KARACHI – Despite languishing for at least two years, the establishment of the Services Export Development Fund (SEDF), an Rs 2.0 billion project for promoting the country’s export of services, stipulated in Strategic Trade Policy 2009-12, remains a distant dream due to what sources attribute to a lack of funds. Though the important project aimed to enhance the export of services, the long neglected unconventional exportable item, was announced in 2009 by the ministry of commerce, it was yet to be formed by the government. Despite repeated requests from the Trade Development Authority of Pakistan (TDAP) in the last eight months, the ministry has yet to release funds to the authority which is notified as implementation agency of the program, sources said.
As the ministry, sources said, was also not being paid around Rs 4.0 billion under the Export Development Funds by the ministry of Finance, many important projects were left untouched. Sources said to implement the proposal of Trade Policy pertaining to Services Sectors, the authority had requested the transfer of funds to TDAP on December 5, 2009, but it was yet to receive funds from the ministry despite lapsing around nine months since the policy was announced. The authority, under the three-year strategic policy, had also sent the scheme documents for the stablishment of Services Export Development Fund (SEDF) at TDAP to the ministry, on September 1, 2009 with the request to expedite the release of funds on an urgent basis, they added.
Interestingly, the ministry had planned to give the project to Pakistan Institute of Trade and Development (PITAD) which was supposed to hire the services of international strategy consultants to formulate holistic and feasible services sector Master Plan 2010-20 for Pakistan. While resenting the move, the authority through a letter, had requested the ministry to review the plan, saying that “since the initiative on services sector has been undertaken by TDAP in consultation with the stakeholders at appropriate level and the authority being notified as implementation agency, would be in a better position to ensure the incorporation of these concerns into the study,” they added. Due to the non-availability of funds, they said, the interest of stakeholders from various services sectors was reduced while hesitating in discussing issues with the TDAP officials since the authority was unable to offer any tangible benefits.
For the requisite study undertaken and promotion of the service exports which could generate huge revenue for the crisis hit country, the authority was in need of allocated funds. However, according to the sources, the ministry had earlier informed TDAP that out of Rs 2.0 billion of an amount of Rs 150 million has been earmarked for carrying out study on services exports and the authority would be funded accordingly. According to sources, the SEDF established under the Trade Policy 2009-10, to be administered by a 13-member board would utilise the money in the Fund for providing assistance in the form of reimbursable grants to Pakistan Service Exporters. Sources claimed that Pakistan in the absence of any export strategy or planning and training institutes/facility was missing a reasonable share in the in the world’s over $ 3.0 trillion trade of services.
Though, during the last few years, a demand for almost 30,000 English language teachers, 100,000 health workers and a large number of construction engineers and consultants from Pakistan were met across the world despite the lack of facilities, sources claimed.
SEDF project remains a pipe dream
