EDF approves Rs 73.7 million funding for PHDEC

The Board of Administrators of Export Development Fund (EDF) has approved Rs 73.7 million funding for Pakistan Horticulture Development & Export Company (PHDEC), well informed sources told Business Recorder. EDF Board in its meeting, held on January 24, 2018, had considered the proposal of PHDEC amounting to Rs 104 million comprising administrative expenses and expenditure for carrying out planned activities for horticulture development.
The Board had approved Rs 30.247 million for the salaries only and had observed that the proposal should have been analysed by the Finance or Executive Committee first before its submission to the Board. Accordingly, the proposal for remaining amount of Rs 73.7 million was considered by the Executive Committee of EDF Board in its 16th meeting held on March 16, 2018. Of this amount Rs 20 million are meant for administrative expenses, Rs 5 million for assets, Rs 25 million project related studies and facilitation, Rs 16.200 million for capacity building/training/international compliance and Rs 7.5 million for export promotional activity.
It was further revealed that the committee had recommended to the Board to approve Rs 73.6 million for PHDEC. Funds for administrative expenses shall not be given in future and the company shall return Rs 25 million sought for project related studies to EDF if the company was able to secure financing from other donors like FAO, USAID and World Bank etc as Secretary Commerce had informed the committee that Commerce Division would further provide another Rs 500 million to PHDEC bringing total amount of endowment fund to Rs 1 billion.
After brief discussion, the Board approved Rs 73.7 million as recommended by the Executive Committee directing that funds for administrative expenses shall not be given in future and the company shall return Rs 25 million sought for project related studies to EDF if the company was able to secure financing from other donors like FAO, USAID and World Bank etc.
On September 19, 2017, the acting CEO PHDEC, Muhammad Ashraf, who is presently Director General Trade Policy in the Commerce Division, in a letter to Secretary Commerce has stated that due to financial constraints and some other reasons PHDEC could not perform well in the past.
According to him, under the STPF 2015-18, MoC proposed the restricting of PHDEC and has already approved the endowment of Rs 950 million for PHDEC. Commerce Division has already sent a summary to the federal cabinet to appoint Muhammad Ashraf as CEO on permanent basis for the PHDEC Board and has made appropriate amendments in Memorandum of Articles.