ISLAMABAD: The Economic Coordination Committee (ECC) of the Federal Cabinet which is scheduled to meet tomorrow, will approve Minimum Support Price (MSP) of wheat approximately around Rs 1675 per 40/kg for the season 2020-21.
These estimates were noted at a meeting of National Assembly Standing Committee on Commerce held on Monday with Syed Naveed Qamar in the chair.
The representative of Ministry of National Food Security and Research informed the committee that summary for the ECC was ready for review of the minister and would hopefully be on the agenda of the next ECC meeting.
The standing committee chairman and some members of the committee were of the view that the government should announce MSP of wheat as early as possible so that growers could cultivate wheat in the light of the announced price.
The committee was informed that response from Punjab, KP and Balochistan has already been received whereas Sindh’s response is awaited.
The representative of Ministry of National Food Security and Research who was visibly reluctant to disclose the proposed MSP for wheat 2020-21 or the recommendations made by provinces, merely stated that Punjab has recommended a price between Rs 1600-1700 per 40/kg when chairman of the committee pressed him to disclose the recommendation of the Punjab government.
Syed Naveed Qamar assured the committee that he would be contacting Sindh agriculture minister to request him to immediately send the recommendations of provincial government to the ECC meeting.
Chairman standing committee maintained that importers and some officials have an interest in importing wheat and urged the government to announce it as early as possible adding that domestic growers should be given incentives so that the country can become surplus in wheat.
Additional Secretary, Ministry of National Food Security and Research informed the committee that the government has allowed import of 3.2 MMT of wheat of which 1.5 MMT is being imported by the private sector. He said in Sep seven vessels carrying 481718 MT private sector’s imported wheat arrived. However, in Oct 519125 MT of wheat will arrive out of which TCP’s wheat will be 219125 MT whereas 300,000 MT will be the private sectors’. In Nov, 180,000 MT of wheat contracted with Russia on G2G basis will arrive whereas private sector will also import the same quantity.
In Dec, TCP will import 275000 MT of wheat whereas private sector will import 120,000 MT. In January, 2021, TCP will import 503000 MT and private sector, 60000 MT. He further said, total wheat imported and still to be imported will be 2,379,647 MT of which the share of TCP is 997125 MT, G2G- 180,000 and private sector 1,202,522 MT by the end of January 2021.
Afghanistan- Pakistan Transit Trade Agreement (APTTA)- the committee was informed that the transit agreement has not been implemented in letter and spirit due to lack of trust/political will between the two countries. The agreement will expire on February 11, 2021.
The committee was further apprised that another reason for its failure was lack of harmonization and inadequate communication between custom authorities of the two countries.
Other issues were: (i) return cargo harming Pakistani industry; (ii) movement of Pakistani trucks to CARS and Afghan trucks to sea port and Wagha not implemented due to TAD issue; (iii) 110 per cent bank guarantee/ high incidences of “service charges” on Pakistan transit cargo to CARs/stoppage of Pakistan’s trucks at Jalalabad; and (iv) seventh meeting of APTTCA not held since 2016.
Parliamentary Secretary, Shandana Gulzar said that hurdles were created in the agreement due to which a financial loss of $3.6 billion has been recorded; she added that Pakistan was not implementing 24 Conventions.
Commerce Adviser Razak Dawood will soon undertake a visit to Afghanistan to discuss APTTA.
Joint Secretary Commerce Division Dr Maria Kazi informed the committee that one of the key demands of Afghanistan was to give India land route facility for goods destined for Afghanistan, adding that if Pakistan accepts this demand, our exports will be destroyed. Committee chairman expressed surprise at her statement, saying “what kind of statement are you giving?”
Dr Maria Kazi said that Indian products for Afghanistan are allowed through sea under APTTA. At this Chairman Standing Committee observed that if this was the thinking of Commerce Ministry i.e. to close borders our exports cannot grow.
Dr Kazi further stated that Afghanistan in its proposals has sought permission for its trucks to load Pakistani goods on way back to Afghanistan. She further stated that both countries will also explore possibility to use Railways for transportation.
MNA Yaqoob Shaikh shared a list of issues with the committee. Shandana Gulzar, who is a member of Pak-Afghan Parliamentary Group, which consults with different stakeholders on APTTA, also shared her views on the reasons behind the failure to encourage bilateral trade between Pakistan and Afghanistan and concluded by stating that “I have six or seven different drafts, which I will share with the committee and Ministry, on which working is underway.” The committee decided to call security officials, through the Ministry of Interior to learn of their concerns on the APTTA.
According to official statement, committee was informed that Afghan Transit Trade (ATT) is obligatory transport of cargo from / to Pakistan ports to Afghanistan under Article V of GATT 1947, Convention on Transit Trade of land locked States 1965, United Nations Convention on the Law of the Sea, 1982. The Agreement was concluded keeping in view the best international practices and advances made in the fields of information technology, logistics and customs procedures. The Committee was informed that as opposed to the previous agreement (ATTAI 965) Afghan Pakistan Transit Trade Agreement is based on complete reciprocity, access to Pakistani exports to CARs region through Afghanistan and formal arrangement in form of Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) to ensure effective implementation .The Ministry of Commerce informed the Committee that despite repeated requests Afghan side has not been forthcoming in holding of APTTCA meeting and last meeting was held in February, 2016. They further added that Afghan side has shared proposals for revision of APTTA in June. The Ministry of Commerce has firmed up comments after stakeholders’ consultations, on Afghanistan's proposal for revision of APTTA 2010 along with proposals from Pakistan's side.
The Standing Committee on Commerce showed dissatisfaction on the briefing and considered it incomplete.
The chair directed the Ministry of Commerce to present a comprehensive briefing on this important national issue and respond to proposals of Members of the Committee, in the next meeting.
Syed Naveed Qamar the Chairman of the Committee directed the Ministry of Commerce and the FBR to address the duty structure, flaws in all custom related matters and week anti-smuggling mechanism in consultation with concerned departments.
The meeting was attended by Muhammad Yaqoob Shaikh MNA, Ali Khan Jadoon MNA, Khurram Shehzad MNA, Wajiha Akram MNA, Sajida BegumMNA, Farukh Khan MNA, Usman Ibrahim MNA, Rana Iradat Shareef Khan MNA, Rasheed Ahmed Khan MNA and Syed Javed Shah Jilani MNA. The meeting was Also attended by Ms. Shandana Gulzar KhanMNA, Dr Haider Ali KhanMNA and Mohsin Dawar Khan MNA as Special Invitee.—MUSHTAQ GHUMMAN
