Islamabad, 22 August – Lack of attention to quality is a major constraint to the development of the horticulture industry in Pakistan. On-farm losses (e.g., at harvest) are very high and losses are incurred throughout the value chain; these were the conclusions of the Sub-Committee on Quality, Standards and Regulation (SC-Q) of the Task Force on Horticulture Finance and Competitiveness. Similarly export markets are lost because of failures to comply with international food standards. Consumer awareness of health, nutrition and food quality was recognized as a main driver for the development of the food industry including horticulture. If demand for high quality products increases at home, then surplus high quality produce will be available for export. The importance of the demand in the domestic market was emphasized. The Sub-Committee for Quality, Standards and Regulations established under the auspices of the Task Force for Horticulture Finance and Competitiveness will coordinate the efforts being made to tackle the issues facing the industry, working closely with regulators and certification authorities as well as technical agencies aiming to provide physical solutions to the problem.

The Sub-Committee met for the first time in Islamabad and reached some preliminary findings and recommendations. The meeting was chaired by Dr. Kausar Abdullah, Member of the Planning Commission, Government of Pakistan. The SC-Q included the newly constituted National Animal and Plant Inspection Service (NAPHIS) of the Ministry of Food, Agriculture and Livestock. This integrated service aims to put in place a coherent SPS management system and to promote safe and sound food for consumers under an effective system that integrates all the individual services provided by MinFAL. Also represented were the Ministry of Health, Committee on Science & Technology, Ministry of Commerce, private sector exporters, the Agricultural Support Fund, legal specialists dealing with the food industry, National Commission on Biotechnology, National Institute of Food Science & Technology and faculty members from the Agriculture University of Faisalabad.

The Sub-Committee on Quality, Standards and Regulations will submit the findings of the meeting to the Implementation Committee via the Secretariat established by the Chair (MinFAL) and will liaise closely with the Competitiveness Support Fund in its day-to-day activities. The Implementation Committee will present its recommendations to the Task Force on Horticulture Finance and Competitiveness. Dr. Salman Shah, Advisor to the Prime Minister on Finance, Economic Affairs, Revenue and Statistics, as the Chairman of the Task Force, will make the presentation to the Prime Minister on improving competitiveness of the horticulture sector.

The Competitiveness Support Fund (CSF), a joint initiative of the Ministry of Finance and the US Agency for International Development (USAID), was earlier tasked by the Ministry of Finance to undertake a comprehensive study entitled “The Competitive Advantage of the Food Processing Industry: Focus on Quality, Safety and Standards”. The study contained an Action Plan for the Government of Pakistan to improve the competitiveness of the horticulture industry.

The Action Plan proposed a Task Force, based on the finding, that many agencies are involved in the industry and that much good work is already being undertaken. However there may be a duplication of efforts resulting in Government resources not being used efficiently. Consequentially, a small effort and more coordination could move the industry past a “tipping point”. The finding also identifies finance as an essential factor required to move the industry forward.

The aim of the Sub-Committee on Quality, Standards and Regulations (SC-Q) is to help the Task Force achieve its goal via ensuring that all relevant actions are taken in ensuring the highest possible standards are developed for both exports and the domestic market.

The Sub-Committee will work with the stakeholders in horticulture throughout the value chain to coordinate and facilitate initiatives currently being taken to increase quality standards and enforce food laws. Where necessary the Sub-Committee will identify areas that require further intervention and liaise with the relevant line ministries, agencies and institutions to bring these about.

Speaking on the occasion, Dr. Abdullah briefed the SC-Q members that in order to achieve the aims and goals of the Task Force, the Sub-Committee will recommend a set of guidelines for the international certifications required for the sector. The meeting heard that there was overall confusion of the scope of work of different agencies. There was a multiplicity of agencies and a plethora of laws and regulations, almost none of which were effective because of a lack of a coherent approach. The SC-Q will identify the major agencies involved in food quality and standards and will review their resources and work programmes. The SC-Q will engage the private sector bodies involved in food quality and standards work and will seek their advice on the main issues to be tackled.

Pakistan does not have an integrated legal framework for the horticulture sector but a set of laws which deals with various aspects of food safety. These laws have the capability to achieve at least minimum level of food safety. But laws remain very poorly enforced. The SC-Q will consider this issue and review the Food Laws and the effect on horticulture. The bio-safety regulatory legislation for research and development is in its infancy in Pakistan. Initiatives to develop this area will also be considered by the SC-Q.

Mr. Geoffrey Quartermaine Bastin, Senior Advisor to the Competitiveness Support Fund informed the committee members that Pakistan faces significant non-tariff barriers to trade related to poor performance in the area of SPS compliance. The SC-Q will identify these barriers and will suggest ways in which they can be removed. The SC-Q will consider product standards which relate to the characteristics that the goods possess, including size, shape, appearance, chemical residues, and Process standards that relate to the way and place in which the products are manufactured and packaged.

The Ministry of Finance provides the Chair for the Task Force with the support of a small Secretariat provided by the Competitiveness Support Fund (CSF). The Secretariat operates in close coordination with the main operational agencies working under the line ministries like, the Pakistan Horticulture Export Development Board, Agribusiness Development & Diversification Project, Agricultural Support Fund, SMEDA and PISDAC’s Horticulture SWOG. The Task Force established four Sub-Committees to assist the Implementation Committee under MinFAL. Committees on Finance, Production Processing & Marketing and Infrastructure have already met and formalized their recommendations for improving the competitiveness of the Horticulture sector

The world horticulture market is valued at $80 billion to which Pakistan contributes an annual $150 million. Only about 16% of fruits are being processed, although, this activity offers great opportunities to augment the volume of value added products using modern technology. The fruits and vegetables exported in fresh form attract discount prices because exporters are unable to provide adequate grading and packing. Pakistan’s horticulture export industry’s share in the world market has risen steadily from about 5% in 1991 to 12% (value 2004). Potential markets for Pakistani exporters have been identified in Europe and the Middle East.

Support for the Competitiveness Support Fund is part of the $1.5 billion in aid that the U.S. Government is providing to Pakistan over five years to improve economic growth, education, health, and governance.

The Competitiveness Support Fund has been created to support Pakistan’s goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country. 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.

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