Pakistan to export mobile phones by Jan 2022, with Chinese assistance

ISLAMABAD: Pakistan will start export of mobile phones by January 2022, Adviser to Prime Minister on Commerce Abdul Razak Dawood informed a parliamentary panel on Tuesday.

The senate standing committee on commerce, chaired by Senator Zeeshan Khanzada, also grilled the commerce ministry for poor performance, sharing obsolete information about Strategic Trade Policy Framework (STPF) and absence of the commerce secretary from the meeting.

Dawood informed the committee that Pakistan will start export of mobile phones by January 2022 and two Chinese companies will take the lead. One Chinese company has set up industry in Karachi.

He said that Samsung was asked twice to set up a factory in Pakistan and was also offered incentives but it refused. Now, when two Chinese companies have set up their factories, Samsung approached the government for incentives, said Dawood, adding that now the company will have to set up factory on already available incentives.

During the meeting, Dawood also clarified that a couple of months ago rice exporters had informed him that China had halted Pakistani rice after detecting coronavirus (dead virus) on the surface of plastic packing bags. This issue has been resolved and 80% consignments are cleared.

The virus was also detected on Pakistani seafood consignments reaching China but the virus inside the packing material of consignments was alive. Last month nine companies were banned and this month restrictions have been imposed on six Pakistani companies. The commerce ministry has asked companies to get sanitary and phytosanitary inspection of their consignments.

Executive Director General Syed Rafeo Bashir Shah informed the committee that Chinese companies have tasked Maritime Fisheries Department to inspect seafood consignments destined for China which has not performed well. Now the commerce ministry has adopted a harsher tone with the Maritime Fisheries Department.

In a separate statement issued by the commerce ministry, it clarified that Pakistani export consignments of rice were detained for port inspection and detections but were later on released after conformity with the Chinese government protocols. China has not banned any rice exports from Pakistan, it added.

Senator Danish Kumar informed the committee that Chinese, Korean and Japanese trawlers are fishing in Pakistan waters illegally due to which local fishermen are facing hunger like situation. He said, “Pakistan’s seafood exports can earn $2 billion per annum if incentives are given to local industry.” He suggested that local fishermen be given modern technology for fishing also proposed restrictions on fishing by foreign fishermen.

Expressing dismay at the absence of the commerce secretary, some Senators maintained that they travelled from Karachi and Quetta for the meeting, but the secretary did not bother to attend it. They further stated that the briefing given on the commerce ministry’s performance and future strategy is like a film which they have watched for years.

Senator Kumar and Senator Ahmed Khan walked out of the meeting in protest against absence of Commerce Secretary Sualeh Ahmad Faruqui, who, according to the commerce additional secretary, was in Karachi to discuss important issues related to Expo 2021.

Senator Fida Muhammad requested the committee chairman to write a letter to the Senate chairman on the attitude of commerce secretary.

Director General (Trade Policy) Waqas Azeem briefed the committee on STFP 2020-25, saying that the targets of two previous trade policies were not based on ground realities as export targets were too high which could not be achieved. He said that the main focus of both policies was on three markets including China and European Union (EU).

He maintained that exports have posted growth because orders of other countries were diverted to Pakistan due to Covid-19 situation.

However, when committee members sought details of orders which were diverted to Pakistan, the DG declined to share the information on the plea that exporters do not share buyers’ information with the ministry because they fear that the information may be leaked to their competitors.

Additional Secretary (Trade Policy) Ahmed Mujtaba Memon claimed that the incumbent government reduced energy rates for five export-oriented sectors for the first time in the country’s history even though the first time energy rates were reduced was during PML (N) government.

The committee members enquired if reduced rates of energy for the export-oriented industry, is subsidy, to which Dawood replied that it is actually cross subsidy. He added that globally energy tariffs are lower for export industry but in Pakistan it is not so.