms have been shut down and what are the possible reasons thereof. The Committee was told in detail about why the power loom sector is struggling in wake of new technologies in place now and what measures are being taken and can be taken to help address the issue.
The committee also discussed the implementation status of its recommendations regarding the NICL and the issue of transfer of rupees one billion to the Sindh Revenue Board (SRB) by NICL. Additional Secretary Commerce told the Committee that several correspondences with SRB have taken place and a significant amount of the money will be recovered soon after the next meeting takes place. The committee also deliberated upon having value chain analysis of industries in Pakistan, addressing the matter of export-import trade deficit with China, and accurate statistics about energy consumption of industrial sector.