ISLAMABAD: The Senate Stan­ding Committee on Commerce was told on Monday that there was no ban on the export of meat to the UAE.

The statement was made by Commerce Secretary Sualeh Faruqui during a briefing on reports of a ban allegedly slapped by UAE authorities after they found fungus in a meat consignment imported from Pakistan.

The meeting, chaired by Senator Zeeshan Khanzada, also discussed the cargo flow restrictions under the Afghan Transit Trade.

On the issue of the ban, the secretary said there is no restriction on meat exports to the Gulf country.

“Our trade counsellor is in contact with UAE authorities for addressing the specific incident where a consignment failed to meet standards and was returned,” he explained.

Commerce secretary hopes processing fee will fix anomalies in Afghan Transit Trade system

The UAE recently revised its standards for shipping fresh, chil­led meat from Pakistan, restricting it to vacuum-packed and modified atmosphere-packed meat. The secretary said the safety standards were not Pakistan-specific.

Senator Danesh Kumar expres­sed concerns regarding substandard meat exports, urging the Ministry of Commerce to conduct an investigation into the returned cargo.

In addition, a third-party audit of Pakistan’s transport, storage, and processing facilities for meat products should be conducted in coordination with the Animal Quarantine Department, he said.

The senator also spoke about foreign trawlers with built-in processing equipment smuggling fish worth $3 to $4bn.

Mr Faruqui said the government was committed to enhancing the export of seafood, and a comprehensive policy will be presented by January.

One Pakistani company has already started exporting seafood to the EU, while three others are in the process of obtaining permits, he added.

Disparity in transit trade

The commerce secretary informed the committee that Afghan exports are approximately worth $1 billion, but imports have risen to $6bn in FY23.

This disparity is significant, and his ministry has communicated relevant figures to the Afghan government, according to Mr Faruqui.

He said Pakistan has taken measures, including prohibition of certain items and imposition of a 10 per cent processing fee by the Federal Board of Revenue on sensitive goods, to correct anomalies in the Afghan Transit Trade system.

He went on to say that safeguards were put in place to prohibit goods smuggling into Pakistan. Smugglers have been found using transit trade platforms to evade taxes on Pakis­tani ports and redirect transit commodities into the local market, he added.

According to the secretary, Afghan authorities are demanding a cash guarantee of 110pc against Pakistani commodities in transit to Central Asian states.

“We have not taken any retaliatory measures,” the secretary said.

He stated that Pakistan has made bank guarantees mandatory to prevent misuse of insurance guarantees provided to Afghan importers. “We have observed that the facility is grossly misused by smugglers,” Mr Faruqui told Dawn.

Pakistan is committed to supporting Afghan Transit Trade, he said, adding the government has made policy decisions, and now the challenge is their effective enforcement on the ground.

The committee was also briefed on the export potential of G1 garlic variety.

According to committee members, growers believe that G1 garlic has longer shelf life and is four times larger than other local types.

They added that this product might be created for export within three to four years with government assistance.

The secretary said the ministry would assist farmers by providing agricultural extension services and early funds for training and capacity building. After attaining self-sufficiency in garlic production, he added, it could be exported to Africa and Indonesia.

Published in Dawn, October 10th, 2023