The Senate Standing Committee on Commerce was informed that protocols for exporting donkey skins and meat to China have been finalized on Wednesday.

The additional secretary of the ministry, Ahsan Ali Mangi, disclosed this to the committee chaired by Senator Anusha Rahman.

The committee was also briefed on the attached departments of the commerce division and their performance review.

Mangi stated that in addition to the donkey skin and meat protocols, the ministry has also finalized export protocols for onions, potatoes, and chilies to China.

However, Rahman pointed out that Pakistan only produces one-fifth of its domestic onion demand, questioning the rationale behind exporting onions to China.

The ministry also informed the committee that it has proposed opening nine new diplomatic missions in locations like Malaysia, Iraq, Oman, Tanzania, Kenya, and Mozambique.

The committee was briefed that the Transit Trade Agreement with Central Asian countries, mainly Uzbekistan, Tajikistan, and Kazakhstan, has been finalized.

This agreement facilitates Pakistani trucks transporting goods worth $2.2-3 million monthly to these countries, with the ministry expecting a rapid increase in trade.

TCP’s high debts

The Trading Corporation of Pakistan (TCP) Chairman, Rafeo Bashir Shah, informed the committee that the TCP’s debts have risen to Rs 281 billion since 2008, with daily interest accruing at Rs 160 million. Various government entities such as the Utility Stores Corporation, provincial food departments, and the Ministry of Industries and Production owe significant amounts to the TCP.

The primary role of the TCP is to import wheat, urea, and sugar as directed by the government to stabilize domestic demand. However, despite multiple requests, the outstanding amounts owed to the TCP by these entities have not been reconciled.

Commerce Minister Jam Kamal Khan expressed concern, stating that the ministry is facing a “ticking time bomb” and if the issue is not resolved, it could turn into another circular debt crisis. The committee decided to refer the matter to the Senate Finance Committee for immediate resolution.

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Additionally, the committee was briefed by officials from State Life Insurance Corporation (SLIC) and National Insurance Company Limited (NICL). The SLIC CEO informed the committee that the state-owned enterprise is profitable and has seen a significant increase in public confidence. SLIC is working with provincial governments to implement the Sehat Card nationwide, which has subsequently improved the performance of both public and private hospitals.

The NICL CEO stated that NICL is the second-largest insurance company in the country, with a growth rate of 20.29% in FY24, compared to 29.66% growth in the previous fiscal year.