The Federal Cabinet has raised concerns over the performance of the Ministry of Commerce (MoC) and its affiliated organizations, suggesting the privatization of the Trade Development Authority of Pakistan (TDAP) and reforms in trade missions abroad.
According to a news report, the recommendations emerged during deliberations by the Committee on the Rightsizing of the Federal Government, constituted on June 21, 2024, under the Prime Minister’s directive. The committee reviewed federal functions to identify areas suitable for privatization, merging, or restructuring for efficiency.
In the first phase, the committee assessed six ministries, including Industries and Production, Information Technology, and Kashmir Affairs.Â
The second phase expanded the scope to the Ministry of Commerce, Science and Technology, Housing and Works, and National Food Security. Extensive consultations with stakeholders and subcommittees were held to analyse the financial, institutional, and human resource impacts of proposed changes.
During its review of the Ministry of Commerce, the committee highlighted inefficiencies in trade missions abroad, which it noted were overly focused on VIP visits rather than trade promotion. The Directorate General Trade Organizations (DGTO) was also criticized for its inadequate performance.
The committee proposed that TDAP and Expo Centers be considered for privatization, citing overlapping functions with the Export Development Fund and trade offices. It also recommended establishing a state-of-the-art expo center in Islamabad to attract regional investors, particularly from Russia and Central Asia.
Among other observations, the committee emphasized the need for applied research and commercialization, suggesting a review of entities such as the Pakistan Council for Renewable Energy Technologies (PCRET) and the National Institute of Electronics (NIE). The Pakistan Halal Authority (PHA), having recently begun operations, was advised to be given time to prove its effectiveness.
Addressing trade inefficiencies, the Cabinet urged the recruitment of local trade counselors fluent in regional languages, particularly for missions in China, Russia, and Central Asia.
