Finally, the issue of stuck GMO soybean cargo imported from US and Brazil has been resolved. Over the weekend, the Federal Tax Ombudsman (FTO) ordered the Ministry of Climate Change to issue approval of deliberate release on one time basis as a special case under Rule 27 of the Biosafety Rules, 2005. Solvent extractors – who were tied up in financial commitments of up to c. $350 million – must be relieved. But has the right solution been reached the wrong way?
Depends on what happens next. The text of the FTO order indicates that the one-time approval may have been thrown as a lifeline to the solvent extraction players, some of whom potentially faced delinquency and would have had to declare force majeure on their payment obligations with the banks and suppliers. The order, however, does not clarify whether the government of Pakistan will now move towards properly regularizing biotech trade on a permanent basis (of plant-based materials such as grains and seed), or whether the solvent extraction and the animal feed industries will be forced to look for non-GMO based raw materials from the global commodities market.
Reportedly, the federal minister for food security drew a line in the sand in his interactions with the industry representatives, declaring that GMO-based products would not be allowed under in watch. The manner in which federal government has finally resolved the matter – resorting to a legal ‘jugaad’ (Urdu slang for hack) - may indicate that the minister stood firm on his position till the very end.
If government of Pakistan seeks to accord formal approval to commercial import of genetically engineered products, the road to any such approval will go through the food security ministry. Under the Biosafety Rules, any commercial import of genetically engineered products for the purposes of food, feed, or processing (FFP) requires an approval from National Biosafety Committee (NBC), an inter-ministerial body with representation from EPA, commerce, food security, health services, climate change, public sector research institutes, and the Strategic Planning Division!
According to documents obtained by BR Research, in February 2022 a Technical Advisory sub-committee formed under NBC circulated a draft policy on FFP import regulations to relevant ministries for comments and technical review. Given the opposition by federal food security minister, it remains unlikely that the recommendations will receive his ministry’s assent. Those closely following the subject would recall that back in 2019, the decision to allow commercial release of GMO corn (for cultivation) was also shot down at the last moment after unfavorable comments by the ISI and SPD representatives in a moot convened by the federal government.
Given the opposition by powerful quarters, and the critical role federal food security minister played in completing the number game for the ruling coalition back in April 2022, it appears unlikely that the federal government would risk approval at this stage. Political considerations then, it appears, may once again overrule common sense.
By failing to build a consensus on biotech – one way or the other – Pakistan continues to miss out on both ends. On one hand, Pakistan is one of world’s major GMO markets, where many food and feed items - from edible oil (such as canola) to animal feed are most certainly GMO-based but has no labeling regime certifying the same. Moreover, by not allowing commercial import and cultivation, Pakistan continues to miss out on a major opportunity to increase its farm yields and produce an exportable surplus. On the other hand, because locally produced products (such as Bt. cottonseed meal) lack traceability, Pakistan continues to miss out on the multibillion-dollar non-GMO markets such EU, even if it stops the commercial import of GMO soybean going forward.
All hail the ‘jugaado’ nation!