Businessmen oppose govt’s decision to close PHDEC

KARACHI: Businessmen on Thursday opposed the government’s decision to close the Pakistan Horticulture Development and Export Company on the pretext of poor performance, saying the entity could have been restructured to improve horticulture exports. 

Ahmad Jawad, regional chairman on horticulture exports of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the ministry of commerce decided to close Pakistan Horticulture Development and Export Company (PHDEC).

“I don’t know why the government is so much in haste to close PHDEC rather than restructuring this important organisation,” Jawad said in a statement. “Horticulture exports contributed $641 million in 2015/16, but there is still a lot of room for improvement if we get proper policy from the government.”

He said PHDEC didn’t receive due attention from its parent ministry. Despite the commerce minister’s commitment, the ministry didn’t bother to restructure the organisation. The ministry only sanctioned the staff’s salaries, but it didn’t approve any budget for the company, he added.

PHDEC was set up during the regime of Pakistan’s former president Pervez Musharaf to promote exports of non-traditional products. Jawad said the ministry’s officials said horticulture sector came under the mandate of provinces after 18th amendment into the constitution. 

“…but they forget to know when you talk about exports of horticulture sector then it’s is the responsibility of commerce ministry to look after the affairs and problems of this sector,” he added.

Jawad lamented that finance ministry continually ignored the horticulture export sector for the past four budgets. The commerce ministry didn’t formulate any policy for the sector despite the businessmen’s repeated requests, he said.

He said horticulture sector has been gaining importance in the world trade since the last two decades. In recent years, developing countries have created a space in the international market, but they are still not able to move beyond four to five percent of the world trade. Pakistan accounts for just 0.3 percent in the world’s horticulture trade.  

The apex body’s official said the commerce ministry chalked out a short-term export enhancement strategy under the Strategic Trade Policy Framework (STPF) for 2015-18. The strategy has indentified four areas, including horticulture. “But, it has been given no importance practically.” 

He urged the government to admit that horticulture sector has not received the attention it deserves.  Jawad said horticulture sector is well-distributed among various climate zones, ranging from sub-zero temperature of mountains of north to dry and humid plains of Punjab in the centre of the country and to the coastal areas of Balochistan and Sindh. 

“It has been proved that the potential for horticulture exports is enormous and by putting it under STPF, the government has accepted this fact,” he added. “However, there is a growing need for the government to strengthen the sector and that can only be done by giving it more attention.”

The industry official urged the commerce ministry to revisit its decision of closing down PHDEC and run this organisation through appointing professionals to increase the country’s share in foreign horticulture exports.  

“The ministry should also understand that TDAP (Trade Development Authority of Pakistan) is already loaded with other sectors and its agriculture products wing is not properly functional as required,” he said.