Islamabad, 26 July -- The first meeting of the Implementation Committee of the Task Force on Finance and Competitiveness of the horticulture sector in Pakistan was held today under the chairmanship of Mr. Zia-ur-Rehman, Secretary Ministry of Food, Agriculture and Livestock (MinFAL). The meeting was attended by the representatives of the various relevant ministries, concerned provincial departments and the agri-business marketing institutions.

Speaking on the occasion, Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund briefed the members of the implementation committee about the new methods used in several emerging market economies to promote financing and competitiveness of the sectors that have potential to grow. Mr. Bayhan explained the structure and the functionality of the Task Force, as well as, of the sub-committees that were set-up by the meeting of the Task Force chaired by Dr. Salman Shah, Advisor to the Prime Minister on Finance and Economic Affairs on the 12th of July.

The Implementation Committee (IC) of the Task Force is chaired by the Secretary of the Ministry of Food, Agriculture and Livestock and consists of the active operational agencies mainly involved with the horticulture industry i.e. Pakistan Horticulture Development and Export Board, Trade Development Authority of Pakistan, MinFAL/ADB Agribusiness Development and Diversification Project, Agricultural Support Fund, SMEDA, PISDAC (Horticulture SWOG) and Provincial Secretaries of Agriculture.

The Implementation Committee has also established operational sub-committees that would generate specific action items and work to coordinate the work already being undertaken by government line agencies, projects and the private sector. These sub-committees are to analyze the current situation in the horticulture industry and report back to the Task Force. Where necessary the sub-committees will identify areas that require further intervention and liaise with the relevant line ministries, agencies and institutions to bring these about.

The four sub-committees provisionally constituted are on Horticulture-business Finance chaired by Mr. Javed Malik, Additional Secretary in the Ministry of Finance, a sub-committee on Infrastructure chaired by Mr. Mushtaq Malik, Secretary of the Board of Investment, a sub-committee for Quality, Standards and Regulation chaired by Dr. Kauser Abdullah Malik, Member of the Planning Commission and a sub-committee for Production, Processing and Marketing chaired by Salim Jharga, Additional Secretary of MinFAL.

The Ministry of Finance established the Task Force for Horticulture Finance and Competitiveness (TFHFC) early this month to bring the stakeholders together on one platform. The Task Force at its initial brainstorming meeting on 12th July 2007 decided that an Implementation Committee would be formed and chaired by the Secretary, Ministry of Agriculture, Livestock and Fisheries (MinFAL). It also decided that the Board of Investment to move a summary thorough the Board of Investment to declaring the horticulture sector as a recognized industry in Pakistan.

Due to the importance of finance and the role of the commercial banks, the Task Force was placed under the Ministry of Finance to enhance the finance and competitiveness of the horticulture sector. The Task Force made three main initiatives i.e. formation of the implementation committee.

The aim of the Implementation Committee (IC) is to help the Task Force for Horticulture Finance and Competitiveness, achieve its goal by working, to ensure that the coordination, management, organization and financing of development work (including that of public private partnerships and quasi-government enterprises, government ministries and agencies and donor projects) in the horticulture industry is undertaken in the most efficient manner consistent with allocating resources effectively and achieving the targets set by Government of Pakistan policy. In particular the Implementation Committee will focus on areas in which Pakistan lacks competitiveness and seek to ensure that these are managed for success.

The Senior Advisor to the CSF made a presentation to the members of the implementation committee on the working of the sub-committees and informed the members that the objective of the Implementation Committee is to provide the Task Force for Horticulture Finance and Competitiveness with recommendations for a clear management and financial structure for the industry in the context of coherent, well-planned and well-coordinated studies, research activities, regulations, policies, strategies and interventions. He also informed the members that Pakistan should target $1 billion from the horticulture exports by 2012 from the current exports of $150 million.

Mr. Zia-ur-Rehman, Secretary Ministry of Food, Agriculture and Livestock in his concluding remarks told the members of the implementation committee that the primary objective of this initiative is to identify the potential investment areas, where Pakistan can attract large foreign companies for joint ventures in the Horticulture sector and also to identify innovative projects which CSF can assist through its matching grant window.

The Competitiveness Support Fund (CSF) 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”.

Competitiveness Support Fund (CSF) is a joint initiative of the Ministry of Finance, Government of Pakistan and the U.S. Agency for International Development (USAID). It supports 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.

Support for CSF 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.

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