Commercial import of arms and ammunition: MoC fails to convince Cabinet

Commerce Ministry has reportedly failed to convince the federal cabinet on its move to restart commercial import of arms and ammunition of non-prohibited bores as some officials are eyeing this ''profitable'' personal business, sources told Business Recorder.
"The matter was thoroughly debated in the meeting in the wider perspective of the overall law and order situation in the country, incidence of crime and the issue of prohibited as well as non-prohibited bores weapons therein, the malpractices by the importers/dealers and dichotomy in the grant of licences to own weapons vis-à-vis non-availability of these weapons in the market in a legalised manner," sources said.
The federal cabinet, in its meeting on June 15, 2011, presided over by Prime Minister Yousuf Raza Gilani, felt that a well thought-out policy was needed to be put in place before reaching final conclusion to allow import of weapons in the country.
Commerce Ministry had suggested cancelling all the existing authorisations and special powers to be given to the Commerce Ministry for enhancement of ceilings of the importers. These powers in the past were used for personal gain.
The federal cabinet was apprised that the Commerce Ministry had moved a summary to the Prime Minister a year before for seeking his consent to restart commercial import of arms and ammunition of non-prohibited bores, but the Prime Minister directed the Ministry to consult the Ministry of Interior and Home Departments of the provinces.
Ministry of Interior and provinces supported the proposals of Commerce Ministry, except Khyber Pakhtunkhawa (KP).
The comments of KP were carefully examined and the Commerce Ministry was of the opinion that the policy changes proposed by it were in line with the actions taken by KP government which sought to impose various restrictions on local manufacturers or arms dealers.
According to the Commerce Ministry, KP government had rightly taken measures to control proliferation of locally manufactured arms. At the same time, Commerce Ministry was of the view that it intended to streamline import practices which would eventually strengthen the efforts of KP government.
Sources told Business Recorder that KP government, however, had raised its concern over the proposal regarding cancellation of all existing authorisations.
The view expressed by KP that the policy change, especially cancellation of licences, may evoke complaints should not be a concern as such.
"The proposed policy does not envisage an abrupt discontinuation of all import business. It will provide equal opportunity to all the importers'' belonging to the four provinces, who were earlier issued import authorisations to apply to the Ministry of Commerce as fresh applicants along with record of imports made during the preceding years," sources quoted Commerce Ministry arguing in its summary to be discussed by the federal cabinet, in its next meeting, scheduled for June 15, 2011.
Till the time modifications in the policy would become effective, the licensed ,including those allowed to operate provisionally, would continue to do business against their valid authorisations/Cs/contracts opened for the current year.
However, Commerce Ministry claimed that the exercise of revaluation would enable it to adopt a uniform, transparent and predictable policy. "This process will ensure weeding out of dormant/non-active authorisation holders and would eliminate rent seeking practices," sources added.
The KP government''s concern that the proposed increase of 10 percent would undermine the other policy objectives i.e. control/check/minimising imports of arms will be given due consideration while issuing/re-determining revised annual quotas. The Commerce Ministry is of the view that once the exercise is completed, the import authorisations will in fact be reduced as all dormant importers would be eliminated.
The whole position was communicated to the Prime Minister who directed the Commerce Ministry to place the matter before the federal cabinet.
The new policy will be as follows: (i) cancel all existing authorisations; (ii) re-determine authorisation in respect of each importer for next three years based on verifiable authentic data of actual imports by allowing 10 percent annual increase that in no case shall be less than the entitlement of preceding year. Any further enhancement or reduction up to a limit of 25 percent in a year shall be at the discretion of the Commerce Minister; (iii) not to allow authorisation to importers who have not effected any imports during the period July 2007 to June 2010; (iv) all import authorisations will be issued by July 31 each year. It will be obligatory for all authorised importers to furnish to the Ministry of Commerce a statement of imports in the prescribed format duly certified by an officer of customs not below the rank of Assistant Collector, of the port where imports were effected. This data, compiled and consolidated, shall be used to ascertain the value and quantity of arms and ammunition imported in the country during the previous financial year. It may also be placed on the website of the Ministry to promote transparency and public access to information; (v) regularise all those interested importers who were given provisional permissions and they actually effected imports, by issuing authorisation for next three years and; (vi) fresh applications received in the Ministry shall be decided subject to clearance by Home Departments of respective provinces through Ministry of Interior.
After detailed discussion, the federal cabinet directed the Commerce Ministry to re-visit the proposal, in the light of the points raised during the cabinet meeting and re-submit it in a more comprehensive form, in a subsequent cabinet meeting, sources added.