MUSHTAQ GHUMMAN
ISLAMABAD: Ministry of Commerce on Tuesday issued a notification, allowing export of Personal Protection Equipments (PPEs), sans Tyvek suits, N95 masks and surgical masks. The notification was issued after the cabinet approved it. Commerce Division noted that ban was imposed on the export of various PPE items on the recommendation of Ministry of National Health Services, Regulations & Coordination (MNHSR&C) vide this Ministry’s SRO 239(i)/2020 of March 24, 2020.
Commerce Ministry, in its summary, stated that the business community is approaching different Ministries/Divisions of the Federal Government stating that due to high international demand of various PPEs, the “local industry has developed the capabilities to manufacture these PPEs at full capacity and now are in possession of surplus quantities.” They have been requesting to allow them to export the surplus locally-manufactured PPEs for which they have confirmed orders. They are further stating that these orders are important not only for exploring new opportunities for exports in the wake of cancellation of routine orders, but at the same time, it will also result in creating employment opportunities to people whose jobs are being threatened due to lockdown.
In this regard a meeting was convened by the Advisor to the Prime Minster on Commerce Razak Dawood in the first week of May, 2020 wherein Ministers of Industries & Production (MOI&P), Science & Technology and Special Assistant to the Prime Minister (SAPM) on Health deliberated on the issue of allowing export of surplus PPEs being manufactured locally. It was agreed that MNHSR&C, in consultation with DRAP, will issue a letter to Commerce Division for consideration of lifting of ban on exports of PPEs after accounting for local needs. Furthermore, the Cabinet has already approved the proposal of MNHSR&C in its summary permitting export of sanitizers and face masks to be determined by MOI&P.
Commerce Division requested MNHSR&C and MOI&P to determine the national requirement and availability of stocks and production capacity of PPEs being manufactured locally. MNHSR&C has recommended lifting of ban on export of some of PPEs being manufactured locally provided that Commerce Division and MOI&P would ensure that lifting of this ban will not cause any local shortages of these PPEs and that public interest is accorded the highest consideration while proceeding in the matter. MNHSR&C agreed to share the local needs for a period of only one month. MoI&P has, however, stated that MNHSR&C should determine the details of national requirement of PPEs National Disaster Management Authority (NDMA) has also suggested a regulatory mechanism before allowing export of locally manufactured PPEs subject to the provision that any exporter who intends to export these PPEs must keep equivalent of 20% of its total export order of particular PPE for NDMA at control price with NDMA to have lien and first right of refusal. Subsequently, National Command and Operation Centre (NCOC) held meetings on 21 and 22 May, 2020, and reviewed its decisions as follows: (i) export ban on 3 critical items is enforced. These items include N- 95 Masks, Surgical Masks and Tyvek Suits; (ii) Ministry of Health to share monthly need assessment and procurement plan of critical medical equipment with Ministry of Commerce (including projected requirements for next month);(iii) basing on this assessment, Ministry of Commerce to assess availability of surplus items for export after meeting the local demand plus catering for sufficient additional buffer; and (iv) Ministry of Commerce will move a summary for export permission of surplus items for approval of Cabinet accordingly while keeping Health Ministry in loop and obtaining policy recommendations from NCOC.
In case of perceived shortage of any item, Ministry of Health will immediately inform Ministry of Commerce for imposing ban on that particular item accordingly. NCOC will be kept in loop.
The Cabinet was informed that based on requests received from different exporters, Commerce Division was of the view that the local industry has managed to switch towards production of PPEs locally as the basic raw material for the production of PPEs i.e., textile fabric, both cotton and synthetic (woven and non-woven), and ethanol is adequately available in the market and surplus production of PPEs can be managed by the local industry. Furthermore, lifting the ban on surplus PPEs will also help in easing the recoveries of lost export orders due to COVID-19 by local manufacturers and will create employment opportunities.
In view of the foregoing, Commerce Division presented the following two options for consideration of the Cabinet: MNHSR&C may first assess and give their requirements for PPEs along with catering for sufficient additional buffer on a monthly basis, within one week of approval of this decision. On the basis of the assessment, NDMA and/or Provincial Governments may place the procurement order, within one week‘s time, with the local manufacturers of PPEs, if so required, and the surplus PPE items, including hand sanitizers, disposable gowns and gloves, face shields, biohazard bags, goggles, shoe covers made from various classes of materials including woven and non-woven chlorinated polyethylene (CPE), Polypropylene (PP), spunbond, meltblown, may be allowed to be exported. Commerce Division may also be authorized to ban export of specific PPE items on-recommendation of NCOC without taking it to the Cabinet. Or (ii) Keeping in view the demand of the business community, an immediate and unhindered export, of PPEs, including hand sanitizers, disposable gowns and gloves, face shields, biohazard bags, goggles, shoe covers made from various classes of materials including woven and non-woven, chlorinated polyethylene (CPE), Polypropylene (PP), spunbond and meltblown may be allowed. Commerce Division may be authorized to ban export of specific PPE items on recommendation of NCOC without taking it to the Cabinet.
During the discussion, Minister for Planning, Development and Special Initiatives pointed out that NCOC did not have the wherewithal to monitor the supply and demand of PPEs. Secretary, Commerce Division argued that due to the rapid rise in the number of Covid-19 cases in recent days and the likelihood of further increases in the coming weeks, it would be prudent to first workout national requirement for PPEs in consultation with the Ministry of Health, NDMA, Provincial Governments and Ministry of Industries and Production as soon as possible before allowing exports of the surplus. He stated that this would help avoid shortages and increase in prices in the local markets.
Advisor to the Prime Minister on Commerce Razak Dawood pointed out that assessment of demand and supply of PPEs and other items by MNHSR&C and Industries and Production Division, respectively, was practically not possible. It was suggested that option (ii) was more plausible, with the stipulation that instead of NCOC a Committee of Commerce Industries & Production, NHSR&C and Science & Technology Divisions should be formulated which shall regularly monitor the stock surplus.
After a detailed discussion, hand sanitizers, disposable gowns and gloves, face shields, biohazard bags, goggles, shoe covers made from various classes of materials including woven and non-woven chlorinated polyethylene (CPE), Polypropylene (PP), spunbond, meltblown, with the stipulation that instead of NCOC a Committee comprising of Adviser to Prime Minister on Commerce & Investment, Federal Minister for Industries & Production, SAPM on Health and Federal Minister for Science & Technology Division shall be constituted which shall regularly monitor the stock surplus of PPEs on fortnightly basis and, if required, it shall recommend immediate ban on export of specific PPE items.
“The government has done its part. Exporters please take note and go full speed ahead to capture a good share of world market,” said Dawood in a tweet.
