The Senate Standing Committee on Commerce, chaired by Senator Anusha Rahman, has directed the Commerce Ministry to allocate the Export Development Fund (EDF) resources towards export enhancement initiatives rather than infrastructure projects like the Peshawar Expo Centre. This directive was issued during a committee meeting on Friday, attended by Minister for Commerce Jam Kamal.
The chairperson emphasized that EDF resources should be dedicated to projects that directly enhance exports, instead of infrastructure developments which should be financed through the Public Sector Development Program (PSDP). Despite the Commerce Ministry officials arguing that infrastructure projects fall within the EDF rules and can aid in export enhancement, the committee remained firm in its stance. The officials highlighted that Rs 4 billion had already been approved for the Peshawar Expo Centre, which is 60% complete.
The Commerce Minister, Jam Kamal, supported the chairperson’s viewpoint on the utilization of EDF resources. He mentioned that the Commerce Ministry has submitted a summary to the Prime Minister for the reconstitution of the EDF Board. This reconstituted board will be expanded to include representatives from other sectors contributing 0.25% of their export proceeds.
The committee was informed about the government’s consideration to wind up the Textile Commissioner Office. The office’s primary functions include collecting cess on cotton and funding the National Textile University Faisalabad. The committee directed the Commerce Ministry to expedite this process and reassign its staff to other government departments.
Commerce Ministry officials reported a substantial reduction in the smuggling of imported goods from Afghanistan due to punitive measures implemented by Islamabad. The existing Afghanistan-Pakistan Transit Trade Agreement (APTTA) is extended annually as both countries have not reached a consensus on a new trade pact. Additionally, Pakistan is utilizing Afghanistan’s infrastructure for transit to export goods to Central Asia.
The committee discussed the Trade Dispute Resolution Organisation’s (TDRO) operations. The TDRO’s primary role is to resolve disputes between companies and it also serves as the secretariat for the Trade Dispute Resolution Commission (TDRC). The TDRC Act was passed in 2023, but it is still operating without a Chairman and Board. The committee raised concerns about this delay and the vacant post of Director General of TDRO for the past three years. The Director of TDRO stated that the rules for appointing the Chairman and Board have not yet been passed by the Cabinet. Senator Anusha Rahman suggested that members of the Board could be appointed through a resolution.
