Senate Committee addresses export issues, board membership & compliance with trade agreements

ISLAMABAD, Sep 05 (SABAH): The Senate Standing Committee on Commerce, chaired by Senator Anusha Rahman, met on Thursday at Parliament House.

In attendance were Senator Sarmad Ali, Senator Muhammad Tallal Badar, Senator Faisal Saleem Rahman, Senator Saleem Mandviwalla, Senator Bilal Ahmed Khan, the Federal Minister for Commerce, the Secretary for the Ministry of Commerce, the Special Secretary of the Ministry of Commerce, the Additional Secretary of the Ministry of Commerce, and other senior officials from relevant departments.

The meeting included a comprehensive discussion on the compliance status of the recommendations made by the Committee during its meetings held on July 3rd, 4th, 5th, 18th, and 19th, 2024. The Secretary of the Ministry of Commerce informed the Committee that all the recommendations had been duly complied with.

Senator Anusha Rahman, the Committee Chairperson, highlighted the challenges faced by exporters, particularly regarding trade dispute resolution under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). She noted that exporters face cash flow issues and are often required to initiate legal proceedings in importing countries. Although some FTAs contain provisions for dispute resolution, these are rarely implemented. She also emphasized the need for a thorough analysis of the factors complicating the export system.

The Committee unanimously ratified the membership of Senator Bilal Ahmed Khan to the Board of the Trade Development Authority of Pakistan (TDAP). The Committee members expressed displeasure with the Ministry’s response, stating that Sections 11(h) & (i) of the State Owned Enterprises Act, 2023, disqualify parliamentarians from serving as independent directors on boards. The Chairperson of the Committee contended that these sections apply to independent directors, not parliamentarians.

Moreover, the Ministry officials briefed the Committee on the policy of re-export of motor vehicles from Pakistan and also delivered a presentation outlining the region-specific scale of exports and prospects. They also discussed the initiatives undertaken for 18 exhibitions and events for the promotion of non-traditional products in both existing and new markets during 2023-2024. Senator Anusha Rahman, along with other Committee members, recommended that a list of participants and business leads generated from each exhibition be submitted to the Committee.

While praising the youth of Balochistan and Sindh for their entrepreneurial efforts, Senator Anusha Rahman noted the significant number of startups emerging in these provinces. She emphasized that the only way to further encourage the youth is through sustained support. Additionally, she suggested collaborating with ITCN (Information Technology and Telecommunication Network) to enhance Pakistan’s visibility as a host in regional forums.

The Committee also discussed the export of donkey hide and meat, which has been banned since November 2023. The Chairperson of the Committee stressed that resolving these issues would not only attract foreign exchange but also generate employment.

In her closing remarks, Senator Anusha Rahman highlighted the importance of clarifying the understanding of Article 13 in the Pakistan-Sri Lanka Free Trade Agreement (FTA) and urged the Ministry to focus on the creation of dispute resolution mechanisms.