ISLAMABAD, June 15: Pakistan Horticulture Development Board (PHDB) has sought more concessions in Trade Policy 2005-06 — expected to be announced on June 22 — including provision of physical infrastructure, speedy completion of ongoing projects and amendments in policy for freight subsidy.
The board has, in consultation with the stakeholders, finalized its recommendations and sent them to the ministry of commerce.
According to an official document, the board has demanded installation of scanning machines to avoid manual inspection of perishable cargo at the air and sea ports. It suggested that Pakistan International Airlines (PIA) and Pakistan National Shipping Corporation (PNSC) should work out commercial viability of providing chartered cargo (small freighters) facilities for quick haulage of fresh produce.
The board is of the view that at present too many agencies are involved in checking of exportable cargo. The physical check by Anti-Narcotics Force and Customs (Drug Control) manually and through sniffing dogs is causing enormous damage to the perishable produce.
Because, the reefer cargo once exposed to higher temperature accelerated the process of decay. That’s why the board has demanded the establishment of Cold Chain System, Logistics and Controlled Atmosphere facilities and cargo space at critical points.
Pakistan Railways (PR), the board has proposed, should be directed to dedicate certain portion of its investment for establishing cold chain infrastructure, especially cold storage facilities for holding and handling of perishable cargo in transit or waiting points.
The PR should provide flat bed rolling stock capable of carrying 40-feet containers from Bahawal and Multan to Karachi during Kinno and mango seasons.
It proposed that the Civil Aviation Authority (CAA) should improve airport cargo facilities at places like Rahim Yar Khan and Faisalabad. The move would facilitate direct airlifting of the produce, release pressure on main airports and help preserve quality of perishable cargo.
The CCA should allocate land with civic amenities for setting up cold storage in partnership with the private sector or government agencies at Karachi, Lahore, Islamabad, Peshawar, Quetta and Multan airports.
“The monopolistic pricing structure enjoyed by foreign carriers needs to be broken by involving Pakistan National Shipping Corporation (PNSC). PNSC should provide refrigerated container facility to exporters at reasonable rates. The export target cannot be achieved until exporters get refrigerated containers at competitive rates,” PHDB observed.
According to the board, reefer haulage by road has gained importance since signing of protocols with China and Iran. So, it was important to promote road haulage through reefer.
FREIGHT SUBSIDY: The board has suggested that policy for freight subsidy should be continued and further changes be incorporated in it including 25 per cent freight on all major fruits and vegetables under pre-shipment inspection by PHDEB on voluntary basis.
The PHDB maintained existing procedures for payment of freight subsidy were cumbersome and prone to inordinate delays and increased financial burden on exporters. Therefore, it suggested that instead of exporters submitting claims for payment of freight subsidy, it should be paid directly to the carriers who should charge subsidies on freight charges from exporters.
QUALITY STANDARDS: The board asked for the process of harmonization of international grades and quality standards with the international ones and their adoption through incentives be continued and speedily implemented.
COST OF LOANS: The board has suggested increase in the scope of the existing facility of picking up mark up 6 per cent on loans obtained for putting up cool chains to also cover green houses and pack houses.
The State Bank should provide facilities to banks and leasing companies to provide loans to the borrowers for putting up cool chains, green houses and pack houses, the board has proposed.
