ISLAMABAD: The Board of Administrators of Export Development Fund (EDF) on Wednesday approved different schemes and projects worth millions of rupees each. Presided over by the Commerce Minister, Engineer Khurram Dastgir Khan also reviewed funding position of EDF as some of the schemes and projects are far from scheduled completion. Finance Ministry is holding billions of rupees as Export Development Surcharge (EDS) and the Board was informed that Rs 1.7 billion are available in EDF.
The Board also discussed current status of Pakistan Horticulture Development and Export Company (PHDEC), a subsidiary of Commerce Ministry based in Lahore.
The Board decided to restructure and wind up the organisation and also decided to approve funding of Rs 20 million for the employees and other expenditures. Additional Secretary Ministry of Commerce, Mian Asad Hayyaud-Din recently stated before the committee that the organisation would be closed.
The Board also approved additional funds for SAARC Chamber of Commerce and Industry’s building in Islamabad. Some of the Associations are opposing the project, saying that if it’s SAARCs asset then why should Pakistan alone finance it?
The Board approved additional funds of Rs 10.5 million for Uster HVI 1000 M (fiber classification and analysis system) by the Karachi Cotton Association.
The Board approved consultancy fee of $ 4500 to M/s Morris, Manning & Martin LLP hired for cases of anti-dumping and countervailing duty imposed by the US Department of Commerce.
WTO wing of Commerce Ministry has sent a proposal/ working paper detailing US Department of Commerce (USDOC) initiation of anti-dumping duty (an anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value) and countervailing duty (an import tax imposed on import of circular welded carbon-quantity steel pipe from Pakistan). USDOC has imposed a preliminary countervailing duty of 64.8 percent and anti-dumping of 11.8 percent on steel pipes from Pakistan.
M/s International Industries Limited a manufacturer of steel, had hired a US based law firm M/s Morris, Manning & Manning & Martine LLP for the case. The firm has revealed that total cost involved in connection with CVD is $ 90,000. The IIL had requested for reimbursement of 50 percent cost i.e. $ 45000 ( Rs 4,725,000 @ Rs 105/ $).
Section 4 (viii) authorizes EDF Board to approve expenditure related to engagement of consultants in connection with export development activities. EDF Board had been approving funds for engagement of consultants in past as well which include: (i) consultancy fee for anti-dumping cases against Pakistan exporters; (ii) hiring of a law firm by APTMA to defend imposition of safeguard duty measurers by Turkey on import of cotton; (iii) M/s Sidley Austin Brown & Wood LLP, Brussels for GSP; (iv) M/s Thompson Cobb, Bazilio & Associates PC, Washington DC ; and (v) hiring of consultants M/s DLA Piper, UK) to assist in trade negotiations with the European Union.
The Board approved financial support to Footwear Training Institute(FTI) Charsada (KPK) in addition to upgradation of Fan Development Institute Gujrat with a funding of Rs 16.73 million.
The Board also approved continuation of child labour elimination program in soccer ball industry Sialkot with a funding of Rs 19.6 million.
The Board, however, deferred an item regarding allocation of funds for procurement of land for future expansion of School of Fashion Design Lahore.
The Board also approved millions of rupees for hiring of consultants and staff aimed at strengthening of regional trade offices and EDF Secretariat.
The Board approved funding for Pakistan Readymade Garments Manufacturers and Exporters Association to get membership of International Apparel Federation (IAF).
Ijaz Khokhar chief PRGMEA in a letter to Commerce Minister had sought 7500 pounds per annum for the membership fee of the IAF for five years. IAF is a world’s leading federation for Apparel Manufacturing Association garments companies apparel retailers and the supporting industry. IAF’s membership includes apparel Associations from more than 40 countries representing over 150000 companies who provide products and services to the apparel industry through their associations.
Earlier, the Association had protested to the Commerce Ministry for not including its request in the agenda of EDF Board.
Textile apparel is the highest value added sub-sector, the highest revenue earner and the highest taxpayer segment in Pakistan.—MUSHTAQ GHUMMAN
