The Ministry of Commerce and Textile has finalised nine members of the Export Development Fund''s new Board comprising Prime Minister Advisor, Abdul Razak Dawood, official sources told Business Recorder. Giving the background of the EDF board''s history and rationale, the sources said, the federal cabinet in its meting held on May 30, 1991 decided than Export Development Surcharge (EDS) equivalent to 0.25 percent of the export value may be levied on all exports with effect from July 1, 1991 and the proceeds of the surcharge should be transferred by the government to the Export Development Fund (EDF) for distribution amongst the various Chambers of Commerce and Industry and Export Associations for export development.
The EDF was established through resolution on September 1, 1992. Subsequently, the Act called the " Export Development Fund (EDF), Act, 1999" describing aims and objectives, administration, board of administrators, their functions, powers, committee, funding and audit, etc, was passed, which was duly published in the Gazette of Pakistan on July 31, 1999.
The Board of Administrators of the EDF is constituted under section 5 of the EDF Act, 1999. There is a mandatory requirement under section 5 of EDF Act 1999, that the EDF Board must have at least 13 members, ie, 9 ex-officio members 1 Parliamentarian (to be nominated by the Commerce Minister) and 3 from private sector.
In addition to 13 members, section 5(2) provided that the federal government may appoint additional members as and when considered necessary. Section 6(1) further clarifies that the persons appointed members from the private sector shall preferably be from among the presidents of the associations and chambers and each one shall hold office for one year from the date of notification. The one-year term of 10 members from private sector notified last year expired on May 31, 2018.
Since the establishment of the EDF, parliamentarian and members from private sector in the Board of Administrators have been appointed by the Commerce Minister, being the Chairman of EDF Board.
The Commerce Division has proposed nomination of following parliamentarians and private sector persons as members of Board of Administrators for one year under section 5(1)&(2) and 6 of EDF Act 1999 ;(i) Shandana Gulzar Khan, MNA-member; (ii) Mohammad Ai Taba, Chairman Pakistan Business Council (PPBC)- Member; (iii) Safdar Hussain Mehkri, Chairman REAP - Member; (iv) Zahid Saeed, Chairman, Pakistan Pharmaceutical Manufacturers Association - Member; (v) Abdul Razak Dawood, Advisor to Prime Minister on Commerce, Textile, Industries and Production and Investment - Member; (vi) Ijaz Khokhar, ex-Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association - Member; (vii) Jawad Bilwani, Chairman, Pakistan Hosiery Manufacturers and Exporters Association - Member; (viii) Almas Hyder, President LCCI- Member and; (ix) Mian Shaiq Javed, ex-Chairman, Pakistan Textile Exporters Association.
The EDF Board approves projects, schemes being submitted by different chambers and associations, meant for development of industry and exports, in addition to subsidies required for different sectors or on hiring of consultants and legal firms which contest cases of Pakistani entrepreneurs. However, sometimes, the Board allocates funds on the basis of "pressure" from the bureaucrats or higher authorities despite strong opposition from the private sector which contributes to the fund.
An insider said the Commerce Division has a long standing issue with the Finance Division about release of allocated funds and the ownership of EDF. The newly-appointed Finance Secretary Younus Dagha, who continuously fought for the Commerce Division as Secretary Commerce, may extend support to Commerce in this regard.