KARACHI – A number of projects for the promotion of national exports, announced by the Ministry of Commerce, have been jeopardised due the non-release of over Rs 4.0 billion earmarked for Trade Development Authority of Pakistan (TDAP) under the Export Development Fund (EDF).
The non- release of funds allocated under the Strategic Trade Policy 2009-12 for new trade initiatives has come at a time when the authority is apparently unable to bear the expenditure of many of the projects and incentives to exporters announced under the new trade strategy, sources revealed to Pakistan Today.
According to sources, due to financial constraints, many important projects including the establishment of the Institute(s) of Marble Technology, Karachi and Peshawar, Agro Food Technology Institute of Pakistan in Lahore, Institute of Leather Technology, Lahore, Carpet Institute, Quetta, College of Fashion and Design, Karachi, Carpet and other Crafts Training Institute, Hala, Pakistan Packaging Institute, Karachi and an Expo Centre in Multan were to have been allocated, Rs 50 million, Rs 5.0 million, Rs 200 million, Rs 150 million, Rs 950 million, Rs 200 million, Rs 100 million, Rs 960 million respectively.
Other projects like Dazzle Park in Karachi, the Dates Processing Institute at Khairpur, Mango Pack House and cold storage facilities in Multan and Benazirabad were also to have been completed with the investment of millions of rupees. Only the feasibility studies of these projects, meant to have been on the basis of public-private partnership, were completed so far, with no real progress in this regard made by the concerned authorities.
Though TDAP had requested the Ministry of Commerce (MOC) and other concerned authorities to release the announced funds, the delay has been a major impediment in the fulfillment of these projects. Beside the highlighted projects, the MOC is also yet to transfer around Rs 2.0 billion to TDAP under the “services export development fund”, for promoting the country’s expansion into the international services market, as stipulated in Strategic Trade Policy 2009-12.
The authority, under the three years strategic policy, had also sent the relevant scheme documents for the establishment of Services Export Development Fund (SEDF) at TDAP to the ministry on September 1, 2009 with the request to expedite release of funds on urgent basis, sources said.
Due to the lack of funding, the interest of stakeholders and businessmen in various service sectors is lagging, as they hesitate to enter negotiation with TDAP officials since they are afraid that the authority is unable to offer them any tangible benefits, sources noted.
According to sources, the SEDF established under the Trade Policy 2009-10, to be administered by a 13-member board will utilise the resources in the fund for the provision of assistance in the form of reimbursable grants to Pakistan service exporters for tendering or negotiating international projects, conducting pre-feasibility or feasibility studies for international projects, the establishment of services offices overseas and the organisation of conferences.
