Punjab, centre at loggerheads over regulation of food industry

Businesses forced to follow two different sets of laws and standards for their products

ISLAMABAD: Despite being known for its ‘Punjab speed’, the government of Chief Minister Shehbaz Sharif and the centre have failed to resolve the issue of abundance of food standards during the past four years and the delay has erected trade barriers for the multibillion dollar food industry.

After the federal and provincial governments - both led by the PML-N - could not end their differences over who will regulate the food industry, both have now started publically challenging each other’s authority.

In the latest episode, both have given public advertisements warning the food processing and packaged industries that they should not get registered with the other authority.

Pakistan Standard and Quality Control Authority (PSCQA) - a federal entity - and Punjab Food Authority (PFA) have given advertisements against each other. The victim is the food industry that has now been forced to follow two different sets of laws and standards for a single product.



Both authorities are also fighting their cases in courts, which speaks volumes about the claims of good governance and efficiency.

The issue of multiplicity of food laws has become a nuisance for food companies, some of which are multinational firms. They have to keep both the federal and the provincial authorities happy, and that too, at the same time.

The issue of multiplicity of food laws and standards roots in the 18th Constitutional Amendment, which gave sweeping constitutional powers to the provincial authorities in regulating the food industry. Subsequently, in 2011 the provincial government enacted the Punjab Food Authority Act and framed rules and asked the food companies to follow these standards.

Now the food companies are following multiple regimes for food regulations. There is PSQCA, Punjab Food Authority, Khyber-Pakhtunkhwa, Balochistan and Sindh food authorities. But the major tug of war is between the federal and the Punjab governments. Punjab is not allowing any product to be marketed in its territory if it is not registered with the provincial authority.

“It is not possible for the food sector industry in Pakistan to cater to multiple regimes and different standards of food laws of the federation and the provinces, leading to confusion on which standards prevail and are to be followed,” wrote the Oversees Investors Chamber of Commerce and Industry (OICCI) in a joint letter addressed to CM Punjab and federal minister of state for science and technology.

It was the second letter to Punjab chief minister in the last three months.

The OICCI said that the foreign investors have invested in Pakistan and “not in any particular province”, therefore there should neither be any confusion for foreign investors nor any overlapping in laws”. The body of multinational companies has questioned the rationale of implementing dual standards through two different regulatory authorities.



It requested the Punjab chief minister and federal minister of state to agree on one standard for food products by following international practices.

Last year, FrieslandCampina’s global chief executive officer Roelof Joosten had also taken up the issue of disharmony in food laws with then prime minister Nawaz Sharif and his cabinet members. FrieslandCampaina invested $450 million in Pakistan’s Engro Foods. He had urged all the stakeholders to work for harmonisation of food standards and introduce legislation in this regard. He mentioned pasteurisation of milk as one area where there should be legislation.

The Pakistan Business Council - another body of manufacturers and leading enterprises - has also put its weight behind the food companies, urging the federal secretary Ministry of Science and Technology to resolve the dispute.

“There is a need to follow proper procedures and benchmarks for setting the “food standards,” stated the PBC.

The industry has proposed to set up a National Standard Council to harmonise the fragmented laws. It is also seeking a role of Council of Common Interest so that the matter is resolved at the highest level.

Published in The Express Tribune, October 10^th, 2017.

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