The finance ministry had announced to release only Rs1.8 billion out of total over Rs5 billion collected as EDS during 2010-11. - File photo

ISLAMABAD: The Board of Administrators of Export Development Fund (EDF) on Monday approved budgets for a string of export promotion measures for the current fiscal year but implementation was conditioned with the release of funds by the finance ministry.

The EDF meeting headed by its Chairman Commerce Minister Makhdoom Amin Fahim requested the government to divert the whole amount of export development funds to the EDF Board instead the finance ministry, which would enable the commerce ministry to fully utilise the amounts for export promotion measures.

The Federal Board of Revenue collected over Rs5 billion in export development surcharges (EDS) during the year 2010-11. The EDS is levied on proceeds of all exports at the rate of 0.25 per cent of f.o.b value of goods. As per law, the entire receipts of EDS have been transferred to the EDF in the following year.

The finance ministry had announced to release only Rs1.8 billion out of total over Rs5 billion collected as EDS during 2010-11. The finance ministry diverted the remaining amount to other sectors especially to dole out hefty salaries and perks to a platoon of ministers, state ministers, advisors, and special assistants.

An official statement issued after the meeting said the EDF board expressed its concerns over the delay in the release of funds from the finance ministry and agreed that instead of going into the consolidated fund, the funds should be given directly to the board. The board also agreed to take up the matter with the prime minister.

The board was informed that EDF had Rs168 million for the first quarter of this fiscal year.

A decision to release the outstanding Rs800 million claims under Freight Subsidy Scheme was made. The board was informed that this liability had been pending since 2007 and agreed that this amount be sanctioned in three instalments of Rs250 million, Rs250 million, and Rs300 million, respectively.

The board also agreed to release funds for the development of Chambers of Commerce and in this respect Rs50 million was sanctioned for the construction of Federal Chamber of Commerce (FCCI) building in Islamabad.

Another Rs19.94 million was sanctioned for Tribal Area Chamber of Commerce and Rs4.90 million was sanctioned to Dera Ismail Khan Chamber of Commerce for establishment of its office.

One of the major objectives of EDF is to fund for the development of training institutes in order to develop human resource in the country and in this connection funding was made to various training institutes. In this connection, Rs30 million were approved for Pakistan Institute of Fashion Designing.

The board agreed that the National Institute of Leather Technology (NILT) was a very important institute and a full working needs to be done to revive it. For this purpose, a grant of Rs5 million had been sanctioned.

The board also approved Rs31 million for Readymade Garments Display Centre in Sialkot and similarly, a project of Sportswear Institute in Sialkot also came under discussion. Funding of Rs10 million had been agreed upon for establishment of Garment Technology Centre in Karachi. This project is being set up with Korean collaboration.

For the promotion of handicraft industry Rs50 million had been given to Trade Development Authority of Pakistan (TDAP) for special project on skill development and women empowerment in Southern Punjab. Funding of Rs7.33 had also been approved for financial support of Handicraft Association of Bahawalpur.

For enhancing exports, Rs172 million were approved for establishment of Mango Treatment Project.

And funding of Rs7.5 million was approved for establishment of R&D Centre for Bedwear Association.