Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Regional Standing Committee Chairman Ahmad Jawad has asked the government to allow incentives for horticulture exporters in the upcoming budget to improve the performance of the sector and realize its true potential. He stated that horticulture exports added $641m to the national exchequer 2015-16 and said that there is still room for improvement in the sector.
Jawad while addressing the fruit exporters said that commerce officials are mostly of the view that after the 18th amendment, the horticulture sector operates under the mandate of the provinces and the federal government has no stake in running the affairs of the sector. He further said that the commerce ministry takes credit for achieving the export target for fruits, however when the ministry is approached for financial support, it follows a vague stance on it.
Speaking of the developing countries exploiting the horticulture export market, he regretted that Pakistan has a mere 0.3 pc share in the international markets compared to other countries that stand at shares beyond 4 to 5 pc. Under the Strategic Trade Policy Framework (STPF) 2015-18, the commerce ministry announced extending the Short-Term Export Enhancement Strategy to the horticultural department, however, there has been no development on the strategy on the practical front, he regretted.
The FPCCI official urged the government to come up with incentives for horticulture exporters in the upcoming budget including 10 pc of invoice value (FOB) be reimbursed to exporter, 15 pc of Invoice Value (C&F) on successful exploration of new market be reimbursed to exporter for a three-year period to meet the marketing costs, and import duty on horticultural processing machinery be done away with. To add to this, the chairman demanded setting up of common facilities for fruit and vegetables on public-private partnership (PPP) model. Furthermore, irradiation treatment unit, hot water treatment, vapour heat treatment, pack house, cold storages and bulk scanners at export terminals including Gawadar Port should be announced by the government through a proper scheme. On the same lines, as many as Rs 8b should be invested over a period of three years to promote horticulture in collaboration with the Planning Commission, Ministry of National Food security, Ministry of Commerce and the representative of provincial agriculture ministries, he added.
