ISLAMABAD, Dec 6: The United States Agency for International Development (USAID) plans to offer additional financial assistance to Pakistan to help improve competitiveness of the horticulture sector.

Official sources told Dawn on Thursday that a special meeting of the task force on horticulture finance and competitiveness will be held on Friday to make Pakistani products more competitive in the international export market through increased financial and technical support of the USAID. Minister for Finance Dr Salman Shah will chair the meeting.

The task force will hear reports and presentations by the chairpersons of the four sub-committees about the progress made to accomplish the agreed actions and steps.

The Competitiveness Support Fund (CSF), a joint initiative of the Ministry of Finance and the USAID, through its recently completed study on “policy analysis of the competitive advantage of the food processing sector in Pakistan,” proposed an action plan for the Government of Pakistan to improve the competitiveness of the horticulture industry.

The action plan proposes a task force approach based on the findings that many agencies are involved in the industry and that much work is already being undertaken.

It is stated that government’s resources are not being used efficiently and also that there was a duplication of work.

Equally, more coordination could move the industry past a “tipping point”.

The findings have also identified finance as an essential factor required to move the industry forward.

Support for the CSF is part of $1.5 billion aid the US government is providing to Pakistan over five years to improve economic growth, education, health and governance.

The CSF became functional in May 2006 to support or reposition Pakistan’s economy as a more competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.

The CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives, with research institutes and universities that contribute to creating a knowledge-driven economy.

Many of the elements, to make the industry competitive, are in place that would enable Pakistan’s horticulture industry to become a world-class industry if more focused and targeted efforts, backed by finance, are made.

Dr Salman Shah said “Pakistan has to integrate its horticulture industry into the global food supply chain and today’s meeting has prepared us to be better equipped to take up this task.”

The task force in its first meeting had agreed that the ministry of finance will provide the chair for the task force with the support of a small secretariat provided by the CSF.

The secretariat would operate in close coordination with the main operational agencies working under the line ministries like, the Pakistan Horticulture Export Development Board, Agribusiness Development and Diversification Project, Agricultural Support Fund, Smeda and PISDAC’s Horticulture SWOG.

The task force for horticulture finance and competitiveness also acts as a steering committee.

An implementation committee, chaired by the Ministry of Food Agriculture and Livestock, coordinates with the sub-committees on finance, infrastructure, regulations and standards, processing and production and marketing as well.

The sub-committees are coordinated through an implementation committee, headed by the Ministry of Food, Agriculture and Livestock.

The principal findings of the CSF study were identification of harvest losses up to 25 to 40 per cent, the industry exports only about five per cent of total harvest, relatively low export price, great difficulties in maintaining quality at the destinations, high air transport cost as compared to low profit margins, inadequate international market information, lack of research and training opportunities and lack of implementation on the available information.

Four sub-committees designated by the implementation committee held their meetings between Aug 9 and 20 on horti-business finance; production, processing and marketing; infrastructure; quality, standards and regulations.

Each sub-committee met again on two or three occasions and their preliminary findings and recommendations were presented to the implementation committee on Sept 12, and by Sept 26, the implementation committee finalised the recommendations and presented a report to the task force.

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The earlier meetings, also chaired by Dr. Salman Shah, noted that its activity was a “work in progress”; consequently the task force provided clear directions for the next actions to be taken by the sub-committees.

These directions were set out under the four heads of the implementation sub-committees and the sub-committee chairmen were directed to ensure that actions were taken as indicated before the end of November 2007.

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The agreed actions or steps were as follows:

Production, processing marketing: The Minfal was asked to provide a programme for revamping the provincial extension service system and a policy and plan to involve the private sector in the extension services.

Targets should be set so that by 2010 at least 25pc of the farms will achieve EurepGap certification and will start following good agriculture practices. To prepare this kind of proposal Minfal was asked to look at the existing institutional structure and the available resources. A budget should be provided to the task force for a review.

Pilot processing projects: Two or more demonstration or pilot projects should be identified and prepared at a concept or pre-feasibility level for possible funding under the CSF matching grants window.

This work would be undertaken by the PHDEB and PAMCO with the involvement of potential entrepreneurs and investors in the development process.

Wholesale markets: Specific pilot markets in key centres will be constructed with the support of the task force.

These pilot markets will demonstrate best practices in both administration and operation.

This work will be undertaken by PHDEB and the relevant departments of the provincial governments, and will be coordinated with the projects proposed under the national trade corridor project.

PHDEB: The task force requested that the PHDEB should be made part of the task force.

Quality and food safety standards: A working group of the sub-committee on quality should be established consisting of Minfal, NAPHIS, (a leading active agency), ministry of finance,

PHDEB, the ministry of health and the Planning Commission. This working group would consider detailed measures that need to be taken with regard to legal reform and enforcement (including the provision of quality control laboratories) and would provide the task force with a legal framework and budgeted action plan for NAPHIS.

Infrastructure: Cold storages at major airports - PAMCO should work closely with the BOI and the CAA to remove obstacles to finding suitable locations and to immediately start work on the five identified projects.

Transport: Specific plans will be prepared for upgrading the road, rail, air and sea transport systems. There should be a complete review of the transport system taking into account work being done on the National Trade Corridor and specific projects will be prioritised.

This work will be undertaken by PHDEB, PAMCO, BOI and the relevant line ministries and would include all infrastructure aspects.

Lending guidelines for horticulture: The State Bank of Pakistan working with the commercial banks and the PHDEB should develop a workable set of lending guidelines.