KARACHI, Aug 15: The process of winding up of Export Promotion Bureau and formation of what is being claimed “an efficient, dynamic, market responsive, with built-in check and balance system, autonomous but accountable” Trade Development Authority of Pakistan (TDAP) will set into motion within this month after Prime Minister Shaukat Aziz gives a conceptual clearance to the administrative structure and on the other related matters of the proposal.
“I intend to give another presentation to the prime minister very shortly, within this month, on this proposal,” State Minister and Chairman of the EPB Tariq Ikram informed Dawn on Monday.
“If and when the proposed TDAP is set in place, it will be through an act of parliament,” the EPB chairman made it clear and hinted at the completion of the entire process of administrative structure in next 18 months, which is by end of 2006 or early 2007. The parliament will debate and may even amend the proposal when it comes before it, he added.
Mr Ikram unfolded on Saturday to his officers’ team — said to be 60 to 65 in number — the new plans to restructure and revamp the entire export promotion service organization. Obviously, the officers were not much amused to hear from their boss the new plans which have more room to accommodate the marketing professionals and analysts from the outside and expose them to compete with them.
Many of them complained that they were not consulted earlier on the proposal before it was taken to the higher-ups in the government. “In last six years Pakistan’s exports have gone up by almost 100 per cent from $7.5 billion to about $14 billion,” one of the senior officers pointed out who wondered what more the government expects from the Trade and Commerce group officers.
“Much of the contribution in overall export rise has come from the government policies, market access after 9/11 and efforts of the exporters,” Tariq Ikram responded on Monday. But, he said the EPB officers deserved a pat on back for contributing in 137 per cent increase in export of non-traditional group of items.
“Fans, furniture, gems and jewellery, chemicals, pharmaceuticals and a host of such other items are now gradually becoming important component of Pakistan’s export structure because of the efforts put in by the officers of the bureau,” he said. In terms of figures the export of non-traditional items went up from $800 million to $2.3 billion. Export of few items like chemicals was up by more than 600 per cent in this period.
“It is not only the amount of proceeds from this rise in export of non-traditional goods, but an altogether new class of exporters who are now in the business with a lot of potential,” he said.
“We will build on the skills of our officers,” the EPB chairman responded to the apprehensions being expressed by the bureau officials. A few of the officials in their telephonic conversation feared that it would be eventually Chairman’s pick and choose and not other criteria.
On Saturday, Tariq Ikram elaborated on three options for the future set up of the new export promotion organization. It would be either an (1) Authority as proposed and the prime minister is said to be inclined to support it (2) a Corporate Structure, and (3) retaining the present format with few adjustments.
The contentious issue under debate is whether to retain the export promotion as a “back room” office of the federal commerce ministry or make it independent of the ministry. The proposed TDAP will have its own board of governors.
There will also be a 32-member policy board to be headed by the commerce minister. The structure is identical to the State Bank of Pakistan which has its own board of directors and then there is a fiscal and monetary board of coordination.
Tariq Ikram was a bit reluctant to elaborate on this point but in many words conveyed that he wanted the proposed new organization independent of the commerce ministry as he put it.
He said that like export promotion organizations of many other countries the proposed new organization would also open its offices in other countries headed by a senior officer with adequate supporting staff. These will be Overseas Business Reporting Units (OBRU). If necessary, foreigners will be employed at reasonable wage. They would be paid 5 per cent commission for the business they would generate. This 5 per cent commission would be given by the exporter. Two per cent would be retained by the professional and three per cent would go towards meeting the administrative expenditure or building up funds for the office.
Pakistan’s bureaucracy has been taking on new concepts and ideas in administration, business and economy from the outsiders at regular intervals. It was late Mohammad Shoaib in 1960s who looked alien in Ayub’s Cabinet. Dr Mubashir Hussain was a nightmare for the bureaucrats in seventies. But the way nationalization of industries and business was practiced by the PPP government gave more powers to bureaucrats. Induction of Dr Mabubul Haq as planning and development, commerce and finance minister for brief periods in late Ziaul Haq regime was a backlash of the over centralized and traditional bureaucratic moulds. For the first time people were introduced to deregulation, disinvestment and finally privatization concepts. Benazir Bhutto took the same path but with caution and remained hesitant. Nawaz Sharif went on with a religious zeal. But Shaukat Aziz and his team are moving ahead in a calculated manner giving two hoots to whatever is being said and written.































