Islamabad, 27 August - The second Implementation Committee (IC) of the Task Force on Horticulture Finance and Competitiveness was held on Saturday. The meeting was chaired by Mr. Zia-Ur-Rehman, Secretary Ministry of Food Agriculture and Livestock and attended by the chairmen of the sub-committees on Finance, Infrastructure, Production and Quality, along with other stakeholders from the public and private sector.

The meeting heard the summary of the findings and recommendations of the four sub-committees that met between 9th and 20th August. Each sub-committee included representatives from a cross section of the private and public sectors.

Senior Advisor to the Competitiveness Support Fund, Geoff Quartermaine Bastin, briefed the committee that the two major findings of the sub-committees were that “transport of horticultural products i.e. fruits, vegetables and flowers were limited because of deficiencies in the logistic system. The supply of cargo space on aircrafts and ships leaving Pakistan for buying destinations was in short supply and there was a lack of infrastructure dedicated to the post-harvest handling of horticultural products”.

In the case of the former, the Implementation Committee heard that the few number of direct air connections to major markets and lack of air cargo space restricted exports of high value perishables such as flowers. With regard to shipping, refrigerated containers were in short supply as was refrigerated road transport. Controlled atmosphere environments and the entire cool chain were either not in place or dysfunctional. In consequence post harvest losses were as high as 40% of the crop.

Another important finding was that quality control in the horticulture sector lacked an efficient inspection service. Relevant legislation was either lacking or had been suspended. This issue was being tackled via the newly established National Animal and Plant Health Inspections Services (NAPHIS), an agency within MinFAL that has been set up to develop the inspection services required for safe food.

Finance for horticulture was also discussed at the meeting. Javed Malik, Additional Secretary for the Ministry of Finance (MoF) briefed the committee that while the commercial banks were willing to lend under both Islamic and standard banking terms, they were generally unfamiliar with the dynamics of the industry. It was suggested that the banks and the industry needed to come together to develop banking products that suited the needs of an industry where the main product is perishable.

Based on these findings, the Implementation Committee instructed MinFAL and CSF, which are jointly providing secretariat services to the overall Task Force on Horticulture Finance and Competitiveness, to proceed and develop specific actionable recommendations. These should focus on logistics in terms of transport and infrastructure and the development of a functional inspection service in collaboration with NAPHIS.

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”. The CSF study proposed a Task Force approach to improve the competitiveness of the Horticulture sector in Pakistan. 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 was earlier decided that a summary would be submitted thorough the Board of Investment to declare the horticulture sector as a recognized industry in Pakistan. The Implementation Committee of the Task Force 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.

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 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 was asked to focus on areas in which Pakistan lacks competitiveness and seek to ensure that these are managed for success.

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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