Horticulture company gets one-year lifeline

Ministry postpones PHDEC’s closure with focus on improving performance

KARACHI: On the request of fruit and vegetable exporters, the Ministry of Commerce has put off the closure of Pakistan Horticulture Development and Export Company (PHDEC) for one year.

Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) had requested Commerce Minister Khurram Dastgir to give a one-year extension to the PHDEC - the only body working for the development of horticulture with primary focus on exports - to improve its performance.

Earlier, the ministry had decided to close the PHDEC because of its poor performance.

The minister took the decision during a meeting with PFVA Chairman Waheed Ahmed in Islamabad on Wednesday, according to a press release.

They agreed to fully revive the horticulture company to enable it to resolve issues faced by the horticulture sector and promote exports.

Ahmed briefed the minister about other issues related to the horticulture sector, especially the difficulty in tapping Iranian markets after the withdrawal of international economic sanctions from the neighbouring country.

He said despite the opening of Iranian markets to exporters all over the world, commercial banks in Pakistan were hesitant to issue E-Form to the exporters. “The reluctance on the part of banks will deprive Pakistan of the lucrative Iranian market where other competitors are already stepping up efforts to make inroads,” he said.

He also outlined the challenges for exporters in European markets, especially in the way of mango exports. A full-time competent CEO should be appointed and its head office should be in Islamabad with field offices in provincial capitals. The company should develop a horticulture policy in collaboration with federal and provincial institutions and in consultation with the PFVA, which is an important stakeholder.

The association is of the view that horticulture exports can be increased to $1 billion in the next two years and $6 billion in 10 years, if a comprehensive horticulture development strategy is developed.

Published in The Express Tribune, May 13^th, 2016.

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