Horticultural exporters demand compensation for their losses after Brexit

No incentives announced in the budget despite requests: exporters

ISLAMABAD: Exporters of horticultural products, who are highly dejected over being neglected in the budget 2017-18, have demanded compensation to the losses to the tune of Rs 200 million they faced due to devaluation of Pound following the Brexit.

Talking to Pakistan Today Waheed Ahmed Chairman of Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) standing committee on horticultural exports, said that exporters of fruit and vegetables had faced huge losses following the Brexit last year as United Kingdom has been an important market for the horticultural products of Pakistan.  He said unfortunately, the government was not paying heed to grievances of exporters in this sector despite their major contribution in revenue generation.

“We had demanded at least seven percent incentives on export invoice in the next budget assuring the government that export of fruit and vegetable will record over $ 1 billion in next two years, but our budget proposals were not accepted by the Ministry of Finance,” he said.

Earlier chairing meeting of the standing committee Waheed had also briefed exporters and trade leaders about losses of millions of rupees to the exporters owing to devaluation of British Pound and damages to crop in the country for climatic hazards during last one year. He also informed the meeting how mango crop was damaged by the weather change in this season.

According to Waheed Pakistan Fruit and Vegetable Exporters, Importers Association (PFVA) has started work on a first ever national conference on horticultural products with input and representation of all four provinces including Gilgit Baltistan. The organization of the national conference is aimed at making national roadmap for development in agricultural sector and subsequent enhancement of exports from the sector.

For the conference which is likely to be held by December this year or early January 2018, consultation process with stakeholders and representatives from provinces would be started by next month. Researchers and experts would also present papers in the said conference.

The exporters also talked about the damaged crop of mango this year with their fear that the target of export set for this season may not be met due to the lack of enough quality fruit. They also voiced about the unjustified freight fair by airlines in the country as compared to the same in India. The private airlines charge more fare in Pakistan as compared to India, making export items from Pakistan highly uncompetitive in the international market.

Waheed also shown his concerns over the move of some interests group for exporting the mango in wooden boxes instead of the paper boxes recommended for better quality exports saying that better packaging and use of standards boxes had valued mango to $700 per ton from $ 350/ton. 

During the meeting, after hearing concerns of the exporters, Leader of United Business Group at FPCCI SM Munir has asked government to urgently resolve issues related to horticultural exports and support the sector to ensure food security and agricultural research in the country.  He said that the lack of interests in resolving issues related to exporters and non-payment of billions of rupees worth refunds by the Ministry of Finance was contributing to the ever falling exports.

The meeting was attended by Vice President FPCCI Saqib Fayyaz Magun, chairman PFVA Abdul Malik, senior member of the association Aslam Pakhali and large number of exporters. 

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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