Unilateral decisions by Punjab raise eyebrows

Introducing bar-codes for food products not in provincial jurisdiction, says BoI

ISLAMABAD:

The federal government has taken notice of the Punjab government’s unilateral decision to enforce new food safety regulations in violation of a decision of the Council of Common Interests (CCI) amid concerns that the fresh guidelines may give undue business advantage to a few.

A month after the Punjab Food Authority (PFA) issued a unilateral notification; the Board of Investment (BoI) has asked the provincial authority to bring the matter of implementation of new barcodes on all food products to the platform of the National Standards Steering Committee (NSSC).

The provincial authorities have issued instructions at a time when Pakistan is already struggling to acquire new investments given the prevailing economic and security conditions. Foreign direct investment (FDI) is on the decline but the bureaucracy and politicians are not ready to mend their ways.

“The measure to introduce a QR coding system for food products should be presented and duly agreed to at the NSSC,” according to the BoI’s letter to the PFA.

The board has asked the provincial authority to address the concerns of the companies that have suddenly been asked to implement new province-specific requirements.

The provincial government’s instructions violated a decision taken by the Council of Common Interests in 2021. The CCI decided that to ensure the ease of doing business and harmonise quality and standards across all federal and provincial territories, the provincial governments shall adopt national standards formulated by the Pakistan Standard and Quality Control Authority (PSQCA).

While the labelling and certification of the marks and logos is federal domain, the registration of businesses for the sale of food products is a provincial subject, according to CCI’s 2021 decision.

In November, the PFA unilaterally issued binding instructions for food producers operating in its territory to install a new QR code on each pack of food product. According to the instructions, the coding must have the following information; batch number, date of production, expiry date, location of the plant, company’s profile, label approval status and registration of the product.

The Pakistan Business Council (PBC) –a representative body of manufacturers – has also objected to the unilateral move. It said that being a member of the NSSC, the PBC is of the view that introducing an element in the form of a QR or a barcode on the product is part of the product’s label, which should be agreed upon at the national level for uniformity. The Director General of the PFA did not respond to a request for comments.

The PFA is said to have taken the step to control the counterfeiting of food products, which are manufactured outside the formal economy, causing losses to the exchequer and posing health risks.

About two weeks ago, the Pakistan Poultry Association (PPA) also agitated against the decision before the Punjab chief minister, arguing that affixing a QR code on every food pack will not be feasible as it will slow the production process and require heavy investment. Also, as chicken products are sold across the four provinces, it will be cumbersome to have four different codes, said the association.

Sources said that certain lobbies backing are these sudden and unilateral changes in regulations as they will give huge annual business to the vendors of these barcodes.

According to sources, one of the reasons behind the resignation of the Provincial Food Minister, Sardar Hasnain Bahadur Dreshak, were the differences that arose over this policy issue. Dreshak resigned from the ministry two weeks ago.

The former food minister, however, did not respond to the question of whether he resigned because of differences in the barcode policy that had been presented to the cabinet without his knowledge.

From the looks of it, the provincial government may not budge from its unilateral stance. Sources said that the Punjab government was contemplating changes in the law to make these administrative instructions legally binding.

According to the draft changes in the Punjab Food Act, a new definition of a “Unique Identification Number” (UIN) will be inserted in the Punjab Food Act. A unique identifier affixed or printed to every unit of packaging such as to differentiate every unit of food produced for sale and be readable via smartphone or any other digital device approved by the authority.

It shall be mandatory for all food businesses to integrate their monitoring and tracking system with the authority’s ICT-based portal for access to Food Safety Officers in the manner prescribed by regulations.