ISLAMABAD: The Senate Standing Committee on Commerce has asked the commerce ministry to implement enabling articles in free trade agreements (FTAs) to find amicable solutions to disputes between commercial entities.

Chairing the committee meeting on Saturday, Senator Anusha Rahman stressed the need to implement these provisions. The committee reviewed various export initiatives of the Ministry of Commerce and Trade Development Authority of Pakistan (TDAP).

It also discussed the export of donkey hides and meat, which has been banned in November 2023. The committee emphasised that resolving these issues could attract foreign exchange and generate employment.

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Ms Anusha urged the ministry to focus on creating dispute resolution mechanisms for commercial entities as provided in FTAs and to activate the newly formed Trade Dispute Re­­solution Organisation to fully realise the benefits of FTAs and Pref­erential Trade Agreements (PTAs).

The committee noted exporters’ concerns, particularly with trade dispute settlement under FTAs and PTAs.

It was also mentioned that when exporters experience default concerns, they are frequently forced to launch legal processes in importing countries, which has major financial ramifications. While several FTAs have dispute resolution procedures, they must be applied appropriately.

The committee chairperson emphasised the need for a thorough analysis of the factors complicating Pakistan’s export system and negatively impacting its exports.

The committee unanimously ratified the membership of Senator Bilal Ahmed Khan to the TDAP Board while overruling objections from the commerce ministry.

The committee members expressed strong disapproval of the ministry’s response, which cited Sections 11(h) and (i) of the State Owned Enterprises (SOE) Act 2023, as disqualifying parliamentarians from serving as independent directors on boards.

Ms Anusha contended that TDAP is not a state-owned enterprise but an authority, so the SOE Act 2023 provisions do not apply. Further­more, the disqualifications under the act pertain to private sector members on a board, not to parliamentarians who are appointed ex officio.

Representatives of the Commerce Ministry briefed the committee on the policy regarding re-exporting motor vehicles from Pakistan. They delivered a presentation outlining the region-specific scale of exports and prospects.

They also discussed initiatives undertaken for 18 exhibitions and events to promote non-traditional products to existing and new markets during 2023-24. The committee recommended that a list of participants and the business generated from each exhibition be submitted to it.

While praising the youth of Balochistan and Sindh for their entrepreneurial efforts in leading their startups, the members acknowledged the significant number of startups emerging from these provinces.

Ms Anusha emphasised that a quota should be reserved for startups from Balochistan, KP, AJK, GB, and Sindh to provide youth with sustained support through the TDAP platform for gaining appropriate exposure.

Published in Dawn, September 8th, 2024