Faisal Saleem’s exclusion from TDAP board sparks senate inquiry

September 18, 2024 (MLN): In a Senate standing committee on Commerce at the Parliament House, chaired by Senator Anusha Rahman, the issue of Senator Faisal Saleem Rehman’s status as a Board Member of the Trade Development Authority of Pakistan (TDAP) for the 2021-24 tenure was scrutinized.

The committee demanded a full account of the circumstances surrounding his exclusion as a Board member and the manner in which he was removed without any prior notification.

Senator Faisal Saleem claimed that despite his 2021 nomination to the TDAP board by the Senate of Pakistan, neither the Ministry of Commerce nor the TDAP acknowledged his membership.

The Additional Secretary noted that this issue was previously raised in the Federal Cabinet and is now under the Ministry of Law's review. The Chairperson Committee highlighted that this situation predates the SEO Act , 2023.

Senator Anusha Rahman noted that the Finance Ministry, in a response to Question No84 asked during the sitting of the Senate on 10th September, 2024 has not listed TDAP as SOE.

She emphasized that the Ministry of Commerce opinion cannot not be deemed a legal opinion and is contradictory to stated position of Ministry of Finance.

She stressed the importance of upholding the TDAP law. Senators questioned the Ministry of Commerce's reluctance to appoint Parliamentarians to the board of TDAP.

Senator Anusha  Rahman expressed surprise at the Ministry of Commerce’s position for not allowing senators  on the Board of the TDAP.

She further added that the TDAP does not fall under the purview of the SOE Act, 2023 as per the declared position of Finance Ministry. 

Furthermore, the SOE Act, 2023 only prohibits parliamentarians on the slots allocated for independent directors on TDAP board and does not apply to parliamentarians.

Commerce Minister Jam Kamal assured that the issue would be resolved promptly.

The Chairperson Committee called for a detailed report on the matter, including detailed record of notifications, the name and details of the Chief Executive TDAP during the 2021-24 period, with names of officials who gave this assumption in Commerce Ministry in violation of law.

The committee also received a detailed briefing on all Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) entered into by Pakistan, including mechanisms for resolving trade disputes.

The committee learned that Pakistan's FTA with Sri Lanka, signed in 2005, is the only FTA/PTA that contains a dispute resolution mechanism for commercial entities of contracting parties.

However, Sri Lanka has yet to designate a nodal chamber and Arbitration mechanism. The Chairperson urged the Ministry of Commerce to expedite the resolution of this issue.

The committee was also briefed on the formation of the Trade Dispute Resolution Commission (TDRC) under the Trade Dispute Resolution Organization (TDRO) and ongoing efforts to appoint members and operationalize it.

The Committee was apprised that members of the Commission will be appointed in one month’s time.

The briefing from EXIM Bank was deferred pending the presence of the Finance Ministry, as EXIM Bank falls under its jurisdiction.

Attendees included Senators Faisal Saleem Rahman, Bilal Ahmad Khan, Amir Waliuddin Chisti, and Saleem Mandiwalla, with Federal Minister for Commerce Jam Kamal Khan and other senior officials present.

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