News: Multi-pronged strategy afoot to enhance competitiveness:Salman
Name of the Newspaper: The Daily Mail
Date of publication:Friday, 28 september, 2007
URL:

ISLAMABAD: Advisor to Prime Minister on Finance and Revenues, Dr. Salman Shah said on Thursday that Pakistan to have multi-pronged strategy to enhance competitiveness of the horticulture sector.

He stated this while chairing, the second meeting of the Task Force on Horticulture, Finance and Competitiveness (TFHF& C) here today.

The meeting was also attended by key stakeholders, including representatives from the Ministries of Food Agriculture and Livestock, Commerce, Science and Technology, Industry and Health.

The Board of Investment and other private sector representatives from banking, bio-technology and leading horticulture exporters also attended the meeting.

Dr. Salman Shah briefed the task force members that the Competitiveness Support Fund, a joint initiative of the Ministry of Finance, Government of Pakistan and United States Agency for International Development (USAID) was 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”.

Dr. Shah “we have to adopt a two pronged strategy: firstly, the quality of produce both for the domestic and international market should be improved, by adopting good agricultural practices including disease-free planting materials and enforcing grades & quality standards, branding etc through pre-shipment inspection especially in case of exports; and secondly, to diversify product range”.

Dr. Shah also tasked the Implementation Committee to come up with at least two major processing projects to be developed in the production and processing areas, where entrepreneurs can approach the banks for financing. He also asked that at least three projects should be submitted to the Task Force in terms of Infrastructure development.

Dr. Shah put special emphasis on the establishment of wholesales markets in major cities as mega projects as well. The Punjab Agriculture Marketing Company (PAMCO) will be coming up with a few projects on identified initiatives.

The Sub-Committee on Quality was asked to work with Ministries of Health, Finance, MinFAL and Planning Commission to work on the food safety laws.

Identifying the role of the banking sector, Dr. Shah asked the banks and other financial institutions to look at the three aspects of the financing i.e. production/farmer, export and projects.

As a result, CSF was asked to undertake more specific work on horticulture, a sub-sector of agriculture accorded national priority by the Government of Pakistan. An Action Plan for the horticulture industry was subsequently developed by CSF in close consultation with MINFAL and other stakeholders in May and June 2007.

The Action Plan proposed a Task Force chaired by the Ministry of Finance.

The approach is based on the many agencies and projects involved in horticulture, duplicating efforts.

The CSF proposed that this issue be tackled by a Task Force for Horticulture Finance & Competitiveness. The first meeting of the Task Force was held on July 12, 2007.

The overarching goal of the Task Force was set to establish a world-class horticulture industry in Pakistan.

Its aim is to provide guidance for restructuring the finance, management and organization of the industry on a nationwide basis.

Its objectives are to ensure that agreed changes are included in Government policy and in the work plans of the various agencies actively involved in horticulture development.

The Task Force also wants to facilitate the work of the active agencies and to encourage the private sector and especially the commercial banks to provide the industry with the investment and resources required for success.

“There must be a holistic, integrated and coordinated approach based on leadership by key agencies, principally MinFAL/NAPHIS, PHDEB, the BOI and the State Bank of Pakistan” said Dr. Salman Shah.

He also emphasized the importance of the private sector, including the commercial banks, as key players in the development of this sector.

The Task Force decided that an Implementation Committee would be formed and chaired by the Secretary, Ministry of Agriculture, Livestock and Fisheries (MINFAL).