TRADE
Senator Salim Mandviwalla, a former Finance Minister and member of Board of Trade Development Authority of Pakistan, recently lambasted the performance of TDAP and demanded its abolition. He stated that it has become a non-functional, failed and useless body and burden on exchequer and therefore it should be closed at the earliest.
“I have been disappointed by the affairs of TDAP and I am considering resigning from the office as this government body has failed to develop a consistent, sustainable and result oriented, holistic exports development plan. TDAP has failed to forge an effective liaison with private and public stakeholders for enhancing the country’s exports,” he added.
Naturally, the supporters of TDAP chief executive rose up in his defence although the Senator had not made any serious direct criticism of the much respected head of TDAP. The Korangi Association of Trade and Industry (KATI) called the statement of the Senator as "baseless and uncalled for". The chairman added, “TDAP Chief Executive SM Muneer enjoys the support of the business community because he has reduced corruption in the organisation.”
The apex body Federation of Pakistan Chambers of Commerce & Industry (FPCCI), in a statement of the President and Senior Vice President, said, "The TDAP has been facilitating business community as evident from the fact that during SM Muneer’s tenure, the TDAP has successfully organised more than 120 international exhibitions in various countries, more than 100 trade delegations were sponsored, organised Expo Pakistan in Karachi, and Alishan Pakistan in India and Sri Lanka with the view to exploring new and unconventional markets for the promotion of export of the country. This reflects the professional capability and efficiency of the present Chief Executive Muneer, TDAP Secretary Rabia Javeri and other senior officers of the trade authority.”
Strongly reacting to the suggestion of Senator Mandviwalla, a senior TDAP spokesman issued a press release stating, "It is ironical that the Honourable Senator has made this suggestion today and not between years 2008 to 2013 when billions of rupees were being embezzled from the TDAP." Some other business leaders also rose in defence of the TDAP CE and criticised the demand for closure of TDAP.
Without entering into any controversy about the performance of TDAP, it could be rightly said that the Senator's remarks were not against the personality of the CEO but were aimed towards the lack of synergy with mainstream exporters and the inability of TDAP to bring about reforms in the export regime. Notwithstanding the viewpoint of the Senator, it should be noted that there is obviously a clear disconnect between the Finance and Commerce Ministries and TDAP.
The daily "appeals" by various export oriented associations for redressing their genuine demands, whether these relate to infrastructure shortages, or sales tax and other refunds, or blatant smuggling and under-invoicing of imports, or whether it has to do with Gas Infrastructure Development Cess, are testimony of the difficulties faced by TDAP in convincing Islamabad to make the paradigm shift towards a real export oriented mindset.
As is the usual case with people in power, the recourse is always on coming up with visions and frameworks that have a soothing feel, but in practical terms are seldom achieved even by the government and officialdom, mainly due to a lethargic implementation process. Vision-2025, launched with the signature Ahsan Iqbal hype, boasts of an export target of $150 billion by 2025 from the pathetic and stagnant $24 billion since the last three years.
The Strategic Trade Framework Policy recently announced by Commerce Minister Khurram Dastgir Khan after a long and agonising delay, has visualised exports reaching $35 billion by 2018. Senior journalist Ziauddin, in an op-ed, remarked that "the new policy reflects an overambitious quality as it aims to improve exports from the current depressing level to $35 billion by 2018. Clearly, this overambitious export target has been fixed without taking into consideration the ground realities obtaining in the domestic export capacities."
There is an imperative need to revisit the export regime. Over the past many decades, the emphasis and focus has been on textiles, followed by leather, rice, sports goods, etc. Pakistan has never seriously undertaken efforts to exploit the potential of agriculture products or mineral resources.
In horticulture, the country is content with exporting kinnow and mango, whereas the global demand for other fruits is enormous. There is hardly any effort made to value-add the fruit industry for maximising the export proceeds. No country can become a major player in fruit processing if over 55 percent of the production is wasted or goes to rot between the tree and the dinner table.
The fisheries sector too is in perpetual shambles and has not developed into a modern and quality-conscious industry. The massive corruption factor in the Karachi Fisheries Harbour Authority has now become legendary. European Union and other countries have placed sanctions on Pakistani fisheries. So much so, the sad fact is that Vietnamese fish is being served at wedding dinners and other events here. This is an all-time low situation in the fisheries sector.
Pakistan must develop the agriculture sector, both in the fields as well as in the industry.
The cotton crop comes out from outdated and inefficient seeds, there is a farcical process of developing new rice varieties, and there is no structure for introducing modern farm equipment and latest farming processes and technology. The small farmer is contented with the laid down farming mindset instead of learning how to efficiently use fertiliser, water and other inputs. Financial credit for small farmers is expensive while natural calamities and infrastructure shortages have made lives miserable in the rural sector. Corporate farming is opposed by vested interests, while farm cooperatives and clusters are still on paper and rarely implemented.
The government has also given lip service to the mining sector. Coal is probably the only mineral resource that is high on the priority list. The undeveloped mining sector and the nonchalant attitude towards it by federal as well as provincial governments are vivid examples of the opportunity-loss factor. Pakistan should be ready and pro-active to take advantage of the China-Pakistan Economic Corridor, and to ensure that huge chunk of funds are allocated for development of mines, road access, and latest equipment. The world demand, especially from China and some European nations, for minerals is substantial and Pakistan is endowed with abundant resources.
Dollars and euros are hidden underground or in mountains in Pakistan, but neither TDAP nor any ministry has seriously accorded significant importance to these sectors. Pakistan will continue to face strong competition in textiles and leather or even in other sectors. It is high time the TDAP devotes formidable concentration to extract the dollars and euros.
The participation in hundreds of foreign exhibitions will earn the much-needed foreign exchange but will not be the game changer. However, if TDAP wants to save itself from demands for closure, and if there is any way to reach the 2018 target of $35 billion, and if reducing unemployment, extremism and terrorism are the objectives, and if Vision-2025 is achievable and desirable, then it is time to talk the talk, walk the walk. Pakistan is already very late and is fast losing its share of the global marketplace. Vision-2025, for whatever it is worth, earnestly points out as its core mission: "Pakistan’s untapped potential provides room for optimism that Pakistan could emerge as a great nation and economic power if resources are generated, managed and used efficiently.”
The writer is young entrepreneur
