Panel discusses refusal to make MP member of TDAP board

ISLAMABAD: The Senate Standing Committee on Commerce on Monday scrutinised issues related to the Trade Development Authority of Pakistan (TDAP).

In a meeting chaired by Senator Anusha Rahman at the Parliament House, the panel scrutinised the issue of Senator Faisal Saleem Rehman as TDAP board member for the 2021-24. The committee demanded a full account of the situation as to why he was not made a board member.

Faisal Saleem claimed that despite his 2021 nomination to the TDAP board by the Senate, neither the Ministry of Commerce nor the TDAP acknowledged his membership. The additional secretary noted that this issue was previously raised in the federal cabinet and is now under the Ministry of Law’s review.

The panel head highlighted that the situation predates the SEO Act 2023. She noted that the Finance Ministry, in a response to Question No 84 asked during the sitting of the Senate on 10th of September, 2024, had not listed TDAP as an SOE.

She emphasised that the Ministry of Commerce opinion cannot not be deemed a legal opinion and is contradictory to stated position of the Ministry of Finance. She stressed the importance of upholding the TDAP law. Senators questioned the Ministry of Commerce reluctance to appoint parliamentarians to the TDAP board. She further added that the TDAP does not fall under the purview of the SOE Act 2023 as per Finance Ministry.

Furthermore, the SOE Act 2023 only prohibits parliamentarians on the slots allocated for independent directors on the TDAP board and does not apply to parliamentarians. Commerce Minister Jam Kamal assured that the issue would be resolved promptly.

The committee chairperson called for a detailed report on the matter, including detailed record of notifications, the name and details of the TDAP chief executive during the 2021-24 period, with names of officials who gave this assumption in the Commerce Ministry in violation of law.

The MPs panel also received a detailed briefing on all Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) entered into by Pakistan, including mechanisms for resolving trade disputes. The committee learned that Pakistan’s FTA with Sri Lanka, signed in 2005, is the only FTA/PTA that contains a dispute resolution mechanism for commercial entities of contracting parties. However, Sri Lanka has yet to designate a nodal chamber and arbitration mechanism.

The chairperson urged the Ministry of Commerce to expedite the resolution of this issue. The committee was also briefed on the formation of the Trade Dispute Resolution Commission (TDRC) under the Trade Dispute Resolution Organisation (TDRO) and ongoing efforts to appoint members and operationalise it. The committee was apprised that members of the commission will be appointed in one month time. The briefing from EXIM Bank was deferred pending the presence of the Finance Ministry, as EXIM Bank falls under its jurisdiction.