ISLAMABAD: A huge amount of Rs 4.75 billion was released to the Export Development Fund (EDF) during the last five years to carry out efforts and activities to promote local industry and enhance exports to other countries.
“The Ministry of Finance collected Rs 25.08 billion in the last five years,” a well-placed source at the Finance Ministry told this scribe, adding that the Trade Development Authority of Pakistan (TDAP) was allocated Rs 2.14 billion as Export Market Development Fund (EMDF) in the same period.
The bank statements show that this amount had been released to the Ministry of Commerce and the TDAP on a monthly basis with proceeds of surcharge at the rate of 0.25% of export proceeds.
The federal government collects 0.25 percent as EDF surcharge on almost 85 percent exports and deposited it in the accounts of the Finance Ministry – a fund utilised for the development of export-oriented sectors. Contribution of textile sector to the EDF is 55 percent. Collection of EDF was around Rs 6.1 billion in the last financial year, where textile sector’s share was Rs 3.25 billion.
However, the Finance Ministry released about Rs 1 billion to the Ministry of Commerce which in turn released about Rs 100 million to the Textile Ministry, official sources revealed.
The EDF board is headed by the commerce minister and according to the EDF Act 1999, the ministry is not a member of the board and attends board meetings on Commerce Ministry’s invitation.
A huge amount of Rs 5.198 billion (approx) has been released to the EDF for further disbursement among the beneficiaries in the last five years: Rs 380.419 million to the TDAP in 2010-11, Rs 1. 630 billion in 2011-12, Rs 666.179 million in 2012-13, Rs 1.366 billion (approx) in 2013-14 and Rs 155.290 million in 2014-15.
The amount includes carry over from fiscal year 2009-10. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) represents the trade and industry sectors in the procedure of disbursement of funds to beneficiaries.
As per the EDF Act 1999, representatives of the textile industry have always been included in the board of EDF. Currently, representative of the Pakistan Textile Exporters Association and the Pakistan Hosiery Manufacturers and Exporters Association are in the board.
It has also been proposed that the Finance Division opens a non-lapsable account in the State Bank of Pakistan titled ‘Textile Development Fund’ and disburses funds on approval of the Textile Development Board.
The utilisation of funds would be subject to audit by the Auditor General of Pakistan every year.
