Govt support to open new horticulture export markets

Expert says Covid-19 has negatively impacted horticulture supply chain

ISLAMABAD:

Economic and agricultural experts have agreed that timely government support to the horticulture sector can open new export markets for Pakistan.

They were sharing their views with the participants of a dialogue titled “Value addition and exports in horticulture sector”, organised by the Sustainable Development Policy Institute (SDPI) on Thursday.

Pakistan Horticulture Development and Export Company General Manager Sarfraz Iqbal told the dialogue participants that Covid-19 had negatively impacted the supply chain in the horticulture sector. “However, there is high demand in foreign markets for healthcare and nutritional food products, which Pakistan needs to capture,” he stressed.

Iqbal pointed out that the European Union had allowed Pakistan to make exports to the bloc with the help of electronic documentation and Islamabad was engaged in negotiations with other countries to trade with them in a similar manner.

Speaking on the occasion, Pakistan Business Council (PBC) Chairperson Syed Yawar Ali covered various aspects of the horticulture sector and pointed out that its uplift required immediate support from the government.

“We need to understand the developments taking place in genetics, technology, farm and food processing practices, and the government can assist in this regard,” he said. “We also need to attract international horticulture companies to Pakistan to help our farmers and industry in the upgrading process.”

He urged the government to embark on a 10-year long-term strategy for improving skills and providing incentives to the sector.

Moderating the discussion, SDPI Joint Executive Director Dr Vaqar Ahmed stressed that various government bodies needed to collaborate to facilitate trade in the horticulture segment.

He requested the relevant departments to research on innovation in the international horticulture sector and work towards reducing information, marketing and distribution costs, which were currently at exorbitant levels.

He asked the Board of Investment to lure quality foreign investment for enhancing export potential of the sector. “The State Bank of Pakistan should look for flexible financing options for horticulture exporters, who only receive seasonal demand,” he said.

The Strategic Trade Policy Framework (STPF) should focus on the horticulture sector given its potential for employment generation, he emphasised.

Ahmed suggested that the government should invite local think tanks and experts to address the critical issues that were curtailing productivity such as rising input costs, indirect taxes on inputs and farm operations, and preventing benefit of subsidies from reaching small enterprises.

Trade Development Authority of Pakistan (TDAP) Director General Abdul Karim Memon was of the view that the future of horticulture sector was linked with packaged food, hence, the packaging industry should come up with recommendations on how it could be facilitated by the government.

PBC Resident Director Saud Bangash was of the opinion that more clarity was required about quarantine and related arrangements between China and Pakistan to boost Pakistan’s horticulture exports to China.