FINAL REPORT

November 2009 – April 2016

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LIST OF ACRONYMS ...... 4 EXECUTIVE SUMMARY ...... 7 1. CONTEXT OF THE ACTION ...... 22 2. ACTIVITIES CARRIED OUT ...... 24 2.1 MOBILIZATION OF THE PROGRAMME MANAGEMENT OFFICE (PMO) ...... 24 2.2 RECRUITMENT OF KEY NATIONAL AND INTERNATIONAL EXPERTS ...... 26 2.3 CONSULTATIONS WITH FOCAL POINTS ...... 26 2.4 STAKEHOLDER CONSULTATIONS AND ANALYSIS ...... 27 2.5 PROGRAMME START UP: INCEPTION PHASE ...... 27 2.7 ELABORATION OF INCEPTION REPORT ...... 28 2.8 NATIONAL WORKSHOP ...... 29 2.9 PROGRAMME OFFICER MONITORING ...... 29 2.10 COMPONENT 1: TRADE POLICY CAPACITY BUILDING ...... 30 2.10.1 RESULT AREA 1.1: STRENGTHENING OF PITAD’S INSTITUTIONAL CAPACITY ...... 30 2.10.2 RESULT AREA 1.2: STRENGTHENING OF PITAD'S AND OTHER RESEARCH INSTITUTES' EXPERTISE ON TRADE POLICY ...... 31 2.10.3 RESULT AREA 1.3: STRENGTHENING OF GOVERNMENT OFFICERS' CAPACITY ON SPECIFIC TRADE POLICY AND INTERNATIONAL TRADE NEGOTIATIONS ...... 33 2.10.4 RESULT AREA 1.4: CONDUCTING RESEARCH STUDIES CONTRIBUTING TO THE DEVELOPMENT OF A NATIONAL EXPORT STRATEGY ...... 33 2.10.5 RESULT AREA 1.4: FOSTERING PUBLIC-PRIVATE DIALOGUE FOR A COHERENT NATIONAL EXPORT STRATEGY ...... 34 2.11 COMPONENT 2: EXPORT DEVELOPMENT THROUGH IMPROVEMENT OF QUALITY INFRASTRUCTURE ...... 36 2.11.1 RESULT AREA 2.1: STRENGTHENING SPS CONTROLS ...... 37 2.11.2 RESULT AREA 2.2: IMPROVED QUALITY, VALUE ADDITION AND COMPLIANCE IN FISHERY, HORTICULTURE & INDUSTRIAL SECTORS ...... 52 2.11.3 COMPONENT 2.3: IMPROVED CONFORMITY ASSESSMENT INFRASTRUCTURE AND SERVICES ...... 82 2.11.4 IMPLEMENTATION MONITORING AND IMPACT ASSESSMENT...... 93 2.12 NEW AREAS OF INTERVENTION DURING THE EXTENSION PERIOD ...... 93 2.12.1 Business Environment Improvement ...... 93 2.12.2 Global Value Chain For Competitiveness ...... 95 2.12.3 Regional Trade ...... 95 2.13 COMPONENT 3: STRENGTHENING OF THE INTELLECTUAL PROPERTY SYSTEM ...... 98 2.13.1 RESULT AREA 3.1: Strengthened IP Institutions ...... 98 2.13.2 RESULT AREA 3.2: Strengthened IP Legislation and Policy Framework ...... 102 2.13.3 RESULT AREA 3.3: Improved IP Enforcement ...... 103 2.13.4 RESULT AREA 3.4: Increased Use Of IP By Businesses And Research Institutions ...... 103 3. KEY ACHIEVEMENTS ...... 105 3.1 COMPONENT 1: TRADE POLICY CAPACITY BUILDING ...... 105 3.1.1 INSTITUTIONS INVOLVED IN TRADE POLICY AND REGULATORY REFORM ARE ALIGNED WITH INTERNATIONAL BEST PRACTICES (OUTPUT 1.1, 1.2, 1.3 AND 1.6) ...... 105 3.1.2 FOSTERING INFORMED POLICY FORMULATION (OUTPUT 1.4 AND 1.5) ...... 109 3.2 COMPONENT 2: EXPORT DEVELOPMENT THROUGH IMPROVEMENT OF QUALITY INFRASTRUCTURE ...... 112 3.2.1 COMPONENT 2.1: STRENGTHENING SPS SYSTEM MANAGEMENT ...... 112 3.2.2 COMPONENT 2.2: IMPROVED QUALITY, VALUE ADDITION AND COMPLIANCE IN FISHERY, HORTICULTURE & INDUSTRIAL SECTORS ...... 114 3.2.3 COMPONENT 2.3: IMPROVING CONFORMITY ASSESSMENT INFRASTRUCTURE AND SERVICES ...... 127 3.3 COMPONENT 3: STRENGTHENING OF THE INTELLECTUAL PROPERTY RIGHTS SYSTEM 130 2 3.3.1 RESULT AREA 3.1: STRENGTHENED IP INSTITUTIONS ...... 130 3.3.2 RESULT AREA 3.2: STRENGTHENED IP LEGISLATION & POLICY FRAMEWORK ...... 133 3.3.3 RESULT AREA 3.3: IMPROVED IP ENFORCEMENT ...... 134 3.3.4 RESULT AREA 3.4: INCREASED USE OF IP BY BUSINESS AND RESEARCH INSTITUTIONS . 134 4. DIFFICULTIES ENCOUNTERED & LESSONS LEARNED ...... 135 5. SUSTAINABILITY, CATALYTIC EFFECT AND IMPACT OF TRTA II PROGRAMME ...... 137 6. TRTA II EXIT STRATEGY ...... 142 7. VISIBILITY ...... 150 8. KEY PERFORMANCE INDICATORS (OVIs) ...... 153 9. WORK PLAN (YEAR 5, 6 & 7) ...... 167

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LIST OF ACRONYMS

AAPK Action Aid Pakistan ADB Asian Development Bank AFD French Development Agency AHC Animal Husbandry Commissioner APLAC Asia Pacific Laboratory Accreditation Cooperation ASF Agri-business Support Fund ASLP Agriculture Sector Linkages Programme AusAID Australian Agency for International Development AWS Advanced Warning System CBI Centre for the Promotion of Imports CBS Competitive Benchmarking System CCP Competition Commission of Pakistan CCPs Critical Control Points CE Conformity European CIDA Canadian International Development Agency CMO Collective Management Organization CoPs Codes of Practice CRI Citrus Research Institute CSR Corporate Social Responsibility CTA Chief Technical Advisor DFID Department for International Development DPP Department of Plant Protection DRAP Drug Regulatory Authority of Pakistan EDF Export Development Fund EN European Standards ESCA Export Supply Chain Analysis EUD European Union Delegation FAO Food and Agriculture Organization FBR Federal Board of Revenue FFSs Farmer Field Schools FPCCI Federation of Pakistan Chambers of Commerce and Industry FPSC Federal Public Service Commission of Pakistan FTA Free Trade Agreement GI Geographical Indicators GoP Government of Pakistan GSP Generalized System of Preferences GVC Global Value Chain HACCP Hazard Analysis Critical Control Point HLMET High Level Monitoring and Evaluation Team HWT Hot Water Treatment IAF International Accreditation Forum IBA Institute of Business Administration ICT Information and Communication Technologies IDB Inter-American Development Bank IFAD International Fund for Agriculture Development IFC International Finance Corporation IFS International Food Standard IHS Institute of Horticulture Sciences ILAC International Laboratory Accreditation Cooperation ILO International Labour Organization IP Intellectual Property IPAS Industrial Property Automation System

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IPO Intellectual Property Organization of Pakistan IPPC International Plant Protection Convention IPR Intellectual Property Rights ISA International Studies Association ISO International Organization for Standardization ITC International Trade Centre JICA Japan International Cooperation Agency KGA Karachi Goan Association KPI Key Performance Indicators LUMS Lahore University of Management Sciences MFA Ministry of Food and Agriculture MFD Marine Fisheries Department MGCS Mango Growers Cooperative Society MLA Multilateral Agreement MNFS&R Ministry of National Food Security and Research MoC Ministry of Commerce MoIP Ministry of Industries and Production MoLDD Ministry of Livestock and Dairy Development MoST Ministry of Science and Technology MoU Memorandum of Understanding MRA Mutual Recognition Agreement MRS Mango Research Station MT Master Trainers NAPHIS National Animal and Plant Health Inspection Service NATA National Association of Testing Authorities NEGS National Export Growth Strategy NEP National Enquiry Point NORAD Norwegian Agency for Development Cooperation NPO National Productivity Organization NPSL National Pakistan Standard Laboratories NQP National Quality Policy NUST National University of Science and Technology OEE Overall Effective Efficiency OIE World Animal Health Organization OVI Objectively Verifiable indicators PAC Pacific Accreditation Cooperation PAKGAP Pakistan Good Agricultural Practices PBC Pakistan Business Council PBR Plant Breeders Rights PBS Pakistan Bureau of Statistics PCSIR Pakistan Council for Scientific and Industrial Research PCSUMEA Pakistan Cutlery Association PCT Patent Cooperation Treaty PEFMA Pakistan Electric Fan Manufacturers Association PFA Punjab Food Authority PGMEA Pakistan Gloves Manufacturers and Exporters Association PHDEC Pakistan Horticulture Development & Export Company PHTRC Postharvest Horticulture Training and Research Centre PIDE Pakistan Institute of Development Economics PIDSA Pakistan-Italian Debt Swap Agreement PIFFA Pakistan International Freight Forwarders Association PITAD Pakistan Institute of Trade & Development PMG Progressive Mango Growers PMO Programme Management Office

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PNAC Pakistan National Accreditation Council PPDSC Public-Private Dialogue Steering Committee PRGMEA Pakistan Readymade Garments Manufacturers and Exporters Association PSC Programme Steering Committee PSQCA Pakistan Standards and Quality Control Association PVS Pakistan Veterinary Services R&D Research and Development RASFF Rapid Alert System for Food and Feed RCEP Regional Comprehensive Economic Cooperation RNE Royal Netherlands Embassy SAARC South Asian Association of Regional Cooperation SCCI Sialkot Chamber of Commerce SIMAP Surgical Instruments Manufacturers Association Pakistan SMEDA Small and Medium Enterprise Development Authority SMEs Small Medium Enterprises SMT Substitute Master Trainers SPS Sanitary and Phytosanitary SSHWT Small Scale Hot Water Treatment TBT Technical Barriers to Trade TDAP Trade Development Authority of Pakistan TEVTA Technical Education & Vocational Training Authority TMOs Technology Management Offices ToRs Terms of Reference TRIPS Trade Related Aspects of Intellectual Property Rights TRTA Trade Related Technical Assistance Programme TUSDEC Technology Up gradation and Skill Development Company UAF University of Agriculture Faisalabad UET University of Engineering and Technology UKAS United Kingdom Accreditation Service UNCTAD United National Conference on Trade and Development UNDP United National Development Program UNIDO United Nations Industrial Development Organization USAID United States Agency for International Development UVAS University of Animal Sciences WB World Bank WCPS World Confederation of Productivity Services WeBOC Web Based Customs Clearance WIP Work In Progress WIPO World Intellectual Property Organization WNPO World Network of Productivity Organization WTI World Trade Institute WTO World Trade Organization

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EXECUTIVE SUMMARY

This Final TRTA II Project-ending Report is an overview of the programme’s achievements and impact over the project period Nov 2009-May 2016, the programme exit strategy, and the sustainability mechanisms developed to ensure that certain key interventions of the project will continue in a progressive manner. It presents a synopsis of the programme achievements against the OVIs and the overall targets of the TRTA II programme, both in terms of financial delivery and output delivery.

COMPONENT 1: Trade Policy Capacity Building

The PMO, inclusive of all three implementing agencies, with the support of PITAD and under the guidance of PSC, performed and implemented programme activities in the most efficient and impactful manner.

Under its policy related component, TRTA I Programme (2004-07) focused on building awareness on WTO related principles. The objective of ITC’s component was to enable the private sector to reap benefits from the multilateral trading system, in particular the WTO. During the inception phase of TRTA II, it was decided to build on TRTA I achievements by factoring in the following features:

Sustainability and catalyst effect enshrined in the intervention, by focusing on strengthening of some of the key institutions involved in the trade policy formulation process as opposed to capacity building initiatives directly targeting policy makers.

Deepening the scope of the intervention by addressing all dimensions of trade policy (i.e. WTO, regional integration, FTAs, domestic policy and regulatory reforms) affecting export competitiveness and not restricting the coverage only to the multilateral trading system.

Expanding the scope of the intervention through a holistic approach to trade policy formulation. All key ingredients for coherent policy formulation would be simultaneously incorporated into the existing processes in order to demonstrate the potential benefits of informed policy formulation and to advocate for its sustainable insertion in Pakistan.

Component 1 accomplished all targets in terms of implementation and results and for some result areas, made significant achievements. Overall, the outcomes of Component I may be regrouped in the following two categories:

Institutions involved in trade policy and regulatory reforms are aligned with international best practices; and Fostering informed policy formulation process;

Institutions involved in trade policy and regulatory reforms are aligned with international best practices

A major contribution of Component 1 has been the strengthening of technical capacity of government officers on trade policy issues. This has always had considerable importance because of the fact that to comprehend trade policy issues and to design interventions to address them, policymakers need knowledge of often complex multilateral and domestic trading environments. Advancing such knowledge, in a sustainable fashion, was enshrined in Component 1 by focusing its interventions on the strengthening of some of the key institutions involved in the trade policy formulation process. Strengthening the institutional capacity of these institutions will in turn enable them to impart expertise primarily to government officers.

At the outset of the Program, the Pakistan Institute of Trade And Development (PITAD) was identified as the institution to be reinforced as the leading agency to train governmental officers in trade related issues. In the Extension phase of the Program, a similar approach was agreed upon to strengthen the technical capacity of the Competition Commission of Pakistan (CCP).

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Accordingly, Component 1 enabled PITAD to form a partnership with a leading global trade policy training institution, the World Trade Institute in Bern, Switzerland. Through this approach, the curriculum, respective training modules and pool of officers (‘master trainers’) of PITAD’s 9-month long Specialized Training Programme have been endorsed through national (by the Federal Public Service Commission of Pakistan - FPSC) and international (by the World Trade Institute) accreditation. These two recognitions imply that:

PITAD has been equipped with high standards of tools and expertise. International accreditation for the new joint PITAD-WTI Certificate Course on International Trade Law and Commercial Diplomacy was conditioned to the final quality of the training modules developed. This final accreditation also provides PITAD with extended benefits as students possessing the WTI-PITAD STP Joint Certificate would benefit from waivers/equivalence for the modules covered under the Joint Certificate and PITAD recommended Pakistani officials would be eligible for a preferential rate.

PITAD’s curriculum has been attuned with cutting edge topics which are key to trade policy formulation and trade negotiations (e.g. non-tariff measures, trade and investment, trade policy competitiveness analysis, trade in services, regional integration, comparative legal analysis, trade related aspects of intellectual property rights, etc.)

PITAD’s portfolio of training services has been expanded: targeted trainings, based on the modules developed, are customized for executives as well as for Pakistan’s Commercial officers prior to the beginning of their respective mission abroad.

Increased attractiveness of PITAD to deliver trade policy trainings in Pakistan and in the region. Sustainability in transferring knowledge has been optimized.

As of April 2016, the joint WTI-PITAD Certificate has been awarded to three batches of STP trainees of PITAD. Through an impact analysis survey, the joint certificate holders (STP trainees) indicated that the acquired knowledge is instrumental in performing their official functions. 100% respondents showed satisfaction and a great majority acknowledged immediate use and dissemination of the acquired knowledge during their official duties.

Additionally, the programme provides for PITAD to hold ad-hoc trainings for government officers on pressing trade issues. These activities were intended to strengthen the requisite skills and understanding of government officers on trade, regulatory and negotiation issues. The training used the upgraded curriculum and trainers (in addition to international experts) and approved to be a valuable opportunity to test the Master Trainers and further develop the curriculum. As of April 2016, 34 trainings were conducted which were attended by more than 2300 stakeholders. Participants’ results indicated that the trainings had significantly strengthened their understanding of current trade policy issues.

As a result, PITAD is now generating even greater demand for its upgraded training services. A number of public and private sector organizations have requested PITAD to conduct trainings for them. These include Provincial Government of Punjab through its Industry, Commerce and Investment Department, Agriculture Department of Punjab, Trade Development Authority of Pakistan (TDAP), Directorate General of Trade Organizations, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Rawalpindi Chamber of Commerce, Multan Chamber of Commerce, Faisalabad Chamber of Commerce and Pakistan Plastic Manufacturers Association among others. PITAD has successfully organized trainings for the Punjab Government, the Chambers of Commerce of Rawalpindi, Multan, Faisalabad, Gujranwala, Sialkot etc., and have further organized trainings on Data Analysis in their own premises. Building on PITAD’s improved capacity, CBI Netherlands has also organized joint training with PITAD in Islamabad.

Additionally, PITAD has offered its technical trainings to Afghanistan, Nepal, Korea and Sri Lanka under Pakistan Technical Assistance Programme through Economic Affairs Division of Pakistan. This is further evidence of the enhanced capacity of the institution as it is now able to advance its technical services to the regional level.

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Finally, conscious of the need to maintain expertise generated throughout the Program, PITAD created a ‘Pool of Knowledge’ database. This database comprises of all training materials developed (training modules, research and analytical papers, etc.) as well as the main experts that benefited from and contributed to Component 1 (master trainers, mentors, trainee, etc.) with their area of expertise both in Pakistan and worldwide. PITAD can contact these officers and use the material in order to implement its mandate, design and implement training master plan for governmental officers, conduct ad hoc training etc..

With respect to the CCP, the Commission was required to enhance its institutional capacity to attain comprehensive understanding of market operations and global best practices for efficient response to markets. This assessment emerged from a report produced by UNCTAD in 2013 following a thorough diagnostic of the CCP. Given the limited resources available under TRTA II (CCP related activities were designed and implemented as additional activities during the extension phase of TRTA II), the intervention focused on addressing two sets of recommendations included in the UNCTAD report. These revolved around strengthening of the institutional capacity of the CCP, in particular by learning and incorporating best global practices in its operations and developing linkages with academia.

In particular, Component 1 has addressed the following specific recommendations from the report:

Staff members of CCP have been exposed to experiences, modus operandi and practices from key international institutions recognized worldwide for their role in shaping competition law/practices through mentoring programmes involving CCP officers and the European Union DG Competition, the United States Federal Trade Commission, and the King’s College London (Recommendation 90 of UNCTAD Report).

A module on substantive enforcement of competition law, which has been developed mainly to focus on mergers, aims at providing a practical guide for all those who have an interest in merger regulation and to provide comprehensive and operational insights into how merger review is carried out by the CCP. This module inter alia provides the list of types of transactions that may be exempt from notification and the notion of supply-side substitution in the identification of the relevant market (Recommendation 87 and 88 of UNCTAD Report);

The relationships of the Commission with universities in Pakistan have been enhanced to spread competition culture in Pakistan, including amongst the academic community (Recommendations 78 and 91 of UNCTAD Report). In particular, CCP has harnessed the training material developed under TRTA II to conclude an arrangement with the National University of Science and Technology (NUST) which features CCP as a key contributor to the new NUST’s Programme on Economics of Regulation and Competition Policy. The first course was launched in February and will last until July 2016. As per the partnership between these two institutions, the CCP is expected to offer internships to some of the students of this course. In addition, CCP has also approached the National University of Modern Languages and Foundation University to agree on the insertion of new CCP training material into their respective curriculum.

Research and solid analysis, both on the competition and economic perspective, has become nodal to CCP’s intervention (Recommendation 77 of UNCTAD Report). There is a constant need to adjust competition law to the challenges arising by the ever changing business models and practices stemming from the global economy. Accordingly, a key function for competition authorities relates to their ability to conduct research in order to foster thought leadership for policy makers. Component 1, under the extension phase, aimed at assisting the CCP to factor in research into its core mandate in particular through the development of targeted research. This was done under the guidance of international experts and is being used to inform future strategies and plans of the Commission. The research studies carried with the assistance of Component 1 have strengthened CCP in their advocacy role. Indeed, the addressed topics were targeted in fields with underdeveloped competition attention or with a lack of competition regulation. The research studies provided the Commission both with an understanding of the systematic evidence-based study approach and with recommendations and ways forward on how to proceed to address the identified situation.

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A direct outcome of Component 1’s intervention is the decision taken by the Commission to establish the Training and Outreach Department that aims to carry forward its training and research agenda. To fulfill this objective, the Commission has hired necessary staff and the division has now become fully functional to pursue the capacity building. The Commission is working on conducting national trainings under the newly developed modules on quarterly basis. Furthermore, with the additional support of the enhanced capacity and the newly established department, the Commission has launched a Road show in 22 cities of Pakistan to hold 32 interactive sessions with Chambers of Commerce and trade associations.

Finally, the CCP aspires to play an influential role in the region in general. Building on the study conducted, CCP submitted a proposal to the Government to establish a formal network of SAARC region’s competition agencies to harmonize the laws and it will be tabled in the coming SAARC Conference at Islamabad. In addition, training modules developed were used by CCP to train officers from Afghanistan governmental agencies.

Fostering informed policy formulation

Public policies play a vital role in shaping the business environment for enterprises, in particular for SMEs. These policies need to be designed in such a way that they form a delicate balance between legitimate public objectives (such as protection of domestic industries) and private sector’s needs to create a competitive and enabling environment for businesses to grow. This is achieved by fostering a policy making process which is informed through a number of key ingredients: an inclusive approach featuring in particular the participation of the private sector including SMEs, evidence based researches developed by academic and research institutions, and well-trained policy makers.

Component 1 has assisted Pakistan in setting these necessary preconditions and in managing this informed and inclusive process of policy making.

For the past 6 years, the Public-Private Dialogue Steering Committee (PPDSC), co-chaired by PITAD and the Ministry of Commerce, was established and formally endorsed to steer policy and regulatory formulation process in Pakistan in the priority areas. In addition, PPDSC identified evidence-based researches required to inform its position and chaired national wide public private consultation process. As such, this process contributed to the enhanced economic governance through the:

Establishment of legitimate policy making process Conducting of systemic evidence-based consultation process; and Incorporation of the recommendations stemming from this process into governmental policies.

For each consultation process initiated (14), a large number of stakeholders were informed about policy issues/reforms under consideration and encouraged to engage in the process by submitting their position. The consultation process culminates with public private dialogues within which a consensus between the private and public sectors’ position was sought to further craft the recommendations to be endorsed by the PPDSC who in turn shared the results with the Ministry of Commerce.

The high level of interest of stakeholders in PPD initiatives, quality of policy recommendations and subsequent further research, constant support of PPDSC and the strengthened role of PITAD to support the initiative are all important steps towards the institutionalization of the public-private consultation mechanism for informing trade policy formulation and implementation.

All levels of Pakistan’s society acknowledge the necessity and impact of this process.

The contribution of the public private consultation process to key trade related strategic initiatives has been recognized by the government in numerous fora and occasions. In addition, the recommendations which have stemmed from this process advocating for policy reforms and further interventions to be made to enhance the competitive edge of Pakistan’s businesses have assisted the Government in shaping initiatives aimed at enhancing the export competitiveness of Pakistan.

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The stakeholders also endorsed the process and according to them, the public-private consultation mechanism has improved the trade policy formulation process by making it more legitimate and evidence-based. Stakeholders are now more associated with the process and they find it more convenient to convey their concerns. The presence of Minister of Commerce, Secretary Commerce and other senior officials from different government departments in the PPDs give confidence to the stakeholders that their suggestions are taken seriously and their concerns reach the appropriate platform. For instance, according to the Vice President of Pakistan Gemstone and Minerals Association, the PPD mechanism has ensured participation of the business community in policy making. He acknowledged that businesses are revisiting their traditional demands on subsidies and are starting to look beyond fiscal benefits. According to him the process has brought accountability and transparency in trade policy making.

Finally, the international community also acknowledges the importance of this mechanism for Pakistan, in particular other international organizations such as CBI and USAID. The CBI has expressed interest in cooperating with the ITC to carry out this mechanism for the implementation of the recommendations on how to maximize the benefits of the EU GSP+. The USAID has also acknowledged the importance of the whole process and has developed a project in order to continue this mechanism beyond the end of TRTA II programme (Pakistan Regional Economic Integration Activity - PREIA; 2015-2020).

This consultation process has directly contributed to a number of policy changes for an enhanced business environment, including(further details are provided in the key achievements section of the report):

(i) Preparation of Strategic Trade Policy Frameworks (STPF) 2012-15 and STPF 2015-18 (ii) Obtaining and maximizing the use of the GSP+ (iii) Drafting the Trade Dispute Resolution Organization law (iv) Contributing to drafting the national export growth strategy (NEGS) (v) Advocating to revamp the National Tariff Commission; and (vi) Accession to the International Transport of Goods Convention

COMPONENT 2: Export Development Through Improvement of Quality Infrastructure

The key achievements made under Component 2.1 ‘Strengthening the Sanitary and Phytosanitary system management’

The programme strengthened Pakistan’s SPS Management System by moving the country from a position of inadequate national legislation and institutional structure to a position where a national level legislation on SPS and Food Safety and its implementing and controlling institutional structure exists. Following discussion with all national and provincial stakeholders and a series of workshops at the provincial level, a national consensus was achieved on these outputs. The discussions culminated in a national seminar on 9th June 2012, whereby the legislative bill was made public through the NAPHIS project of MNFS&R. Following detailed discussions and consultations with all provincial authorities, the Bill was finalized and approved by the MNFS&R in December 2012. However, with the change in government in May 2013, the Bill was only presented to the PM Secretariat in October 2015, where it was approved. The Bill has now been readied for final enactment by the Parliament, expected in April 2016.

During the programme life, more than 300 food safety officers received a Post Graduate Diploma/Degree in food safety and controls from 4 different universities (2 in Punjab, 1 in Sindh and 1 in KPK), and some 100 food inspectors currently working in the field (Punjab & KPK) were trained on food inspection procedures based on risk-assessment. This PG Diploma Course has received international recognition through its accreditation by REHIS. Two of the universities have converted this Diploma course into a full-fledged degree program (recognized by HEC) and continue to conduct this course through their own budgetary provisions. The University of Karachi continues to promote

11 this course as a Diploma, targeting mainly private sector by offering this course in the evening to accommodate technical staff for the food industry. This capacity did not exist prior to the TRTA II programme intervention; now four national intuitions offer this diploma course. In addition, two more institutions in Punjab have taken it upon themselves to launch a similar food safety course using the syllabus developed by the TRTA II Programme.

The TRTA II programme not only enhanced capacity at the policy and strategy level in SPS, it also worked extensively with the MFD to equip the department with the necessary tools and trainings required to put it in a position that would allow for resumption of fish exports from Pakistan to the EU, following the imposition of the ban in 2007. After submitting ‘proof of compliance’ to DG SANCO in 2012, fish from 2 processing plants in Pakistan were approved for export to the EU in March 2013. Since then, compliance documents for an additional 05 processing plants have been submitted to DG SANCO by the MFD for approval. To date, more than 160 consignments, totaling over US$ 16.5 million, have been exported to the EU (Spain, UK, Italy) with zero rejections. This resumption of fish exports to the high-end markets will enhance the incomes of the poor fishermen, and ensure value addition to Pakistani fish produce through improved compliance to EU standards.

Through TRTA II Programme guidance and expert advice, the Government of Pakistan, particularly PCSIR, has been able to mobilize funds of PKR 2.4 million (USD 24,000) for the creation of a unique facility for testing of Dioxins, PCBs, and PAHs in fish and fish products at PCSIR labs Karachi, particularly enabling Pakistan to cater to the EU requirements of fish imports from Pakistan. This laboratory, established in March 2013 and accredited by PNAC in September 2013, is the only one of its kind in the region and will not only be able to test fisheries products for these environmental parameters, but all food products destined for export from Pakistan. It is worth noting that within six months of its establishment this laboratory has generated more than USD 90,000 in revenue from its testing services, with clients from the private sector, other donor programs (USAID), and of course from the MFD/fish business operators.

Finally, the provincial governments of Punjab and KPK have been assisted in developing capacity on food safety inspection procedures, technical regulations food safety standards, through their respective provincial food authorities, to work in line with the national legislation.

Eight technical regulations, code of conduct and code of ethics rules, and official controls documents have been drafted for the Punjab Food Authority to help the PFA inspectors to better carry out their functions in line with international best practices. In addition, 20 food inspection kits were distributed to various stakeholders (9 to PFA; 2 each to the four universities where the PGDC in Food Safety & Controls is being taught; 2 to MFD; 1 to FCS and 2 remain with the PMO).

The key achievements made under Component 2.2 ‘Increasing value addition and productivity in key commodity sectors’

Improved quality, value addition and compliance in the fishery, horticulture and industrial sectors is strategically the most important component of the programme as it deals strongly with both public sector beneficiaries as well as the private sector. As a result of the activities carried out by the National Productivity Organization (NPO), Pakistan is now well known among international productivity organizations and associations such as the World Network of Productivity Organization and the Asian Productivity Organization. The IT equipment provided under the TRTA II programme now allows NPO to replicate TRTA’s benchmarking methodology in the Fan, Surgical Instruments, and numerous other sectors. This shows sustainable capacity developed at NPO. The sector competitiveness study in the fan sector identified implementation of lean manufacturing as a key productivity improving intervention. It was identified that minimal capacity for lean existed at NPO, SMEDA, TUSDEC and TEVTA – key agencies working to improve the competitiveness of the industrial sector. TRTA II has now successfully created this capacity and 25 master trainers are now available at NPO, SMEDA, TUSDEC and TEVTA to impart lean procedures in these manufacturing sectors.

TRTA II programme had a major focus on improving the productivity and competitiveness of the Pakistani industry. Better productivity yields more value addition and hence makes a greater impact on wealth creation for the poor. National Productivity Organization (NPO) is the key agency at federal

12 level responsible for bringing about productivity improvements in Pakistan. Prior to TRTA II interventions, NPO as an organization was struggling for a real role as it was unable to demonstrate its presence. TRTA II supported NPO in key benchmarking for productivity activities and built its capacity by practical demonstration through pilot initiatives.

As a result of these measures, NPO has been ranked as the top and preferred contender to work on benchmarking the Pakistan’s garments sector using the UNIDO CBS tool provided under the TRTA II. This is a major recognition of NPO by the Government of Pakistan.

NPO conducted a sector level benchmarking survey in the surgical instrument sector and a firm level Overall Effective Efficiency (OEE) exercise based on the approach adopted and implemented by the TRTA II programme. TRTA II programme provided the resources to NPO in conducting the above mentioned sector benchmarking survey in the surgical sector.

TRTA II programme initiated the interventions in Process Control and CSR with an overall objective to facilitate increased productivity and CSR improvement in the industrial sectors situated in the golden triangle (Gujarat, Sialkot and Wazirabad) of Pakistan. The industrial sectors included the companies involved in manufacturing Fans, Cutlery, Surgical Instruments and Personal Protective Gear (gloves, boots, and clothing)

The main purpose of the programme interventions was to implement Process Control and CSR in order to achieve increased productivity and CSR improvement.

During the pilot phase, factory teams were engaged and trained on data collection, data compilation and data analysis leading to the identification of Key Performance Indicators (KPIs) in terms of quality (rework and rejection rates), value-added time, material movement, number of workers used, work in progress (WIP) levels, line balancing efficiencies, etc. Wastages disrupting the production lines were also quantified and after analyses of the collected data and KPIs identification, improvement targets were established and contemporary techniques pertaining to Productivity, Quality and CSR were introduced to achieve the set targets. After installation of the countermeasures, substantial improvement results were witnessed at the selected units in terms of reduced defect rates, WIP, material travelling and improved value added time leading to higher levels of productivity and quality KPIs.

CSR and Process Control intervention was rendered successful in the pilot phase whereby 3 companies from electric fans witnessed huge gains in productivity and quality and better working conditions for their workforce. During the process, more than 100 personnel from 10 units underwent on-the-job training on quality and productivity tools, techniques implementation, and 5S approach thereby creating sustainability at factory level where these personnel will be able to replicate the methodologies in other areas of the factory.

A 30% to 120% increase in productivity and 53% to 68% improvement in quality defect rates has been observed. One hundred personnel from 10 companies were trained on the 5S approach to create a cleaner and organized workplace.

Out of 9 selected fan sector companies, 7 companies have been able to achieve substantial gains in terms of Productivity, Quality and CSR improvements.

Twelve companies from the three industrial sectors (Fans, Cutlery and Personal protective gear: gloves, boots, and clothing) on the programme will go through a formal step-by-step programme of improvements at the floor shops. Five of these companies were enrolled under PEFMA knowledge centre. The selected units in the fan sector witnessed quantitative gains in terms of quality improvement from 44% to 81%; batch travel distance from 52% to 86%; Work in Process (WIP) from 30% to 71%; labour productivity from 70% to 103%; line balancing efficiency, from 105% to 240%; average production per day from 9% to 280%; and number of workers from 6% to 26%. As a result of CSR implementation, the companies saved PKR 6.3 million along with the training of 200 personnel on shop floor management techniques.

13 By adopting these best practices, introduced by TRTA II, the companies can save up to PKR 0.9 million per furnace per year. Conservatively, if there are 250 furnaces in operation in the fan sector, the potential savings will be more than USD 2.25 million per year.

Two companies were also provided with guidance on standardization of products through collection control limits data and development of engineering drawings. This working was then converted into Process control planning and development of work instruction sheets for the operators and QC staff.

Moreover, the fan industry has greatly benefitted as a result of the implementation of lean practices. The major success demonstrated is enabling the fan unit to manufacture and pack fans in one day as compared to the industry norm of 6 to 7 days. This change has not only speeded up production but has reduced the required investment in inventory and unfinished stock by over PKR 5 million. Another major impact was achieved via simple design change at the paint shop that has reduced heating and paint drying time by half. Finally, another design alteration has reduced packing of fan time by around 80%. These are major changes that once replicated industry wide will change the lives of workers and labourers involved with the sector who amount to over 150,000.

The demonstration effect has been successful not only in making personnel in the fan sector more aware about modern production techniques and layout, but also in triggering investments which will improve health and safety and worker conditions. It will also augment the earning of workers at all levels hence contributing to poverty alleviation.

Another critical weakness identified in the fan sector was the outdated electrical and mechanical techniques. The programme discussed these issues with the Department of Mechanics at NUST. NUST showed its interest in working on the issues of the fan industry. Subsequently, the fan industry was linked with NUST University to work on brining electrical and design improvements in fan manufacturing. NUST worked very closely with the fan manufacturers and made refinements in fan design to make it more energy efficient.

Two groups of final year Industrial and Manufacturing Engineering students at UET were engaged to work on in line process control and CSR at machining and die casting sections respectively, of a fan manufacturing unit. Relevant supervisors in the industrial engineering department at UET Lahore facilitated these students to carry out their projects.

Resultantly, two research papers and a case study was published in internationally reputed journals. The case study was published in the journal of UET Taxila and 2 research papers titled “Workplace stress Management” and “Corporate Social Responsibility awareness measurement in the industrial sector of Pakistan” have been submitted in the 7th International Conference on Applied Human Factors and Ergonomics, Florida, USA.

Similarly, in the cutlery sector, TRTA II through its field work identified the need for a change in technology at the polishing stage. General, technical and financial comparisons were made and an appropriate quotation was identified fulfilling the requirements of the cutlery polishing process. However, the cost of the most appropriate bid/machine far exceeded the perceived cost estimated in 2012. Therefore, the programme reduced the number of machines to be purchased from 4 to 2 sets, with the approval of the MoC/PITAD, EUD and the cutlery association.

A two-member delegation visited the manufacturing facility in China in order to ensure the quality of the machines, following which, a four member team of the Chinese supplier installed, commissioned and trained the personnel of model units on the new cutlery polishing machines. Pakistan Cutlery Association has been apprised on the new technology through the meetings with the Chinese engineers and through the demonstration session held at a cutlery beneficiary unit.

As a result, the Pakistan Cutlery Association (PCSUMEA) has now developed a PC-1 through TUSDEC to upgrade the technology in other cutlery manufacturing units of the sector. The analysis done was so strong that one of the factories has installed the recommended equipment. The factory has also agreed to work as a demonstration centre working with TRTA II.

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Finally, the programme, working jointly with CBI of Netherlands, has made deep inroads in the surgical instruments industry to improve their adherence to corporate social responsibility. Out of 6 selected surgical units, the 4 units which have implemented CSR and Process Control techniques have witnessed up to 61% improvement in quality defect rate and 114% improvement in labour productivity. Two other units implemented the proposed improvement plan in 2015 are in the process of constructing new halls based on the recommendations provided by the TRTA II team.

Compliance with improved business processes and certifications is becoming an essential facet of key international buying markets and hence companies in Pakistan are under increasing pressure to spend time and money to become compliant to such requirements. To create awareness, over 100 individuals from different business sectors were trained in CE Marking and six companies involved in the manufacturing of electric fans, gloves and boots have been finalized on cost sharing basis to achieve CE marking.

The programme supported 3 manufacturers of protective gloves (with 11 different models) and 3 manufacturers of electric fans (with 17 models in total) for the acquisition of CE Marking. All these products have successfully passed the technical requirements to achieve CE Marking certification.

28 master trainers were trained on CE marking directives and two CE marking guides were prepared for fan and protective gears. One protective gear company enhanced its exports by 30% while another company has won an international tender worth US$ 100,000.

To support the pro-poor sector for the artisan fisheries industry of Baluchistan, illustrative Codes of Practice (CoPs) were developed for the fishermen of small boats in Baluchistan. 35 Master Trainers (MTs) were trained from Baluchistan Fisheries department enabling them to train fishermen on the codes of practice for handling fish on small boats, relevant for Baluchistan, and to develop fishermen’s skill to improve the catch quality and their livelihood. Subsequently, 2000 fishermen belonging to 17 different coastal villages/ fish landing sites along the coastal belt of Baluchistan within the districts of Lasbella and Gawadar were trained under the supervision of TRTA II programme.

The Baluchistan Fisheries Department mobilized USD 2.65 million to procure and distribute the essential equipment (insulated boxes, crates, life jackets. etc) to complement the CoPs implementation.

Development of CoPs along the Critical Control Points (CCPs) of the Kinnow and Mango supply chain was identified as a major prerequisite to provide comprehensive guidelines to farmers, processors, exporters and other stakeholders involved with the aim to increase production, maximize profit, improve quality and reduce losses. National institutions such as Citrus Research Institute (CRI), Sargodha Mango Research Station (MRS), Multan and University of Agriculture, Faisalabad (UAF) having expertise for the development of CoPs were identified.

The four plus one approach of the cluster development was applied where each cluster had one big farmer with four or more associated members. Farmer Field Schools (FFSs) were conducted on each farm cluster every month. CoPs have been tested and through pilot implementation and finalized based on the results. Finalized CoPs and the guidelines to address the Critical Control Points (CCPs) along the entire Kinnow and Mango supply chains have been published and disseminated for implementation at mass level.

FFSs have now become a regular feature of Kinnow and mango Farms. They have become a resource development pool. The facilitators from the Research Institutes (MRS and CRI) manage these meetings in controlled dialogues, where urgent and specific cultivation issues are discussed and resolved. Through these discussions, knowledge and technical skills are conveyed to the farmers and are internalized by these farmers. Trials and demonstrations are conducted, promoting a "learning by doing" approach.

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In order to support the farmers to implement the CoPs, TRTA II programme provided 20 equipment kits (10 to Mango farmers and 10 to Kinnow farmers) to support the farmers to produce quality fruit.

In order to further disseminate the CoPs beyond the 100 already assisted farms, TRTA II programme organized the Training of Master Trainers. TRTA II experts, along with the officers from Research Directorate of Agricultural Department of the Government of Punjab conducted the training programs. The officers of the Directorate of Extension, Pest Warning and Quality Control of Pesticides, and In- service Agriculture Training Institute of the Agriculture Department of the Government of Punjab and Pakistan Horticulture Development and Export Company (PHDEC) were trained as Master Trainers.

TRTA II signed an MoU with ASF to collaborate for the dissemination of CoPs in Kinnow sector. 35 participants were trained as master trainers. The training participants included the officers from the Agriculture Department of Government of The Punjab, farmers, processors/exporters, middlemen and the research scholars of the University of Agriculture Faisalabad.

TRTA II sponsored the training of researchers from the MRS and CRI on Postharvest Technology Management and Extension (Mango and Citrus) at the Post Harvest Training and Research Centre, University of the Philippines. There, the researchers observed and discussed the use of Hot Water Treatment (HWT) in the mango farming communities of Philippines and were impressed by the adaptation of this simple technology by the local growers. There they conceived the idea to use the Small Scale Hot Water Treatment (SSHWT) unit to control the fruit fly infestation in Pakistan.

TRTA II programme supported MRS to prepare a model SSHWT unit which could be replicated. The researchers of MRS with the help of TRTA II experts modified the SSHWT unit according to the requirements of Pakistani mango. MoC through TDAP/EDF mobilized the funds (US $ 200,000) for the manufacturing of the SSHWT units to be placed at the farm clusters receiving TRTA II support. The SSHWT units were installed at the six farm clusters receiving TRTA II support. It is expected that these SSHWT units which provide extended HWT will not only be helpful in providing protection against post-harvest diseases like Stem End Rot and Anthracnose but also help increase the shelf life of mango by effectively destroying the fruit fly in the infected mangoes. The farmers are in contact with the Department of Plant Protection to certify these SSHWT units for treating the mangoes destined for export. More farmers are replicating SSHWT.

TRTA II supported experts of UAF designed a harvest bag and tested it in the field. Later on the harvest bag was modified on the basis of suggestions from exporters. After field trials a sophisticated form of the harvesting bag was developed. The bag accommodates more Kinnows and also the fruit remains protected from any kind of damage. The harvesters are comfortable with the new bag because the harvester hangs it on one side instead of front side; the height can be adjusted very easily according to the height of the person and is emptied from the bottom. This newly designed harvesting bag has the capacity to hold 10-12 kg fruit, which is easy to use for labour and the harvesting tool cleaning kit to promote clean and disinfected tools shall bring in a very positive change in the Kinnow industry. TRTA II programme has distributed 500 bags to the Kinnow exporters.

During the extension phase, the TRTA II programme supported the research institutions (CRI and MRS) to monitor the conduct of FFSs by the master trainers trained by the TRTA II programme. 10 new farm clusters were selected in both Kinnow and Mango sectors and the master trainers were assigned the new clusters. This activity has helped in the dissemination of Codes of Practice beyond the TRTA II assisted farms. In addition the fact that FFSs are now being conducted by the Agriculture Extension Officers who were trained as master trainers shall ensure sustainability.

A critical issue identified under the TRTA I programme was commercial sustainability of the laboratories in Pakistan. It was realized that upgrading the laboratories may not have the desired impacts if they fail to sustain commercially. Hence, under Component 2.3 ‘conformity assessment and infrastructure services of TRTA II’, personnel from 30 laboratories were extensively trained in the commercial aspects and for business viability. Through this exercise it is expected that these

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laboratories will be able to run more successfully and continue to earn enough to reinvest and grow substantially. To strengthen the work carried out under TRTA I, 06 metrology laboratories at NPSL have been assessed by PNAC for accreditation to ISO 17025 and currently the programme is supporting them in meeting requirements of the corrective measures identified. Additional 19 testing laboratories have been supported and achieved accreditation to ISO 17025 from PNAC.

In total, 38 testing and 06 calibration labs were supported by the TRTA I & II programmes to achieve accreditation by PNAC. Of these laboratories, 30 are implementing business plans to ensure sustainable accredited testing services and their revenue has increased many folds.

PNAC is internationally recognized for its accreditation services to ISO 17025, ISO 17020 and ISO 17021; for testing and calibration laboratories, Inspection and Certification Bodies, respectively.

The National Quality Policy has been finalized and sent by MoST to the Cabinet for approval. This NQP provides the overall vision for quality infrastructure development and is supported by GoP funding worth USD 7 million.

Moreover, national agencies including PSQCA, NPSL and PNAC were supported continuously to improve and strengthen their capacity and ability to meet the challenges that Pakistan faces as part of a globally competitive world. As a result of this support, Pakistan will have a national agency to provide internationally recognized accreditation services for laboratories and certification and inspection agencies which are currently reliant on international accreditation bodies such as UKAS, NATA, Norwegian Accreditation body etc. PNAC has already achieved the MRA signatory status ILAC/APLAC for laboratories and MLA with IAF/PAC after the planned evaluation by PAC. This demonstrates a major change brought about by TRTA II in Pakistan.

TRTA Extension

Business Environment Improvement

In order to implement interventions related to business environment reforms, consultative meetings involving public and private stakeholders were conducted. It was jointly decided that two pilot interventions would be implemented in Mango and Kinnow sectors.

For the said purpose, a Technical Working Group comprising of representatives from PHDEC, DPP, PMG, MGCS, KGA, MRS, CRI and CGPPE, drafted a summary paper containing a list of major constraints in the horticulture sector.

Based on the summary paper, an advocacy agenda and strategy for horticulture was developed, identifying key priority areas where the government should focus in order to enhance the business environment of the horticulture sector. The Technical Working Group handed over the agenda and strategy to the government.

Regional Trade

The objective of the Regional Trade component was to identify options to improve cross border mutual recognition and flow of goods, including the means to recognize compliance assessment and other options to facilitate export, import and transit trade. The TRTA II Programme proposed an Export Supply Chain Analysis (ESCA) via designated trade routes.

Surgical instruments from Pakistan have gained acclaim worldwide for their quality and competitiveness and rice is one of the major exports of Pakistan. There is potential for growth in regional exports for both sectors. The ESCA was carried out in the supply chains of surgical instruments and rice, with a focus on the trade process followed while exporting to India, China, Iran, and Afghanistan.

17 TRTA II also helped the FBR to upgrade the computerized SPS border clearance system for imported and exported consignments of food and agricultural products in Pakistan. An SPS module will be developed for the WeBOC system (Web Based Customs Clearance), with a view to improving effectiveness and efficiency in the application of SPS measures at Pakistan’s borders.

Global Value Chain

Under the initiative on Global Value Chain, the TRTA II Programme conducted a broad institutional mapping of all public and private institutions to identify a potential organization where a permanent research unit can be established.

TDAP was identified as the organization for the establishment of the permanent research unit. Members from this organization were trained on the methodology to carry out the Global Value Chain Analysis. Four sectors were selected for GVC analysis through consultative sessions with key public and private stakeholders. The central objective of this program was to train a group of professionals for independently carrying out value chain analyses on different sectors, which in turn will provide policy advice to the government and investment opportunities for members of the private sector.

A permanent research desk has been established in Trade Development Authority of Pakistan for the analysis of Global Value Chains based on the approach provided by TRTA II programme

Donor Coordination

The Donor Coordination forum is an outcome of the initiative undertaken by the TRTA II Programme, run in cooperation with the government of Pakistan, through its various organizations, to provide support to the country in building its capacity to address trade related issues thereby fostering its integration into the world economy and contribute towards poverty alleviation. PITAD is the lead agency designated by GoP to coordinate all TRTA II related activities within all public, private sector institutions/stakeholders as well as other Donors working in similar areas of trade and development.

PITAD, with support from PMO, has collected data on activities of 21 donors working in the area of trade; ADB, IFAD, FAO, IFC, ILO, IDB, UNDP, WB, AusAID, DFID, AFD, JICA, NORAD, RNE, USAID, PPAE, AAPK, BMZ, CIDA, EU, ASLP. The MoC/PITAD and TRTA II Programme PMO jointly organized the Donor Coordination meeting on 8 February 2013.

Presentations by the donor agencies on their trade related projects were given by Asian Development Bank (ADB), United States Agency for International Development (USAID), The World Bank (WB), International Labour Organization (ILO), Japan International Cooperation Agency (JICA), Australian Pakistan Agriculture Sector Linkages Programme (ASLP), AUSAID, International Finance Corporation (IFC), International Fund for Agricultural Development (IFAD), French Development Agency (AFD), Royal Embassy of Saudi Arabia, Representatives of Economic Affairs Division, Development Adviser EU Delegation to Pakistan and TRTA II programme experts also participated in the first donor coordination meeting on Trade & Development.

Active cooperation between TRTA and the following donors:

1. ASLP/AUSAID: Development of a joint code of practice along the critical points of the supply chain (farm – market) in the mango and Kinnow sectors & identification of markets for Pakistani produce.

2. FAO: Animal and plant health legislation & IPM programmes; publication of CoPs in horticulture and fisheries and promotion of food safety as in integral part of food security.

3. CBI of The Netherlands: Working in the surgical sector to address the CSR issues. In addition, CBI is supporting TRTA/UNIDO in developing the trade linkages not only in the surgical sector but also in horticulture and fisheries sector. CBI has provided expertise to the TRTA II beneficiaries for the training on market intelligence and marketing.

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TRTA II Programme continued to be engaged in the project planning and design of the joint project initiative with IFAD, Pakistan-Italian Debt Swap Agreement (PIDSA) for Baluchistan Coastal Areas Fisheries Development Programme. Similarly, TRTA conducted discussions with NORAD in Islamabad regarding joint and coordinated activities on Fish Stock Assessment survey along the Pakistan Coast of the Arabian Sea.

TRTA II initiated dialogue with Australia-Pakistan Agriculture Sector Linkages Program (ASLP) of AUSAID and FIRMS of USAID for coordination of interventions in the horticulture sector in Pakistan. This initiative has resulted in a process of formalization of coordination activities of the three donor programmes in the horticulture sector through a project planning meeting, where representatives of TRTA, ASLP and FIRMS would be participating.

Discussions were held with DFID in Islamabad with a view to coordinating activities in respect of impact assessment of programme results focused on poverty alleviation and improvement of household incomes in specific agro-based and SME sectors. A common understanding was reached to coordinate and synergize TRTA and DFID efforts in the design and conduct of impact assessment surveys relating to their ongoing projects and programmes in Pakistan.

COMPONENT 3: Strengthening of The Intellectual Property Rights System

This section covers the overall progress made under Component 3 of the TRTA II Program from its beginning in July 2011 till April 2016.

Implementation of Component 3 is in its final wrap-up stage with all planned activities completed. There are two activities (Web Portal and Admin System) that are nearing completion and expected to be implemented by the end of April 2016.

Four result areas were addressed by Component 3, namely: Strengthened IP Institutions; Strengthened IP Legislation and Policy Framework; Improved IP Enforcement; and Increased Use of IP by Businesses and Research Institutions.

The key achievements made under the Component 3 ‘Strengthening of the intellectual property rights system’

In the area of Strengthened IP Institutions, the main cluster of activities focused on an organization- wide modernization of IPO Pakistan including the three IP registries in Karachi, the Regional Office in Lahore and the Head Office in Islamabad. These extensive and comprehensive activities included the digitization of over 6 million pages of paper IP records, up gradation of the IP automation systems and ICT infrastructure at the IP registries, streamlining of business processes, introduction of online IP services and training of IPO staff in the required skills and technologies for increased self-reliance. In addition to modernization activities and as part of human resource development, patent and trademark examiners were provided with customized training focusing on areas specific to their needs including review of the examination procedures and guidelines. Three IPO Pakistan officials completed LLM course on Intellectual Property at Turin. A training workshop was held for the IPO HR and Finance officials on modern management practices for systematic management of the organization’s program and budget. IP Institution strengthening also addressed the establishment of a Collective Management Organization (CMO) in the country. A CMO feasibility study was done and an agreement was reached by stakeholders to implement key recommendations of the study for its operationalization.

Implementation of the modernization activities has already resulted in significant internal efficiency gains at the IPO registries and improvement in the services provided by IPO to users of the IP system. As a result, time to grant IP rights has been reduced from 5 years to 3 years for patents and from 36 months to 18 months for trademarks. In addition, faster throughput in the processing of IP applications has increased the revenue for IPO, specially from the Trade Marks Office which processes a large volume of trademark applications. To build up on these improvements, IPO has given high priority to the integration and consolidation of the three IP registries' operations into a “One-Window” operation.

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New premises have already been selected and being prepared to house the three IP registries together into a single building.

The legal, management and technical trainings provided to IPO officials is helping the organization to sustain the achievements derived from the TRTA II Program and address the challenges faced in effective management of the organization.

The CMO study has led to the establishment of a CMO in the country which is now in the process of operationalization.

In the area of Strengthened IP Legislation and Policy Framework, activities focused on the development of new IP laws, facilitation of accession to international IPR treaties and inclusive planning and policy development.

For new IP laws, a paper was developed on Utility Model (UM) protection in Pakistan which contributed to a better understanding of the legal and economic issues involved in this type of IP protection, and an expert mission and consultations undertaken on Plant Breeders Rights (PBR) on the legislative framework and organizational setup required for operationalization. As next steps, IPO would use the inputs and feedback from these activities to prepare position papers and present them to relevant authorities for subsequent actions.

A study visit was organized for officials from relevant organizations to engage in discussions with WIPO experts on issues of special relevance to Pakistan’s accession to the Madrid System, including the steps to be taken to meet the obligations under it, and the measures required to fully benefit from it. A similar study was also organized for accession to the Patent Cooperation Treaty (PCT). Following these study visits, IPO has initiated national consultations with stakeholders on accession to international IP treaties, in particular, the Madrid System for international registration of Marks.

The WIPO methodology and a set of tools for the development of a national IP strategy were shared with IPO Pakistan to assist in preparation of a discussion paper for a roundtable on the development of a national IP strategy. This Roundtable was held with an aim to review the main elements of an IP strategy, its linkages with key policy areas (e.g. trade, innovation, health) and methodologies on formulating and implementing IP strategies. As a follow-up, IPO is coordinating the preparation of a draft IP strategy with relevant stakeholders and experts.

In the area of Improved IP Enforcement, a study visit was organized for officials from FIA/Customs/Police on IP enforcement which facilitated the introduction of IP enforcement training programs in their respective organizations.

18 judges from all provinces of Pakistan attended a colloquium on IP enforcement with international experts to: (i) discuss the scope and impact of counterfeiting, including the need for public awareness as an alternative to punitive measures; (ii) examine the justification for criminal sanctions, the elements of IP crimes, evidentiary requirements, interim measures and orders, as well as proportionate sentencing options; (iii) consider a strategic approach to enforcement, bearing in mind the socio-economic challenges in Pakistan; and (iv) review topical issues, including effective public/private cooperation. One of the ideas discussed at the colloquium was establishment of specialized IP Tribunals for faster and effective processing of IP cases. IPO has recently established IP Tribunals in Karachi, Lahore and Islamabad.

Lastly, in the area of Increased Use of IP by Businesses and Research Institutions focus was on creating public and business awareness of IP and strengthening IP linkages between universities/research institutions and industry.

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Briefings were given to journalists and media on IP issues and their linkages with trade and development. Public awareness material and reference publications were provided to IPO and PITAD for their libraries.

For businesses, training of “trainers” workshop was organized for officials from SMEDA, Chambers of Commerce, Ministry of Science and Technology and Technology Management Offices (TMOs).

A paper was developed on branding options for a horticultural product (Kinnow) through use of appropriate IP instruments (collective marks, certification marks and GIs). This was shared with national authorities. The paper would help the government and stakeholders to consider a more systematic marketing strategy for Kinnow that makes an appropriate use of IP instruments.

Consultations were held with national stakeholders on development of an IP Curriculum for law, business and engineering universities in Pakistan. A paper was developed to serve as an IP curriculum guideline for Pakistani universities. This was shared with IPO Pakistan.

Consultations were held with universities, research institutions and industry which created a keen interest in strengthening university-industry linkages to generate and exploit IP for their mutual benefit.

A Roundtable on Technology Management Offices (TMOs) was held to discuss measures to establish and strengthen TMOs in the country. The Roundtable generated active interest amongst the ORICs participants, some of whom formed an Islamabad-based group to take these discussions forward and to help improve the effectiveness of TMO type entities in the country.

A knowledge exchange forum was developed, called PiNET, to act as a central point of contact for universities and industry to make it easier for them to communicate, engage and collaborate with each other. Data from universities is starting to be entered in the PiNET database and HEC is taking steps to take ownership of PiNET for its sustainability and future development.

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1. CONTEXT OF THE ACTION

OVERALL TRTA II PROGRAMME

Trade is identified as one of the principal instruments of poverty alleviation, where export-led growth would lead to increased household incomes and employment opportunities, signifying a positive trade-poverty nexus. The overall objective of the TRTA II programme therefore is to contribute to poverty reduction through sustainable economic development. The purpose of the programme is to increase exports and economic integration of Pakistan into the global and regional economy.

The TRTA II programme objectives are to be achieved through three programme components dealing with (i) trade policy capacity building; (ii) export development by improving quality and infrastructure and (iii) strengthening the intellectual property rights (IPR) regime.

The activities of the three components are coordinated, as appropriate, in order to leverage inter- component synergies and achieve coherence in implementation of the programme.

Component 1:

The Financing Agreement stipulates that improved formulation and implementation of trade policy through enhanced capacity of the Ministry of Commerce (MOC) and improved participation of the private sector in this process would be the expected results of the Component 1. Similarly, it identifies two broad activities for Component 1, which were further elaborated and refined after detailed consultations with the relevant stakeholders during the Inception Phase, preceding implementation of the programme. They are:

• Capacity building for the MoC and other ministries/agencies on specific trade topics and negotiation techniques through local training institutions • Support to sector dialogue between government, private sector and civil society on trade related issues and support to improve transparencies in trade and investment policies

The consultations with stakeholders and beneficiaries were undertaken with the objective to design the programme interventions, review programme assumptions, feasibilities, finalise the implementation arrangements for the programme and propose a work plan of activities. Resultantly, it was agreed that the expected results, whilst not changing in their nature, should be expressed in a way that better reflects the focus on precise needs where the programme will intervene, as follows:

Result area 1.1: the objective is to assess institutional capacity of PITAD in light of international standards and benchmarks, and to provide equipment, software and library resources as per the assessment.

Result area 1.2: aims at conducting capacity needs assessment of the trade related ministries and departments of the government. Simultaneously, assessments of local training institutes, particularly PITAD, to conduct training and research, to fill the capacity gap of PITAD through development of training modules and training of master trainers under international mentorship.

Result area 1.3: aims at utilizing enhanced capacity and internationally accredited training modules, to build the capacity of government officials, through short trainings.

Result area 1.4: aims at conducting internationally peer reviewed research studies to inform public private dialogues (PPDs).

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Result area 1.5: aims at conducting broad based and comprehensive PPDs on issues related to trade policy and domestic regulatory reform.

Result area 1.6: aims at building the capacity of the Competition Commission of Pakistan (CCP) through a pilot programme.

Component 2:

The primary objective is export development through improvement of quality infrastructure. This is to be achieved through (i) support to strengthen sanitary and phytosanitary (SPS) management systems; (ii) support to improved quality, value addition and compliance with market requirements of supply chains in selected sectors (fisheries, horticulture and industrial products); and (iii) support to improve conformity assessment infrastructure and service.

The Component 2 will intervene in three result areas:

Result Area 2.1: Strengthening SPS controls, that aims at development of a Federal Food Safety Animal and Plant Health Regulatory Authority with implementing arms in the provinces. This will also help the Pakistani agro-based industry to prove compliance to SPS measures, reduce rejection rates and allow better market access.

Result Area 2.2: Aims at improving quality, value addition and compliance in fisheries, horticulture and selected industrial sectors. The focus of this component is twofold. First, export development in agro-products (Kinnow, mangoes and fisheries) through ensured SPS compliance and dissemination of good agriculture practices. Second, regarding the industrial sectors (fan, surgical, protective gears, cutlery), improved quality and value addition through addressing productivity, process control, CE marking and CSR issues. CE marking will be introduced in the fan, protective equipment and clothing sectors.

Business linkages between local producers and international buyers will be promoted for fisheries, horticulture and selected industrial products.

Result Area 2.3: Improved conformity assessment infrastructure and services that aim to develop and streamline standardization and technical regulations practices as well as traceable national metrology services. This will lead to internationally recognized National accreditation as well as testing and calibration services.

In order to establish an overall strategic framework for quality infrastructure and services, the programme also supports the development of a National Quality Policy

Component 3:

Strengthening of the IPR System: This aims at further strengthening and modernizing the IP regime in Pakistan, which will be achieved by strengthening IP institutions as well as the IP legislative and policy framework. Support will also be provided to achieve more effective enforcement of IP rights and enhanced capacity of business and research institutions to use the IP system.

The activities of the three components are coordinated, as appropriate, in order to leverage inter- component synergies and achieve coherence in implementation of the programme.

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Extension of TRTA II Programme:

The overarching goal of this extension is to address issues of economic growth and employment creation. The goal stems directly from the current needs of the country and is in line with the broader EU cooperation strategy. This addendum to the original cooperation agreement now incorporates the structure of this extension programme. This extended period will be spent to complete few of the lagged activities to deepen some of the successes of TRTA II, to bring them to a logical conclusion and to develop a strategy for EU intervention beyond this period.

Four additional activities: (i) Support for Competition Commission of Pakistan and (ii) Business environment improvement, (iii) Global Value Chain competitiveness, and (iv) Regional Trade in South Asia will be addressed.

2. ACTIVITIES CARRIED OUT

2.1 MOBILIZATION OF THE PROGRAMME MANAGEMENT OFFICE (PMO)

The Financing Agreement and Contribution Agreement make provisions for UNIDO to establish a field-based TRTA Programme Management Office (TRTA/PMO). The PMO is headed by a Chief Technical Advisor (CTA), whose principle duties concern both overall programme coordination of all TRTA components and field implementation of UNIDO’s own technical interventions.

Due to the prevailing security situation in the country, and on the recommendation of the UN Department for Security and Safety (UNDSS), and after consultation with the EU Delegation, TRTA/PMO along with the UNIDO Country Office was shifted to Serena Business Complex in Islamabad in August 2010 after functioning temporarily in the Old Business Center of Serena Hotel, Islamabad, since January 2010.

The TRTA I PMO staff were retained through a UNIDO/NORAD bridging support after completion of the programme in 2007. Hence, the following staff were immediately deployed under TRTA II as from 1 January 2010:

• Chief Technical Advisor (CTA) • Programme Officer for Laboratory Accreditation and SPS Compliance • Programme Officer for SME & Export Development • Senior Administration and Finance Assistant • Secretary • Driver/Clerk • Office Boy

The PMO develops detailed annual Work Plans establishing target dates for project activities with assigned staff responsibilities. These Work Plans are reviewed monthly on progress made in implementation of project activities and amendments to be introduced thereof, as found appropriate.

The CTA assisted by the Programme Officers and support staff, manages and operates the activities of the programme, maintains contacts with ministerial focal points, all partner institutions and EU Delegation and provides full support to the work and missions of international experts fielded under the project.

The Project Manager at UNIDO Headquarters in Vienna is responsible for the overall implementation of the programme, and supervises and coordinates programme implementation with PMO and provides all financial and support services for the execution of project activities by PMO. The Chief Technical Advisor (CTA), as Head of the PMO, reports directly to the Project Manager at UNIDO Headquarters in Vienna. The Programme Manager in Vienna is assisted by an Associate Industrial Development Expert, who is recruited through international competitive advertisement and is on board since 15 September 2010 exclusively supporting TRTA II programme. An Administrative Assistant is going to be recruited by 1 October 2010 exclusively for TRTA II programme. 24

The TRTA II programme structure and management arrangements are depicted in Figure 1 and 2 below.

Figure 1: Programme Structure

EC European Commission

PSC Guiidance GoP Programme Fooccaall Steering and Pooiiinnttss Committee Adviice

Programme Implementation O

Trraaddee Poolliiccyy Quuaalliittyy & IInntteelllleecctttuuaall Deevveelllooppmeenntt SSttaannddaarrddss PPrrooppeerrtttyy Riiigghhttss

Component 1 Component 2 Component 3

Programme Management Office (PMO) Field coordination & implementation of all component activities

Figure 2: Programme Management Office (PMO) Structure

UNIDO HQ

High Level Monitoring and Support Staff at UNIDO HQ Evaluation Team

Programme Officer

Administrative Assistant

Chief Technical Advisor

Programme Officer Finance & Administration

Secretarial Support

Component 1 Component 2 Component 3

Programme Officer Programme Officer Programme Officer Managed at WIPO HQ (with PMO and IPO Pakistan)

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The PMO continued to provide support for the successful conduct and implementation of the field operations of TRTA II programme by:

• Providing technical and logistical support to international experts fielded under the programme • Following up on actions and issues identified by the international experts • Maintaining continuous interactions and dialogue with key stakeholders and partner organizations in the public and the private sector • Supporting PITAD in conducting continuous monitoring of implementation of the programme • Establishing linkages with other donor led interventions in similar areas of TRTA II programme to avoid duplication and build synergies • Supporting wide visibility of the EU and the TRTA II programme through newsletters, news briefs and website • Providing administrative and operational support for smooth running of TRTA II programme activities

2.2 RECRUITMENT OF KEY NATIONAL AND INTERNATIONAL EXPERTS

The following National Sector Experts were engaged in March 2010 to carry out baseline studies and analysis in their specific areas:

• Sector Expert in Fisheries • Sector Expert in Horticulture • Sector Expert in Industrial Products • Sector Expert in Sporting Goods and Apparel • Sector Expert in Textile and Garments

The position of Programme Officer for Coordination was advertised in the local newspapers and a suitable candidate was recruited following rigorous selection process. The Officer assumed his duties at PMO in April 2010.

Following publication of the vacancy of National Expert in Trade Policy in the local Newspapers, interviews were held in June 2010. However, the selection process was deferred following further advertisement of the position. Interviews of candidates for the said position were held in September 2010. The role entailed coordinating the trade policy component activities in Pakistan throughout the duration of the programme.

International experts required to provide technical advice during the Inception Phase were identified and the relevant Job Descriptions were elaborated. Consequently, international experts were recruited and fielded in respect of the following areas:

• Sanitary and Phytosanitary (SPS) Management • Laboratory Accreditation • Conformity Assessment • Value-Added Productivity

2.3 CONSULTATIONS WITH FOCAL POINTS

The following Government Ministries were identified as focal points for TRTA II programme to liaise the implementation of component activities and coordinate the operation of the programme components:

• Ministry of Commerce (MoC) represented by Pakistan Institute of Trade and Development (PITAD) was designated as the overall coordinator of TRTA II on the Government side. MoC/PITAD was also the focal point for the Component 1 on Trade policy capacity building.

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• Ministry of Food and Agriculture (MoFA) was designated as the focal point for Result Area 1 of Component 2 dealing with Support to strengthening the Sanitary and Phytosanitary (SPS) management system and capacity. • Ministry of Livestock and Dairy Development (MoLDD) was designated as the focal point for Result Area 2 of Component 2 dealing with Value addition, productivity and compliance issue in fisheries sector. • Ministry of Industries, Production and Special Initiatives (MoIP) was designated as the focal point for Result Area 2 of Component 2 dealing with Value addition, productivity and compliance issues of selected industrial product sectors. • Ministry of Science and Technology (MoST) was designated as the focal point for Result Area 3 of Component 2 dealing with Support to improving conformity assessment infrastructure and services. • The Intellectual Property Organization (IPO) of Pakistan (operating under the Cabinet Division) was designated as the focal point for Component 3 dealing with Strengthening IPR policy and management framework.

Detailed consultations were conducted with above mentioned focal points and agreement was reached on the following issues:

• Assessment of needs of the target institutions operating under the line Ministries • Consultations with the specific institutions on details of TRTA II interventions and programme inputs including counterpart contributions • Implementation modalities and arrangements

2.4 STAKEHOLDER CONSULTATIONS AND ANALYSIS

Mapping of Stakeholders

Mapping of stakeholders was carried out to look into their legal mandate of responsibilities and their role in trade, to identify priority areas which could be supported through TRTA with a more systematic engagement of all stakeholders, and to outline programme interventions to achieve visible impacts on exports, employment and poverty alleviation. In this regard, detailed consultations were held with key stakeholders including government departments, the business community, civil society organizations, donors, technical agencies and the academia.

The stakeholders of TRTA II programme constitute the following five categories:

• Government/public institutions - Policy level - Direct beneficiaries • Business representative organizations (chambers of commerce and industry and trade associations) • International and bilateral donors • Civil society organizations • Researchers and the academia specializing in international trade

2.5 PROGRAMME START UP: INCEPTION PHASE

The main activities undertaken during the inception period were:

• Surveys and mapping of fishery, horticulture and industrial sectors including laboratories in Pakistan • Identification of monitoring indicators and research to establish baseline values • Identification of related interventions by other donors and discussions on coordination mechanisms • Establishment of Draft Inter-Agency Agreements between implementing bodies (UNIDO, ITC and WIPO)

27 • Mobilization of High Level Monitoring and Evaluation Team (HLMET) • Development of the Terms of Reference and identification of Members of Programme Steering Committee (PSC) • Preparation of Inception Report of TRTA II.

2.6 SECTOR SPECIFIC STUDIES

During the Inception Phase, substantive analytical baseline work was undertaken with a view to engaging stakeholders in identification of needs, elaboration of capacity building strategies, preparation of work plans and detailed provisions of TRTA interventions. In particular, analysis was carried out in respect of key trade development challenges in the area of trade policy development, supply side development, compliance infrastructure and services, and Intellectual Property Rights (IPRs) regime.

The initial baseline analysis to guide the overall Programme, and carried out during the Inception Phase, covered the following sectors specifically targeted by the Programme:

• Fisheries • Horticulture produce (Kinnow and Mango) • Industrial products (fans, surgical instruments, cutlery, sporting goods, textile & garments)

The inception baseline analysis on the above priority sectors involved:

• Review of sector studies and other relevant documents produced under the components of TRTA I • Preparation of questionnaires and collection of data and information related to the sector products in respect of export trade, market access, compliance requirements, value added and quality issues along the supply chain, IPRs issues, etc. • Analysis of data and information and presentation in a form of a preliminary draft document • Preparation of draft report with work plan reflecting current status, needs assessment, stakeholders’ analysis and areas of technical support required in terms of trade policy environment, addressing compliance concerns, improving quality, and enhancing export and value-added productivity along the supply chain, IP rights, etc. • Incorporation of the findings of the analysis and studies in the TRTA II Inception Report and work plans

The analysis carried out during the Inception Phase provided the basis for a systemic programme approach for TRTA II within which the three components were to be implemented as complementary sets of activities and contribute in a strategic manner to the strengthening of Pakistan’s trade capacity and export performance. All the three components would also specifically target the selected sectors within their scope of activities. A complementary set of technical assistance support was therefore available for the sectors, ranging from trade policy/strategy support, the development of competitive value added products, through the valorization of Intellectual Properties and the internationally recognized proof of compliance.

2.7 ELABORATION OF INCEPTION REPORT

The consultations with stakeholders and the sector-based analysis focused on the contribution which the programme could make towards improved export performance and creation or sustenance of pro-poor employment opportunities, and development of programme strategies to orient contributions from each component and its activities accordingly. Hence, the Inception Report contained analysis of sector issues and supply chain constraints to be addressed and detailed work plans of TRTA interventions specific to each component of the programme. Stakeholder’s analysis and review of capacity gaps of beneficiaries were reflected in the Inception Report and the technical assistance planned arrangements were detailed out accordingly.

The analysis carried out during the Inception Phase provided the basis for a systemic programme approach to be reflected in the Inception Report of TRTA II within which the three components are to be implemented as complementary sets of activities and contribute in a strategic manner to strengthening of Pakistan trade capacity and export performance. 28

The Inception Report was developed along the format set out in Project Cycle Management Guidelines of the European Commission. The Inception Report covered the following topics:

• Review of Programme Design/Financing Proposal • Overall Work Plan • Logframe Matrix • Monitoring and Evaluation Plan • Resource Schedule and Budget • Visibility Plan • Phase Out Plan • TOR of Programme Steering Committee

The above series of consultations and analysis resulted in production of the draft TRTA II Inception Report, which was approved by the EU Delegation and PITAD, leading to its validation and further enrichment at the National Workshop. The final version of the draft Inception Report was approved by the Programme Steering Committee (PSC) at its first meeting on 30 September 2010.

2.8 NATIONAL WORKSHOP

For the final consultation and validation of the TRTA II draft Inception Report, a National Workshop was conducted. The programme of the National Workshop was strategically conceived to identify and bring out the challenges and requirements of beneficiary institutions in terms of capacity building needs and supply side development of selected product sectors (fisheries, mango, kinnow and industrial cluster products to enable access to global supply chains. This aimed at addressing the export performance and trade related challenges of Pakistan through provision of specific and focused TRTA II interventions.

Consequently, invitations were extended to over 150 participants to attend the technical sessions and proceedings of the National Workshop. The technical presentations given at the Workshop by the International Experts were followed by inactive discussions that would lead to enrichment of the draft Inception Report and render it relevant to addressing the objectives of the programme in terms of supporting the economic integration of Pakistan into the global economy and increase exports by enhancing the enabling climate for international trade

The TRTA II Programme Management Office (PMO) was rendered fully operational following recruitment of staff and procurement of equipment with fully functional and secured office premises. The staffing of TRTA II Programme Management Office was completed by October 2010 with recruitment of an Officer for Component 1 activities.

The Programme Inception phase was concluded by the successful elaboration of the draft Inception Report, which was considered at the National Workshop and finalized for approval by the Programme Steering Committee.

2.9 PROGRAMME OFFICER MONITORING

The successful implementation of the TRTA II Programme would invariably require continuous monitoring of implementation activities and strong coordination with other donor’s trade related interventions in Pakistan. In view of this, the profile of the Programme Officer for coordination was revised to include substantive duties in monitoring and benchmarking. Hence, the revised position of Programme Officer in Benchmarking, Monitoring and Coordination was advertised and a suitable candidate was selected.

The PMO continued to provide support for the successful conduct and implementation of the field operations of TRTA II programme by:

29 • Providing technical and logistical support to international experts fielded under the programme • Following up on actions and issues identified by the international experts • Maintaining continuous interactions and dialogue with key stakeholders and partner organizations in the public and the private sector • Establishing linkages with other donor led interventions in similar areas of TRTA II programme to avoid duplication and building synergies Providing administrative and operational support for smooth running of TRTA II programme activities.

2.10 COMPONENT 1: TRADE POLICY CAPACITY BUILDING

Signing of MOU Between PITAD and WTI

A comprehensive search and analysis was carried out to determine international research and training institutes which have the requisite expertise to address the capacity needs of PITAD and other local training and research organizations in Pakistan. The WTI was considered best placed to assist PITAD in enhancing its training and research capacities. An initial draft MOU was prepared in consultation with both organizations and after detailed discussions and exchanges the MOU was signed between the two institutes on 17 February 2011 at WTI Bern Switzerland.

2.10.1 RESULT AREA 1.1: STRENGTHENING OF PITAD’S INSTITUTIONAL CAPACITY

Three annual assessments needs of PITAD equipment were conducted in 2011, 2012 and 2013 to determine the resources that were needed to be provide to PITAD to enable it to conduct training and research according to best international standards. The outputs were based on the following interventions.

Assessment Of PITAD's Equipment Needs

Hardware and software: Three annual assessments of the hardware needs of PITAD to carry out training and research according to international standards were conducted jointly by PITAD, WTI and ITC in 2011, 2012 and 2013. All functional wings of PITAD (including training research and knowledge management wings) were engaged in the process to determine their most pressing needs to conduct their training and research functions. Library resources: Similarly, the resources available in the PITAD’s library were also evaluated. So as to upgrade PITAD’s library it was decided to provide the latest books concerning trade related issues, WTO matters and negotiations, etc. Three annual assessments were conducted to determine the resources which were needed to upgrade PITAD’s library. The WTI Mentors were also engaged in this process so as to suggest books and other resources which can contribute to the development of training modules by the PITAD Master Trainers and could be used as reference material.

Updated Tools And Publications Provided

Hardware and software: Pursuant to the comprehensive needs assessment of PITAD for their hardware tools and software equipment needs, the agreed equipment was provided to PITAD. Details are available in Annex 1.1.

Library resources: The agreed books and library resources were procured and provided to PITAD after purchase of those resources through the ITC library. More than 300 books were provided to PITAD library under the programme in the three tranches in total. It is foreseen that the upgrading of PITAD’s library will enable the trainees and in-house faculty members to conduct high level research and training.

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2.10.2 RESULT AREA 1.2: STRENGTHENING OF PITAD'S AND OTHER RESEARCH INSTITUTES' EXPERTISE ON TRADE POLICY

Needs Assessment Of Ministries, Government Departments And Implementing Governmental Agencies

A need assessment survey was carried out to determine training needs as well as ascertain views on the improvements needed for local trainings; the research needs for trade policy, and; possible areas/topics for future PPDs. Over 27 federal government ministries and departments were approached to complete the survey and response was received from 21.

These responses have been critical in establishing the training needs of the trade officers and the particular areas where the PITAD training courses needed to be reinforced and/or new courses created.

Survey Of Key Institutes, LUMS, IBA, And TDAP, To Obtain Their Current Expertise And Potential For Trade Policy Research

A survey of the key Component 1 participating organizations (IBA, LUMS, and TDAP), universities and independent research organizations was carried out with the objective of obtaining information on their current research capacity areas of specialization and their views on PPDs.

The responses received were consolidated in a spreadsheet and key findings were drawn with the objective of enabling PITAD negotiate with these institutes to be able to create a think-tank like pool of expertise.

Review And Enrichment Of Specialized Training Programme And Other Government Career Development Programmes Delivered By PITAD So As To Align It With International Best Practices

A partnership arrangement between PITAD and WTI, University of Bern, Switzerland was finalized. The partnership arrangement envisaged upgrading PITAD’s Specialized Training Programme (STP), a nine month programme for newly inducted Commerce and Trade Group officers of the Civil Service of Pakistan and other training courses.

The partnership arrangement provided for the development of training modules by PITAD selected Master Trainers under the guidance of WTI selected Mentors. The approved modules were designed so as to be incorporated in a PITAD-WTI joint certificate course on International Trade Law and Commercial Diplomacy, within the context of PITAD’s STP. The details of the modules and the Master Trainers are available at Annex 1.2.

The methodology for the development of the modules was adopted under Component 1 in close collaboration with PITAD. The methodology foresaw strict deadlines and follow-up mechanisms to ensure that the Master Trainers would make the most of the training and that the modules would be duly completed. This methodology has been designed in such a manner as to leave sufficient time for the Master Trainers to become fully acquainted with their topic and extensively deal with the issues at stake. As a result, each Master Trainers were given on average seven to nine months to develop expertise in the field and complete their modules. The methodology was divided into three phases of around 9 months in total which included a pre-WTI, Bern phase, a WTI, Bern training phase and a post- WTI, Bern training phase.

• Pre-Bern phase - learning and module drafting phase (6 months) During this first phase the Master Trainers were to get familiarized with their course material and hold regular discussions (phone, video-conference, Skype) with their Mentors. Throughout this phase the Master Trainers would receive technical guidance, materials and relevant pedagogical inputs from the Mentors. The objective was to enable the Master Trainers to conduct researches in the relevant topic, develop an outline that was reviewed by the Mentor and eventually 31 submit a first complete draft of their module. The Mentor would review the module and provide any necessary recommendation for improvement until they would reach a complete advanced version of the module prior to their training in Bern.

• Bern training phase – fine tuning knowledge and developing pedagogical skills All Master Trainers followed a three-week training in the WTI. Each module received approximately a one-day in class time – comprising of two half day sessions from 9am to 1pm.

Master Trainers were expected to work on improving their modules and hold face to face meetings with their respective Mentor. A detailed agenda of trainings and meetings was prepared. The Mentors delivered lectures where they covered the more technical and difficult parts of the modules in order for the Master Trainers to acquire the technical knowledge and pedagogical skills to deliver the lectures on their own. By the end of the training, the Master Trainers were expected to submit the final version of their module to the WTI for review and accreditation and the submitted short report and grading of the Master Trainer on the basis of the assignments, in-class presentations and further interaction.

• Post-Bern phase – panel revision of the modules Each module was reviewed by a WTI panel to be approved. The Master Trainers and Mentors would have been required to make necessary changes to the module if it was not in line with the WTI standards.

Once approved, the modules were submitted to PITAD to be used in various PITAD training courses, in particular in PITAD’s STP to deliver international accreditation to the participants who would have successfully completed the course.

Upon successfully completing the course the Master Trainers were awarded a certificate. The details of the completed and accredited modules are available in Annex 1.4.

PITAD Received International Accreditation For The Jointly Developed Curriculum

The WTI on 3 September 2013 formally handed over accreditation certificate to DG PITAD for the 12 graduate-level training modules developed by PITAD in a ceremony held at WTI which was attended by officials from ITC, WTI and PITAD.

This provided a competitive edge to PITAD as the officers trained under the PITAD-WTI joint curriculum would benefit from waivers/equivalence for the modules covered under the Joint Certificate, and PITAD recommended Pakistani officials would be eligible for a preferential rate.

Substitute Master Trainers Trained (SMTs)

After the selection and posting of two of the Master Trainers trained under Component 1 as Commercial Counselors by the Government of Pakistan, it was needed to train substitute Master Trainers (SMTs) so that resource persons are available to deliver jointly (WTI and PITAD) developed training modules for PITAD. Accordingly, four substitute Master Trainers were trained. The detail of Substitute Master Trainers and modules are available in Annex 1.3.

Guidelines for collaboration between the SMTs and their mentors from WTI were developed. Commencing in January 2014, the SMTs were required to learn on their selected topic, develop at least one case study and improve/update the content of existing modules as guided by their designated Mentor. The objective was for them to gain the necessary technical expertise on the topic and be able to teach their course.

The methodology similar to the one for the original Master Trainers was divided into three phases:

• Pre-Bern (6 weeks): through this phase the SMTs were expected to receive guided weekly readings and develop the case study of their module regularly submitted for comments to the Mentor; • Training in Bern (1 week): within this phase the SMTs followed a lecture on their specific topic and fin-tuned the case study; and 32 • Post-Bern Phase: in which phase the updated module with the case study was finalized and submitted for final assessment.

The collaboration between the SMTs and the mentors was monitored on regular basis to ensure that the desired objectives would be achieved.

Needs Assessment Of PITAD And Subsequent Roadmap

As mandated by the PSC in its meeting held in December 2013, an international expert was fielded to carry out consultations with relevant stakeholders in Pakistan and to come up with a roadmap for the institutional capacity building of PITAD. The consultant held meetings with stakeholders in Karachi, Lahore and Islamabad which included stakeholders and think-tanks such as TDAP, IBA, PBC, NUST, FSA, ISA, PIDE and NSPP etc. The report prepared by the international expert for further strengthening of PITAD was presented to Secretary Commerce by the Director General PITAD. The roadmap provided inter alia: ways in which PITAD can better utilize the capacity it has developed under the TRTA II programme through better communication and developing partnerships with relevant institutions in Pakistan; and a recommended way forward for activities and interventions for the short term and long term, which will enable PITAD to become a centre of excellence on training and research on international trade.

2.10.3 RESULT AREA 1.3: STRENGTHENING OF GOVERNMENT OFFICERS' CAPACITY ON SPECIFIC TRADE POLICY AND INTERNATIONAL TRADE NEGOTIATIONS

The detail of the trainings conducted in cooperation with PITAD are available in Annex 1.5 (a detailed description of each training was provided in previous progress reports) These trainings were conducted for the officers in the federal and provincial governments, commercial diplomats and private sector stakeholders.

One of the major capacity building training of Component 1 has been with the production of the GSP+ Business Guide for Pakistani exporters and subsequent organized trainings. The Guide was prepared so that the business community tap into the opportunities of the EU GSP+.

As per stakeholder’s requirements, ITC translated the Guide into Urdu to ease their understanding. The Guide was printed in both English and Urdu and was disseminated widely to stakeholders.

The Urdu version of the EU GSP+ Guide was formally launched in a ceremony organized in Karachi on 22 January 2015. The ceremony was attended by the Minister for Commerce, the Ambassador of the EU to Pakistan, the Special Assistant to the Prime Minister and head of PM Treaty implementation cell, the Chief Executive of the TDAP, the Secretary of TDAP, the Additional Secretary MOC and senior officers from business and diplomatic community.

A total of 4000 hard copies of the Business Guide in both Urdu and English were disseminated to a wide range of stakeholders (including NGOs (e.g. Democracy Reporting International)

2.10.4 RESULT AREA 1.4: CONDUCTING RESEARCH STUDIES CONTRIBUTING TO THE DEVELOPMENT OF A NATIONAL EXPORT STRATEGY

A public private dialogue steering committee (PPDSC) was established under Component 1 with the formal approval of Ministry of Commerce to supervise nation-wide public-private consultations and attendant trade policy evidence-based research to feed the consultations (see output 1.5 for details). The list of conducted research studies is available under Annex 1.9.

The PPDSC has met on a regular basis throughout the implementation phase of TRTA II to:

• Select the topics considered as most pressing and in need of reforms through - the demands received by the Ministry of Commerce (and other Governmental Agencies) and - a list provided by Component 1 based on consultations with relevant stakeholders in the public and private sector supported by a review of the relevant literature.

33 • Select and endorse the topic for research and analysis • Endorse the profile of experts to conduct research and analysis • Chair public private dialogues • Endorse end disseminate to the relevant policy making institutions the recommendations stemming from the public private consultation process

The topics selected by the PPDSC for conducting evidence based research during 2011, 2012, 2013, 2014 and 2015 and the list of subsequent consultations in Annex 1.10.

2.10.5 RESULT AREA 1.4: FOSTERING PUBLIC-PRIVATE DIALOGUE FOR A COHERENT NATIONAL EXPORT STRATEGY

Stakeholders In Public And Private Sectors And The Civil Society Approached To Raise Their Awareness On The Consultation Process And Invite Them To Participate

The consultation process started with a country wide sensitization on the topic selected by the PPDSC. The purpose was to build a common understanding on the issues at stake so as to enable different stakeholder to start preparing their positions on the issues. A comprehensive strategy was followed in which hundreds of letters and emails along with briefs were sent to them under the guidance of the PPDSC.

Briefs were communicated to the stakeholders including the chambers of commerce, trade associations, trade enterprises, trade related federal government ministries, federal government implementing agencies, provincial government departments, universities, independent research organizations and NGOs to inform them about the process. Together with the briefs, these stakeholders were requested to provide any policy recommendation that they deem appropriate.

The objective was to develop stakeholders’ confidence in participatory management of trade policy and regulatory reforms and to raise their awareness about the platform which was being created under Component 1 of TRTA II programme for policy design and implementation.

A number of stakeholders responded and provided position papers which fed the public-private dialogues.

Holding Of Public Private Dialogues

During the implementation phase of TRTA II, 14 thematic public private dialogues were held in different cities of Pakistan (a detailed description of each PPD was submitted in past progress reports. A list of PPDs is available in Annex 1.10.

Submission Of Research And PPD Recommendations To Government

The recommendations emanating from the PPDs and research studies conducted were formally submitted to the Ministry of Commerce after approval of PPDSC for taking appropriate policy measures.

The recommendations of the consultations mechanism were considered by the Government of Pakistan to design key trade related strategic initiatives (see section on key achievements).

Realizing and acknowledging the usefulness of PPD mechanism, the Ministry of Commerce requested the assistance of Component 1 to tackle specific trade issues through the public private consultation mechanism (e.g. Trade with India, Regional Comprehensive Economic Partnership (RCEP), National Export Growth Strategy (NEGS) and EU GSP+).

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Institutional Capacity Building Of The Competition Commission Of Pakistan

In the extension period of TRTA II programme, Component 1 has been tasked to conduct capacity building initiatives for the Competition Commission of Pakistan (CCP) so that it is able to conduct its functions according to international standards. After a number of consultative meetings with Chairman CCP and CCP staff, the interventions for the CCP under Component 1 were finalized.

CCP Peer Review Conducted By UNCTAD Factored In Component 1 Intervention

Initially the programme foresaw the conduct of a need-assessment of CPP before the final identification of the interventions. However, a peer review of CCP was conducted by UNCTAD in 2013 which provides a detailed analysis of the institutional capacity building of CCP and promoting competition in Pakistan as a whole. Accordingly, to avoid a waste of resource the UNCTAD’s analysis was used in lieu of a new need-assessment.

Research And Training Capacity Of CCP Augmented

Based on UNCTAD’s report, a proposal aimed at tackling two set of specific issues identified by UNCTAD was developed. The two set of issues on which Component 1 intervention focused on were CCP’s institutional capacity building and cooperation with academia to create a competition law culture in Pakistan. These issues were addressed by supporting CCP in developing modules and studies covering different aspects of competition. Together with the CCP the below three modules were selected to be developed under international mentorship:

I. Module on Competition Authority Operations: this module broadly covers the operations of a standard Competition Authority, including how the cases should be handled. The module has been particularly designed to address CCP’s strategic needs in competition law in comparison to other leading international competition authorities (e.g. EU DG Commission and US FTC) and is mainly targeted to in-house officials, in particular CCP’s senior management.

II. Module on Academic Aspects of Competition: this module has been developed to be taught in educational institutions, to CCP’s own officials and government training organizations for the purpose of building a competition law culture in Pakistan.

III. Module on Substantive Enforcement of Competition Law: this module presents the substantive enforcement of competition law issue, with a particular focus given to mergers review.

Following the selection of topics and agreeing on the scope of the modules, three officers were selected by CCP to undergo training and work under the guidance of international experts to complete the modules. A similar methodology as the one developed for PITAD was followed for CCP. The methodology for the modules developed by CCP’s Master Trainers under international mentorship was the following:

• A distance learning phase, during which the Master Trainers had to get familiarised with their course material. A constant exchange between the Master Trainers and the Mentors ensured that the Master Trainers researches were on the right track and that they were provided with relevant and up-to-date literature. This ensured that the outline of their module would cover the essential elements of their topic. During this period, the Master Trainers were to develop the draft modules for revision and comments by the Mentor until they would achieve a fairly complete module.

• In-house training of the Master Trainer (Three month to one week): - Within a Competition Authority (EU DG Competition and US FTC) the Master Trainers would be actively involved in the work of the authority. In addition, this in-sight was designed to allow them finalize their modules with comments and support provided by the competition authority; OR 35 - Within a Competition Institutions (King’s College London) the Master Trainer was following the classes in those specific issues of competition law as identified in the module. In addition, as a pedagogical training, the Master Trainer was to deliver classes to present a case study on Pakistan’s competition law. During this training the Master Trainer was to fine tune the module in order to incorporate the teaching approaches into the module.

• Post-training phase: the Master Trainer, together with the Mentor, had to submit the final version of the module to the ITC and CCP. In addition, the Mentor submitted a short report and grading of the Master Trainer on the basis of the competition of the given assignments and the quality of the module.

It is through this approach that the CCP’s Master Trainers complete three modules that have subsequently been taught by the CCP to its newly inducted officers and to external audiences (the list of completed Modules is available in Annex 1.6 and the list of conducted trainings based on the modules is available in Annex 1.8)

In addition to the training modules, the programme provides for the conduct of two research studies by the officers of CCP under international mentorship. In this connection, CCP identified two areas in which it had limited expertise.

The studies were elaborated in cooperation between two CCP officers and an internationally recognized expert, these studies covered:

I. Towards A South Asian Competition Network, explores the ways and means for developing synergies and cooperation among the competition agencies in the SAARC region so that the region can benefit from comparative market and consumer protection. The study provides rationale and backing for CCP proposals to advocate for a competition organization in the SAARC region. It identified practices that have a tendency to prevent, restrict, reduce or distort competition in the region. Finally, the study suggests that cooperation among the regional competition agencies can bring efficiencies in the market and gains for all.

II. Road Freight Transport Sector & Emerging Competitive Dynamics, finds that the strategic location of Pakistan along with its economic interdependence and cross border transactions have increased the importance of the transport sector. The study finds that inefficiencies in supply changes through high cost of transport and logistics costs negatively impact Pakistan. The study identifies the major hurdles in Pakistan’s road freight sector and gives recommendation to make it vibrant and efficient.

The details of CCP Master Trainers and experts and the international Mentors are provided under Annexes 1.6 and 1.7.

Study Tours/Missions Abroad

All the details about the study tours and missions abroad are provided under Annex 1.11.

2.11 COMPONENT 2: EXPORT DEVELOPMENT THROUGH IMPROVEMENT OF QUALITY INFRASTRUCTURE

Consultations

International experts were fielded during the Inception Phase to carry out consultations with the various stakeholders (public & private) and partner institutions of Component 2 in order to validate and update their needs identified during the formulation phase of TRTA II Programme and identify the type of technical interventions/activities under TRTA II which can help address those needs.

Details of the key institutions that the TRTA II programme consulted are given in Annex 2.1.

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2.11.1 RESULT AREA 2.1: STRENGTHENING SPS CONTROLS

International Experts were fielded to activities in the areas of SPS and food safety.

Details of the International Experts are given in Annex 2.2.

RESULT AREA 2.1.1: STRENGTHENING SPS MANAGEMENT SYSTEM

NAPHIS Bill

Technical advice was provided for the development of the NAPHS Bill (Bill for the establishment of Federal Food Safety Animal and Plant Health Regulatory Authority) with a view to reflecting food safety aspects as well as animal and plant health.

Three consultative meetings were conducted in Karachi, Lahore and Islamabad to discuss the proposed policy changes in the organization of SPS control measures in Pakistan with a focus on food safety with key stakeholders at federal, provincial and private sector levels. Participants from all five provinces attended these consultative meetings, capped by a concluding meeting in Islamabad hosted by the Minister of Food and Agriculture, where a general consensus was reached on appropriate option of SPS framework and management system for Pakistan. Advice and inputs were provided in re-drafting of the NAPHIS Bill.

The redrafted NAPHIS Bill, reflecting the establishment of a Food Safety, Animal and Plant Health Regulatory Authority to work in tandem with sister organizations at the provincial levels, which would also include animal and plant health control systems, was submitted to MinFA for consideration. Technical advice was provided to NAPHIS regarding its further re-organization to ensure that the SPS functions are held under a single body whilst the new legislation is enacted.

A brief was prepared to promote the adoption by the Federal Government of Pakistan of a new Bill (National Food Safety, Animal and Plant Health Regulatory Authority Bill) and discussions were held with the Ministry of Commerce, PITAD, Ministry of National Food Security and Research, the EU Delegation, US Department of Agriculture and the FAO. The new law shall establish a reform of the SPS management system in Pakistan, in line with the SPS Agreement under the WTO, as well as respond to the institutional changes in the functions of Federal Government in line with the implementation of the 18th Amendment of the Constitution.

NAPHIS Bill (Bill for the establishment of National Food safety Animal and Plant Health Regulatory Authority-NFSAPHRA) was presented to all concerned stakeholders particularly the concerned provincial departments through a consultative workshop organized jointly by Ministry of Food Security and Research and TRTA II on 11 June 2012. The stakeholders voiced their concerns and provided written comments on the Daft Bill. Subsequently, certain changes were made to the Bill where applicable, and explanations were then provided to the relevant stakeholders during a focused group meeting on 17 October 2012 where all the provinces and regions of Pakistan as well the relevant departments were invited. After this meeting the NFSAPHRA (Food Safety) Bill was finalized and submitted to Ministry of Food Security and Research for approval and further processing.

Meetings with Ministry of National Food Security and Research regarding a joint committee with the Ministry of Science & Technology on the role of PSQCA in food safety was held in the presence of two IEs for the TRTA II programme as well key PMO staff. Detailed discussions were undertaken on outstanding administrative barrier to the bill in order to establish a new SPS authority (duplication of controls with Pakistan Standards and Quality Control authority). During a joint meeting it was agreed that once the FFSAPHRA bill was promulgated, the Ministry of Science & Technology would ask the PSQCA to revoke its orders regarding the 40 mandatory standards for food and that the technical regulations on food safety drafted by Federal and Provincial Governments would be adopt as Pakistan

37 standards that would be issued by the PSQCA. This is in line with recommendations of TRTA II IEs who participated in the joint meeting.

A meeting was held with DG and staff of the Pakistan Standards and Quality Control Authority to discuss the promulgation of technical regulations concerning sanitary aspects of food, and the respective roles of Federal and Provincial Governments and PSQCA. At present PSQCA enforces some 40 technical regulations concerning food, based on PSQCA standards notified by the Ministry of Science and Technology. TRTA II consistently advised that PSQCA should focus on standards promulgation and establishing the framework for technical regulations, but should not be a regulatory body. PSQCA provided TRTA II with relevant standards to help with the drafting of the technical regulations for labelling and hygiene for the Punjab Food Authority, since it is crucial that there be no substantive variances in legal requirements. By referencing PSQCA standards, it was ensured that Provincial regulations are linked to Codex Alimentarius standards

The NFSAPHRA Bill (NAPHIS Bill) was considered by Cabinet on 15 April 2014, and whilst there was agreement in principle, MoST objected on grounds that the Bill overlaps the responsibilities of the PSQCA with regards standards, and also addresses halal food certification, which is regarded as a function of the MoST. NAPHIS amended the Bill to remove reference to the term standards, and eliminated powers regarding halal food. Both of these changes are supported by the Programme.

The revised draft of the Bill was forwarded to MoST for their comment/approval. Secretary MNFS&R strongly supported the Bill, citing current concerns regarding SPS threats to key agricultural exports (fruit fly in mango, arsenic in rice, both concerns being areas of action by TRTA II) and was keen to ensure that the bill is approved by Cabinet as soon as possible. The Secretary MNFS&R was also briefed by the Programme on the principal differences between a conformity assessment approach applied to standards and official controls regarding SPS matters.

NAPHIS staff held separate meetings with the senior officials of the MoC, including the Secretary, and received support from them (MoC) on the Bill and the establishment of a regulatory authority to address food safety, animal and plant health at the Federal Level.

In view of positive prospect for the creation of the new Authority, longer-term support needs were discussed which should, in principle, include preparation of SPS legislation, detailed organization structure, ToRs for key positions, and operational budgets.

A detailed meeting was held with NAPHIS, Additional Secretary and Secretary MNFS&R, Chair of the Standing Committee on Food Security of the National Assembly, and the Joint Technical Adviser MoST, to discuss status of the “NAPHIS” Bill. This was not been considered by Cabinet since it was deferred on 15 April 2014. NAPHIS removed two objections made by MoST (reference to standards and halal certification), but could not address complaints regarding the overlap with the responsibilities of the PSQCA with regards to their food certification activities.

Follow up activities with MNFS&R and MoST to address the impasse on the Bill were carried out. MoC has given its support for the Bill in writing and further discussions were held with MoST. Summary has been prepared and will be resubmitted for approval at the next Cabinet meeting.

In September 2015, the Prime Minister’s Secretariat approved the NAPHIS Bill and asked MNFS&R to have the said Bill vetted by the Law Division and then prepare an organizational structure and financial proposal to be approved by the Planning Commission and Finance Division, respectively. The Bill will now be presented to parliament for debate and its enactment.

In anticipation of its enactment, MNFS&R wrote a letter to the EUD in December 2015 asking for further assistance through a continuance of the TRTA II programme and the release of ‘contingency funds’ within the current FA between GoP and the EU.

Three studies were finalized: SPS Policy paper, the Arsenic in Rice Study and Evaluation of Veterinary & Animal Health Services and submitted to MNFSR. The Ministry approved these studies following which they were printed and distributed to all relevant stakeholders.

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RESULT AREA 2.1.2: MORE EFFECTIVE APPLICATION OF FOOD SAFETY CONTROLS

Punjab Food Authority

Technical advice was provided to the Punjab Government for the establishment of the Punjab Food Authority. Several interactions took place between TRTA II and Secretary of Department of Food, Government of The Punjab.

Technical support was provided to the Punjab Government for operationalizing the Food Safety Authority. An MOU was signed with Secretary Food to formalize the support of TRTA II to Punjab Government. Government of The Punjab also agreed to receive support of TRTA II to revise these Pure Food Rules.

The following were the key areas that were covered and technical inputs provided by the TRTA II programme:

• List of Do’s and Don’ts for Food Inspectors including a “Code of Ethics” • Standard Operating Procedures (SOPs) including frequency of inspections • “Hazard” map and best use of HACCP • Guidance on how to introduce a registration, approval and licensing system including provision of a database to list inspections (correct/incorrect) and follow-up actions • Training needs for the staff of Punjab Food Safety & Standards Authority (PFSSA) including Food Inspectors. Needs assessment to set out short-term and long-term requirements and resources that can help to provide such training • Advice on how prosecutions might be better targeted in future, with information on 1st and 2nd offences • Improvements on the list of draft Job Descriptions (and qualifications) set out in the Concept Report

A broad gap analysis was conducted on the 2007 Pure Food Rules. The analysis showed that 68 areas had to be covered by a modern food safety regulatory framework and the existing set of rules was found adequate only in 6 areas. The option of establishing the Punjab Health Authority was also discussed with Secretary Livestock, Punjab.

Standard operating procedures for food inspection for Punjab Food Authority, control plan and advice on emergency response planning were designed. ToRs were developed for animal health policy, legal and institutional review.

Training Of Food Safety Officers

The Programme conducted 6 days of training for 25 new Inspectors, Food Safety Officers and Deputy Directors of the Punjab Food Authority. Sessions covered introduction to food safety, role of the inspector, food safety hazards, risk management in food inspection, integrity of inspection services, residue monitoring, sampling and testing, dealing with food safety emergencies. Three practical inspection visits were made; poultry processing, outside catering firm and bakery. The training session concluded with a lecture on Laboratory Accreditation and an assessment of the testing laboratories working under the aegis of the Government of Punjab (Food & Agriculture Departments).

The PFA became operational in May 2012 with the recruitment of the Director General, followed by the recruitment of the technical staff – namely the Food Safety Officers. These food safety officers had advanced qualifications in Food Technology/Sciences and led a team of inspectors that started their work in the 9 towns of Lahore. Based on the MoU signed on 5 January 2012 between TRTA II and the Punjab Food Department, it was agreed that the programme will support the PFA following activities:

• Development of legislation (technical regulations and procedural/administrative • Establishing sampling and testing requirements • Preparation of food safety database and information system

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Action Plan For The PFA

On the request of Secretary Food Department an action plan for the Punjab Food Authority was prepared. The Secretary Food Department and the Director General of the Punjab Food Authority agreed an ACTION PLAN for the PFA on 23 February 2013.

The Working Group for Codes of Conduct and Ethics for the Members of the Punjab Food Authority and the Food Safety Officers agreed, on 28 February, that the Codes be remitted to the UNIDO Consultant Lawyer to produce a draft Rule by the end of March 2013.

The Working Groups for Official Controls and Food Labelling met on 2 March 2013 and agreed to meet again before the end of March 2013. The 2nd meeting would consider an agenda to be prepared by the UNIDO Consultant Lawyer on the legal steps and priorities required to harmonize the Provincial, Federal and EU laws in relation to Official Controls and Food Labelling.

The Workshops in Lahore on 2 March 2013 and in Islamabad on 5 March 2013 endorsed the ACTION PLAN for the Punjab Food Authority and also agreed that there was an urgent need for the NAPHIS Bill to be enacted.

Food Inspection Kits Provided To PFA

Food Inspection Kits (9) were provided to PFA in July 2013. PFA staff was trained on the use of the kits with filed visits to numerous food business operators (bakeries, ice cream manufacturers and butcheries). The list of items in each of the Food Inspection Kits provided is given in Annex 2.3.

PFA Food Labeling Rules

A power-point presentation was made to the DG and the Assistant Director on the main provisions of the draft Rule and, after substantial discussion and questions, the DG agreed that the presentation should form the basis of the consultation with stakeholders.

Muhammad Khurshid, Assistant Director, and the International Expert, went through the draft Rule, line by line. The International Expert incorporated the necessary amendments to the power-point presentation and to the draft Rule over the week-end of 31 August/1 September.

The Workshop endorsed the power-point presentation of the PFA Food Labelling Rules and the Director, Law and Parliamentary Affairs Department, Punjab Government, agreed the legality of PSQCA standards and that the PFA has the authority to enforce those standards. The Director General expressed the view that the Pure Food Rules 2011 may only need minor amendments to bring their food labelling laws up to date.

Technical Regulations

Working with the Authority’s Lawyer and one of the inspectors, the following measures were prepared between July – September 2013, ready for detailed consideration by the Authority:

• Punjab Food Rules (2013) • Code of Conduct and Ethics • Punjab Food (Improvement, Prohibition and Emergency Prohibition) Rules • Punjab Food (Registration and Licensing) Regulations • Punjab Food (Registration and Licensing) Rules • Punjab Food (Sampling and Laboratory Analysis) Rules • Punjab Food (Seizure and Destruction of Unfit Food) Regulations • Punjab Food (Traceability and Recall) Regulation • Punjab Food Official Control Rules 2013 • Punjab Food (Food Hygiene) Rules • Punjab Food (Labelling) Rules 40

This legislation completed most of the operational requirements and implementation procedures of the Authority under the Punjab Food Authority Act. These regulations may also provide a model structure for adoption by other Provincial competent authorities concerned with food safety.

Development Of A Database System For Food Authorities

The programme also worked exclusively with the PFA to help develop an IT-base database system. The details of the activities carried out are given below:

• Reviewed & assessed the existing and planned food inspection and control data collection, storage and retrieval requirements (including the PFA control plan and the standard operating procedures). Recommended software development tools suitable to the skills and experience of the existing staff (e.g ORACLE, MS SQL Server, MS Access). Specified the design, structure, and operational characteristics of an internet based database to store the above data, along with distributed data input and reporting/query/data feed function • Advised and supported the PFA database manager in the preparation of the relevant modules. • Recommended security requirements for the application. • Specified hardware requirements to meet current needs, whilst taking into account demand future expansion of services. Specifications were sufficiently detailed for inclusion in tender documentation. • Estimated a budget for the establishment of the database in the form of hosting/licences and hardware.

Findings:

• The PFA has the technical skills and business knowledge to develop a good database application. The requirements should be thoroughly specified before any development is done. This is a common failing in Software development. • The IT development is restricted due to a lack of resources. The PFA needs hardware, software and a hosting agreement. • More staff resources in the future would ensure timely delivery of a professionally development database application.

Following the recommendations of TRTA II, PFA has identified the investment requirements. The cost of development of the system proposed is PKR 4 million, with an additional monthly budgetary outlay for IT staff of PKR 320,000/month.

Training Of PFA Staff On Inspection Procedures And Use Of Food Inspection Kit

Following the provision of 9 food inspection kits to the PFA, the programme conducted a series of training courses on inspection procedures that included in situ training of the food safety officer of PFA as well as academics of the PGDC in Food Safety & Control on the use of the kit while visiting/inspecting various food business operators. Summary of activities carried out are given below. Details of trainings sponsored under Component 2 are given in Annex 2.9. List of Food Safety Officers of PFA trained by TRTA II is given in Annex 2.20.

• Two 3-day training events were successfully delivered each to a total of 30 food safety officer, assistance food safety officer and laboratory technicians of the PFA. Group one had two observers from UVAS and Group two had two observers from UAF. • The content of each course was the same. The content was agreed in advance with DG PFA to meet his perceived needs in training his staff in the new food inspectors’ kit, improving the inspecting premises, demonstrating EU style inspections of food premises and visiting two food premises with each course to then review how a detailed risk based inspection should be carried out.

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• Detailed feedback was received from each group indicating high satisfaction with the training and identifying the need for small group mentoring of the food officers/inspectors, production of SOPs, development of inspection forms for different classes of premises and development of industry guides to set the inspection standards for different classes of premises. DG PFA spoke highly of the quality of the training and agreed the areas identified as ‘future needs’. • The DG PFA asked for SOPs to better aid staff and for additional support for inspection guidance, forms and standards as well as further mentoring of inspectors with small group visits to promises. • The TRTA II programme asked DG PFA to support placement/internship of PGDC students from UVAS. This proved timely as UVAS had just written requesting the same. DG PFA immediately agreed and by the end of the mission some 12 students had been taken on as interns at PFA.

Support For Laboratory And Testing Services For PFA

The programme also worked exclusively with the PFA to help address the laboratory and testing services. The activities included:

• Guidance for preparation of quality and technical manuals • Technical modifications to the laboratory infrastructure • List of equipment and consumables to be purchased • Shift from testing for food quality to food safety • Strategies for cost effectiveness in laboratory testing: out-sourcing verses in-house testing (what may be tested in other accredited laboratories in Pakistan and what may be tested in the laboratories of the PFA (non-accredited) • Study tour/training of laboratory staff and the quality manager on working methods of an accredited laboratory and understand the quality control/management procedures necessary to ensure accreditation to ISO 17025

The TRTA II Programme visited the acquired laboratory (formerly city analyst lab) and reviewed the testing, human competency, space, and facilities against food safety management objectives. Lengthy discussions were held with newly appointed Assistant Director (Laboratories) on new directions to be taken. Based on above observations and discussions, draft plan on matrices and tests to be performed to meet food safety criteria was prepared, and agreed upon. This includes split of testing in-house and out- sourcing. A complete plan to develop the laboratory to serve food safety was provided to PFA.

Training Of Food Safety Officers Of Punjab Food Authority (PFA) And Preparation Of Expansion Plan

In 2015, TRTA II received a request for technical assistance from the DG Punjab Food Authority, (PFA) with regard to training of staff, and strengthening and expanding operations while maintaining a scientific base and adopting best international practices. The Programme was also asked to carry out an audit/assessment for the PFA that would include the full range of activities; legislation, inspections, check lists, operational procedures, inspection methods, results in terms of notices served, fines, closures of premises.

A draft report was prepared evaluating the performance of the PFA, containing a critical and wide- ranging review of PFA. This addressed policy, legislation, strategic planning, documentation of the control system, training and capacity of inspectors, organisation structure and functions, coordination with other governmental functions, inspection processes and non-compliance responses, monitoring indicators, sampling, selection and use of laboratories, validity and reliability of control decisions, impacts on food safety and enterprises. Actionable recommendations were prepared in all of these areas. In the case of the inspection system (risk profiling, checklists, and non-compliance responses) the recommendations were refined and agreed with 22 Food Safety Officers and Assistant Food Safety Officers during a training workshop.

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The draft report was presented to the DG PFA and the Secretary Food, as well as Director Technical and Director Operations of the PFA and detailed discussions were held on the rationale and implementation issues involved. The report was revised accordingly, with a view to finalization in the short term. Comments received indicated that most of the recommendations were accepted, except for suspension of the anti-adulteration campaigns in districts of the Punjab outside Lahore (where until now no food safety controls have been applied) and which was implemented at the instruction of the Chief Minister.

The TRTA II programme also delivered a three-day training course to 22 Food Safety Officers and Assistant Food Safety Officers (also attended by Director Technical and Operations). Almost all of the participants attended training under TRTA II in November 2012. Day 1 of the course reviewed previous materials and addressed any implementation matters that had arisen in the inspectors work. Day 2 comprised group work on the drafting of key elements written standard operating procedures and revision of checklists. Drafts were prepared previously by TRTA but never adopted or applied, except for one inspection checklist. The original TRTA II proposals were amended in the light of the inspectors inputs based on experience, and these were incorporated in the recommendations for the PFA. Day 3 of the training was practical training on advanced food inspection techniques, which took place in an external catering contracting unit.

SPS/Hygiene Controls In The Fisheries Sector

Marine Fisheries Department

Possible ways to address the deficiencies raised by the FVO inspectors with regard to the resumption of exports to the EU were discussed with the Director General of Marine Fisheries Department (MFD). It was mutually agreed that initially 1-2 pilot processors would be allowed access to the EU market after ensuring that all the non-compliances have been addressed, particularly, in terms of sanitary, hygiene and traceability issues.

A joint meeting was held between TRTA II and FAO to discuss the linkages between the TRTA II and NORAD project on fish stock assessment in Pakistan. It was agreed that both programmes mutually work together to assess the stock of fish and to determine the viability of raw material for export of fisheries products to EU.

Technical support was provided to Marine Fisheries Department (MFD) for complying with the sanitary conditions for export in order to enable MFD prepare a Dossier for approval by DG SANCO to resume trail shipments of fishery products to the EU. A complete review of Inspection Manual, procedures, checklists and reporting forms, to introduce upgraded control and inspection system, was undertaken using both the paper and the electronic versions provided by the MFD. The review compared these documents with a checklist of expected components based on the Manual of Sanitary Inspection by CAs in the Third Countries produced as part of the EU ACP/OCT funded Strengthening Fisheries Program.

Recommendations and support for the implementation of a non-compliance record keeping system in the fisheries sector, with provision for corrective actions and flow up was also provided after reviewing the existing inspection procedures and extensive discussions with DG MFD and the lead fishery inspectors.

Advice and assistance was also provided to MFD in the further development of their approach to inspections and control of traceability systems in the supply chain. This advice resulted after a comprehensive review of existing procedures and documentation and having conducted site and inspections at the K1 landing sites and Fisheries Business Operators (FBOs).

Assistance was also provided to the CA to conduct an audit of current HACCP plans and their implementation and also to identify any non-compliance. This was achieved by running a 1 day practical training with the inspectors of the MFD.

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Five Day Training Was Provided To The MFD Inspectors

A five day training was provided to the inspectors from the CA, which was attended by all the inspectors of the MFD as well as representatives from the fish processing industry, the K1 auction operators (FCS) and the Karachi Fish Harbour Authority. Moreover, at the request of DG MFD a training course on introduction to HACCP and Traceability Systems was delivered to representative from the fishmeal processors.

Resumption Of Fish Exports To EU

The MFD submitted on 17 October 2012 a finalized dossier, in response to the comments from DG SANCO. The dossier, along with all documents on the ‘proof of compliance for sanitary, traceability and hygiene matters, was accepted by FVO in February 2013 and it recommended to DG SANCO that the ban on fish imports from Pakistan may be lifted, but only for two fish business operators.

Following the re-opening of exports to the EU in March 2013, a meeting was held with DG Marine Fisheries Department. It was pointed out that prior to export of any consignments, MFD should update the data submitted to DG MARE of the European Commission with regard to the Competent Authority for the issue of catch certificates under Regulation 1005/2008 on illegal, unreported and unregulated fishing.

Extension Of Fish Inspection And Control

Experts held discussions with DG MFD in Karachi on the extension of hygiene controls outside Karachi. The MFD and Fisheries Department Balochistan discussed in principle the concept of establishing an MFD branch in Gwadar for this purpose. They were advised to sign an MoU on official controls in fishery sector, and TRTA II will be invited to comment on the draft text. The IE reviewed a PC1 for launch of MFD functions in Gwadar (PKR 46 million) and KPK Province (PKR 45 million). However the MFD was advised to withhold a PC1 for MFD laboratory investment pending the outcome of NFSAPHRA Bill and decisions about the destination of laboratories. TRTA II requested to support the building of fish inspection capacity in these locations (with training, inspection equipment).

MFD took further steps to extend sanitary control capacity for export of fishery products to KPK (Peshawar) and Baluchistan (Gwadar) Provinces, as recommended by TRTA II. Budget was drawn on PC1 projects to establish offices and regional laboratories in these locations. Recruitment of a total of 20 new technical staff was launched in January (all in place by June 2015). The Government of Balochistan agreed in principle to allocate staff responsibilities regarding inspection of fishing vessels, landing sites and non-export processing establishments.

Inspection Visits Of Ice Plants

TRTA II experts reviewed the implementation by MFD of the ice plant control system developed in September 2013. MFD made limited progress in the application of controls on ice entering the fish harbour area. 20 ice establishments were sensitized regarding sanitary requirements, and 5 plants within the Karachi fish harbour area were requested to upgrade their facilities. Two installed chlorine dosing pumps. MFD stated the intention to accelerate the application of controls after the summer fisheries rest period (July/August), but had doubts as to the effectiveness of checks on entry to the harbour area. Discussions were ongoing with the Federation of Fisheries Cooperatives which collects ice truck levies. MFD planned to commence in earnest in 2014, inspecting all ice suppliers, with the issue of interim licenses, and full approval subject to adherence to an agreed corrective actions plan.

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There was no progress on the development of export controls to non-EU destinations. However with regard to the EU market MFD submitted a list of five establishments to DG SANCO, for addition to the list of approved establishments for the EU market. Four establishments supply product from marine fisheries and one from freshwater fisheries. DG since asked for the supporting documents of these 5 establishments, which were then collated and sent to them. No response has been received yet from the Commission. With regard to the freshwater fisheries, the MFD was advised to submit available data to DG SANCO regarding vessel and landing site controls, and monitoring of environmental conditions.

Training Of Fish Officers/Inspectors

A two day training event was successfully delivered to approx. 15 staff members from MFD. Each course had observers from UoK. The content was agreed in advance with DG MFD to meet his perceived needs in training his staff in the new food inspectors kit, improving the inspection of premises, demonstrating EU style inspections of food premises and visiting two EU approved fish processing premises. Detailed feedback was received from the group indicating high satisfaction with the training and identifying the need for small group mentoring of the fish officers/inspectors, production of SOPs, development of inspection forms for different classes of premises and development of industry guides to set the inspection standards for different classes of premises. DG MFD spoke highly of the quality of the training and agreed the areas identified as ‘future needs’.

Fisheries Department Balochistan

Meetings were also held with Secretary Fisheries, Government of Baluchistan, to discuss recent developments on the IFAD project proposal on ‘Gwadar-Lasbela Livelihoods Support Project”.

Subsequently, the Secretary Fisheries officially requested TRTA II to provide support for:

• Rehabilitation of Pasni Fish Harbour • Construction of Laboratory at Gwadar • Provision of engines/nets to fishermen of Balochistan coast • Construction of hatchery at Subakzai Dam • Fisheries Training Center at Gwadar • Gwadar-Lasbela livelihood support project funded by IFAD • Stocking of fish fingerlins in various reservoirs & dams

Post Graduate Diploma Course In Food Safety And Controls

The PMO staff conducted an in-depth review of the local capacity of training institutions and universities to assess their capacity in providing the necessary academic and structural support to produce high caliber graduates capable of providing the skills and knowledge required by the new national and provincial food standards and safety authorities. As a result of this exercise, three institutions, which included University of Animal Science (UVAS), University of Agriculture, Faisalabad and University of Karachi were shortlisted. The assessment done by the PMO staff was validated by the international expert.

A 3-day workshop (27-29 March 2012) was held in Lahore with the three universities to finalize the syllabus, book list and visibility/promotional strategy for the proposed Post Graduate Diploma Course in Food Safety and Controls. The course was launched in September 2012.

Post Graduate Diploma Course in Food Safety and Controls was launched at University of Veterinary and Animal Sciences (UVAS), University of Agriculture Faisalabad (UAF) and University of Karachi (UoK).

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International Expert in Development of Training Facilities for Food Inspectors held discussions with the concerned faculty members of the three universities (UVAS, UAF and UoK). The IE guided the faculty members for setting up the examination papers, assessment, etc. The course ran well at all the universities with a considerable participation from the private sector as well, particularly at the University of Karachi, which has re-scheduled its PGDC classes to take place over the weekend to accommodate the request made by candidates for the food manufacturing industry.

The Programme also discussed with the faculty members about the accreditation of course with Royal Environmental Health Institute of Scotland (REHIS) and guided the universities on how to prepare the documents to be submitted to REHIS for accreditation. The universities were requested to provide the requisite information by December 2012 and applications to the REHIS would be sent on first come first serve basis. The University of Veterinary and Animal Sciences (UVAS) in Lahore was first to submit the information and upon further scrutiny by the relevant rehash staff, a meeting is scheduled for 24 April 2013 where it will be recommend that the PGDC in Food Safety & Controls being offered at Ives be accredited by REHIS. The other two universities have since submitted the required information and their application is in the pipeline.

Pedagogical Trainings

Key academics involved in the teaching, development and delivery of the accredited PGDC attended a high level pedagogical event hosted by TRTA II at UVAS. This intensive course covered best EU practice for the documentation, development, delivery, assessment and QA/QC procedures. New cutting edge software was demonstrated and best practice in Pakistan was reviewed. Academics were exposed to a range of new learning and assessment strategies and tools including ‘Turn it in’, ‘peer marker’, ‘grade recorder’ and articulate. Detailed feedback was received from the academics and they anonymously expressed high degree of satisfaction with the trainer, training, material used and suggested strategies to enhance student learning, assessment and student experience. Key gaps identified were poor quality of teaching material (compared to EU equivalent), lack of e-learning environment for students (IE demonstrated his model site), standard of academic delivery (need for peer assessed micro teaching event) the need for a review of the syllabus to reduce overlap and duplicity.

Key academics involved in the teaching, development and delivery of the accredited PGDC attended a high level pedagogical event hosted by TRTA II at UoK. This intensive course covered best EU practice for the documentation, development, delivery, assessment and QA/QC procedures. New cutting edge software was demonstrated and best practice in Pakistan was reviewed. Academics were exposed to a range of new learning and assessment strategies and tools including ‘Turn it in’, ‘peer marker’, ‘grade recorder’ and articulate. Detailed feedback was received from the academics and they anonymously expressed high degree of satisfaction with the trainer, training, material used and suggested strategies to enhance student learning, assessment and student experience. Several useful suggestions for future enhancements and support by TRTA II were made by the academics including micro teaching review, review teaching material, review examination preparation and practice.

Expansion Of PGDC In Food Safety & Controls

Meetings were held with two academic institutions in Karachi regarding the potential for adoption of new courses in food safety. The Jinnah University for Women was interested in introducing the Diploma/MSc in Food Safety & Control, applying the assistance of TRTA II in line with the models already applied at University of Karachi, University of Agriculture Faisalabad and University of Veterinary and Animal Science, Lahore. The University has a strong scientific teaching base, with good facilities (laboratories, library, computers, and a new video conference suite under construction). It recently launched a BS Degree on food science and technology. It would need to outsource some modules for the diploma (law, food processing) and its library resources are weak in food safety. However it has strong academic leadership, and staff and students are highly motivated. TRTA was recommended to support the development of the PG Diploma at this location, and offer the same assistance package offered to other Universities.

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The Karachi Institute of Technology and Entrepreneurship (a new private university, so far with only two courses offered in business and computing, both affiliated to University of Karachi) was also visited. It was considering launching a BS degree in Food Technology and Security. The concepts of food security and food safety were discussed, and the IE advised to focus on food safety. If this route was chosen, then TRTA could offer some limited assistance to help develop food safety modules within the four year course. For example, the PG Diploma syllabus could be offered for insertion in its entirety, books and equipment could be supplied, along with some technical assistance. However, due to the longer time scale, no financial support could be offered.

Strengthening Food Inspection System & Launching Of PGDC In Food Safety & Controls At KPK

Support for the PGDC in Food Safety & Controls was further expanded. University in KPK and another one in Sindh (Karachi) were identified as having the potential to carry out this task and they showed interest as well. The University of Agriculture, Peshawar (KPK) and the Jinnah University of Women (Karachi) were preparing the essential documents to initiate the launch of the PGDC by the first quarter of 2015.

However, as the Programme did not receive any confirmation and commitment from the VC of the Jinnah University for Women in Karachi, it was decided that the Programme support will focus only on launching the PGDC at UAP, Peshawar (KPK).

TRTA II experts provided the technical assistance to help UAP launch the PGDC in Food Safety & Controls, based on the MoU signed between the University and TRTA II. AUP adopted the syllabus for a PGDC in Food Safety & Control developed by TRTA II, in line with the models already applied at University of Karachi, University of Agriculture Faisalabad and University of Veterinary and Animal Science, Lahore. AUP with the support of TRTA II developed a submission for accreditation and subsequent launch of the course in September 2015. Links to industry were strengthened. TRTA II delivered the books and equipment required, and the course is expected to start in the forthcoming semester.

There is a clear academic capacity at AUP to deliver the course (in fact the existing degree course in Food Science and Technology already includes modules on food toxicology and safety, food microbiology, and food law and regulation). There are strong links to industry (all students undertake food industry internships).

After signing the MoU with AUP for the launch of PGDC in Food Safety and Controls, the TRTA II programme has delivered two sets of 17 reference text books to AUP.

Three Day Pedagogical Training Of AUP Faculty Members Of The Department Of Food Science And Technology

• Three day pedagogical training of AUP faculty members of the Department of Food Science and Technology involved in the delivery of PGDC in Food Safety & Controls). The prime focus of the training was on teaching methodology and learning objectives of PGDC in Food Safety and Controls. • A three-day training of the officers of the Food and Health Department of KPK on practical inspection of food and food establishments, including use of using food inspection kits, was conducted at AUP. Around 20 officials of Food and Health Department and 10 academics from the Department of Food Science and Technology, AUP attended the training. • The TRTA II Programme also supported the faculty members of the Department of Food Science and Technology at AUP for the preparation of documentation and application for accreditation of the PGDC in Food safety and Controls with Royal Environmental Health Institute of Scotland. • Long-term strategy to develop links Universities in Pakistan delivering the PGDC/MSc/MPhil courses in Food Safety and Controls and to facilitate legacy relations with REHIS and these Universities in Pakistan was also discussed with AUP.

Details of local trainings sponsored under Component 2 are given in Annex 2.8. 47

Reformation Of Animal Health Legislation – OIE-PVS Mission

A round table meeting with Animal Health Specialists was held at FAO office in Islamabad. It was unanimously agreed that Pakistan should apply to World Organization for Animal Health (OIE) asking them to visit Pakistan to conduct an analysis of the Performance of Veterinary Services (PVS). Prior to such a visit, the OIE would require a dossier of information on the veterinary services in Pakistan, based upon which OIE team could then visit Pakistan and carry out the analysis. Therefore the Animal Husbandry Commissioner (AHC), through the Ministry of National Food Security & Research, would request TRTA II for hiring a National Expert in Animal Health to help in the preparation of the PVS dossier which would be then submitted to the OIE prior to the visit.

A National Expert (NE) was recruited by TRTA II to prepare a dossier of information for submission to the World Animal Health Organization (OIE). OIE indicated it would respond by undertaking a Performance of Veterinary Services, leading to further definition of technical assistance requirements and prioritization. Discussions/briefing held with the PARC and the NE.

The Programme reviewed and provided comments on the draft dossier, prepared by the NE of information for submission to the World Animal Health Organization (OIE), which would form the basis of an invitation to OIE to conduct a “Performance of Veterinary Services (PVS)”, an evaluation which led to further definition of technical assistance requirements in animal health controls and its prioritization. Draft outputs were reviewed and comments made.

Dossier was finalized in October 2013, following additional inputs from the IE and submitted to Secretary MNFD&R through a letter dated 21 November 2013, for onward transmission to OIE through the OIE designated CVO (Animal Husbandry Commissioner-AHC). The OIE informed the AHC that the dossier had been accepted and that the three member evaluation team to visit Pakistan to conduct their evaluation from 24 November to 14 December 2014 had been identified.

The Programme experts met with the recently appointed Animal Husbandry Commission, Dr. Qurban Ali and were informed that GoP had a proposal from the OIE (World Animal Health Organisation) to undertake a PVS (Performance of Veterinary Services) review for Pakistan for 3 weeks commencing 24th November 2014. This proposal followed the submission of baseline data on animal health status and veterinary controls in Pakistan, prepared with TRTA assistance. The AHC briefed the Provincial Governments regarding the forthcoming mission, and on receiving confirmation that they would facilitate the PVS process within their provinces and confirm the invitation with OIE. TRTA was recommended to support the hosting of a national workshop(s) for Provincial animal health authorities (such as they exist) to ensure a proper briefing on SPS controls in relation to animal health. Each Province was recommended to nominate a coordinator for the PVS process. TRTA was also recommended to offer logistical support for the national contribution to the PVS mission.

Support to the MNFS&R and the Animal Husbandry Commissioner led to the arrangement of consultative meetings with key stakeholders linked to the animal health and veterinary surfaces throughout Pakistan, in Islamabad, Lahore & Karachi. This was in preparation for the OIE-PVS mission scheduled from 24 November – 14 December 2104.

The OIE team of 3 experts evaluated the veterinary and animal health services in Pakistan based on the dossier submitted to them by the AHC. The OIE experts were scheduled to visit all four provinces and regions including AJK and GB. The wrap meeting of the OIE with government counterparts and donors was held on 12 December 2014.

The TRTA II programme facilitated the OIE (World Animal Health Organisation) mission for the conduct of PVS (Performance of Veterinary Services). The mission completed a three week review of animal health status and veterinary controls in Pakistan. The PVS highlighted many of the deficiencies in animal health surveillance and control (weak legislation, inappropriate organization structure, lack of federal-provincial coordination, conflicts of interest between service and regulatory functions).

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However, it also reflected the positive elements (good veterinary education, functional veterinary council, strong awareness of the OIE role and willingness to develop,). The mission was complimentary regarding the extensive preparation and mission support delivered by the Animal Husbandry Commissioner at Ministry of National Food Security and Research and TRTA. The PVS report was kept confidential and delivered to the Government of Pakistan after peer review by May 2015.

Strengthening Border Controls

With reference to strengthening border controls TRTA II experts held discussions with MoC (WTO Cell), FBR Customs (WEBOC/Risk management), DPP and MFD regarding the development of integrated SPS border control system. DPP and MFD independently decided to strengthen the expression of risk-based control measures under the Import and Export Policy orders of the MoC, and requested assistance. The programme had already identified the need for a common approach across all SPS areas, with considerable gains to be made in effectiveness and efficiency of control by applying a stratified system of documentary, integrity and physical checks set out within the WeBOC database. The approach was considered feasible by the FBR, and was fully in line with the existing efforts of DPP and MFD. The programme developed a concept paper and road map of activities setting out the requirements. Development of such a system will be one of the major targets for the NFSAPHRA.

Provincial SPS Controls

Following the enactment of Bill by the KPK Provincial Assembly, leading to the establishment of a Food Safety Authority in KPK, the Programme Experts met with key government officials in Peshawar to discuss the development of sanitary and phytosanitary controls with senior officials. Meetings were held with the Secretary Agriculture, Livestock, and Cooperative Department and with the Director, Food Department, who were informed of the role of TRTA II, the status of development of the sanitary and phytosanitary controls in Federal Government. Khyber Pakhtunkhwa Government passed the KPK Food Safety Authority Act in 24th March 2014, and the Food Safety Authority was then in the process of being established under the charge of the Secretary Health (who was not available for the meeting). The Act was based closely on the Punjab legislation, and although representing significant progress, contained some undesirable provisions. Nevertheless it provided a sound basis for development, and TRTA II National experts were recommended to open discussions with the Health Department, regarding the building of capacity of the food safety system. This includes legislation to replace the Pure Food Rules, TA for the design of the control system, supply of equipment and training of existing inspectors (including inspectors of the Food Department, who receive delegated powers). This support would follow closely the models developed and delivered to the Punjab Food Authority. Further work is also required to develop awareness of animal health and plant health controls within the Agriculture Department (which was also unaware of the passage of the food safety bill).

Furthermore, the Programme also met with Government of Sindh officials as well, namely: Secretary Fisheries& Livestock, Government of Sindh regarding development of sanitary and phytosanitary controls in that province. Until now there is no food safety, animal or plant health controls in place, and there is little awareness of the importance of these issues in terms of either trade development or protection of consumers and farmers. The Secretary was informed of the role of TRTA II, the status of sanitary and phytosanitary controls in Federal Government. He was aware of the food safety initiative in the Government of Punjab, and recognized the needs for a similar approach in Sindh. A useful suggestion was that provinces could establish a single authority covering food safety, animal and plant health, this mirroring exactly the Federal approach. However he was concerned regarding how such measures would be financed. He also suggested that the Federal Government should develop a concept paper setting out how Provincial Government could respond to SPS matters, and submit this for information to the Council of Common Interests.

49 The governments of KPK and Baluchistan have passed the Bill leading to the establishment of the Food Authority, their respective provinces. A meeting was held with DG and Director Health Services, Department of Health Khyber Pakhtunkhwa Government. The KP Food Safety Authority Act was passed on 24th March 2014. The Authority comes under the Health Department and a provisional total budget development envelope of PKR 100 million has been indicated (but not allocated). An Acting DG will be appointed in the due course of time, an allocation will be inserted in the 2015/16 budget request and recruitment of key staff (DG and team, and one food inspector in each 25 districts) will be launched as soon as this is approved.

• Sindh

Establishment of food safety controls in Sindh province was discussed with DG Special Initiative Unit, Department of Health, and Government of Sindh regarding development of. The Health Department has adopted a new nutrition strategy but no specific initiative on food safety. The DG was informed of the role of TRTAII, and the status of sanitary and phytosanitary controls in Federal Government. He was aware of the food safety initiative in the Government of Punjab, and recognized the needs for a similar approach in Sindh. A useful suggestion was to establish the approach through the Planning and Development Department, which could address the approach to SPS Policy at a Government level. Contacts were provided and PMO is recommended to follow up.

A meeting was also held with Director Foreign Cooperation, Planning and Development Department, Government of Sindh (acting on behalf of the secretary) regarding development of food safety controls in Sindh. The Government of Sindh was aware of the food safety initiative taken by the Government of The Punjab, and recognised the needs for a similar approach in Sindh. A dossier of relevant documents was provided (model provincial Food Act, National SPS Policy, NAPHIS Bill). Government of Sindh Planning and Development Department was recommended to prepare a Provincial policy note for discussion between Secretaries and proceed with legislation as soon as possible, otherwise food safety institutions are likely to be operational in Federal Government and in all major Provinces, with the exception of Sindh.

The Government of Sindh has recently (February 2016) also approved the proposal for establishing a Food Authority. The legislative Bill is now being prepared, based on the inputs and guidelines provided by the TRTA II Programme.

• Balochistan

PMO held detailed meeting with the Secretary Food Balochistan to discuss the possibility of TRTA II support for the strengthening of Balochistan Food Authority Act, 2014. Director Food and concerned Section Officer also participated in the meeting. TRTA II officers briefed the meeting participants about the about the TRTA programmes in general and specially about the work done in the area of SPS management, with particular reference to the technical assistance provided by the TRTA II to the Punjab Food Authority.

The Secretary Food informed TRTA II that the Act for the establishment of Balochistan Food Authority (BFA) was passed in February 2014, yet so far Food Department has not made any further progress to establish this Food Authority. The Secretary stated that the Food Department had prepared a detailed summary for the recruitment of a DG Balochistan Food Authority and subsequent establishment of BFA. This summary was sent to the Chief Secretary but its approval is awaited. Director Food Department informed that in Balochistan the Food Safety function is split and Health Department (Public Analyst) and the City District Government is working to regulate food safety without any coordination and understanding of the regulations needed to govern food safety and controls .

TRTA II shared with the Baluchistan Food Department a copy of the MoU signed between Punjab Food Department and TRTA II and the documentation related to the details of the technical assistance provided to the Punjab Food Authority as a reference of the kind of assistance the programme may be able to provide.

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The Secretary Food Department agreed that based on the documents provided by TRTA II and the offer to provide the Technical Assistance, the Food Department shall prepare a summary to re-submit its proposal to the Chief Secretary and appoint a DG by May 2015. However, no further development can be confirmed.

• KPK

TRTA II shared a draft MoU with the Health Department KPK for technical assistance to build the capacity of the food safety system of the Khyber Pakhtunkhwa Food Safety Authority, established by an Act of the Provincial Assembly in 2014. A request was received to provide technical assistance for the preparation of a road map to set up and launch the Authority. A meeting was held with DG, Deputy Director and key staff of Health Services, Department of Health Khyber Pakhtunkhwa Government, along with other colleagues from the Government of KPK representing Agriculture and Livestock and Food Departments. Discussions were held and advice delivered. A draft strategic action plan was delivered to include: a) new legislation on technical regulations b) design of the organisation structure, functions and recruitment plan; c) role of laboratories d) equipment and e) implementation and organisation of the control system.

A one-day workshop was conducted with a wider group, including stakeholders from industry and consumer groups. The workshop reviewed the draft plan, adjusted it to meet precise requirements, and endorsed the plan for adoption by the KPK Government. It was recommended and decided that implementation of the plan be developed through an inter-disciplinary working group, to be formally established under the invitation of Secretary Health, which will include stakeholder from industry and consumer groups. This approach has provided the best possible starting point for the KP Food Safety Authority, and although progress is slow, it is proceeding suitably.

Arsenic In Rice: Study Commissioned By TRTA Ii Conducted By PCRWR And NAPHIS

Following the announcement by Codex Alimentarius that it would review the Arsenic limits in Rice through a Committee formulated in march 2013, and review and discuss the findings for this committee in a meeting on contaminants at The Hague, Netherlands on 01 March – 04 April 2014, the TRTA II programme decided to conduct a baseline study of Arsenic in the rice exported by Pakistan.

Pakistan exported about 3.4 million tonnes of rice in 2012, earning about US$1.8 billion. The establishment of international limits on arsenic in rice could potentially impact on this important export market for Pakistan. During the first 3 months of 2014, the TRTA II Project therefore undertook a series of actions to ensure an effective participation of Pakistan in the meeting.

In December 2013, the TRTA II launched a survey of arsenic levels in rice, undertaken by the Pakistan Council of Research in Water Resources (PCRWR). This analysed the level of inorganic arsenic in 250 samples of basmati rice (the main export variety) taken from godowns, wholesalers and open markets in 10 districts within the Punjab Province. The study showed that the levels of arsenic in the samples fell within the range of zero (i.e. below the detection limit of 0.1 ppb/0.1 mg.kg) to 356 ppb (0.356 mg/kg). The study identified a number of locations which may be regarded as hotspots for arsenic contamination. However, this may vary between location and year, depending on the extent to which contaminated ground water is used for paddy irrigation.

TRTA II subsequently supported the attendance of two senior plant specialists from the Ministry of National Food Security and Research at the meeting of the Codex Committee, at which the arsenic issue was discussed. Dr. Mubarik Ahmed, DG Department of Plant Protection, and Mr.Itrat Rasool Malhi, Plant Specialist, NAPHIS were presented the results of the study to the meeting, which was attended by representatives of 30 countries. The delegation of China as Chair of the e-Working Group on arsenic in rice introduced the recommendations of the group. It was subsequently agreed that the maximum limit of 0.2mg/kg of arsenic in polished rice should be established, which would ensure that an estimated 97% of Pakistani rice samples would comply with the international standard. The

51 committee agreed to forward the proposed maximum level for in-organic arsenic at 0.2mg/kg for formal adoption. The Pakistani delegation however, did not favour a proposed limit of 0.3mg/kg of arsenic in unpolished rice, and also did not support a compromise. It was explained that Pakistan is the 4th largest producer of rice and a major exporter of this commodity in international trade. The e-WG had relied on data mainly from China and Japan, whereas data from South East Asian countries should be taken into account before any final decision is arrived at. The position was supported by other countries in the region. The Committee therefore deferred any decision on a maximum level of inorganic arsenic in unpolished rice for future elaboration.

The TRTA II experts had a round table briefing with NAPHIS (and subsequently with DG DPP), and discussed the developments with regards to arsenic in rice. TRTA intervention has supported the generation of new data on levels of this contaminant, and ensured the presentation of Pakistani views at the Codex Committee on contaminants in the Hague (held on 1 March - 4 April 2014). Codex would establish a new international standard for maximum level in polished rice (0.2ppm/0.2 mg/Kg) and according to the preliminary study, 95% of Pakistani basmati rice should comply (based on present evidence). Despite several objections a decision on a standard for unpolished rice was deferred at the insistence of several South Asian nations, including Pakistan, pending the development of further data. There is now an urgent need to design and implement further studies to assess the levels in unpolished rice, and to link to irrigation conditions to the levels of this contaminant. This work is being commissioned by MNFS&R to be undertaken through PARC, but TRTA was recommended to monitor the activity and support with technical advice on survey design, as required. FAO was also requested to consider reinstating trust fund support for Pakistani attendance at Codex meetings.

Drug Regulatory Authority Of Pakistan (DRAP)

Following a request for the EUD in Pakistan, TRTA II conducted a brief assessment of the Drug Regulatory Authority of Pakistan (DRAP) to ascertain the type of technical assistance that may be provided within the ambit of the Programme to strengthen this authority.

DRAP was created in 2012 (by the Drug Regulatory Authority of Pakistan Act) after devolution, enforces federal government responsibilities in relation to registration, quality, and distribution and price controls of human and veterinary drugs. Its first annual report is under preparation and will be published in 2015. Secondary legislation defining procedures across the whole range of registration, market surveillance products is out of date. It is being revised and updated, but progressing only slowly.

Control capacity of Provincial Government remains weak, with problems of unregulated pharmacies and sale of counterfeit drugs not addressed. There is no formal monitoring system for these controls, although this is one of the mandates of the Authority. Although nominated for testing, none of the three federal testing laboratories are accredited to any standard (covering Central Drug Laboratory, Karachi, National Control Laboratory for Biologicals, Islamabad and Federal Drug Surveillance Laboratory, Islamabad). TRTA II Programme assessed the need for strengthening DRAP regarding controls on human and veterinary medicines.

DRAP requires Technical Assistance for planning the future development of testing capacity for alternative medicines and medical appliances, and for accreditation of testing laboratories. The Programme also recommends that DRAP would also benefit from support for legal drafting of subsidiary rules and regulations governing procedures for evaluation, registration and licensing of establishments, and to set up an audit capacity as a basis for ensuring the Provincial Government performs controls in accordance with international standards.

2.11.2 RESULT AREA 2.2: IMPROVED QUALITY, VALUE ADDITION AND COMPLIANCE IN FISHERY, HORTICULTURE & INDUSTRIAL SECTORS

Missions of international experts were launched on value added productivity and benchmarking. The details of the expert missions are provided in Annex 2.4.

RESULT AREA 2.2.1: STRENGTHENING THE CAPACITY OF PUBLIC AGENCIES TO ENHANCE COMPETITIVENESS

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A study tour of five member delegation from NPO was supported to participate in an international productivity conference in Turkey to provide understanding of the operational function and services of the National Productivity Centre (MPM) of Turkey and establish direct linkages between NPO-Pakistan and MPM-Turkey. The study tour also provided an opportunity to learn how other productivity organizations, elsewhere in the world, are functioning to provide support and services to the public and private sectors.

Linkages were created between NPO Pakistan and several other national productivity organizations including MPM-Turkey, World Network of Productivity Organizations (WNPO) and World Confederation of Productivity Services (WCPS).

The initial diagnostic reports produced by national experts were reviewed and discussed with NPO as basis for generating outcomes expected from the benchmarking exercise.

Based on the initial review reports and consultations with NPO, sector level productivity benchmarking questionnaires and tools were developed for the fan and the cutlery sectors.

The Programme conducted a two-days training for key staff of NPO on the use and application of benchmarking and the computer based benchmarking tool. One-day training of NPO staff was also conducted in the field, where they experienced data collection processes in the fan and the cutlery sectors. After several consultations, an additional tool, which looked at the Overall Effective Efficiency (OEE) at the firm level for each of the processes, was developed.

Data collection was initiated for determining the OEE as well as the sector level competitiveness benchmarking. The approach being followed for determining firm level OEE analysis was validated for field application.

Data was collected at two levels. One set of data was collected at the sectoral level for the competitiveness benchmarking tool and it included data collection from over 250 companies in the fan and the cutlery sector. The other set of data collected was for the purpose of calculating Overall Effective Efficiency (OEE) of production for lean management. This data was collected from 30 companies in total from the cutlery and the fans sector. Three staff members of National Productivity Organisation (NPO) accompanied the process of data collection for OEE purpose.

Once the data collection on benchmarking was complete and all data sets were cleaned for analysis, the Programme verified the data collected on OEE in the field by visiting all the factories where OEE was piloted. The data collected on OEE was verified and the key bottlenecks identified.

The sectoral level data collected in over 250 firms was used to develop the Competitiveness Benchmarking System (CBS) Tool. This data was then used to develop and finalize the CBS tool and generate relevant outputs indicating the overall performance, strong areas and critically weak areas in the cutlery and the fan sectors.

The Programme also conducted a four day training course at NPO on CBS tool from 05-08 July 2011. The training course consisted of a guidance user manual and live training exercises for participants (with answers if appropriate). Moreover, a training version of the CBS Benchmarking Tool was presented and NPO staff was fully trained in running dummy exercises.

The CBS tool was modified into a software that NPO could easily install in their computer systems and make required changes to adapt the software to cover other sectors to replicate the benchmarking exercise.

NPO was also supported by providing technical experts to speak on the “productivity and competitiveness’ conference organized by the Asian Productivity Organization in Islamabad on the 17 and 18 of November 2011.

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One of the key recommendations that came out of the sector benchmarking in the fan and the cutlery industry was the implementation of lean manufacturing. The lack of lean was identified as a major productivity lag in fan manufacturing. The idea of lean manufacturing was shared with NPO and the fan sector and a consensus developed to implement lean manufacturing in pilot companies to demonstrate the productivity impact. However, to build sustainable capacity it was agreed that local master trainers would be trained in lean manufacturing. It was also agreed that whereas these trainers should predominantly be coming from or based at NPO, it was essential to include trainers from TEVTA, TUSDEC and SMEDA.

Four of the benchmarked factories in the cutlery sector and five of the benchmarked factories in the fan sector were provided direct support on improving their lean manufacturing.

Building Capacity of NPO and other related agencies

The refinements in the Competitiveness Benchmarking System (CBS) software were performed and equipment needs assessment for NPO was conducted. NPO was handed over the IT equipment. The equipment was made operational to work on CBS and benchmarking software. A total of six state of the art laptops and one high resolution camera was provided to NPO to facilitate its working in field to collect, capture and analyze quantitative and graphic data.

NPO was further assisted to initiate sector level benchmarking in the Surgical Instruments Sector. The surgical association agreed with the overall approach and provided names of pilot companies where benchmarking was initiated. The equipment that was provided to NPO had been extremely useful to conduct data collection in the surgical sector. The data collection was done by NPO. Based on the pilot data collected the sector diagnostic questionnaire was developed and finalized and approach to benchmarking in the Surgical Industry was finalized.

NPO Personnel were trained on the implementation of CSR and Process Control during the implementation of this intervention in Electric Fans and Surgical Sectors. This activity built the capacity of NPO resource on implementing CSR and Process Control at enterprise level.

NPO personnel have been trained on Supplier Ethical Data Exchange (SEDEX) internal auditing to carry out internal audits of the companies related to Corporate Social Responsibility and Social Accountability aspects.

On the basis of capacity built under TRTA II, NPO was awarded a mega scale project to conduct benchmarking of garments industry of Pakistan. NPO is using the CBS tool provided under the TRTA II programme to conduct this benchmarking work. NPO was further assisted to enhance the scope of the tool to add indicators such as production efficiency and total factor productivity.

RESULT AREA 2.2.2: IMPROVING COMPETITIVENESS IN SELECTED PRO-POOR MANUFACTURING SECTORS

CUTLERY SECTOR WAZIRABAD

Benchmarking Study

Under TRTA-II a benchmarking study on Cutlery & knives Sector was completed providing a brief sector competitive analysis for this sector. This sector is located in the Wazirabad region of Punjab.

The sector comprises of over 400 SMEs, of which 250 are cutlery manufacturers and 150 are involved in the manufacturing of swords, daggers and knives. The industry produces on average 10.3 million sword & daggers and around 23.0 million dozen of cutlery pieces a year with an estimated value of PKR 6-7 billion. Out of the total production, approximately 95% of swords and hunting equipment is exported, whereas 25% of the tableware cutlery is also exported. The sector is providing livelihood to more than 12,000 people with an export figure of around US$ 50 Million. Most of the larger and medium sized firms are exporting, however, the smaller units usually supply to commercial exporters or local wholesalers. 54

Major Issues Of The Sector

In view of benchmarking study the major impediments of the sector were identified as low levels of productivity, inadequate technology upgradation, poor performance management systems and shortage of skilled staff and labour. The sector, indeed, is facing acute labour shortage in grinding and polishing sections. Major reason has been health hazard environment leading to fatal diseases like lung cancer. The new generation is unlikely to adopt the work of their parents (Polishing) and also parents are not in favor to engage their siblings into the unhealthy working environment with stagnant opportunities of growth. Also, polishing section is the bottleneck in the production line of cutlery and knives curtailing the production capacities of the cutlery units.

Provision Of Cutlery Polishing Machines

As a result of the analysis conducted using the CBS, it was identified that the cutlery sector of Wazirabad can greatly benefit from improvement in technology at the polishing stage. The polishing stage is the longest, inefficient, requires the most number of workers, is environmentally harmful (especially to worker health), and causes the maximum number of injuries at work place (health and safety). Through the benchmarking exercise it was identified that two newer technologies could replace the existing process of polishing in the industry. The two processes include ‘vibrator polish machines’ and ‘roller polish machines’. The vibrator polish machines use water based techniques to polish cutlery and is completely environment friendly and has ‘zero’ risk of worker injury. This equipment is ideal for the cutlery and tableware manufacturers. On the other hand the roller polish machine is similar in technology employed in China and is much safer than current techniques and is less hazardous to worker health. This sort of technology works better for cutlery products like, spoons, knives, forks etc..

The case of making investments under TRTA II in improving technology was made at the 4th PSC. The concurrence to make such investments on pilot basis was provided at the PSC. TRTA II team had meetings with the Cutlery Association to develop a mechanism to make such investments in pilot industries. These industries can then be used as demonstration units for remaining industry and to build evidence for the government to approve the already submitted PC-1 through NPO to upgrade technology in the cutlery sector.

The provision of cutlery polishing machines under TRTA-II achieved the following purposes:

• Improved the working environment in the polishing sections and attracted new labour force into the cutlery & knives sector. • Production capacities of the beneficiary units increased 6 times along with uniform product quality, leading to employment generation. • Indigenization of the cutlery polishing technology for the cutlery & knives sector.

Cost Sharing By The Beneficiary Units

The beneficiary units have built new production halls or refurbished the existing ones to accommodate installation of polishing machines They have complied with the recommendations made by TRTA Programme in terms of redesigning layouts to rearrange their equipment and machinery in order to maximize the efficiency and reduction of wastages due to non-value added activities like, travelling, work in process, workers’ sitting positions.. They also have discarded un-necessary items from their facilities, racks have been made for dies and molds, and machinery, tools and fixtures, walls, floors and allied utilities have been cleaned.

Cutlery Polishing Machines Made Operational At Wazirabad

General, technical and financial comparisons were made and an appropriate quotation was identified to fulfill the requirements of the cutlery polishing process. However, the cost of the most appropriate bid/machine far exceeded the perceived cost estimated in 2012. Therefore, the programme reduced the number of machines to be purchased from 4 to 2 sets, with the approval of the MoC/PITAD, EUD and the cutlery association.

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A two-member delegation visited the manufacturing facility in China in order to ensure the quality of the machines. Following which, a four member team of the Chinese supplier installed, commissioned and trained the personnel of model units on the new cutlery polishing machines. Pakistan Cutlery Association has been apprised on the new technology through the meetings with the Chinese engineers and through the demonstration session held at a cutlery beneficiary unit.

As a result, the Pakistan Cutlery Association (PCSUMEA) has now developed a PC-1 through TUSDEC to upgrade the technology in other cutlery manufacturing units of the sector.

Upgrading The Approach For Delivery Of Vocational And Technical Skills

A concept paper was also prepared for TEVTA to capture a new approach to providing skills training. The approach focused on mechanisms to improve TEVTA’s linkage with industry and also on improving the credibility of TEVTA with the private sector so they see TEVTA as a value adding partner.

ELECTRIC FANS SECTOR GUJRANWALA & GUJRAT

Benchmarking Study

In order to comprehend the issues of this sector and to come up with pragmatic interventions TRTA II developed a Competitiveness Benchmarking System to carry out a benchmarking study for the fan sector where data was collected from 100 units. In order to gauge the inter-organization efficiency levels Overall Effective Efficiency (OEE) for each process for a sample of 20 firms in the fan sector was carried out. Process wise inefficiencies were identified using this data. On the basis of these studies, two key areas, Process Control & CSR and Market Linkages through certifications were chosen for the implementation.

TRTA II programme initiated the interventions on the Process Control and CSR with overall objective to facilitate increased productivity and CSR improvement in the industrial sectors situated in the golden triangle (Gujarat, Sialkot and Wazirabad) of Pakistan. The industrial sectors include the companies involved in manufacturing Fans, Cutlery and Personal protective gear (gloves, boots, and clothing)

Based on the assessment it was decided to provide technical assistance at the sector level and at the company level. At the sector level, the program provided a capacity building curriculum so as to build awareness, Show examples of success, Build independent and change management capacity among the associated agencies (NPO, SMEDA, EDB etc). The main purpose of the Programme interventions was to implement Process Control and CSR in order to achieve increased productivity and CSR improvement.

All the selected companies in fan sector were visited to finalize the identified interventions through the sector benchmarking process. Through these interventions the first major activity identified was the implementation of lean manufacturing in a pilot company. Khurshid Fan was selected as a pilot model to implement the lean approach.

As a result of these interventions, significant gains in productivity and cost savings were achieved. Three further units were selected for implementation of lean principles. However, this support was conditional on units making investments in improving their basic infrastructure. Two of the selected units made the required infrastructural changes and lean techniques were implemented in those units in collaboration with trainers trained at NPO.

Success Stories Disseminated

During the pilot phase factory teams were engaged and trained on data collection, data compilation and data analysis leading to the identification of Key Performance Indicators (KPIs) in terms of quality rework and rejection rates, value-added time, material movement, number of workers used, WIP levels,

56 line balancing efficiencies, etc. Wastages disrupting the production lines were also quantified and after analyses of the collected data and KPIs identification, improvement targets were established and contemporary techniques pertaining to Productivity, Quality and CSR were introduced to achieve the set targets. After installation of the countermeasures substantial improvement results were witnessed at the selected units in terms of reduced defect rates, work in progress (WIP), material movement and improved value added time leading to higher levels of productivity and quality KPIs.

CSR and Process Control intervention rendered successful in the pilot phase where 3 companies from electric fans witnessed huge gains in productivity and quality and better working conditions for their workforce. During the process more than 100 personnel from 10 units underwent on-the-job training on quality and productivity tools and techniques implementation and 5S approach thereby creating sustainability at factory level where these personnel will be able to replicate the methodologies in other areas of the factory.

From 30% to 120% increase in productivity and 53% to 68% improvement in quality defect rates had been observed. One hundred personnel from 10 companies were trained on the 5S approach to create a cleaner and organized workplace.

The results were shared among the stakeholders and industry in order to show the effectiveness of CSR and Process Control tools and techniques and other aspects, like top management commitment and team development at enterprise level, to sustain such initiatives and to instigate a sense of urgency to unveil the huge potential of cost reduction and quality improvements leading to enhanced competitiveness and growth. This led to a greater buy-in, by other manufactures, to sustain these initiatives and to instigate a sense of urgency to unveil the huge potential of cost reduction and quality improvements leading to enhanced competitiveness and growth. Details results are given in Annex 2.5.

Table reflecting the improvement results in fan companies during first phase

Companies

Achieved KPI target values SGS Royal Starco

Fans Fans Fans

Quality % Improvement Defect Rate 61 68 53 Productivity % Improvement WIP Pcs 86 80 75 Batch Travel Distance M 84 65 83 VACTR* % 51 30 51 NVACTR** % 54 40 57 Average Production / Day Pcs/day 78 0 42 No of Workers Nos 0 30 0 CSR done done Done 5S awareness campaign Nos trained 30 45 20 Segregation of Material Impl'd √ √ √ Red Tags Impl'd √ √ √ Arrang't Tools and Eq. Impl'd √ √ √ Cleaning Impl'd √ √ √

PEFMA Knowledge Centre Established:

Pakistan Electric Fan Manufacturers Association (PEFMA), on the recommendations of TRTA II, established a Knowledge Centre and hired some resources. PEFMA provided with 12 new fan manufacturing units who were willing to share the cost of these resources while TRTA-II provided with the expertise to train these human resources to implement CSR and Process Control projects at enterprise level. This endeavor helped PEFMA to sustain the CSR and Process Control initiatives.

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Start Of 2nd Phase Of CSR And Process Control Intervention In Electric Fan Sector

Initiation of Inline Process Control

After the successful completion of 1st phase, where the KPIs pertaining to productivity, quality and CSR were improved at three fan manufacturing units, in the 2nd phase two factories were selected and the implementation of the “in-line process control” was initiated. The teams of these factories were trained on measurement techniques to establish the control limits for the selected product lines. The dimensional data of the selected products measured and in a step by step approach the control limits were established. Once control limits established, it was possible to prepare drawing standards for the products under consideration with quality control data points. Six (6) personnel from two factories were trained on in-line process control techniques.

Since the engineering drawings of the fan products were not available with the companies, the basic dimensions of selected ceiling fans models measured as per the guidelines provided by the TRTA Programme. After having shared these data with the top management of these companies, they not only understood the major weakness of not implementing the in-line process control, but also the real cause which was the, non-availability of engineering drawings necessary to formulate the quality measuring standards. As a result they fully accepted the approach of formulating control limits, conversion of these limits into drawing specifications, evolving of the in-line process control measurement system on the basis of these drawings and then the development of necessary measurement tools and gauges and the training of the concerned personnel to ensure the conformance of developed standards. The replication of pilot phase approach was also implemented in other lines of these units as well.

One of these companies replicated the approach of Process Control and CSR in Louver fans line and winding section of ceiling fans. The results of these replications are very promising. Another company replicated this approach in its packing section and also worked on die casting section, which had been exhibiting worse scenario.

Students from UET were engaged to assess the current conditions and investigate the possible modifications of the existing furnace to improve efficiency and reduce costs. The company eventually accepted the recommendations made by UET as it proved to be both effective and profitable.

Phase II Completion Of CSR And Process Control

In total, ten companies in the fan sector received guidance on CSR and Process Control as a result of this intervention. Seven units of phase II were able to achieve substantial gains in terms of Productivity, Quality and CSR improvements during a period of 10 months starting from January 2015 to October 2015. Five of these companies were enrolled under PEFMA knowledge centre. As a result of this intervention, the selected units in fan sector witnessed quantitative gains in terms of quality, 44% to 81% Batch Travel Distance, 52% to 86% Work in Process (WIP), 30% to 71% Labour Productivity, 70% to 103% Line Balancing Efficiency, 105% to 240%, Average production per day, 9% to 280%, and Number of Workers 6% to 26%. Due to this CSR implementation, the companies saved PKR 6.3 M along with training of 150 personnel on shop floor management techniques.

By adopting these best practices the companies can save up to USD 90,00/furnace per year. Conservatively, if there are 250 furnaces in operation in fan sector the potential of saving will be more than USD 2.25 mil/year.

Industry – Academia Linkage

Another critical weakness identified in the fan sector was the outdated electrical and mechanical techniques. The Programme discussed these issues with the Department of Mechanics at the National University of Science & Technology (NUST). NUST showed its interest to work on the issues of the fan industry.

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Subsequently, the fan industry was linked with NUST University to work on brining electrical and design improvements in fan manufacturing. NUST worked very closely with the fan manufacturers and made refinements in fan design to make it more energy efficient.

Two groups of final year Industrial and Manufacturing Engineering students were engaged to work on in line process control and CSR at Machining and die casting sections, respectively, of a fan manufacturing unit. The concerned supervisors of industrial engineering department of UET Lahore facilitated these students to carry out their projects.

Resultantly, two research papers and a case study was published in journals of international repute. The case study was published in the journal of UET Taxila and the 2 research papers on “Workplace stress Management” and “ Corporate Social Responsibility awareness measurement in the industrial sector of Pakistan” were presented at the 7th International Conference on Applied Human Factors and Ergonomics, Florida, USA.

SURGICAL INSTRUMENTS SECTOR SIALKOT

Benchmarking Study By NPO

The benchmarking study for surgical instruments sector had been conducted by NPO, validated by SIMAP and printed. The report is based on the data of 80 surgical instruments units using the Competitiveness Benchmarking System Tool. The study highlighted key issues pertaining to the Surgical Instrument sector in terms of Poor Branding Practices, Production Management, Quality Assurance, Performance Measurements, Energy Requirements and Consumption Patterns, IT Infrastructure and Applications, Technology Availability, CSR, Personnel Training and Development Needs. Corporate Social responsibility (CSR) and Poor Branding were identified as major issues of the surgical sector.

Start Of CSR And Process Control At Six (6) Surgical Instruments Model Units

Following the recommendations of benchmarking study and SIMAP and SCCI’s request to implement CSR and process control interventions in surgical instruments sector. TRTA II Programme evaluated the 13 units nominated by SIMAP. A selection criteria on the basis of the top management commitment, availability of team, potential of building and seriousness towards CSR improvement. Out of 13 nominated units, 6 qualified for the CSR and Process Control intervention. The six selected units were informed accordingly and PMO team started work on the CSR and Process Control interventions with them.

Data Collection Phase Pertaining To CSR And Process Control

In order to establish the baseline of KPIs data was collected and factory teams were trained on different tools and techniques related to CSR, Quality and Productivity in order to establish the baseline Key Performance Indicators (KPIs). Twenty-five (25) personnel from the six selected units were engaged. Through this exercise, several problems were identified related to high quality defect and rejection rates, huge Work in Progress (WIP), lack of production planning and control, poor CSR conditions, especially in the polishing and grinding sections. All these issues placed the factories in reactive modes to meet the delivery dates of shipments, rather than proactively addressing these constraints.

The causes of the above mentioned problems were identified and the TRTA team was able to secure a higher level of commitment from top management in terms of taking critical decisions that would be required during the implementation of improvement plans to tackle the prevailing issues. After carrying out these exercises, these units raised their product quality levels, labor productivity and investing on the CSR aspects to create conducive working conditions for their workforce.

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Implementation Of CSR And Process Control At Selected Surgical Instruments Manufacturing Units

Improvement plans were then developed and factory teams were engaged in the implementation of these improvement plans. Out of six selected surgical units, four implemented the improvement plans making substantial changes in terms of layout, etc.

The units who implemented CSR and Process Control techniques have witnessed up to 61% improvement in quality defect rate, up to 114%, improvement in labour productivity, up to 96% improvement in batch travel distance, up to 167% in line balancing efficiency, up to 76% average production per day and manufacturing lead-time reduction up to 93%. Detailed results are given in Annex 2.6.

Coordination With Other Donors In The Field: Collaboration With CBI

Centre for Promotion of Imports from developing countries (CBI) of Netherlands and PMO had several meetings and shared TRTA’s sectoral benchmarking work with CBI, as a result CBI agreed to work jointly with TRTA II on CSR issues in the Surgical sector. UNIDO and CBI held joint meetings with surgical association (SIMAP) to sketch the intervention plan of CBI which reinforced the interventions of TRTA II in this sector.

In collaboration with CBI and Surgical Instruments Manufacturers Association of Pakistan (SIMAP) two training workshops, three days each, were conducted for surgical instruments sector where around thirty (30) surgical instruments manufacturers participated. Two international and one national expert were provided by the CBI. These Experts trained the participants on contemporary tools and techniques of productivity, quality and CSR improvements. Subsequently, SIMAP and Sialkot Chamber of Commerce and Industry (SCCI) showed keen interest and requested TRTA-II and CBI to implement these techniques in some of the units in surgical sector.

Furthermore, two (2) training workshops on the process control tools and methodology utilization were conducted where more than 70 personnel from the fan, gloves & boots sector participated and as an outcome of the workshops more than 10 units from these two sectors have requested to enrol them in the programme.

RESULT AREA 2.2.3: IMPROVING COMPETITIVENESS IN THE FISHERY SECTOR

Pre-Feasibility Study For Korangi Business Park And Landing Sites

The Terms of Reference (TORs) for the conduct of pre-feasibility studies for developing a Business Park and landing sites at Korangi fish harbour were finalized in consultation with Korangi Fish Harbour Authority. The business park would allow traders to expand systematically their business and fully utilize current and added areas of KFH marked for state-of-the-art value added fish processing industry.

National Engineering Services Pakistan (NESPAK) was sub-contracted to carry out the pre-feasibility study in shortlisted as potential institute to prepare pre-feasibility studies for upgrading Korangi Landing Site and developing Korangi Business Park.

NESPAK developed the first draft of the feasibility study-based report on developing Business Park along with a business plan and for up gradation of landing sites and allied facilities at Korangi Fish Harbour. The draft was discussed at length in a specifically called meeting of stakeholders in the presence of international expert. The meeeting after examining the zero draft thread bear decided to create two working groups to further discuss the details on the issues which needed more and clear pinpointed areas. The two working group meetings were subsequently held ,one with respect to policy related issues and the other group taking into account the local (bonafied) fishermen and the newcomer fishermen living in the neighbourhood of Korangi Fish Harbour. The recommendation of these working groups were included in the feasibility report by the NESPAK subsequently. 60

After incorporation of the changes suggested by the working groups, NESPAK finalized the draft of the prefeasibility study. This final draft was submitted , in January 2104, to the office of the Secretary Ministry of Commerce and the Principle end user – the Korangi Fish Harbour Authority as well as to different stakeholders for their comments. The Ministry of Commerce was asked to hold subsequently a stakeholders validation meeting jointly with TRTA II to accord validation to this draft from the key stakeholders so that if any modification is deemed necessary , then the NESPAK could do the same before TRTA II Programme submits the final version to the Ministry of Commerce, Government of Pakistan.

Training Of Balochistan Fishermen

Based on the discussions of between TRTA II and national experts with various stakeholders in the Baluchistan fisheries sector, it was agreed that the resources available with the fishery department would be used to both support the development of the master fishermen programme and the delivery of the course at various landing sites along the coast. Their extended role included the support for vessel maintenance, safety and education.

TRTA II team finalized a plan with the Fisheries Department, Government of Balochistan for development of the Code Of Practice and its delivery to the 1000 Fishermen of Baluchistan that would enable them to earn more income from their current catches and help reduce their poverty level.

A seven-day pilot training of the Fishermen belonging to Lasbella district, one of the two coastal districts of Balochistan (the other one being Gwadar) was organized by the Fisheries Department (BFD) Government of Baluchistan in conjunction with the TRTA II programme. The fishermen were trained by Master Trainers (MTs) under the supervision of the same International Experts who earlier imparted two week training program to these 31 MTs [most of these MTs were from BFD while five members were from other local NGOs] held at Karachi in November 2013. Six pilot training sessions of fishermen were planned between 31st March and 6th April 2014 at their respective fish landing stations located at different coastal areas of Lasbella District including: Bundewari, Sonmiani, Dam, Beera, Kund Malir ( Hingol) and Gaddani. Altogether more than 700 fishermen were trained on the COP developed under the programme. An initial planning meeting was organized on Day-1 in the office of Director Baluchistan Fisheries Department located in HUB (it’s a town of Baluchistan at the border with Sindh, one-hour drive from Karachi). This meeting was chaired by the Secretary Baluchistan Fisheries Department (BFD), with the participation of the Coordinator of the Master Training programme (DG of BFD), seven MTs (all belonging to Lasbella District), 2 IEs and PMO team.

During the training, the IEs reviewed and analyzed the effectiveness of the delivery mechanism by the MTs to the fishermen. In light of the review the methodological approach was adjusted for the subsequent trainings sessions for the fishermen

Fishermen training session were held at Bundewari landing site where about 149 Fishermen were present. They were handed over the CoP manuals and then one of the master trainers gave a presentation of the CoPs the other MTs also explained some of the CoPS to the fishermen individually/in group. Similarly in other landing sites of Sonmiani, Damb, Kund Malir, Beera and Hingol (Lasbella), about 659 fishermen vigorously participated in the training conducted by MTs . The MTs from Sonmiani Development Organization (local NGO) and Coastal Research and Development (CARD) mobilized and motivated the participants. This training was also attended by the 7 MSc/MPhil students of Lasbella University belonging to an NGO.

Subsequent to the training of Master Trainers, (MTs) a seven-day pilot training of the Fishermen belonging to Lasbella district, one of the two coastal districts of Balochistan (the other one being Gwadar) was organized by the Fisheries Department (BFD) Government of Baluchistan in conjunction with the TRTA II programme. The fishermen were trained by MTs under the supervision of the same International Experts who earlier imparted two week training program to these. Six pilot training sessions of fishermen were conducted at their respective fish landing stations located at different coastal areas of Lasbella District. These landing sites included Bundewari, Sonmiani, Dam, Beera,

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Kund Malir (Hingol) and Gaddani. Altogether more than 800 fishermen were trained on the COP developed under the programme.

The MTs from Somiani Development Organization (local NGO) and Coastal Research and Development (CARD) assisted to mobilize and motivate the fishermen to participate in the training programme. This training was also attended by the 7 MSc/MPhil students of Lasbella University belonging to an NGO.

During the training sessions the illustrated CoP book for small fishing boats/vessels was thoroughly reviewed and finalized. The second version of the illustrated CoP has been revised and published.

Thereafter, 10 training sessions of fishermen were organized on the formal/informal landing sites of Gwadar district (Jeewani, Pishukan, Gwader, Surbandar, Pasni, Kalmat, Gunz, Kapar, Bal, Hud and Ormara). In order to complete the trainings within the stipulated days, two training sessions were conducted each day.

CoPs For Small Boats For Baluchistan Fishermen

The Development of CoPs on small boat by the fishermen of Baluchistan coast was identified as a major activity after the need assessment was carried out earlier by the TRTA II programme, with the objective to provide comprehensive guidelines to fishermen and other crewmembers operating on the boat during fishing, on the fish handling techniques and allied critical areas during and after harvesting so that the quality of the catch can be improved and post-harvest losses are reduced. To achieve the objective, training of 1000 fishermen was carried out as per the inception phase log frame of the TRTA II programme through the master trainers. The plan and design and implementation of training of master trainers was undertaken in consensus with the Fisheries Department Government of Balochistan. A batch of 31 master trainers, from Baluchistan Fisheries Department, Lasbela University and local leading NGO’s and semi-government organizations were trained by two international and national experts, to provide in turn to the fishermen community direct support on the quality assessment, control, grading, handling and icing of fish and the design of small boat fishing vessels. Details of training are given in Annex 2.8.

The first draft of a Codes of Practice for small vessels was developed during the TOT mostly relevant for Baluchistan.

The first version of CoPs was published in illustrated form. Before the training a plenary meeting was organized with the Secretary Baluchistan Fisheries Department (BFD) in chair. This meeting was attended by the Coordinator of the Master Training programme (DG of BFD) and seven MTs (all belonging to Lasbella District). Half way through the training sessions, a review was conducted by the IEs to analyze the effectiveness of the delivery mechanism by the MTs to the fishermen. In light of the review the methodological approach was adjusted for the subsequent trainings sessions for the fishermen.

Identification Of Options For Value Addition

A benchmarking assessment was done of the fish processing industry of Pakistan to mark the points along the processing line where improvements need to be introduced about the interventions leading to increased productivity and subsequent increase in profits at the relevant processing plant. The assessment revealed that the current profile of the processing plants in Pakistan are largely based on product freezing and chilling only and per se there is no processing of the fish into products cooked, semi-cooked, ready to cook or processed fish, hence, at this point in time the benchmarking for enhanced productivity at processing plant level was not possible.

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The options for going into value added products for export markets were comprehensively assessed by the Programme in consultation with all relevant stakeholders including Fisheries Association. The Programme also provided advice and guidance to the fish processors on specific value added product of their interest along with developing market connectivity for these added value products in international markets including possibilities of joint ventures.

Following assessment in consultation with Fish Processors and other stakeholders five potential areas for value adding the fishery products were identified which are Fish Oil Extraction:- Whole Fish Sardine Matrix (Sardine – can be gutted and sold fresh or Frozen as Whole-Fish in either Block form or IQF; Sardine Can be Gutted then De-Headed & De-Tailed (processed for canning or pouch packs; Sardine head & Tail can then be Ground – Cold Pressed (to extract Oil) and mobile block freezing unit facilities, particularly along the Balochistan coast where landing takes place at a number of costal pockets with no landing infrastructure facilities such as formal jetties or pontoons.

An assessment was done of the fish processing industry needs in terms of its prospects for value adding options in Pakistan. The assessment was done in conjunction with Fish Processors and other stakeholders and an assessment report was finalized by the International expert which indicated the following potential areas for value adding in the in seafood sector of Pakistan:

Sardine Value added processing: fish oil extraction; whole fish Sardine matrix (Sardine - can be gutted and sold fresh or frozen as whole-fish in either block form or IQF; Sardine can be gutted then de- headed & de-dailed (processed for canning or pouch packs; Sardine head & tail can then be ground and cold pressed to extract oil); quality fish meal oil production; mobile block freezing unit facilities, particularly along the Balochistan coast where landing takes place at a number of costal pockets with no landing infrastructure facilities such as formal jetties or pontoons.

The private sector looked into the details and market prospects before investing into this venture and developed business plans accordingly to set up the first ever fish oil plant in Pakistan. An expert was selected to design a technical facility including details on machinery and equipment and floor plan and operational mechanism for a medium size commercial fish oil production unit along with suitable business plan.

RESULT AREA 2.2.4: IMPROVING COMPETITIVENESS IN THE HORTICULTURE SECTOR

Support was provided under TRTA II programme, to PHDEC in the Development of PAKGAP (Pakistan Good Agricultural Practice) Standard, where the Government of Pakistan allocated Rs 550 million for the implementation of PAKGAP standard under the Strategic Trade Policy Framework 2009-2012. Pakistan Horticulture Development and Export Company (PHDEC) had developed PC-1 for the development of PAKGAP standard. TRTA II programme reviewed the draft PC1 document and various deficiencies were identified.

Round Table Meeting Of Horticulture Stakeholders

TRTA II in collaboration with PHDEC and Ministry of Food and Agriculture (MinFA) held a Round Table Meeting of horticulture stakeholders in Lahore to discuss the brief on PAKGAP proposal and development of Codes of Practice (CoPs) for Kinnow and Mango products. The participants of this meeting endorsed the proposed activities related to CoPs and decided that TRTA II should immediately start working on the development of CoPs/manuals by involving key stakeholders, particularly, the academia.

The TRTA II programme reviewed the PAKGAP PC 1 proposal and revised the document that would best suit to improve the supply side of horticulture produce in Pakistan. While revising the PC 1, the agribusiness practices and value chain were also considered. Moreover, the revised PC 1 was designed to support a comprehensive economic feasibility study in comparison to other agricultural good practices (GAPs) and ensured linkages to the other federal, provincial and donor projects. 63

Revision Of PAK GAP PC 1

TRTA II programme carried out a detailed economic analysis and provided cost benefit analysis for the PAKGAP scheme. In this connection a report on Qualitative assessment of selected GAP schemes practiced in Asia and Pacific region was prepared to support PAKGAP scheme in Pakistan.

Codes Of Practice (CoPs) For The Entire Kinnow And Mango Supply Chains

Development of CoPs along the critical points of supply chain was identified as major activity in the inception report of TRTA II programme to provide comprehensive guidelines to farmers, processors, exporters and other stakeholders involved with the aim to increase production, maximize profit, improve quality and reduce losses. In this connection, Terms of Reference were prepared for the development of CoPs by the Project Management Office (PMO) and various potential institutions were assessed by International Experts fielded under TRTA II programme.

The capabilities of the Institute of Horticultural Sciences (IHS), University of Agriculture, Faisalabad (UAF), Mango Research Station, Shujabad (MRS) and Citrus Research Institute (CRI) were assessed for their possible engagement in the development of CoPs at farm and post harvest levels.

Terms of Reference (TORs) were developed for subcontracting UAF, MRS and CRI for the development of CoPs in kinnow and mango sectors. The TORs were communicated to the said institutes for elaboration of their technical and financial proposals. Subsequently, national institutions such as CRI, MRS and UAF having the expertise for the development of CoPs were identified and their proposals were evaluated.

The Programme developed the framework and other guiding documents for the development of CoPs including the time bound work plan for each of the three institutions in consultation with all the stakeholders involved. The framework and detailed action plans for the development of CoPs in Kinnow and mango sectors were presented at the horticulture stakeholders meeting held at PHDEC office in Lahore, which was attended by the stakeholders from private and public sector , including representatives of donor agencies such as USAID/FIRMs, ASLP and Star Farm. In addition, the meeting was attended by farmers, exporters, processors, certification bodies, Agriculture Department, Government of The Punjab and coordinator Supply Chain Project, Government of The Punjab.

The meeting participants agreed that TRTA II interventions regarding the development of CoPs in the kinnow and mango sectors would address the key issues of kinnow Supply Chain and resultantly increase trade in these commodities.

Sub-contract arrangements with the Agriculture Department of the Government of The Punjab were finalized and signed to involve the relevant research institutes for the development of CoPs at farm level in Kinnow & Mango sector.

Time bound action plans for UAF, MRS and CRI for the development of CoPs was prepared by the TRTA II Programme. The action plans also included milestones and achievements, based on mutually agreed KPIs. A Brief Guide for Organizing and Setting up of a Farmer Field School, Checklist of Farm Operation, Daily Practices Record keeping form, Template Plant Nutrition Analysis, Template for Disease Control Guide were prepared and handed over to the research institutes.

A criteria was developed for selecting participating farms and processing units in the CoP Project. Consultations were held with Kinnow and Mango Growers Associations and Processors for the selection of pilot farms and processing units. Modalities of 4+1 cluster groups with Kinnow and mango farmers and the research institutes (CRI & MRS) were finalized. Selection of farms and the Pack House was finalized and contracts were signed with farmers and the Processors/exporters. Details of selected farm clusters are given in Annex 2.7.

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The four plus one approach of the cluster development was applied where each cluster has one big farmer with four or more associated members. The staff members of the institutions were also trained on the best farming and processing techniques being implemented in other regional and developed countries based on the Global Good Agricultural Practices (GlobalGAP), Hazard Analysis Critical Control Point (HACCP), International Food Standard (IFS) etc and also on the approach and guidelines for adoption/adaptation of these practices in Pakistan.

The sub-contracted institutions (MRS and CRI) conducted Farmer Field Schools on regular basis in each cluster where all the members of the respective cluster participated. MRS and CRI advised them on application of good/preferred practices depending upon the stage of the crop. All cluster members actively participated in monthly Farmer Field School (FFS) and followed the advice provided by MRS and CRI under the supervision of TRTA experts.

FFS have become a regular feature of Kinnow and mango farms. The number of farmers attending the FFS is increasing. FFSs have become a resource development pool. In each session, farmers gather to discuss and share each other's experience and knowledge. The facilitators from the research institutes (MRS and CRI) manage these meetings in controlled dialogues, where urgent and specific cultivation issues are discussed and resolved. Through these discussions, knowledge and technical skills are conveyed to the farmers and are internalized by these farmers. Trials and demonstrations are taken; hence this approach is of "learning by doing".

The FFS is attended by the participating cluster group farmers. Farmers who are not registered in the CoP Programme can also participate in the session as observers. The FFS is open to everybody who wants to share and learn from each other. The experts from the 3 research institutions (MRS, CRI and UAF) manage an intensive instruction programme of production work with pilot trials of 10 participatory Mango farms and 10 Kinnow farms and associated processors. These participatory farms and processors were selected based on their resources, capacity and in particular their willingness to the adoptions of the pilot trials designed for this Programme, based on sound, proven scientific evidence.

CoPs were tested through pilot implementation and finalized based on the results. A workshop was conducted to finalize the first draft of CoP manuals. The CoP manuals finalized by research institutes were reviewed by the Programme before printing and mass dissemination.

Identification Of The Critical Control Points

Critical Control Points (CCPs) of the entire Kinnow and mango supply chains were identified. Illustrative booklets for the Guidelines to address the CCPs were published and disseminated into masses. Illustrative guidance charts for each CCP prepared published and disseminated.

CoP MANUAL

CoPs were tested through pilot implementation and finalized based on the results. The CoP manuals for the Post harvest handling of kinnow and mango were finalized by UAF. CoP manual for the Kinnow farming was finalized by CRI and the CoP manual for mango farming was finalized by MRS. The CoP Manual were reviewed and then published and disseminated into masses.

The Codes of Practice (CoP) manuals and the guide books to address the Critical Control Points (CCPs) for the Kinnow and mango farming and post-harvest processing were also sent to Food and Agriculture Organization (FAO) for review and comments. FAO reviewed the CoPs and endorsed its support for publication by contributing a message from the FAO Country Representative.

Horticulture Equipment Kit

Equipment worth of USD 33,000 was purchased for the distribution to the selected farmers/processors in Kinnow and mango sector. The list of equipment was finalized in consultation with CRI, MRS, PHDEC and relavent stakeholders.

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Twenty-two equipment kits (10 to Mango farmers and 10 to kinnow farmers) were provided to support the farmers to produce quality fruit. Moreover, to support the research institutions to teach the farmers the new techniques of kinnow and mango farming, one kit each was provided to CRI and MRS. The contents of the kit are given at Annex 2.10.

Concept Note On The Advance Warning System (AWS)

A concept note on the AWS was developed to give the farmers enough time to take the necessary mitigating measures to reduce crop loss by applying the relevant insecticide, pesticide and fungicide at the most appropriate time. The IE worked with the researchers to lay down the initial ground work necessary to build an effective AWS.

Kinnow Harvesting Bags

Harvesting Bags used in kinnow sector usually damage the fruit. In an effort to improve the supply chain to enhance exports the TRTA II Programme identified this as one of the Critical Control Points (CCPs. It was observed that the farm and contracted labor for harvest is not trained enough to skillfully perform the harvesting and fruit handling operations. Fruit loss percentage is quite high due to the faulty harvest and handling practices by labor (putting ladders on the trees, extraordinary filling of bins with fruit, wrong bins/crate staking practices in orchard, excessive fruit theft, throwing fruit crates/baskets into the vehicles, bruising of fruits with nails or harvesting equipment).

Realizing the fact that by improving the process of harvest and handling of fruit after harvest a substantial quantity of losses in Kinnow supply chain could be minimized, the TRTA II programme requested/provided funds to the University of Agriculture Faisalabad (UAF) to design a specific harvesting bag.

The experts of UAF designed a harvest bag and tested it in the field. Later on the harvest bag was modified on the basis of suggestions from exporters. After field trials a sophisticated form of the harvesting bag was developed. The bag accommodates more Kinnows and also the fruit remains protected from any kind of damage. The harvesters are comfortable with the new bag because the harvester hangs it on one side instead of front side; the height could be adjusted very easily according to the height of person and is emptied from the bottom.

This newly designed harvesting bag has the capacity to hold 10-12 kg fruit, which is easy to use for labour and the harvesting tool cleaning kit to promote clean and disinfected tools shall bring in a very positive change in the Kinnow industry.

Integrated Approach To Control Fruit Fly

The fruit fly infestation causes brown rotten patches on the surface of mango fruit, making it inedible and finally destroying the whole fruit. The major problem in the export of mango is the threat of fruit fly and importing countries demand its comprehensive control. It also directly damages fruits and causes significant loss in yield. Farmer’s awareness about its control is not updated and generally chemical control is adopted. Realizing the extent of damage TRTA II programme in collaboration with MRS initiated an intensive fruit fly control programme. The control programme includes the installation of male fruit fly traps, female fruit fly traps, bait and orchard sanitation. Those orchards were selected which had started the export of mangoes through the nascent Mango Growers Consortium facilitated/established by the TRTA II programme.

In order to avoid potential loss and keep our environment unpolluted, management of fruit fly through integrated approach is most appropriate. Based on research scientists of MRS adopted the impressive control measures to limit the incidence of fruit fly. The complete process includes Orchard Sanitation, male and female fly traps. This activity also provided the growers sufficient technical training to control the fruit fly in future.

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Advisory Panel

An advisory panel was setup to provide guidance and recommendations to improve the implementation work of the research institutions with the farmers. The rationale and the ToRs of the advisory panel and agenda were developed. ToRs for the advisory panel for steering the development of CoPs were prepared.

Brochure On The Development Of Codes Of Practice

A Brochure was designed to elaborate on the development of Codes of Practice being carried out in the Kinnow and mango sectors under the TRTA II programme in collaboration with ASLP and PHDEC. The brochure explains the role of research institutes in the development of codes of practices and practices being applied at the farms and the pack houses.

MoU With PHDEC

MoU between the TRTA II CoP Program and PHDEC has was drawn up in order to concretize the working relationship between the PMO and PHDEC, so that the ground officers could also understand the collaboration of work.

The MOU document, describing the collaborative work between the PHDEC and TRTA II CoP was signed.

Monitoring Template

Monitoring template was prepared to track and reaffirm the verification works, by ensuring that all the recommendations of the FFS conducted by CRI and MRS and trainings conducted by UAF have been taken up in field trials and the relevant data, generated by these trials has been collected.

Survey On Cost Of Controls In Kinnow And Mango Sectors

A questionnaire for conducting a survey on cost of controls in Kinnow and mango sectors was designed to determine the current cost incurred by farmers and processing units on the controls and inputs applied. The questionnaire was pretested in kinnow farms and export processing units of Sargodha region, based on which appropriate changes were introduced in the questionnaire leading to the development of software tool.

The Secretary of Agriculture, Government of The Punjab, was briefed about the development of CoPs for the post harvest supply chain management in Kinnow and mango sectors, cost of control survey and agri-benchmarking process. The Secretary appreciated the TRTA II programme interventions and assured his support for the development of CoPs, cost of control survey and Agro-Benchmarking process.

Participation In Workshop On Building Safe, Competitive Horticultural Supply Chains In Asia Pacific Region

A three-member TRTA II programme team led by International Expert in productivity participated in the “Workshop on Building Safe, Competitive Horticultural Supply Chains in Asia Pacific region” held in Lahore. The Workshop was organized by Asian Productivity Organization (APO) and hosted by the National Productivity Organization (NPO) in collaboration with PHDEC and the Australia-Pakistan Agriculture Sector Linkages Programme (ASLP). The Workshop was attended by participants from Pakistan, Sri Lanka, India, Indonesia, Nepal, Malaysia, Philippines, Vietnam and Kenya. The participants shared their professional experiences in development of horticultural supply chains of their respective countries.

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The TRTA II programme activities related to the development of COPs at the critical point of supply chains and business linkages among the buying and supplying clusters through account management system, were also explained to the participants.

Synergy between TRTA II interventions Australia-Pakistan Agriculture Sector Linkages Programme of AUSAID was initiated to coordinate the activities to be carried out under the two programmes to avoid duplication and obtain maximum impact in the horticulture sector in Pakistan.

Training Of Researchers At University Of The Philippines

To strengthen the technical ability of the researchers involved in the development of CoPs, the TRTA II programme arranged a 10-day study tour/training for 4 researchers/scientists from CRI and MRS at University of the Philippines, Los Banos, from 06-16 April 2014. The details of the participants and trainings they received are given in Annex 2.9. The training at the Postharvest Horticulture Training and Research Centre (PHTRC), University of the Philippines helped the researchers to refine the COPs and CCPs according to the international best practices.

Introduction Of SSHWT Units For Treatment Of Mango Destined For Exports

The researchers/scientists also observed that in Philippines, at most of the farms there is a small Hot Water Treatment (HWT) unit. Philippine mango farmers treat their mangoes with hot water. This HWT treatment increases the shelf life of mangoes as it kills the fruit fly eggs and also gives protection against the post-harvest diseases like Stem End Rot and Anthracnose. Although Pakistan produces high quality mangoes, which have superior taste, aroma and the external appearance, most of it is lost due to lack of any post-harvest processing treatment. The researchers/scientists realized that this small scale extended HWT should be introduced in Pakistan. The researchers also observed that in Philippines a specific Harvester for Citrus has been designed to harvest the citrus fruits safely.

TRTA II prepared detailed specifications/schematic diagram and proposal for the installation of the said HWT unit at the selected farm clusters.MRS through the TRTA II support prepared a model SSHWT unit which could be replicated. The researchers of MRS modified the SSHWT unit according to the requirements of Pakistani mango.

TRTA II provided the specifications/schematic diagram of the SSHWT unit along with the specifications to MoC & MNFS&R for their consideration in terms of provision of funds (MoC through TDAP/EDF & MNFS&R through PARC and MRS for the manufacturing of this unit and the SOPs for its operations.

This simple Hot Water Treatment unit has the ability to control the fruit fly infestation by killing its eggs and maggots if they are present inside the fruit. It is a very simple unit with a heating source, fruit holding tank and water circulation unit. It eradicates the fruit fly infestation and as a result the post- harvest losses are minimized. This small-scale Hot Water Treatment unit is very simple and could be easily produced in Pakistan.

The TRTA II experts held meetings with MoC, MNFS&R, Trade Development Authority of Pakistan (TDAP), Pakistan Agriculture Research Council (PARC) and National Agriculture Research Centre (NARC) to present and promote the proposal for the introduction of small scale HWT unit. Subsequently the MoC and MNFS&R agreed on the initiative as a means to address the on-going issue of fruit flies in mangoes. MoC through TDAP/EDF mobilized the funds for the manufacturing of the 10 units to be placed at the 10 farm clusters receiving TRTA II support.

6 SSHWT units were manufactured and installed under the supervision of both, the MRS and TRTA II experts. In the mango season of 2015, the farmers and processors used the SSHWT units for processing the mangoes for both domestic and export markets. The hot water treated mangoes were sent to

68 different export destinations including USA. Some processors are also selling the hot water treated mangoes in the local market. This SSHWT unit has brought a positive change in the Pakistan mango industry. On one hand the country is sending safe (hot water treated-fruit fly free) mangoes to high end markets, and on the other hand the concept of safe mangoes has also been introduced in the Pakistani markets. This will surely assist the farmers/processors/exporters to increase the shelf life of mangoes thereby reducing the overall post-harvest losses.

The experts of MRS developed the SOPs for different export varieties of mango to be processed through the small scale HWT unit. The MRS experts also monitored the use of SSHWT unit installed at the selected farm clusters that received TRTA II support.

Mango Growers Consortium

The programme facilitated the establishment of a consortium of four progressive growers of Mangoes from Multan. Mango Growers Consortium started exports to ASDA/Walmart, UK and ECONSAVE, Malaysia.

In order to avoid potential loss and keep our environment unpolluted, management of fruit fly through integrated biological control is most appropriate. TRTA II supported MRS to implement the biological control of fruit fly at the selected farm clusters. The complete process includes Orchard Sanitation, Male Traps and Female Traps. This activity also provided the growers sufficient technical training to control the fruit fly in future. Now the farmers are effectively controlling the fruit fly, using the biological control.

Extension Of Subcontracts Of CRI And MRS

Terms of Reference for the extension of subcontracts of Mango Research Station (MRS) and Citrus Research Institute (CRI) were prepared and shared with the institutions. MRS and CRI have submitted the proposal for the extension of the subcontracts. CRI and MRS signed the subcontracts in July 2015 and started the process of selection of Master Trainers (Agriculture extension officers trained as master trainers by the TRTA II programme) and the farm clusters for the conduct of FFS.

The Director, Fruit and Vegetable Development Project, Agriculture Department, Government of The Punjab, organized a meeting. Representatives of TRTA II programme, CRI and MRS participated in the meeting. The Director discussed and finalized the modalities of the FFSs. The Master Trainers selected for the conduct of FFSs in the new farm clusters were also directed by the Agriculture Department to start the conduct of FFSs. It was also agreed that the researchers of CRI and MRs should monitor the conduct of FFSs.

The research institutions (CRI and MRS) will themselves monitor the conduct of FFSs in the newly selected farm clusters. This activity has developed a good relationship between the research and extension that shall ensure the regular transmission of knowledge from researchers to the extension officers ensuring that farmers benefit from the research. List of Master Trainers and the farm cluster selected in the extension phase in Kinnow and mango sectors is in Annex 2.21 and 2.22.

Training Of Master Trainers

In order to further disseminate the CoPs beyond the 100 already assisted farms, TRTA II programme organized the training of Master Trainers. TRTA II experts along with the officers from Research Directorate of Agricultural Dept. of Govt. of The Punjab [who developed the CoPs]conducted the training programs.

The officers of the Directorate of Extension, Pest Warning and Quality Control of Pesticides and In- service Agriculture Training Institute of the Agriculture Department of the Government of The Punjab and Pakistan Horticulture Development and Export Company (PHDEC) were trained as Master Trainers.

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The CoP manuals were written for trainers in governmental and non-governmental developmental organizations who were preparing their staff to work together with farmers for the development of technologies appropriate to ecological agriculture and using few external inputs. The training programs were conceived and designed to stimulate active learning by participants who drew from their own experience an approach which mirrors the type of interaction between facilitator and farmers.

The training participants were given detailed presentations on each and every aspect of mango and Kinnow farming and processing. A field trip was organized to Multan and another one to Sargodha for the practical hands-on training at the farms and the pack houses.

The Chief Executive Officer of PHDEC participated in the opening ceremony and the Director General Research of the Agriculture Department of the Government of The Punjab participated in the closing ceremony and also distributed the certificates to the participants.

19 participants attended the training program on mango CoPs included the Agriculture Extension officers from major mango growing areas such as Rahim Yar Khan, Vehari, Khanewal, Muzaffargarh, Lodhran and Multan. Officers of the In-Service Agriculture Training Institute, Regional Agricultural Economic Development Centre (RAEDC) of the Agriculture Department of Government of The Punjab and PHDEC also attended the training. Details of Master Trainers trained in Kinnow and mango sectors are given in Annex 2.11.

24 participants attended the training on Kinnow CoPs included the Agriculture officers from major Kinnow growing areas such as Toba Tek Singh and Sahiwal. Officers of the In-Service Agriculture Training Institute and Horticulture Research Institute of the Agriculture Department of Government of The Punjab and PHDEC also attended the training.

Trade Development Authority of Pakistan organized a seminar for Kinnow Promotion in Sargodha. TRTA II National Expert participated in the seminar and presented all the TRTA II activities in the horticulture sector.

Training Of Master Trainers In Collaboration With ASF

In July 2015, TRTA II signed an MoU with ASF, which is also working on the improvement of Kinnow sector in Pakistan, to avoid duplication of work, collaborate and make joint efforts for the development of Kinnow Sector. Recognizing the importance of the CoPs developed by the TRTA II programme, it was agreed that both the programs should collaborate for the dissemination of CoPs in the Kinnow Sector and for the promotion of Pakistani Kinnow in high-end markets.

As a result of the signed MoU, TRTA II, in collaboration with ASF, conducted the Training of Master Trainers in Faisalabad. 35 participants were trained as Master Trainers. The training participants included officers from the directorate of Agriculture Extension, Agriculture Marketing of the Government of The Punjab, Kinnow farmers, processors/exporters, intermediaries and research scholars from the University of Agriculture Faisalabad.

The TRTA II and the CRI researchers conducted the training. Mr Altaf-ur-Rehman Khan, Director, Citrus Research Institute, participated in the opening session and Mr Bruno Valanzuolo, Chief Technical Advisor of the TRTA II programme, participated in the closing session and distributed certificates amongst the participants. The training participants were given detailed presentations on all aspects of Kinnow farming, processing and export. In addition, the Critical Control Points (CCPs) of the entire Kinnow supply chain were discussed in detail. The training participants appreciated the TRTA II programme’s initiative to identify the CCPs and the development of guidelines to address the CCPs.

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A field trip to Sargodha was organized on the last day of training for a practical hands-on training at a Kinnow farm and the pack-house. At the pack-house, the participants were briefed on the Kinnow harvest and processing for export purposes. At the farm, different farm practices were demonstrated to the participants. The participants showed a keen interest in Furrow Irrigation System developed by the researchers of CRI. The Kinnow farmers of Sargodha face shortage of irrigation water, particularly in the summers. The scientists of CRI demonstrated to them that the Furrow Irrigation System saves at least 40% water and contributes to keep the plants healthy. All the farmers agreed to develop furrow irrigation system at their farms. Details of Master Trainers trained in collaboration with ASF are given in Annex 2.12.

RESULT AREA 2.2.5: IMPROVING CONSULTANCY SERVICES AND CERTIFICATION OF ENTERPRISES

To address Non-Tariff Barriers (NTBs) as well as to focus on addresses access to high end markets and to make the pro-poor industrial sectors conform to market requirements and their products complaint to quality standards, to enhance export trade, generate growth and increase employment, the TRTA II Programme initiated activities that would focus on certification of enterprises to market driven requirements. One such certification requirement was the achievement of CE marking for specific products to allow access to the EU market.

The Programme identified two sectors: electric fans and protective clothing (gloves and motorcycle boots), as having the export potential to access EU markets. However, these products require that the manufacturer obtains and uses the “CE” regulatory conformity marking.

The objectives of the CE marking initiative were as follows:

- To design, test, validate and publish two CE marking procedures (one each for electric appliances and protective clothing), - To validate the procedures by assisting some Pakistani manufacturers to obtain CE marking, - To train and qualify Master Trainers for electric appliances and protective gears, able to assist other manufacturers to obtain the CE marking, - To make recommendations on infrastructure and other improvements to facilitate CE marking in Pakistan.

Analysis Of Needs And Envisaged Challenges

Three trade associations, relevant for identifying participants for CE Marking certification under the TRTA II programme were contacted. The three trade associations, the Pakistan Electric Fan Manufacturers Association (PEFMA), the Pakistan Gloves Manufacturers and Exporters Association (PGMEA), and the Surgical Instruments Manufacturers Association of Pakistan (SIMAP) were briefed on the TRTA II interventions related to CE marking. This was important to ensure the commitment of manufacturers selected for the programme.

The testing facilities of Electrical laboratory at PCSIR, Lahore and Cleaner Production Centre, Sialkot were identified as having the best facilities to conduct pre-CE marking verification tests of products in Pakistan. Both these laboratories were also accredited to ISO 17025.

Two 2-days training workshops on CE Marking were organized by TRTA II Programme, one for fans and one for gloves and surgical instruments in Gujrat and Sialkot. More than 40 representatives of manufacturers, associations and public institutions attended the workshop.

The manufacturers to be supported under TRTA II programme to obtain the CE marking were selected by established criteria and a questionnaire distributed among the participants. A total of 35 questionnaires, distributed during the seminars, were returned. 26 manufacturers were pre-selected: 8 for fans, 6 for gloves and 12 for surgical instruments. 71

The Programme through protracted negotiations with the pre-selected manufacturers and relevant associations developed the cost-sharing formula where TRTA II would cover the cost of pre-testing and testing abroad by notified body while manufacturers would cover the certification costs. By paying the certification costs, the manufactures guaranteed their interest in the Programme, factually committing themselves in the CE marking certification.

Eventually, 4 fan companies, 5 gloves manufacturers and two boots manufacturers were selected to be supported under the TRTA II programme for CE mark certification based on the cost sharing formula agreed with the concerned associations.

An MoU was signed between the TRTA II Programme and selected manufacturers to ensure the commitment of the manufacturers to participate in programme and share the cost as per the agreed formula.

12 Master trainers in CE Marking were also selected from the participants of the training workshops held in Gujrat and Sialkot. These selected master trainers belong to the associations, public/private institutions such as PSQCA, NPO and PCSIR. These master trainers would be further trained to qualify as bonafied consultants in the area of CE marking.

A plan of action prepared for Master Trainers in CE marking for fans and protective clothing and a set of documentation, standards and trainers pack was prepared and distributed to the 12 selected master trainers.

6 selected manufacturers were provided with technical assistance by TRTA II to develop technical files for their respective products which will then be submitted to the notified body for certification.

20 EN standards were purchased and supplied to the selected manufacturers of electric fans, gloves and boots for their use to develop the technical files for CE marking.

The TRTA II programme contacted 7 potential Notified Bodies for fans and the same for gloves/boots. A number of these did not reply and, consequently, were automatically excluded from consideration. A few others were eliminated for ‘technical’ reasons, e.g. evidence that they had not acted correctly as a Notified Body in the past, doubts about how they ensured their responsibility for the EC type approval certificate, and concerns that their results might not be accepted throughout Europe. From this, one body for fans and one for gloves were initially selected.

Representatives from 28 manufacturers were trained by TRTA II Programme in a half-day seminar on CE marking for glove manufacturer. This was delivered at the specific request of the Pakistan Gloves Manufacturers Association (PGMEA), based on information that the EU is about to become far more rigorous in its application of the Personal Protective Equipment directive, which will lead to many more Pakistani manufacturers needing to obtain the CE marking.

Baseline data for an impact assessment of the programme was established. A questionnaire was prepared to elicit baseline data from manufacturers, which can be used to estimate possible impact. The questionnaire was sent to them once all technical files were completed and manufacturers were asked to sign the MOU.

The steps required for CE marking, namely identification of products for CE marking, verification of manufacturer’s factory production control system, preparation of technical documentation, submission of products to testing, correction of defects, finalization of documentation and ultimately CE marking. Each of these steps was progressively completed over the course of seven missions spanning just over two years, at the end of which 6 manufacturers (24 different product models) achieved the marking.

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Training of Master Trainers continued in parallel, with a series of three 5-day training workshops, the last of which involved homework exercises, assessment and an examination. The initial result was that 02 Master Trainers for electrical equipment and 05 for protective clothing qualified. During the final mission, an additional training workshop was arranged where 07 additional Master Trainers were also qualified, bring the total number to 14 MTs/qualified consultants in CE marking. Details of training are given in Annex 2.9.

The immediate legacy of the project was assured by the publication of two CE marking procedures, and the extension of CE marking to other manufacturers was made possible by the qualification of the Master Trainers. Two CE marking guides were also compiled and printed for electric fans and appliances and protective gloves and leather accessories, respectively. These guides were distributed among the manufacturers of relevant sectors to adopt the step by step approach of CE marking.

Subsequently, the programme developed the CE marking procedures (one for electrical products and the other for protective clothing), validated these procedures by guiding the 6 supported manufacturers to achieve the CE marking, which covered, in total, 28 different models, 17 fan models from the three fan manufacturers and 11 glove models from the three glove manufacturers.

Certified Trainings Of Consultants And Responsible Personnel Of Enterprises Of Selected Sectors

TRTA II programme in collaboration with National Productivity Organization (NPO) carried out a study on ‘Assessment and Analysis of Certification Requirements in Selected Export Sectors of Pakistan’ with an objective to verify the types of certifications required by the industry in Pakistan for compliance with the international standards.

The study was based on a survey of exporting firms of Pakistan from seven selected sectors including processed and raw meat, surgical instruments, textile (readymade garments), leather (garments and accessories), electric fans, cutlery and horticulture (fresh and processed fruit and vegetables).

Based on the results of the survey, the report proposed interventions for each sector in the context of its certification requirements and exports potential. This activity was a pre-requisite for the training of consultants in management systems (quality, social accountability, food safety, Global GAP, BRC) which has been carried out under TRTA II.

TRTA II programme then launched an international tender to conduct an intervention by providing trainings to consultants and others on numerous certification systems based on sector-wise needs, as identified in the study carried out under the programme on “Assessment and Analysis of Certification Requirement in selected export sectors of Pakistan.

Two proposals were received from the renowned certification bodies operating in Pakistan. The technical and financial comparison was prepared and Bureau Veritas Certifications (BVC) was awarded the contract to conduct certified trainings on the selected certified trainings.

Overall 10 courses were selected while the training course on FSSC 22000 LA had been conducted twice as IRCA permits only 10 number of participants per session of the course.

170 personnel from various sectors (public and private) were trained in these 10 certification systems, and 136 (80%) qualified their respective courses by passing the exam on the final day. Most of these course were IRCA registered, others were internationally recognized courses offered by BVC. Details of trainings are given in Annex 2.13.

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A short brief on the selected certified trainings (10) along with number of participants is given as under:

Food Safety System Certification - 22000 Lead Auditing

In the two training courses 20 people participated from public and private organizations. The course duration had been of 5 days with course material consisting of presentations, ISO 22000 standards, exercises and the exam by International Register of Certified Auditor (IRCA).

FSSC 22000 contains a complete certification scheme for Food Safety Systems based on the food safety management standard ISO 22000: 2005 'Requirements for any organization in the food chain' and the publicly available specification for Prerequisite programs on food safety for food manufacturing, BSI PAS 220: 2008 or ISO/TS 22002-1:2009. It is applicable to all organizations in the food chain, regardless of size and complexity, profit-making or not, public or private. The FSSC 22000 certification scheme contains detailed requirements for food safety systems of organizations in the food chain, certification system of certification bodies, and accreditation by the accreditation bodies. ISO 22000 certified manufacturers can obtain FSSC 22000 certification by meeting the requirements of technical specifications for sector PRPs and the additional scheme requirements.

Awareness And Internal Auditing SA-8000 And SA-8000 LA

Awareness and internal auditing SA- 8000 was conducted at Gujrat in collaboration with PEFMA, Pakistan Cutlery Association and PRGMEA Sialkot. 20 people participated in this training course.

SA-8000 LA was conducted in Lahore in collaboration with PRGMEA. The certificate of achievement was awarded by Social Accountability International (SAI) to the successful participants. 16 people participated in this training course.

Social Accountability International (SAI) is a non-governmental, not-for profit organization that promotes the human rights of workers through the implementation of voluntary standards. The SA8000 standard is based on the principles of ILO conventions, the UN Convention on the Rights of the Child, and the Universal Declaration of Human Rights. SA8000 requirements apply universally, regardless of a company's size, its geographic location or industry sector.

Supplier Ethical Data Exchange (SEDEX)

This course was conducted in collaboration with Pakistan Readymade Garments Manufacturers and Exporters Association in Lahore where 25 personnel participated in this training course.

SEDEX is a not for profit membership organization dedicated to driving improvements in ethical and responsible business practices in global supply chains. SEDEX was founded by a group of UK retailers in 2004 with two main goals: to ease the burden on suppliers facing multiple audits, questionnaires and certifications, and to drive improvements in the ethical performance of global supply chains. The four key areas of SEDEX include: 1. Labour Standards 2. Health & Safety 3. The Environment 4. Business Ethics. As the largest collaborative platform for sharing ethical supply chain data, SEDEX is an effective supply chain management solution, helping companies to reduce risk, protect company reputation and improve supply chain practices.

Traceability

18 people from industry, academia and public organizations participated in this training course .

Traceability, under EU law, “traceability” means the ability to track any food, feed, food producing animal or substance that will be used for consumption, through all stages of production, processing and distribution.

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Good Manufacturing Practices (GMP)

29 people from industry, academia and public organizations participated in this training course.

Good manufacturing practices (GMP) are the practices required to conform to the guidelines recommended by agencies that control authorization and licensing for manufacture and sale of food, drug products, and active pharmaceutical products. These guidelines provide minimum requirements that a pharmaceutical or a food product manufacturer must meet to assure that the products are of high quality and do not pose any risk to the consumer or public. Good manufacturing practices, along with good laboratory practices and good clinical practices, are overseen by regulatory agencies in the United States, Canada, Europe, China, in addition to other countries.

ISO 13485 (QMS Medical Devices)

23 people participated in this training course from industry, hospitals, freelance consultants and public organizations. The course was conducted in collaboration with Surgical Instruments Manufacturers Association of Pakistan (SIMAP) at Sialkot.

ISO 13485:2003 specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide medical devices and related services that consistently meet customer requirements and regulatory requirements applicable to medical devices and related services. The primary objective of ISO 13485:2003 is to facilitate harmonized medical device regulatory requirements for quality management systems. As a result, it includes some particular requirements for medical devices and excludes some of the requirements of ISO 9001 that are not appropriate as regulatory requirements.

Global G.A.P

This course is specially designed for the farmers and exporters of horticulture and agriculture products. 20 people participated in this training course from the agri products supply chain.

GLOBAL G.A.P. is a private sector body that sets voluntary standards for the certification of production processes of agricultural (including aquaculture) products around the globe. The GLOBAL G.A.P. Standard is primarily designed to reassure consumers about how food is produced on the farm by minimising detrimental environmental impacts of farming operations, reducing the use of chemical inputs and ensuring a responsible approach to worker health and safety as well as animal welfare.

Internal Auditing British Retail Consortium (BRC) and BRC LA

18 people from industry, academia and public organizations participated in the BRC internal auditing whereas in BRC LA 16 people participated. The certificates of achievements were awarded by BVC for BRC internal auditing and BRC UK of the LA, respectively.

The British Retail Consortium (BRC) is a lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through center of town, out of town, rural and virtual stores. The BRC is the authoritative voice of retail, recognized for its powerful campaigning and influence within government and as a provider of excellent retail information. Personnel: This defines requirements for the training of staff and expectations on protective clothing and personnel hygiene.

RESULT AREA 2.2.6: DEVELOPMENT OF BUSINESS ARRANGEMENTS ALONG THE INTERNATIONAL SUPPLY CHAIN

To ensure the greater buy-in of TRTA II initiatives in addressing quality and compliance requirements along the entire supply (including value addition) it is logical and essential to develop business linkages along the international supply chain for selected sector in order to demonstrate the benefits of meeting market demands through enhanced trade, economic growth and employment generation. This concept was developed through the trade corridor initiative. 75

Meetings with associations of selected sectors were organized to explain the Trade Corridor concept in theory, and the steps that would be taken to implement the concept.

The salient features of the Programme’s trade corridor approach are given below:

A focus group meeting with key stakeholders in the Mango sector was organized in Multan in November 2012 to discuss practical issues with regard to Trade Corridor implementation and to seek information from the stakeholders that would allow the roadmap for the Mango Trade Corridor to be finalized. Total of 25 key stakeholders participated in the focus group meeting and time bound roadmap for mango sectors was finalized

A focus group with key stakeholders in the Kinnow sector was organized in November 2012 to discuss practical issues with regard to Trade Corridor implementation and to seek information that would allow the roadmap for the Kinnow Trade Corridor to be finalized. 36 key stakeholders participated in the focus group meeting and time bound roadmap for kinnow sectors was finalized.

A framework for export development for Kinnow exporters and processors was designed and circulated to potential exporters for customization as per their company’s priority and interests. This framework serves as a fundamental for exporters to develop their respective export development plan.

Initial contacts with the Pakistani trade attaches in Malaysia and Singapore has been developed with the support of PHDEC to develop linkages with the buyers/supermarkets. Trade Attaches are briefed on the TRTA II programme intervention on the subject.

MoU between the TRTA II programme and CBI was signed to utilize the expertise of CBI on marketing and market access for the targeted sector of TRTA II programme.

Exchange programmes of the buyers and seller were organized under the TRTA programme to establish trade links. The study tour of 10 growers, processors and exporters of Kinnow and Mango was organized to provide learning experience of the European markets. The representatives of TDAP, PITAD and PHDEC were also involved throughout the study tour.

The commercial counselors based in the Pakistan Embassy at Netherlands, France and UK were taken on board and invited to participate in the meetings and visits to the buyers and supermarkets organized during the visit by the programme.

TRTA II experts organized 12 meetings with big wholesalers/ retailers/ buyers in The Netherlands, France and UK where the tour participants have presented themselves, their companies and their products to buyers such as Dole in Paris, MWW in London, ASDA /IPL in Leeds. Visits were paid to various supermarkets such as Makro, Hanoos, Tesco, ASDA/Walmart and nationwide food service retailers targeting professional purchasers (companies, hotels, restaurants etc.).

The study Tour participants also visited the Port of Rotterdam on a boat, the Rotterdam Fruit Wharf (where fruits are unloaded form vessels and kept in storage) and visited the largest street market in Holland to see & meet consumers and market merchants. Details of the study tour are given in Annex 2.9.

All 4 companies/buyers in the Netherlands visited during the study tour expressed an interest to investigate possible business opportunities. All buyers in France and UK (Dole, MMW & ASDA) showed a serious interest in mangoes and in exploring opportunities to work together.

The negotiation between the ASDA and identified exporter of mangoes was facilitated by TRTA experts and finalized for plan of shipments during the season 2013.

The detailed roadmap for trial shipments of Mango to ASDA/IPL were developed and the implementation on detailed roadmap for trial shipments of Mango to ASDA/IPL was initiated.

76 TRTA II Programme also assessed the capabilities of the selected exporters for the supply of Mangoes to ASDA. Based on this assessment of processors/expoters two groups of exporters were identified and recommended to ASDA for commercial shipments.

14 mango shipments were sent directly to the supermarkets. 05 shipments of mangoes (Sindhri) were prepared under the supervision of TRTA II Programme and sent directly to ASDA by the commercial exporter from Karachi, 08 commercial shipments of the mangoes have been sent to UK by the Mango Growers Consortium.

The visit of 2 buyers/importers representing the supermarket of Malaysia (ECONOSAVE) was organized by TRTA II programme to the Kinnow, mango and potato clusters in Pakistan. The buyers/importers visited the production areas and processing facilities.

TRTA II programme organized individual meetings of Malaysian buyers with Pakistani exporters of fruit and vegetables in Sargodha, Multan, Lahore and Chinot. And carried out the assessment of supplier of fruits and vegetables from Pakistan together with Malaysian Buyers.

The Malaysian buyers placed the orders for the supply of mangoes and two shipments of mangoes were sent to Malaysian Super Market (ECONSAVE) directly by the TRTA II facilitated Mango Growers consortium.

The TRTA II international experts facilitated exporters and growers to introduce and market Pakistani Kinnow and mango to European buyers and importers at the Fruit Logistica 2014 in Berlin. The Berlin Fruit Logistica is the most comprehensive trade exhibition for the international fresh produce sector. The producers, exporters and buyers from all over the world annually utilize the platform of the Fruit Logistica to introduce their products and services.

The exhibition provided a unique opportunity for direct, innovative presentation and sale of their fruit to a wide spectrum of international buyers, traders and importers. 8 Pakistani Exporters, processors and progressive farmers of Kinnow & mango, with the facilitation of TRTA II international experts and programme officer, professionally presented themselves and their products at Fruit Logistica.

An attractive booth was designed and set up at the Fruit Logistica, keeping in view the taste and characteristics of the EU consumer. TRTA in collaboration with CBI had two booth locations at the Fair.

By virtue of this international platform, Pakistani producers showcased their strengths as reliable and innovative traders, with organized support from TRTA II in the fruit industry. The high turnover of business operators/buyers visiting to the TRTA booths at two locations showed their keen interest in Pakistani Kinnow and mango through interactive discussions and meetings with Pakistani delegation.

A series of briefings were conducted by TRTA II, giving specific role and duties for each participants on how to manage the two booths in the fair. TRTA II also presented a lecture on the fair presentations and negotiations with the potential buyer/visitors in Eastern Europe.

TRTA II also made a separate presentation to the participants on the German retail business and the techniques of approaching the German import buyers.

At the final briefing a priority list for potential mango and Kinnow buyers was drawn and future plan of actions based on the connections made during the fair was developed. In order to further exploit the trade gains, participants were advised to operate as a consortium with one representative as a front man who could make direct contact with a potential buyer. At the back end other producers with similar quality standards, agreed price and traceability standards would operate in an organized manner. This would limit competition in the sector and allow potential clients to carry out direct deals with the individual exporter. Participants agreed to share business contacts and maintain cooperation. Details are given in Annex 2.8.

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The ASDA/Walmart of UK invited the Chairman Mango Grower Consortium and TRTA II for the annual planning meeting for the supply of mangoes for the year 2014. The meeting took place in the office of International Produce Limited (IPL) which is a subsidiary of the UK-based supermarket chain ASDA/Walmart. The meeting was attended by the Dean Hayden, Senior Buyer and Pete Doughty, Technical Manager from the side of the IPL. Details are given in Annex 2.8.

Subsequently, in 2013, TRTA II supported consortium and exporters shipped 70 tons and a target of 150 tons was envisioned for upcoming season 2014. The IPL and Mango Grower Consortium agreed that the mango season for supply to ASDA would include four months (June, July, August and September) instead of closing the supply by August. All aromatic varieties will be included for supply such as Sindhry, Dusari, SB Chaunsa, White Chaunsa and Fajri. It was also informed by Dean that this year IPL will increase the number of stores from 32 to 78 or even more for the sale of Pakistani mango.

During the study tour the chairman Mango Growers Consortium and programme officer were provided with an exposure to operations of the fruit terminal at the Heathrow Airport. The official of the Food and Environment Research Agency FERA, which is the designated inspection agency for DEFRA UK, explained the procedures involved in the handling of fruit cargo at the airport starting from the point of arrival of the shipments where it is examined by the FERA inspectors for pest infestation, before clearing the shipment for release to the warehouse of the importer. The FERA officials gave the presentation on the quality control operations and inspections of all the shipments at the different ports of UK. It was informed that last year more than 100 shipments of Mango from Pakistan were intercepted because of Fruit Fly.

TRTA II programme facilitated the negotiations between the ASDA and Mango Growers consortium and as a result ASDA placed the order of 150,000 boxes of Mangoes to be supplied during season 2014 (June-Sept 2014).

However, these supplies could not materialize due to stringent measures imposed by the Government of Pakistan on the exports of Mangoes to EU following the warnings issued by DG SANCO related to fruit Fly Infestations.

Three Consignments Of White Chaunsa Mango’s Variety Were Sent To China

Development of codes of practices aimed to improve fruit quality so that it attains maximum shelf life and reaches at the export destination with minimum losses. In this regard two consignments of white Chaunsa were sent to China. This was done in collaboration with ASLP. The fruit (mango) was sourced from the farm clusters receiving TRTA II support, processed at the HORTIFRESH pack house facility established by PHDEC through public-private intervention.

The Promotional Campaign For Kinnow Mandarins In Malaysia And Singapore

The Programme together with TDAP developed a strategy which included the following:

• Presenting the Kinnow to the Malaysian and Singaporean consumers in an elevated status of quality and packaging design. • Capturing the consumers' fascination of the Colors of Pakistan, remove the negative notions of the consumers towards the country and the business ethics. Set up the Pakistan Pavilion in the center court of a large shopping mall in Kuala Lumpur and Singapore depicting Pakistan farmers’ activities, potentials of food and fiber production and images of life in the country in lively colors and displays. • Placing the Kinnow in line of the competition with the Chinese Mandarin for the major consumption during Chinese New Year in South East Asia. This will be done with new designs of packaging boxes of Kinnow depicting the RED color and of classic Chinese designs.

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• Introducing the Kinnow as a juiceable mandarin. To demonstrate the attributes of the Kinnow, for its deep color galore and the higher sugar-acid ratio that appeals to the consumers of this region. Set up booth inside the supermarket offering free freshly squeezed Kinnow juice sample to customers.. • Introducing the One Box Design for the Pakistan Kinnow Export Promotion exercise into Malaysia and Singapore. This is to create control how and what the selected exporters ship to these 2 countries. The One Box depicts a one brand in this exercise.

These initiatives were co-funded by TDAP.

TRTA II Programme also briefed the Pakistan Fruits and Vegetable Association (PFVA) on the joint initiative of TDAP and TRTA Programme for the promotional activities concerning Pakistani Kinnow. The Association appreciated TRTA initiative and assured its full cooperation.

The Kinnow was promoted in Malaysia and Singapore, as the alternative Mandarin by the Trade Development Authority of Pakistan [TDAP] in collaboration with the TRTA II Programme. Packed in a specifically designed box reflecting the spirit of the festivities, the Kinnow mandarins are being marketed in some of the main supermarkets in these two countries.

A Pakistani Pavilion was also setup in the Giza shopping mall in Kuala Lumpur with backdrops depicting the Kinnow Mandarin and the Colours of Pakistan, to introduce Kinnow/Mandarins and offer free sampling of the juice from this mandarin to the visitors.

In addition a number of in-store Kinnow juice promotions were undertaken from 7 February, 2015 in four supermarkets for two weeks. The marketing campaign was formally launched by the High Commissioner of Pakistan in Malaysia. Customers witnessed the fresh Kinnow Juice being squeezed out and were impressed by the strong orange colour and the unique sweet refreshing taste which differentiates Kinnow from other varieties of the citrus family.

While the Kinnow had been introduced in the emerging South East Asian whole sale markets for a number of years, it was not available for sale in the mainstream supermarkets.

The TDAP/TRTA Kinnow Promotion Campaign in Malaysia and Singapore aimed at raising the level of engagement of the Kinnow with the established retail chains. The strategic approach was to create the brand of Kinnow to the consumers, driving the recognition of the Kinnow through its juicing quality attributes. This was done through capturing the customers of the major shopping centers by offering free Kinnow juice sample and side by side selling the boxes of Kinnow in the adjoining supermarkets.

The marketing campaign in the supermarket chains has resulted in direct deliveries of Kinnow to the renowned supermarket chains of Aeon-Big, Giant, Jaya Grocer, Village Grocer, ECONSAVE that have not previously been stocking the Kinnow in their stores.

Realizing the effectiveness and results of the on-going promotion, other Supermarkets approached the high commission in Malaysia to participate in the campaign and wished to stock up the Kinnow boxes in their stores.

Despite the fact that the official Kinnow Promotion Campaign was planned initially for 3 days in Malaysia, the retailers extended the promotion campaign in their respective supermarkets for the period of 2 weeks at their own expense.

The promotional campaign in Singapore with similar initiatives started on 11 February 2015 in well- established and popular shopping Mall known as Mustafa Centre. The campaign was launched with the visit of the High Commissioner of Pakistan in Singapore.

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The promotion and in-store juice sampling with another supermarket (Sheng Siong) in Singapore started on 5th March 2015 for 3 days to target the customers on Chinese’s Valentine’s Day. Details are given in Annex 2.9.

EXPO Pakistan 2015

On the recommendation of the TRTA II programme, TDAP sponsored the visit of buyers from Malaysia and Singapore to Pakistan. The Directors of Rush Group and MBG, and 3 members from Mydin Supermarket travelled from Kuala Lumpur to Karachi to attend the EXPO Pakistan 2015. These buyers met with other Kinnow and mango exporters at the EXPO. Representatives of Mydin and MBG conducted discussion with mango suppliers to ship Mango into Malaysia this season.

Buyer’s Visit To Kinnow And Mango Pack Houses In Sargodha And Multan

TRTA II programme facilitated the visit of the Director of Rush Group, Mr. Chris Lioe to the pack house of Al Rafique in Sargodha and the Zarpak Mango consortium in Multan.

In Sargodha, Chris witnessed the processing, packing and loading of Kinnow boxes into the containers. The issues of quality problems of some container arrivals were raised in the meetings. The observations of the quality arrivals in Kuala Lumpur and the in the pack house were discussed and advised Al Rafique on the corrections they need to make in the monitoring and the post-harvest handling procedure.

Rush group and Al Rafique discussed how to improve the current Box in the printing design and to make the box stronger to withstand the weight during stacking. Discussion were also carried out to make plans for next year’s Kinnow season for greater volumes and how to improve the delivery logistics.

In Multan, Rush Group and the Zarpak Mango consortium discussed the options to ship mangoes to Malaysia. They negotiated on the payment terms, packing weights and the box sizes. There was agreement between the parties that they will undertake the deliveries through Rush.

A PMO was developed and executed, together with TDAP, for the mango Promotion campaign for Malaysia and Singapore. The objective was to formulate a branding strategy for Pakistani mango promotion and the activities associated with this objective. The theme for the promotion was agreed as positioning the mango in the supermarket stores as a premium product and further activities were planned to support this theme.

TDAP Advertisement Of The Mango Promotion For Pakistan Media

TDAP announced the mango promotion campaign for Malaysia and Singapore to the Pakistani stakeholders by putting an advertisement in the local media. The artwork for the advertisement was prepared by the TRTA programme. The advertisement drew greater participation from the exporters and gained more support from the local growers for the promotional campaign.

The strategic approach of the Promotion Model was implemented with the following plans:

1. To encourage the participation of all the major supermarket chains in Malaysia. This move was planned to take the Pakistan Mango to a wider scope of retail markets (besides the wholesale market and the South Asian ethnic community) and a deeper level of consumers (high-end retail stores and local supermarket stores in the cities besides Kuala Lumpur).

The mid-range (customer income) supermarket chains included, Giant, TESCO, NSK, ECONSAVE, Mydin, Sunshine (Penang) and Sheng Siong (Singapore). The high-end chain stores were Cold Storage (Malaysia and Singapore), AEON, SAM’s Groceria, Village Grocer, MBG, Isetan and Max Value.

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These stores were approached for the promotion campaign since the start of April 2015. Some of the communications with the supermarkets occured through the International Expert, while others were made through the Malaysian importers.

2. Raise knowledge, information and awareness of the Pakistani mango to the consumers.

Trends in the fruit and vegetable sector are often initiated at the supermarket stores. The middle income supermarket customers in Malaysia and Singapore are discerning and well-informed. With their high articulation with social media and accessibility to their smartphones, these customers appreciate the product better when they can connect the information offered to them at the point-of-sale against an exotic display / presentation in the supermarket stores. The mango product is a well-liked fruit with these customers. But this promotion campaign was to convince the customers that the Pakistan mango stands above all other mangoes. The print materials for the promotion displays were designed with these captions in mind. This advertising material ran in tandem with the product because the Pakistani Mango does have a stronger fragrance/aroma than most other mangoes produced in the South East Asian countries. iii. Build the Brand of the Pakistan mango for the Malaysia and Singapore customers

The customers must believe that they are getting their money’s worth from the purchase of the Pakistan Mango. This has allowed the Mango exporters from Pakistan to create a market niche in SEA, through accessing the market during the period when the shelves in these supermarkets are void of mangoes.

• Design of the Booth Stand and Print Materials for Sampling

Specifically designed Booth Stands were prepared and a station was created in the supermarket store to attract the customers towards Pakistani mango as they enter the Fruits and Vegetable (F&V) section. The Booth Stand was conceived to be an independent unit where customers can see the fruits displayed, read the print messages from the booth stand itself with leaflets describing the special features of the mango, how to select and how to keep the fruit at home for best eating quality.

During the weekends the promoters were also deputed at the flagship stores along with a sampling station where mango fruit sampling was provided to customers. Besides offering fruit sampling, the promoters also provided further information and answered questions from customers. TRTA II programme organized and conducted briefings to the promoters on the technical aspects of the fruit and the post-harvest handling features that they can provide correct information to the customers.

• Launching of mango promotion campaign in Kuala Lumpur and Penang

The Pakistan High Commission in Kuala Lumpur took the launch of the campaign further to promote the Pakistan mango to the diplomatic circles and the local media. Two launch events were conducted, one in the supermarket of Village Grocer in Giza Mall, Kuala Lumpur. This mall is located in the high- end commercial/residential area of Damansara in the city.

A similar launch event took place in the Sunshine Supermarket in Penang. The Honorary Consul of Pakistan who resides in Penang, lent great support in bringing the dignitaries to the event, and this has helped pull in the local media to cover the event as well.

12 supermarkets in Malaysia and 2 supermarkets in Singapore participated in the promotion campaign for six weeks. The supply of mangoes for sampling and the promotion with promoters was fully funded by the commercial stakeholder.

Pakistani Exporters through the Rush Group and Chop Tong Guan (CTG) made direct deliveries of mangoes to the renowned supermarket chains of AEON, TESCO, ECONSAVE, NSK, Mydin, Giant,

81 SAM’s Groceria, Village Grocer, MBG, ISETAN, Max Value, Sunshine in Malaysia, that have sold the Pakistani mangoes in their stores.

Similarly, the mangoes were supplied to Sheng Siong and Cold Storage Supermarkets in Singapore in specially designed boxes.

CTG bought about 15 tonnes of Chaunsa for the promotion participation. CTG also bought about 20 tonnes of Sindhri and Bagan Pali. The promotional material was then distributed to the stores to buff up the promotion display in TESCO, Max Value, Sunshine, Mydin and Cold Storage.

Similarly, Rush Group bought a total of almost 10 tonnes of Pakistan Mango. These were supplied to AEON, Village Grocer, Isetan, Mydin, SAM Groceria and Urban Fresh.

2.11.3 COMPONENT 2.3: IMPROVED CONFORMITY ASSESSMENT INFRASTRUCTURE AND SERVICES

The Programme fielded 6 different international experts during the project period to address the various aspects of conformity assessment and quality infrastructure development (details of the expert missions are given in Annex 2.14).

The Preparation Of National Quality Policy Under The Aegis Of Ministry Of Science And Technology

One International Expert in Quality Infrastructure and three National Experts in Vietnam, Malaysia and Turkey were fielded to undertake a comparative study on Quality Infrastructures (QI) in different countries. The study offered the basis for a productive discussion at Policy makers’ level on developing a National Quality Policy for Pakistan (Details of the experts fielded for the comparative study on Quality Infrastructures (QI) in different countries is given in Annex 2.19).

The National Quality Forum (NQF) was held in Islamabad. It was organized as a whole day affair and was attended by approximately 60 representatives mostly from government, a small number of private sector representatives attended as well as a small number from academia and civil society. The Forum was led by MoST, but key senior officials from MNFS&R and MoC also attended. At the closing session, co-chaired by Secretaries from MoST & MoC, the NQF recommended that Pakistan must develop a new National Quality Policy, taking into consideration the previous Quality Policy (2005). It was decided that although the Ministry of Science and Technology is the current line Ministry of the three fundamental NQI institutions, namely PSQCA, PNAC and NPSL, the Ministry of Commerce has a major interest in the proper implementation of a future NQP. Hence, MoST should take the issue to Cabinet and get higher political approval for the development of the NQP and a clear indication of the lead Ministry in this endeavor.

The Preparation Of National Quality Policy Under The Aegis Of Ministry Of Science And Technology

Details of activities undertaken with reference to NQP are given below:

Working Group

MoST established a small Working Group to draft the text for National Quality Policy under the guidance of TRTA II International Expert and provided the names and contact details of the nominated members of the working group. The working group met quite a few times and later also opened as a virtual working group and communicate directly electronically to speed up the development process.

First Draft Of NQP

The Ministry of Science and Technology in cooperation with the TRTA II programme arranged a workshop to garner the first detailed input for the development of draft text for the 1st working paper of the NQP.

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TRTA II Expert developed a draft content list for the NQP based on international good practice and knowledge of Pakistan together with a short paragraph on the rationale for each article/sub-article. The draft content list was finalized in consultation with the members of the working group.

Thereafter the TRTA II developed the first working draft of the National Quality Policy and it was circulated within MoST and members of the working group for review and comments in November 2013.

The 2nd Working Draft of the NQP was developed and circulated to more than 80 stakeholders by MoST. The NQP Working Group established by MoST met under the Chairmanship of the Joint Technical Advisor, MoST and various comments from stakeholders were considered. A number of relevant comments were incorporated in the document, the list of regulatory authorities was completed, the vision was drafted and the document was completed as far as it was possible. This completed 2nd Working Draft was presented to the 2nd National Quality Forum.

The 1st Working Draft Implementation Plan developed by the TRTA expert based on the 2nd Working Draft of the NQP. The 1st Working Draft was discussed in the Working Group, and its modalities were presented in detail. The Policy Objectives and Measures taken from the NQP were further developed with activities, outcomes, timelines, budget and responsible implementation agency. The Working Group was requested to carefully consider all of these and provide recommendations as to whether the Activities and Outcomes are complete with regard to the Policy objectives and measures, the timeline reasonable (even if tight) and to develop the initial budget figures. MoST and the Working Group members agreed to this.

TRTA II held advocacy meetings on NQP with private and provincial stakeholders in Karachi and Lahore. Meetings with selected industrial companies in Karachi and Lahore revealed that they were really worried that the devolution of regulatory powers to the provinces would result in major barriers to inter-provincial trade if not handled correctly. Both Unilever and Nestlé top management were comfortable with the notion that technical regulations should be developed and promulgated at federal level, but that the implementation thereof could be conducted either at federal level (e.g. import inspection) or at the provincial level (e.g. food safety issues). Both however, indicated that it will be a major undertaking to convince provincial authorities that this would be in the interest of Pakistan as a whole. They also recommended that TRTA II solicit the support of the Pakistan Business Council (PBC) in the process, as it represents a number of the major businesses in Pakistan, whereas the FPCCI represents mostly the SME sector.

The meetings with provincial authorities were useful, and it was telling that the notion of a national NQP was welcomed. The re-organization of PSQCA, PNAC and NPSL as pinnacle NQI organizations of Pakistan with specific service provision mandates was welcomed. The notion that technical regulation should be developed and promulgated at the federal level was well understood but only cautiously supported. The notion that implementation of technical regulation should not be undertaken by the pinnacle NQI organizations and that it could be undertaken at the provincial level, was enthusiastically supported.

Roadmap For The Development Of NQP

A detailed roadmap for the development of the NQP was formulated which included a series of focus group meetings in Karachi, Lahore and Islamabad to obtain the input of the provincial authorities and the private sector prior to finalizing the NQP and presented at the 2nd National Quality Forum. The salient features of the roadmap included the following:

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NQP Workshops With Provincial Regulators On Technical Regulation Framework In Karachi And Lahore

The workshop was held in Karachi arranged by MoST through PSQCA with the technical support from the TRTA II Programme. Around 30 representatives from various regulatory authorities in the Sindh and Baluchistan provinces attended. Similarly, the second workshop was held in PCSIR Laboratories Complex in Lahore. Approximately 40 representatives from various regulatory authorities in the Punjab and KPK provinces attended as did a fair contingent of PCSIR. TRTA II Programme delivered presentations with the options on the harmonization of the Technical Regulation Framework (TRF) n the country. Thereafter inputs were sought from the provincial regulatory authority participants regarding their needs through facilitated dialogue.

Focus Group Workshops With The Private Sector Regarding The NQI And TRF In Karachi And Lahore

The Focus Group meeting was arranged by MoST through PSQCA. Approximately 70 representatives from various private sector companies attended the workshop. The second focus group meeting was held in PCSIR Laboratories Complex in Lahore, organized by MOST. Approximately 100 representatives from private sector attended the workshop. The TRTA II Programme presented information on the NQP that is under development, and invited participants from the private sector to talk about their needs during a facilitated dialogue session. The insights gained, the needs expressed and the criticism of the current service delivery of the NQI were all collated for use in the development of the new NQP.

Two Focus Group meetings were organized by PMO in Karachi and Lahore with important stakeholder groups that would play an important role in the proposed National Quality Forum deliberations to develop a National Quality Policy. The Focus Group meetings took place in Karachi and Lahore respectively. 35 participants representing public and private organization participated in the focus group meetings held in Karachi and Lahore.

3 to4 working groups were established to discuss the new NQP in detail. Specific areas on the NQI (Standards, metrology, accreditation and conformity assessment), Technical Regulation Regime, Funding, and Implementation and Monitoring mechanisms were also discussed and based on the technical inputs form all stakeholders, the NQP and associated TRF was finalized.

A 2nd National Quality Forum (NQF) was organized by Ministry of Science and Technology with the support of TRTA Programme in Islamabad

The 2nd National Quality Forum was organized to serve as a validation workshop for the final draft National Quality Policy (NQP) and the Technical Regulation Framework. More than 120 persons from the public and private sector participated. The key message from this NQF was that Pakistan has successfully negotiated the GSP+ status with the European Union, but that this will not be of any benefit to Pakistani exports unless the products offered meet high level market standards and technical regulations in the sophisticated EU markets. The development and especially the implementation of the National Quality Policy (NQP) would be the catalyst to facilitate the enhancement of the quality of Pakistani products.

The contents of the 2nd Working Draft of the National Quality Policy were presented in the technical session, and participants were invited to make comments, and offer recommendation to finalize the drafting of the NQP. The presentation was well received. The discussion session was lively, and quite a bit of support was expressed for the implementation of the NQP. No fundamental issues were raised as regards the 2nd Working Draft that would need attention. Recommendations included; giving a role to the Education Authorities for the training and development of scarce human resources required for the

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implementation of the NQP; more prominence and; stressing the coordination of regulatory and federal authorities within the parameters of the 18th Amendment to the Constitution. The issue of food safety and its interface with the NQP also led to much discussion. Food security and safety is the subject of a Food Safety Bill, which has now been approved by the Prime Minister and readied for Parliamentary debate and enactment, and it envisages federal regulation and provincial implementation, the same fundamental proposed by the NQP for technical regulations. All SPS, food safety, regulations will be the mandate of this new authority established under the food safety bill (NAPHIS Bill).

The text of the draft National Quality Policy and Technical Regulations Framework, along with the implementation mechanism and associated budget, was finalized by the Working Group in considering some further comments from important stakeholders such as the Pakistan Business Council.

This document was approved by MoST and presented to the Prime Minister’s Cabinet for consideration, approval and implementation.

RESULT AREA 2.3.1: IMPROVING AND STREAMLINE STANDARDIZATION AND TECHNICAL REGULATIONS PRACTICES

Secretary MOST has been briefed on the issues concerning the operationalization of TBT National Enquiry Point (NEP) at PSQCA as one stop shop for information related to TBT/WTO regulations from exporters, importers and producers.

Joint meeting of the Joint Technological Advisor, MoST and PMO staff was held with Director General of PSQCA and his team on the operationalization of NEP and agreed that NEP will shifted to the new premises of PSQCA and housed together with the standardization wing for its smooth operations.

The PSQCA agreed/committed to complete the shifting of NEP and installation of necessary equipment and LAN in order to operationalize the NEP.

Technical discussions were held with PSQCA officials regarding the proposed Bill of NAPHIS and its implications on the role of PSQCA in relation to food safety control measures.

In view of the technical inputs provided by the TRTA II Programme, a brief on mandatory certification of food and feed items by PSQCA including the recommendations on the way forward was developed. The brief was presented to the Secretary and concerned officials of the Ministry of Science and Technology (MoST). A presentation covering the brief was given by the CTA in a meeting with the Secretary and officials of MoST as well as senior officials of PSQCA, PCSIR and PNAC. The need to separate PSQCA functions with regard to voluntary standards and technical regulations as well as certification, and enforcement of standards was discussed.

A series of 3 one-day consultative workshops were organized in Islamabad, Lahore and Karachi by TRTA II Programme in collaboration with PSQCA. The Consultative Workshops provided participants with an insight into the principles of establishing consensus-based voluntary standards and mandatory technical regulations in line with internationally accepted practices. The Workshops discussed current practices of standardization, setting technical regulations and conformity assessment procedures in Pakistan and how to align those practices with accepted international ones.

To sum up the results of the three consultative workshops, a National Conference was held in Islamabad. At the National Conference the TRTA II Programme presented the recommendations on standards, technical regulations and conformity assessment based on the consultative workshops held in Islamabad, Lahore and Karachi. The presentations were followed by discussions which resulted in the adoption of a set of recommendations of the National Conference.

Following the events of the National Conference, the TRTA II Programme conducted a two day training programme for the staff of PSQCA on setting national strategies and assessing priorities for standardization at PSQCA premises in Karachi.

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The TRTA II Programme also provided advice and training to staff members of PSQCA associated with TBT/WTO National Enquiry Point established with support of TRTA I programme during 2006- 07. Specific tasks were assigned to the PSQCA staff to operationalize the National Enquiry Point (NEP). Action plan was developed in consultation with PSQCA staff to operationalize the NEP. The Director General of PSQCA approved the action plan and assured his full cooperation and support in the implementation of the action plan.

In connection to the operationalization of National Enquiry Point (NEP) TRTA II provided support to PSQCA in the establishment of TBT/National Coordination Committee and Terms of Reference were developed elaborating the role and functions of the said committee.

The First TBT/National Coordination Committee (NCC) meeting was held in PSQCA on 19 December 2012. 23 participants from all the agencies responsible for development of regulations in Pakistan attended the meeting with overwhelming participation from Balochistan. The committee decided that all participants from provinces will share their existing and recently proposed regulations with National Enquiry Point so as to harmonize the regulations and avoid duplication of work and address contradictions, if any.

PSQCA staff, MOST representative and TRTA II Programme officer jointly reviewed the progress of the action plan concerning the operationalization of NEP following which a detailed report was developed by PSQCA along with the documentary evidence.

• NEP at PSQCA shifted to the SDC in the new PSQCA premises and LAN network installed • NEP now better able to coordinate with SDC in dissemination and receipt of international Standards and TBT requirements • NEP staff to be trained through Study tour • CLO yet to be re-established

The Re-Engineering Of The PSQCA (followed from the agreed NQP measures)

The main challenge was to deal with the conflict of interest between PSQCA as the national standards body providing conformity assessment services and its responsibilities as a regulator. A small working group supported the International Expert in developing the necessary understanding of the business of PSQCA and acted as a catalyst for the development of a proposed new organizational structure with the necessary “firewalls” between regulatory functions and all the other services. This proposal was based on international good practices, sound management principles and the need to give account of the cost and activities of the regulatory function. The proposal was supported by the NQP Working Group. The proposals will be considered by the Management and Board of PSQCA, and ultimately by the Ministry of Science and Technology. Implementation is planned to be effected within three months.

RESULT AREA 2.3.2: TRACEABLE NATIONAL METROLOGY SERVICES

TRTA II supported the metrology laboratory of NPSL to achieve internationally recognized accreditation, continued to be provided during the reporting period. PMO together with NPSL management, assessed the non-conformities (NCs) raised by the external assessors and identified the corrective actions that need to be taken by the mass metrology lab to address the said NCs.

The equipment calibration needs of the mass and temperature metrology laboratories of NPSL were assessed and recommendations made for procurement and calibration of necessary equipment critical to achieve accreditation and traceable measurement.

The TRTA II Programme conducted a detailed mock assessment of the metrology laboratory to ascertain the level of preparedness to achieve accreditation. The expert advised substantive changes in the Quality Manual as well as documentation and procedures of NPSL. Based on these observations, the laboratory is expected to improve its documentation and get prepared for re-assessment by the Accreditation Body. 86

The on-site calibration services of NPSL for balances were assessed by PNAC with aim to accredit this service. Following closure of the non-conformities raised during the assessment, NPSL can now provide credible, international recognized on-site calibration services for the balances at testing laboratories throughout Pakistan.

NPSL signed MRA with BIPM/CIPM through continued support of TRTA II programme.

The 6 metrology labs at NPSL are accredited for their calibration services, both within the premises as well for ‘on-site’ calibration of instruments both in the testing laboratories as well as the industry.

RESULT AREA 2.3.3: INTERNATIONALLY RECOGNIZED NATIONAL ACCREDITATION SERVICES

TRTA II Programme provided technical advice to Pakistan National Accreditation Council (PNAC) with regards to its operations for the accreditation of inspection and certification bodies and to achieve MLA signatory status with PAC/IAF.

TRTA II Programme conducted two one day trainings for the PNAC staff on ISO/IEC 17021 and ISO/IEC 17011standards in Islamabad. 08 high officials including the Deputy Director General and Director General of PNAC were trained on the above standards.

One day training workshop on ISO/IEC 17021:2011 Standards in Karachi for the staff of PNAC, Inspection bodies and certification bodies operating in Pakistan. Twenty-five participants representing 15 certification/inspection bodies and public sector organizations including PSQCA and NPO were trained on the said standard.

Mock audit including thorough review of documentation of PNAC was carried out by the TRTA II international expert in CABs with the objective to identify the GAPs and to propose mitigating measures to address the Non Conformities in order to prepare PNAC prior to the evaluation of IAF/PAC for MLA planned in July 2012.

TRTA II International expert in CABs and Programme officer also witnessed the two assessment conducted by the PNAC assessors in Karachi for the accreditation of Inspection Bodies. The International Expert in CABs guided and provided advice to the PNAC assessors to improve their inspection capabilities especially with regards to the forth coming evaluation by IAF/PAC for MLA.

PNAC maintained its MRA status with APLAC/ILAC for accreditation of testing and calibration services for another 2 years following the successful defence of its case at the APLAC/ILAC meeting in Mexico.

RESULT AREA 2.3.4: SUPPORT TO TESTING LABORATORIES

The TRTA II Programme fielded 03 international experts in the field of laboratory accreditation, development of PT schemes and the development of business plan to make the accredited testing services sustainable over the project period. Some of the salient features of the activities carried out in these areas were as follows:

• The TRTA II Programme visited the 34 identified laboratories (28 testing and 6 metrology laboratories) and assessed the level of preparedness and their commitments to achieve internationally recognized accreditation. The accreditation plan, scope of accreditation and the Memorandum of Understanding (MoU) were signed between the top management of the laboratory and TRTA II programme to ensure the provision of TRTA II technical assistance towards achieving accreditation were elaborated.

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• A series of three 2-day training workshops were conducted in Islamabad, Lahore and Karachi, where relevant staff from the laboratories already accredited under TRTA I (20 labs) and those targeted for accreditation under TRTA II (34 labs) were invited to participate. Participants in Islamabad (28 from 10 laboratories); Lahore (17 from 8 laboratories) and Karachi (22 from 12 laboratories) actively participated in the two-day workshops and presented their initial draft business plans during the course of the training.

• Technical advice was provided for the establishment of National Proficiency Testing (PT) Scheme at the Environment Analysis Laboratory (EAL) housed in NPSL in Islamabad. A technical report was produced on laboratory design, human resource and equipment needs as well as accreditation plan for developing the PT scheme. Action plan for accreditation is given in Annex 2.15.

• The PCSIR lab complex in Lahore was provided with technical advice in developing a common facility/equipment room to maximize the usage of sophisticated equipment and develop a scope of accreditation relevant to food safety and SPS concerns.

• TRTA II Programme conducted two training workshops in Islamabad and Lahore in July addressing the topics related to sampling, proficiency testing, assessment of laboratories, interpretation of test results and culture maintenance. A total of 70 laboratory staff benefited (40 in Islamabad & 30 in Lahore)

• Resource persons for the Assessor Course in ISO 17025 conducted by PNAC, providing key insight to assessment and laboratory auditing.

• Testing and PT (EAL lab at NPSL) laboratories were assessed for the progress towards preparation for accreditation.

• Apart from two institutions and the PT laboratory the progress was satisfactory. The IEs recommended that the programme withdraw its support for the laboratories at the Animal Quarantine Department (Karachi) and Department of Plant Protection (Karachi) as negligible progress had been made over the past 2 years by the laboratory staff in developing their quality and technical manuals, recruitment of staff at DPP, and carrying out the specified activities and renovation work at AQD.

• The PT laboratory setup at the EAL in NPSL has also shown very little progress based on the roadmap of activities proposed by the IE in March 2011. Hence the following recommendations were made to UNIDO and Government of Pakistan by the IE during her mission in January:

- Investigate the issues related to EAL in working towards developing to be a PT provider and if the situation required source an alternate laboratory that could serve as a PT provider.

- PCSIR should cooperate with PMO/TRTA II in establishing PT laboratory in Pakistan by solving any issues hindering EAL in proceeding with establishment of this facility or identify alternate laboratory facilities.

- A separate location to be identified at NPSL to locate the PT laboratory; however the allocated area of two rooms (app. 650 sq ft) is not sufficient for the purpose and the DG-NPSL agreed to allocate more space consisting of five rooms of approximately 1700 sq. ft.

• The Pakistan National Accreditation Council (PNAC) through the support from the TRTA II Programme conducted two ISO 17025 Assessor courses in November and December 2012 to strengthen the by testing and calibration services. 35 participants benefited from this course and 23 successfully completed the course and have been added to PNAC’s list of external assessors.

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• With respect to testing of environmental parameters for the fisheries products as required by the EU, the Programme fielded an International Expert to assess the dioxin, PCB and PAH testing facilities at PCISR Karachi. Based on the recommendations, the PCSIR has now established a state-of-the art Dioxin, PCB, PHA and heavy metal testing facility at Karachi. Now Pakistan can provide internationally recognized testing services in the area of environmental parameters not only for fisheries products, but other food items as well.

• Reviewed the progress of laboratories preparing for accreditation, to provide technical guidance to strengthen their documentation and hands-on practices, and assist in preparatory work for submission of applications.

• Observed the hands-on activities in the testing laboratories and provided guidance to improve on techniques and record keeping and assist in preparation of applications for accreditation.

• Conducted a training workshop on “Basics Concepts and Principles of ISO/IEC 17025 – Laboratory Accreditation” to analysts at PCRWR, NRLPD and PFA.

Review of quality & technical manuals and the record keeping in the laboratories

• Review the progress of testing laboratories and the National PT scheme towards accreditation and assessing the work made ensure sustainability of the accreditation, viability of the testing and PT services through implementation of a business plan and use of marketing strategies and customer relations mechanisms to attract more clients.

• Training the laboratory personnel of AARI and FQCL in the areas of: laboratory management, quality control and assurance, conducting internal audits and management review meetings, participation in PT, interpretation of PT results, method validation and measurement of uncertainty. • The quality and technical manuals of all the laboratories, documents completed and applications submitted to PNAC for accreditation. The 19 laboratories (reduced form the original number of 24 due to non-committal from laboratory management and their parent department/ministry) were then assessed by PNAC over the period, starting form 2013. The last of the laboratories was assessed in 2015. • Accreditation to ISO 17025 was recommended for all the laboratories assessed provided that the non-conformities were addressed and removed.

Support to establish a National Proficiency Testing Scheme in Pakistan at NPSL

• Training workshop on ISO 17043:2010

o The Workshop was conducted on 21st & 22nd May 2013 with 17 participants in attendance. o The programme consisted of lectures and discussions on day 1 and drafting the Technical requirements of the Quality manual on day 2. o This activity on drafting of Quality manual was carried out as group work with each group handling 3 or 4 clauses. o At the end of the workshop, the required clauses of Quality manual were ready and it was later edited for further scrutiny with PT group of NPSL.

• Finalization of Quality manual for ISO 17043:2010

o The Technical requirements finalized and document readied for approval. o The Management requirements of the Quality manual that had been drafted by the PT team was reviewed as a home based activity and submitted to NPSL in early April. However, there had been no progress on attending to the comments made. o The editing of the Section 5.1 of Management requirements was initiated on 24th May and the PT staff agreed to complete Management requirements as they had an idea on documentation of a Quality manual. 89

• Action plan

o The activities to be undertaken to establish the NPSL were discussed and an action plan was prepared. o The Government of Pakistan, through MoST, officially launched its first National Proficiency Testing Scheme in January 2014. o The Programme, reviewed the progress of PT team of National Physical Laboratory (NPSL) in conducting the first PT round on heavy metals in water, finalizing the report format and sharing findings with the top management in order to streamline the work prior to the second round. o Appropriate technical advice on how to incorporate the PT for microbiological parameters for the next round of PT and technical inputs for the application for accreditation of PT scheme by PNAC was also disseminated. o In order to further strengthen the technical capacity of PT team, the Programme arranged for a 5- day study tour, of the four technical staff, to an accredited PT provider in Bangkok Thailand. The TRTA II International Expert also supervised the training programme conducted at the National Food Institute, Thailand for the Proficiency Testing (PT) team of NPSL and oversaw the implementation of the learned skills at the PT laboratory upon the return of the technical staff (Details of study tour are in Annex 2.9). o The Programme Experts also assisted the PT team to prepare the necessary documents for official recognition of the National PT scheme by the Pakistan National Accreditation Council and provide the most appropriate technical advice on how to incorporate the PT for microbiological parameters for the next round of PT and technical inputs for the application for accreditation of PT scheme by PNAC. o The PT Scheme launched its second round of proficiency testing, where participating laboratories have contributed towards payment for their participation. o The PT Scheme launched its second and third rounds of proficiency testing, chemical and microbiological testing where participating laboratories have contributed towards payment for their participation. o Following approval in 2014 by MoST of the PC1 for the establishment of a National PT Scheme through provision of funds for 3 years, totalling US$550,000 (PKR 55 million), the first tranche was released and renovation work for establishing the PT labs at NPSL commenced. o The National PT scheme (2 labs) also submitted its application for accreditation to PNAC and was assessed in March 2016 after PNAC launched its PT accreditation Programme (July 2015). o The renovation work for the National PT scheme (2 labs) was completed in November 2015 and equipment for the labs to be installed. PNAC scheduled its pre-assessment of the PT scheme for ISO 17043 accreditation in December 2015 with the final assessment was carried out in March of 2016. o The National PT Scheme has been accredited by PNAC to ISO 17043 (April 2016).

Support To Implement The Developed Business Plans For The Laboratories And Develop Customer Relations Mechanism And Market Strategies To Improve Laboratory Services

• The Programme experts visited 13 Institutions (total number of Labs in these Institutes were approximately 40) to assess Business culture and progress made in the implementation of Business Plan developed in by TRTA II in 2011.

Observations were as follows:

. Labs/Centres did not have sufficient autonomy and flexibility for complete implementation of the Business planning concept where in some cases the income generated was recycled for monthly payments to the officers . Performance based Staff motivation and incentive schemes seem weak to obtain full Institute participation with even promotions being curtailed . Recruitments in some instances were ad-hoc with non-relevant staff being absorbed whilst relevant and qualified staff recruitments are curtailed . Marketing & promotion strategies seem weak and have to be developed/strengthened . Customer Relationship Management techniques have to be reinforced

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30 testing laboratories, belonging to seven institutions namely: PCSIR, Lahore, Karachi and Peshawar, FSC&RD, NRLPD, PCRWR, and SARC implemented a business plan based on customer relations mechanisms and marketing strategies to ensure sustainability of their services and accreditation status. The other 19 labs (supported by TRTA) require GoP policy change in order to use a fixed percentage of their income for running the laboratory and to sustain accreditation.

Of the 13 Institutions visited, positive developments were observed in 7 as follows:

1. Federal Seed Certification & Registration Department (FSC &RD)(Islamabad) 2. National Reference Lab for Poultry Disease (NRLPD)(Islamabad) 3. Pakistan Council of Research in Water Resources (PCRWR) (Islamabad) 4. Pakistan Council of Scientific & Industrial Research (PCSIR) Laboratories Complex (Peshawar) 5. Pakistan Council of Scientific & Industrial Research (PCSIR) Laboratories (Lahore) 6. Pakistan Council of Scientific & Industrial Research (PCSIR) Laboratories (Karachi) 7. Grain Quality Testing Laboratory (presently the Food Quality & Safety Research Institute) (Karachi) 8. Leather Research Centre (LRC) (Karachi) – However a infrastructure re-haul is required

Recommendations

1. Provide focused technical inputs to 6 of the most promising Institutions in order to finalize the already developed Business plans as well as catalyse the full implementation so as to drive the entities towards self-sustainability. However this sustainability exercise has to move hand-in- hand with necessary support from the Authorities 2. Provide direction and tools for establishing Marketing strategies and Communication campaigns in order to accomplish the business objectives via, brand recognition, higher market penetration, increased market share and overcoming competition 3. Provide guidance (via workshops) to Industrial Liaison Officers responsible for establishing initial contacts with customers to effectively manage customer relationships for initiating, maintaining and building strong links

Conducted a series of 2 days workshops on: Customer Orientation and Marketing Strategies for Sustainability Laboratory services

3 2-day workshops on “Customer Orientation and Marketing Strategies for Sustainability Laboratories’ were conducted in Islamabad, Lahore and Karachi (1st and 2nd May 2014).

All three workshops focused on the following:

• Day 1 - Customer Service Skills & Customer Relationship Management • Day 2 – Marketing Strategies • The workshops were conducted via Presentations, Interactive & Brain storming Sessions • Participation comprised of Quality Managers, Scientific Officers, Industrial Liaison Officers, Marketing Officers & Admin personnel from the following Institutes: • Islamabad - NPSL, FSC&RD, NRLPD, GQTL (NARC), PATCO (NARC), NVL, PCRWR, PCSIR, Peshawar, NAPHIS, NARC (Total participation from 21 UNIDO assisted Labs - 32 ) • Lahore – PCSIR, Lahore, FQCL, TTI (a Private Sector Laboratory) (Participation from 11 UNIDO assisted Labs – 17 + Participation from 1 Private Lab – 5, Total - 22) • Karachi – PCSIR, Karachi, GQTL-SARC/PARC, MFD, LRC-PCSIR, PSQCA, TTI-Karachi, Intertek (Participation from 13 UNIDO assisted Labs - 22+ Participation from 2 Private Labs - 8, Total - 30)

Participation from 45 TRTA assisted labs (TRTA I & TRTA II) was 71 & participation from 2 Private sector Labs was 13.

• Observations from Workshops, specific to the Public sector Laboratories

91 1. A majority of the Institutes do not have a Customer focal point to serve as a one-stop shop and also as a window for the Laboratories in the Institute. Only NPSL, PCSIR Lahore, PCSIR, Karachi have some Customer focal point, however the staff serving at these points carry out the work as a routine exercise with not much customer orientation or Standard Operating Procedures SOP) for its operation or any training in marketing 2. Detailed customer information via a Computerized Customer database seems lacking in almost all Institutes in Islamabad and Lahore. However Institutes in Karachi seem to have some system 3. Marketing & Communication strategies are entirely lacking with most of the Institutes being complacent with the existing clientele 4. A budgetary allocation for promotion and marketing has hardly ever been requested with a majority of the Institutes requesting only the standard expenditures for staff emoluments, consumables etc. 5. Branding, Positioning, E-marketing etc. have not been explored 6. Some of the Institutes mainly those providing regulatory services have a monopoly and thus no competitors and does not see the need for customer orientation or marketing

• Focused Technical Inputs were provided to the following Laboratories. Observations are as follows:

Islamabad 1. Federal Seed Certification & Registration Department (FSC &RD) – Input was provided for costing of services and attaching a value to the service even though provided on FOC basis. The implementation of the Business plan has commenced. 2. National Reference Lab for Poultry Disease (NRLPD) – A costing and pricing system for services was not in operation, however seems to be now in place and charging for services have commenced. Business implementation is in satisfactory progress 3. Pakistan Council of Research in Water Resources (PCRWR) – Addressed areas in Business plan that required assistance. Implementation has commenced.

Lahore 1. Pakistan Council of Scientific & Industrial Research (PCSIR) Laboratories- A Business plan for the Complex has been prepared taking into consideration the plans of the Centres. The estimation of expenditures of the Labs, the Centres and the complex have to be revised, taking into consideration all expenditures incurred. A general formula for this was provided

Outcome

• All Laboratories commenced the implementation of the Business plans • Customer orientation and Marketing strategies had been completely lacking but were instilled in the Laboratory personnel, Liaison officers and Marketing personnel • The attitude of almost all the participants was extremely internalized with very little attention provided to the external environment. As such a change in ‘mind set’ and to think out of the box was a dire necessity. Motivation was provided for the change required. • A Road map with specific milestones to be developed for key actionable points for the Implementation of the Business plan and an evaluation carried out in 4-5 months’ time. • Key Performance Indicators (KPI’s) to be developed for the shared ownership of the Customer orientation and Marketing functions of the Laboratories.

30 testing laboratories, belonging to seven institutions namely: PCSIR, Lahore, Karachi and Peshawar, FSC&RD, NRLPD, PCRWR, and SARC continue to implement their business plans based on customer relations mechanisms and marketing strategies to ensure sustainability of their services and accreditation status.

The other 15 labs (supported by TRTA) were still awaiting GoP policy change in order to use a fixed percentage of their income for running the laboratory and to sustain accreditation.

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2.11.4 IMPLEMENTATION MONITORING AND IMPACT ASSESSMENT

The Secretary of Ministry of Commerce (MoC) emphasized, at the first meeting of the Project Steering Committee (PSC), on the need to develop and establish monitoring schedule of TRTA II interventions to monitor proper and effective conduct of planned activities and operations. The Secretary further directed that a monitoring schedule for TRTA II programme should be developed jointly by PITAD and PMO.

Consequently, PITAD and PMO worked extensively in developing a methodology and framework to design a monitoring scheme. As a result of intensive meetings between PITAD and PMO and following an extensive literature review, the following two documents were jointly produced by PITAD and PMO:

1. Implementation Monitoring Guide 2. Implementation Monitoring Schedule

The draft documents were submitted to PITAD as the lead agency responsible for conducting the monitoring of the TRTA II programme. A strategy to effectively use the monitoring framework was agreed between PMO and PITAD. Briefly, the strategy sees PITAD as the monitoring body with TRTA/PMO as the necessary facilitator.

In addition to the implementation monitoring work, PMO also initiated work on impact monitoring of the TRTA II activities. An initial concept paper, which provided the methodologies of impact assessment and how these could be used to measure impact under TRTA II programme, was developed by PMO.

The intention was to identify certain activities of the programme and use rigorous techniques to estimate, on statistical basis, the contributions made by TRTA II programme in alleviating poverty.

The TRTA II Programme Steering Committee (PSC) approved at its second meeting in April 2011, the Implementation Monitoring Guide and also the Implementation Monitoring Schedule that was prepared jointly by PITAD and PMO. Following approval of the reporting templates and methodology, PITAD and PMO have jointly produced three quarterly monitoring reports covering the period from January 2011 to September 2011. However, PITAD was of the view that activities should be reported as complete or in progress. To address this concern PMO developed a revised monitoring template, which is much simpler than the one presented in the last PSC meeting.

In addition to the monitoring work, PMO also worked to develop a roadmap to assess the impact of the TRTA II programme. The framework compiles a holistic approach to assess the common impact of all the three components and also identifies the key indicators that can be used to assess the impact. This framework and the set of indicators are expected to be finalized during December 2011.

2.12 NEW AREAS OF INTERVENTION DURING THE EXTENSION PERIOD

2.12.1 Business Environment Improvement

TRTA-II Programme identified opportunities for supporting business environment reform (BER) in the selected Programme sectors through a review of Programme documentation and consultations with National Expert on Business Environment Improvement, partners and business representatives.

TRTA-II Programme carried out consultations with public and private stakeholders in order to select a sector in which two pilot interventions could be implemented. The recommended pilot BER interventions have sought to address key BER priorities. They seek to provide a catalytic and strategic input into the reform process. Both interventions focus on the horticulture sector.

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First, it was recommended that the Programme should support the development of a business advocacy agenda and strategy in the horticulture sector. The advocacy strategy will be divided into short, medium and long-term priorities in the horticulture sector.

A Technical Working Group (TWG) comprising of representatives from key public and private stakeholders in the horticulture sector was created. TWG will post efforts in lobbying government for horticulture reforms and come up with suggestions on how to go forward with lobbying for issues in the future.

Several meetings of the TWG were organized in Lahore, Sargodha and Multan in order to formulate a summary paper concerning major constraints in the horticulture sector related to policies, regulatory and legal framework. A summary paper was drafted by the TWG with the following list of constraints in the horticulture sector:

• Duplicity of work among public departments • Lack of public-private consultation • Weak intra-private sector coordination • Weak quality control implementation • Outdated quality control standards • Lack of government appreciation for adopting GAP • Weak enforcement of Codes of Practices • Certification of nurseries • Lack of demand driven and future oriented research • Poor quality and highly priced fertilizers • No mechanism for dispute resolution • Lack of MRL labs in research agencies

Secondly, it was recommended that the Programme support the improvement and facilitation of access to dispute resolution in the horticulture sector. For the said purpose, Mediation Centre at the Lahore Chamber of Commerce and Industry and National Centre for Dispute Resolution Karachi were consulted. It was observed that both the centres lack experience in dealing with cases related to horticulture sector of Pakistan.

Based on the approved summary paper, the TRTA-II Programme prepared an advocacy agenda and strategy for the horticulture sector of Pakistan with a focus on the following aspects:

• Improving public-private consultation mechanisms • Effective quality control implementation • Appreciation for adopting Good Agricultural Practices (GAP) • Proper management of essential utilities • Registration and certification of nurseries • Promotion of demand driven research • Improving access to high quality fertilizers and pesticides • Effective and efficient dispute resolution mechanism • Promotion of export led agriculture policy • Assigning roles and responsibilities to departments with clear mandates • Improving quality control policies and standards • Formulation of a national infrastructure development and maintenance strategy

The detailed advocacy agenda and strategy is under Component 2 – Annex 2.16, Annex 2.17.

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2.12.2 Global Value Chain For Competitiveness

In the first phase, institutional mapping of all relevant public and private institutions was carried out. The mapping exercise has identified Trade Development Authority of Pakistan (TDAP) and Pakistan Institute of Trade and Development (PITAD) as potential organizations for capacity building.

Seminar: Sectoral Competitiveness, Value Chain And Market Analysis

The TRTA II programme in collaboration with the Trade Development Authority of Pakistan (TDAP) organized the workshop titled 'Sectoral Competitiveness, Value Chain and Market Analysis' on 6th October, 2015 at the UNIDO headquarters in Islamabad. The aim of the workshop was to raise awareness about the tools and methodologies required to carry out Global Value Chain (GVC) Analysis.

During the seminar, the TRTA-II Programme emphasized on the need to establish permanent research cells and wings in the public and private sector organizations which have the expertise to produce sector profiles and market analysis for policy makers, local and foreign investors and all other stakeholders to make informed decisions.

TDAP ensured their full support and cooperation towards the initiative. Participants of this workshop included the representatives from organizations such as Trade Development Authority Pakistan, Small Medium Enterprises Development Authority, Pakistan Institute of Trade And Development, Islamabad Chamber of Commerce and Industry, National Productivity Organization, Engineering Development Board, Rice Exporters Association Pakistan, Pakistan Horticulture Development Export Company, Technology Upgradation and Skill Development Company and many others. Educational institutes such as Pakistan Institute of Development Economics and University of Agriculture Faisalabad also participated in the workshop.

Two Weeks Training On Sectoral And Value Chain Analysis

The TRTA-II Programme conducted the interviews of the potential candidates from TDAP and PITAD for a two-week training on Sectoral and Value Chain Analysis in Vienna. These candidates will be trained on the methodology to carry out the GVC Analysis which will aid policy makers and members of the private sector in decision making (details of the Study Tour are given in Annex 2.8).

2.12.3 Regional Trade

Regional trade is an integral part of economic growth, employment generation and improving relations with neighbouring countries. This is even more apparent in the case of Pakistan, which is surrounded by two of the biggest emerging markets in global trade. As a result, TRTA II developed specific interventions to address regional trade focusing on enhancing border facilities, harmonizing compliance requirements and the mutual recognition of the conformity assessment bodies within the region. The outputs of these interventions based on key recommendations were as follows:

• External factors which impact significantly on regional trade are unfavourable cost structures and existence of lists of “sensitive products” applicable to non-Least Developed Countries, under the SAFTA Agreement. • Pakistan’s SPS measures are not expressed according to HS nomenclature. Moreover, the measures are not yet integrated within the WeBOC platform. Two PC1 applications from AQD (value Rs 38 million) and DPP (Rs 7 million) for computers, software and ICT staff are under consideration by the Ministry of Commerce. • There are no offices, refrigeration facilities, sample storage or simple laboratory for rapid tests and sample preparation for SPS checks. A proposed ADB investment of US$247 million at Wagah, Torkham and Chamam border control points will include new SPS border inspection facilities; design is proceeding but SPS authorities have not yet been consulted regarding requirements.

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• Pakistan’s SPS measures continue to be ineffective. Pakistan is reported to be experiencing an outbreak of Panama disease, a highly contagious and damaging fungal disease of bananas, detected in March 2015, although not reported yet to IPPC. It is not known how the disease was introduced, but it is likely due to import of infected fruit or soil. • With regard to India, Directorate of Plant Protection, Quarantine and Storage of the Ministry of Agriculture lists 15 standards and operational guidelines for exporters and importers on their website. There is an online import application and processing system in place. The Animal Quarantine and Certification Service also publishes procedures and standards for import of animals and products of animal. Pakistani exporters complain of delays caused by excessive zeal and detailed and arbitrary treatment by Indian SPS authorities at the Wagah border. • TRTA II recommendations to GoP include: formally transfer setting of SPS import export measures from to NFSAPHRA when established; developing SPS platform under WeBOC; revoking the notification for the mandatory standards applied to food and agricultural products by PSQCA; computerising the SPS requirements under the WeBOC system; adopting new import export measures based on HS codes, and origin, and setting out green (documentary), amber (integrity) and red (physical) checks based on risk. • A number of initiatives have started at the Federal level in Pakistan which together should help to reduce exporter and importer transaction costs, improve time delay and transparency. These initiatives should address on making the Pakistan part of the supply chain more predictable and safe. • The ADB has started a border crossing improvement project which will invest about US$247 million at the Wagha, Torkham and Chaman border crossing points. The FBR worked with USAID to harmonize the Pakistan Customs Act with the provisions of the Revised Kyoto Convention and to start developing a Customs risk management system (RMS). • Furthermore, the FBR vision to improve trade facilitation includes: (i) the development and implementing of the Authorised Economic Operator (AEO) method which would certify complaint exporting and importing companies enabling Customs to give them a number of privileges reducing the time getting their product to market; (ii) the introduction of the World Customs Organization (WCO) SAFE method; and (iii) the adoption and implementing of the recent WTO Agreement on Trade Facilitation. • The associations communicated their opinions about regional trade issues such as the India Sensitive List, the inability to use road transport for the import of certain products and instead are made to use rail for a journey of about 30 kilometres, and the fear of Indian products entering the Pakistan domestic market in the case of Pakistan giving India Most Favoured Nation (MFN) status and in effect implementing trade liberalization. • During the seminars several companies expressed an interest to be involved with the project in case the project carries out a business process analysis to identify documentary, regulatory, and infrastructure challenges. • TRTA II identified several external factors which impact significantly on regional trade. Most important of these are: • Unfavourable cost structures and existence of lists of “sensitive products” applicable to Non-Least Developed Countries, under the SAFTA Agreement. India specifies 614, and Pakistan specifies 936. Sensitive products are not subject to tariff reduction, and are designed to maintain protection for domestic sectors. They act as effective trade bans (effectively a negative list). Agricultural subsidies and sensitive lists are considered to be outside the scope of TRTAII Component II. Issues such as non-tariff barriers, trade facilitation and supply chain challenges are addressed by the IE Regional Trade. FPCCI listed a number of non-tariff barriers such as problems in land transportation (61 %) and some Pakistan products must be transported by rail and not by road; • The business opportunity is no longer available by the time the visa is obtained due to delay in getting the Indian Business Visa. • Problems in handling at ports and dealings of Customs, etc. (20 to 60 %): regardless of the customs import and export procedures the NLC insists on 100% weight and X-Ray scanning at Wagha and for all Afghan containers going from Karachi port to the Torkham border crossing. The unloading and loading by hand creates delays on average of 3 to 7 hours inside the customs zone of the Wagha border crossing and this is in addition to the amount of time spent by trucks waiting on the BCP approach road. Customs has a state of the art X-Ray scanning system in Karachi on all containers going to the USA; 96 • Subsidies for India farmers making their products cheaper in comparison with Pakistan farming products: agricultural associations expressed their fear of trade liberalization which would open the Pakistan market to Indian produce. The opportunity to improve the supply chain for Pakistan fruit and vegetables need to be explored. • Using sea transport: Pakistan products go via maritime transport to India adding extra cost to the transaction; • Problems at the port of entry (30 %): delays reportedly as a result of non-availability of handling equipment, rail wagons, delays processing documents add unpredictability; • Problems in banking transactions (23 %): insufficient Pakistan banks in India and Indian banks in Pakistan, and delays getting monies back to Pakistan; and • Problems in certification requirements (21 to 37 %): requirements are reportedly not easily available and are subject to change. Proactive due diligence might help get the correct information but the information must be made easily available by all regional trading partners.

The impact of non-tariff barriers is lack of predictability in exporting and importing, little transparency, inconsistent application of rules, discriminatory treatment, few business opportunities and relatively higher costs of doing business for Pakistan traders.

TRTA II Recommendations

• Carry out a Export Supply Chain Analysis (ESCA) for a selected number of products to plot the export product supply chain. The BPA will describe where time and cost could be reduced. Countries such as Mauritius and Thailand which have carried out BPA on the export of perishable products and rice and who have auctioned the findings increased export of that product by between 13% and 17%. • Prepare the regional trade and trade facilitation part of the national expert terms of reference, which might include a list of meetings needed to get carried out to obtain extra information and statistics, business process analysis, report on trade and customs policy changes, and report on the objectives and results of related donor institution programmes and Government and association initiatives. • Consultations continued with regard to integration of Pakistan’s SPS measures within the WeBOC platform. • The next steps are to specify SPS measures for codes relevant to regional trade as the first stage. A second stage will be to add desirable SPS measures not presently addressed in the specific legal framework. Outline of the risk management process and procedural flow charts will be drafted, along with data specifications for data entities proposed. Furthermore, a working group should be established to further develop the project. The output will be a spreadsheet specifying SPS measures (animal health, plant health and food safety) to be applied for each product (defined by HS8 code) and origin, for both export and import. Annex 2.18- Challenges in Regional Trade and the solutions proposed by TRTA II).

Donor Coordination

The Donor Coordination forum is an outcome of the initiative undertaken by the TRTA II Programme, run in cooperation with the government of Pakistan, through its various organizations, to provide support to the country in building its capacity to address trade related issues thereby fostering its integration into the world economy and contribute towards poverty alleviation. PITAD is the lead agency designated by GoP to coordinate all TRTA II related activities within all public, private sector institutions/stakeholders as well as other Donors working in similar areas of trade and development.

PITAD, with support from PMO, has collected data on activities of 21 donors working in the area of trade; ADB, IFAD, FAO, IFC, ILO, IDB, UNDP, WB, AusAID, DFID, AFD, JICA, NORAD, RNE, USAID, PPAE, AAPK, BMZ, CIDA, EU, ASLP. The MoC/PITAD and TRTA II Programme PMO jointly organized the Donor Coordination meeting on 8 February 2013.

Presentations by the donor agencies on their trade related projects were given by Asian Development Bank (ADB), United States Agency for International Development (USAID), The World Bank (WB), International Labour Organization (ILO), Japan International Cooperation Agency (JICA), Australian Pakistan Agriculture Sector Linkages Programme (ASLP), AUSAID, International Finance Corporation (IFC), International Fund for Agricultural Development (IFAD), French Development Agency (AFD), 97

Royal Embassy of Saudi Arabia, Representatives of Economic Affairs Division, Development Adviser EU Delegation to Pakistan and TRTA II programme experts also participated in the first donor coordination meeting on Trade & Development.

Active Cooperation Between TRTA And The Following Donors

1. ASLP/AUSAID: Development of a joint code of practice along the critical points of the supply chain (farm – market) in the mango and kinnow sectors & identification of markets for Pakistani produce.

2. FAO: Animal and plant health legislation & IPM programmes; publication of CoPs in horticulture and fisheries and promotion of food safety as in integral part of food security.

3. CBI of The Netherlands: Working in the surgical sector to address the CSR issues. In addition, CBI is supporting TRTA/UNIDO in developing the trade linkages not only in the surgical sector but also in horticulture and fisheries sector. CBI has provided expertise to the TRTA II beneficiaries for the training on market intelligence and marketing.

TRTA II Programme continued to be engaged in the project planning and design of the joint project initiative with IFAD, Pakistan-Italian Debt Swap Agreement (PIDSA) for Baluchistan Coastal Areas Fisheries Development Programme. Similarly, TRTA conducted discussions with NORAD in Islamabad regarding joint and coordinated activities on Fish Stock Assessment survey along the Pakistan Coast of the Arabian Sea.

TRTA II initiated dialogue with Australia-Pakistan Agriculture Sector Linkages Program (ASLP) of AUSAID and FIRMS of USAID for coordination of interventions in the horticulture sector in Pakistan. This initiative has resulted in a process of formalization of coordination activities of the three donor programmes in the horticulture sector through a project planning meeting, where representatives of TRTA, ASLP and FIRMS would be participating.

Discussions were held with DFID in Islamabad with a view to coordinating activities in respect of impact assessment of programme results focused on poverty alleviation and improvement of household incomes in specific agro-based and SME sectors. A common understanding was reached to coordinate and synergize TRTA and DFID efforts in the design and conduct of impact assessment surveys relating to their ongoing projects and programmes in Pakistan.

2.13 COMPONENT 3: STRENGTHENING OF THE INTELLECTUAL PROPERTY SYSTEM

(Implementation was started in July 2011 following an Inter-Agency Agreement with UNIDO)

2.13.1 RESULT AREA 3.1: Strengthened IP Institutions

First part of the on-site review of the IT infrastructure of the Intellectual Property Organization (IPO) of Pakistan was undertaken by WIPO expert in July 2011. This first review highlighted the importance of the development of an ICT strategic plan, integration of operations, inter-office connectivity, establishment of a consolidated data centre, a core IT team, upgraded technical skills and use of international IP standards. Recommendations were made to IPO to address these areas to support the modernization project. The next and final part of the ICT infrastructure review is planned later and will focus on information security and disaster recovery mechanisms to support online services.

IPO staff received training at WIPO Headquarters in Geneva from 12-16 September 2011 on International IP Classifications for patents, industrial designs and trademarks. The use of these standard classification systems (IPC for Patents, Locarno for Industrial Designs, Nice and Vienna for Trademarks) is essential for effective search of the respective IP records and provides a uniform tool that can be used by the IP offices and IP community around the world, independent of language and 98 systems. The training included presentations, demonstration of classification tools, case studies, hands- on practical exercises, and handling of exception cases. The list of trainees is provided in Annex 3.1.

Training on digitization of IP records was conducted at WIPO Headquarters in Geneva from 19-23 September 2011. The training covered all aspects of digitization, including the relevant technical standards, formats, document management systems, scanning solutions, indexing, optical character recognition (OCR), available WIPO tools and systems and the specifications of the required IT infrastructure elements to support digitization. The training comprised of presentations and demonstrations by experts, hands-on practical exercises and discussions on customized solutions for IPO. Guidelines were also provided for preparation of documents required for the tendering and procurement of local contractual services for the actual digitization of IP records at the IPO. The list of four trainees is provided in Annex 3.2.

A WIPO expert and a national IP expert participated in the Public Private Dialogue on the “Services Sector Export Development Strategy for Pakistan” that was organized by Component 1 (ITC) in October 2011. Under the PPD Session for “Computer and Related Services (CRS)”, these experts and other speakers presented and discussed how IP policies, strategy, systems and enforcement mechanisms can be strengthened and exploited to help the CRS sector boost its exports which is currently much below its potential.

Training on Geographical Indications (GIs) was conducted in Geneva from 17 October to 2 November 2011 by experts from InterGI, a GI consulting firm based in Switzerland. The interactive training included expert presentations, legal framework, case studies, implementation policy, examples of national GI administration practices, field visit to selected GI producers in Switzerland, exchange of experiences and class room discussions. The list of trainees is provided in Annex 3.3.

A WIPO patent expert undertook a mission to the Patent Office in Karachi from 10 to 19 October 2011 to review the patent administrative procedures and train the patent examiners. The training was tailored for Pakistan and focused on topics identified by the patent examiners and on the challenges faced by them in examining national and international patent applications and in interpreting the international search and preliminary examination reports.

The business process review for automation of IP administration at the Patent Office and Trade Marks Registry was completed. WIPO experts worked with these offices in generating workflow process definitions that will be used in the implementation of the upgraded automation system (WIPO IPAS Java).

Along with the business process review, basic training was also provided by WIPO experts to the IPO IT team on the configuration and installation of a test version of the new IPAS Java system. This training was provided through a series of video-conferencing sessions along with remote system support, as required. This initial training is to be followed later by more advanced training sessions that will lead to the actual customization, deployment and rollout of the IPAS Java system at the IPO.

An advisory mission by a WIPO expert was undertaken on the design and development of an IP web portal which will serve as a single point of access to the IP systems, services, databases and information coming from the IPO and also serve as a gateway to relevant IP web resources elsewhere in the world. IPO was assisted in identifying the elements and requirements for preparing a TOR for web portal development. This TOR will subsequently be used for procurement of contractual services through an RFP process for implementation of the web portal.

An updated feasibility study has started in November 2011 by an international expert on collective management organizations (CMOs) for establishment of an effective CMO in Pakistan. This would contribute to measures that may be taken by the government to strengthen the music industry in the country for distribution of royalties to rights owners.

Following the training on digitization of IP records and documentation provided to them by WIPO, the trained IPO staff has prepared the terms of reference (TOR) for procurement of local digitization services and for the required digitization equipment.

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The IPO staff trained at WIPO on International IP Classifications for patents, industrial designs and trademarks have conducted their own training sessions to pass on the knowledge acquired to their colleagues at the Patent Office and Trade Marks Registry in Karachi.

Two IPO Pakistan officials were selected and enrolled in the LLM course organized by Turin University and WIPO for the period from June 2012 to February 2013. The LLM is structured in three parts: distance learning, residential period at Turin and completion of research papers. The list of two officials are provided in Annex 3.4.

The Second part of the on-site review of the IT infrastructure of the Intellectual Property Organization (IPO) of Pakistan was undertaken by a WIPO expert in Karachi from 9 to 13 January 2012. The first review, conducted earlier in July 2011, had highlighted the importance of the development of an ICT strategic plan, integration of operations, inter-office connectivity, a consolidated data centre, IT equipment, a core IT team, upgraded technical skills and upgraded internet connectivity. The second review’s recommendations focused on the aspects relating to the IPO’s technology standards, information security and disaster recovery mechanisms to support online services. These recommendations were shared with the IPO for their implementation to support the modernization.

An international trademarks expert, from the Philippines IP office, undertook a mission to the Trade Marks Registry (TMR) in Karachi from 9 to 13 January 2012 to review the trademark administrative procedures against international best practices and provide training to the trademark examiners. The training was tailored for TMR and focused on topics pre-identified by the trademark examiners and on the challenges faced by them (e.g. citation of well known marks, distinctiveness, certification and collective marks, domain names, etc.). The list of TMR officials participated in the training is given in Annex 3.5.

An international expert on collective management organizations (CMOs) undertook a mission to Pakistan from 5 to 11 March 2012. Consultations were held with officials and stakeholders on CMO related initiatives in the country and relevant economic data was collected. The draft report was completed in May 2012 and is currently being reviewed by WIPO. The name of the expert is given in Annex 3.6.

The first of the three planned technology trainings for IPO Pakistan IT team was conducted from 2 to 6 April 2012. It was focused on System Administration. It mainly covered management, maintenance, trouble-shooting and support of the IT infrastructure components (network, severs, sharing of network printers, PCs and backup/recovery techniques). The training was followed by 12 participants as shown in Annex 3.7.

A 2-day training workshop on Results-Based Management (RBM) and HR/Financial Planning was held from 19 to 20 September 2012 at the IPO Pakistan Head Office in Islamabad. The list of 15 officials from IPO Pakistan who took part in the workshop is given in Annex 3.8.

An updated paper on the “Establishment of a Collective Management Organization (CMO) in Pakistan” was prepared by the international expert for CMO study as mentioned earlier. It was reviewed by WIPO and was shared with IPO-Pakistan in November 2012.

Mr. Aamar Latif, Assistant Director, IPO Pakistan started the LLM (Master of Laws) in Intellectual Property offered by the Turin University and WIPO for the period from June 2013 to February 2014. The program is structured in three parts: distance learning, residential period at Turin, Italy and completion of research papers.

The second of the three planned technology trainings for IPO Pakistan IT team was conducted from 20 to 24 May 2013. This training focused on Java and GlassFish Application Server technologies that are used by the automation systems of IPO Pakistan. The participants list is given in Annex 3.9.

IPO Pakistan IT team was trained in WIPO on the upgraded automation system (IPAS Java) from 27 May to 7 June 2013. The training covered: installation and upgrade of existing system to IPAS Java;

100 use of Designer tool to configure IP administration workflow; WIPO Scan and Electronic Document Management System (EDMS); migration of existing IP databases to IPAS Java; IP Journals publication in IPAS Java; Process group management; and IPAS Java maintenance. The list of participants is given in Annex 3.10.

The procurement of IT equipment for the digitization of IP records was completed in February 2013. The equipment consisted of 2 heavy-duty scanners, 1 high-end server and a Storage Area Network (SAN) with a large capacity (3 Terra Bytes) for storage of electronic IP records belonging to the Patents Office, the Trade Marks Registry (TMR) and the Copyright Office.

The tendering process for the digitization services was completed and the contract awarded to the selected vendor in June 2013. The digitization of IP records was started in July 2013. The digitization work consisted of: 1) scanning of over 6 million pages of IP records; 2) data entry of about 25,000 patent and trademark records that are missing in the IP databases; and 3) validation of IP databases.

Final consultations were held in Islamabad from 12 to 13 September 2013 on the study prepared by an international expert on establishment of a Collective Management Organization (CMO) in Pakistan. National stakeholders discussed the practical operational aspects of establishing a single national CMO for public performance and reproduction rights in musical works as well the public performance rights in sound recordings and performances. The practical aspects included the constitutional provisions, organizational structure, membership and distribution of royalties to rights holders. As next steps, an agreement was reached amongst the participating stakeholders to implement the key recommendations of the study. The participants of the CMO consultations are listed in Annex 3.11.

One official in the LLM (Master of Laws) in Intellectual Property offered by the Turin University and WIPO from June 2013 to February 2014. The name of the official is given in Annex 3.12.

Contract for development of the IPO Pakistan Web Portal was awarded to a local vendor and its implementation is currently in progress. The existing IPO Pakistan web site, which is static and has limited functionality, would be upgraded to a comprehensive dynamic web portal which would include: online Patent Gazettes and Trademark Journals; public search of IP databases; online checking of IP application’s processing status; registration and online access codes for IP Attorneys and applicants; and an intranet for internal communication and sharing of information between the five offices of IPO Pakistan that are located in Karachi, Lahore and Islamabad. The web portal would also serve as a gateway to other relevant IP resources in Pakistan and elsewhere in the world.

In-depth training and knowledge transfer on the upgraded automation systems (IPAS Java, EDMS and WIPOScan) were provided to the IPO Pakistan IT team in 2013 and 2014. In this reporting period, two sessions were held: the first session was conducted from 25 to 29 November 2013 and the second from 24 February to 7 March 2014, both in Karachi. The topics covered included: installation and upgrade of the existing system to IPAS Java; use of the Designer tool to configure IP administration workflow; WIPOScan and Electronic Document Management System (EDMS); migration of existing IP databases to IPAS Java; IP Journals publication in IPAS Java; Process group management; and IPAS Java maintenance and support. The list of IPO officials who participated in these trainings is given in Annex 3.13.

The third planned technology training for IPO Pakistan IT team was conducted from 5 to 9 May 2014 in Karachi. This training was on the Oracle database management system (DBMS) including the DBMS architecture, administration, performance monitoring and tuning, and Backup and Recovery mechanisms. The participants trained are listed in Annex 3.14.

From 3 to 11 Nov 2014, 6 IT officials from IPO Pakistan visited WIPO for further training and technical support on the WIPO systems and tools used by IPO Pakistan (i.e. IPAS Java, WIPOScan, EDMS and Designer). The officials also visited the Swiss IP office in Bern to study their IP automation systems and share experiences. The participants of the study visit are listed in Annex 3.15.

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Contract has been signed for customization of an off-the-shelf Admin Modules software package for IPO Pakistan’s HR and Finance management. Deployment of these Admin Modules aims to enhance IPO Pakistan’s service delivery and integrate its day-to-day general administration work in a timely and efficient manner in its five offices across the country.

The extensive project for digitization of IP records was completed in May 2015. The digitization work consisted of: 1) scanning of over 6 million pages of IP records from Patent Office, Trade Marks Registry and Copyright Office; 2) data entry of about 25,000 patent and trademark records to bring up- to-date the IP databases; and 3) validation of IP databases containing over 300,000 trademarks and 50,000 patents.

The Web Portal’s System Requirements Specifications (SRS) document, the design document and the prototype have been completed and its implementation is nearing completion.

The customization of an off-the-shelf Admin Modules software package for IPO Pakistan’s HR and Finance management is nearing completion and awaiting deployment of the required hardware (network server) which has already been purchased by IPO Pakistan.

2.13.2 RESULT AREA 3.2: Strengthened IP Legislation and Policy Framework

A consultation visit was organized by WIPO for 6 Pakistan officials from 30 May 2012 to 1 June 2012 on matters pertaining to the Madrid Protocol on the International Registration of Marks. The participants held discussions with WIPO experts concerning issues of special relevance to Pakistan’s accession to the Madrid Protocol, including the steps to be taken to meet the obligations under the Protocol, and the measures required to fully benefit from it. Travel arrangements were made for 6 officials but 1 official was not able to come, as given in Annex 3.16.

An international expert, together with a national expert, started work in December 2011 to prepare analytical paper on the possible protection of utility models in Pakistan. The analytical paper entitled “Utility Model Protection in Pakistan - An Option for Incentivizing Incremental Innovation” was prepared by the experts and finalized by WIPO in September 2012. The list of experts is given in Annex 3.17.

The Utility Model paper was shared with IPO Pakistan which, subsequently, requested that the experts who had prepared the paper may present it to national stakeholders and engage in discussions on how their recommendations may be implemented. These consultations are planned to take place at a later date during the Program.

A consultation visit was organized for the following 5 Pakistani officials from 11 to 13 September 2012 at the WIPO Headquarters in Geneva, on matters pertaining to accession to the Patent Cooperation Treaty (PCT). The participants held discussions with WIPO experts on issues of special relevance to Pakistan’s accession to the PCT, including the steps to be taken to meet the obligations under the Treaty, and the measures required to fully benefit from it. The list of participants is given in Annex 3.18.

From 11 to 13 February 2014, international experts held consultations with national stakeholders on Plant Breeders’ Rights (PBRs) and practical measures required to operationalize and administer it. The report was finalized and shared with IPO Pakistan in July 2014. The report would facilitate the national authorities' efforts to establish a legislative and institutional framework for protection of new plant varieties. The list of experts and participants in the consultations is given in Annex 3.19.

Final consultations with national stakeholders were held in Islamabad from 25 to 26 February 2013 on the paper on Utility Model protection in Pakistan. The analytical paper entitled “Utility Model Protection in Pakistan - An Option for Incentivizing Incremental Innovation” was presented, highlighting the pros and cons of introducing Utility Model protection in Pakistan. The list of officials who participated in the consultations is given in Annex 3.20.

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The WIPO methodology and a set of tools for the development of National IP Strategies were shared with IPO Pakistan in April 2013. This set of standard tools was developed by WIPO to assist countries in formulating IP strategies that are aligned with national development goals. The methodology covers all steps required for formulating a national IP strategy - from initial research, IP audit, and national consultations to the actual drafting of the strategy.

The Roundtable on Development of National IP Strategy was held from 23 to 24 April 2015. The objectives of the Roundtable were to: (i) review the overall aims and key elements of IP strategies; (ii) discuss the possible linkages between a national IP strategy and key policy areas (e.g. trade, innovation, health, etc.); (iii) exchange views on methodologies of formulating and implementing IP strategies; and (iv) identify measures that may be taken by the national authorities to develop an IP strategy for the country. The list of officials who participated on 23rd April 2015 (Day 1) and 24th April 2015 (Day 2) are given in Annexes 3.21 and 3.22 respectively.

2.13.3 RESULT AREA 3.3: Improved IP Enforcement

A Study Visit was organized for officials from Pakistan enforcement agencies from 20 to 24 February 2012. The first day (20 February) was at WIPO in Geneva, and the subsequent four days (21 to 24 February) were hosted by the Warrington Borough Council in Manchester, United Kingdom. The program included briefings at WIPO followed by discussions on key enforcement issues (e.g. market surveillance systems, intelligence gathering mechanisms, right-holders’ perspective and measures to strengthen enforcement training in Pakistan). Though travel arrangements were made for 7 officials, only 4 were able to come for the study visit, as listed in Annex 3.23.

A Colloquium on IPR Enforcement was organized from 26 to 27 September 2012 at the WIPO Singapore Office. It was attended by 18 participants from Pakistan including 15 judges, mainly district and session courts judges, from Islamabad, Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa. Senior officials from the Federal Judicial Academy and IPO Pakistan also participated in the Colloquium. The discussions were led by WIPO experts, senior judges from South Africa and Singapore, representative from a Singaporean law firm and a national expert from Pakistan. The list of the Colloquium participants is given in Annex 3.24.

Coordination with IPO Pakistan, FIA, Police, Customs and the Federal Judicial Academy on establishment of regular courses for IP enforcement is ongoing.

2.13.4 RESULT AREA 3.4: Increased Use Of IP By Businesses And Research Institutions

As part of inter-component linkages, a WIPO official contributed, via video-conferencing session, to the PPD on Regional Trade that was organized on 21 December 2011 by Component 1 in Islamabad. Discussions were focused on the potential and challenges of improving trade in textile made-ups and light engineering sectors.

An expert mission was undertaken to Islamabad from 25 February to 1 March 2013 for consultations with national stakeholders on development of an IP Curriculum for law, business and engineering universities in Pakistan. The international expert held a series of meetings with relevant organizations. The paper on development of an IP curriculum for law, business and engineering universities in Pakistan was completed. The paper would serve as an IP curriculum guideline for Pakistani universities. The experts’ names and the list of officials met are provided in Annex 3.25.

An international expert and a national expert were contracted in April 2012 to prepare a paper on branding options, and optimal marketing, of a selected horticultural product (e.g. Kinnow) through the use of marks and geographical indications (GIs). The expert met with the stakeholders and relevant authorities to gain a full understanding of the supply chain of Kinnow, and the IP instruments that may be relevant in improved marketing of the fruit. Final consultations were held in Islamabad from 8 to 11 April 2013 on branding options for Kinnows through the use of marks and Geographical Indications (GIs). The draft paper by the international expert Mr. Peter Damary (GI Expert, REDD Ltd.) was reviewed and discussed by relevant stakeholders. The expert also visited Sargodha where most of the

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Kinnows are cultivated. During his mission, the expert met key officials from several organizations, including: IPO Pakistan; UNIDO Project Management Office (PMO); GIs Project, Industries Commerce and Investment Department; Small and Medium Enterprises Development Authority (SMEDA), Lahore Chamber of Commerce and Industry (LCCI); Multan Chamber of Commerce and Industry; Kinnow Growers Association; Citrus Research Institute, Sargodha; Multan Mango Growers Association; Basmati Growers Association; Guava Growers Association; and University College of Agriculture, Sargodha. The paper was reviewed, revised and finalized in March 2014 taking into account feedback from stakeholders and relevant experts. NOTE: Due to the large number of people met by the expert in Sargoda and Islamabad, only their organizations are mentioned here. The full list is available with IPO Pakistan.

Procurement of a comprehensive set of IP reference publications for PITAD and IPO Pakistan libraries was completed in July 2013. The two sets of publications were shipped to UNIDO/PMO and subsequently distributed to PITAD and IPO Pakistan in February 2014.

A Roundtable on Technology Management Offices (TMOs) was held from 9 to 10 December 2013. Participants included representatives from universities, research institutions, private sector and relevant government agencies. Main topics discussed at the Roundtable were: (i) current status of TMOs in the country: (ii) experiences on the functions and structure of TMOs; (iii) challenges in establishing and operating effective TMOs; and (iv) elements of a roadmap for establishing viable TMOs in Pakistan. The Roundtable generated active interest amongst the participants some of whom formed an informal group to take these discussions forward and to help improve the effectiveness of TMOs in the country. The list of participants in the Roundtable (in addition to WIPO and IPO Pakistan officials) is given in Annex 3.26.

Development of a web-based e-Forum, called PiNET, started in February 2014 and a pilot version was completed and is currently being tested by the relevant stakeholders. PiNET would be a central point of contact for Pakistani universities and industry and would help to make it easier for them to communicate, engage and collaborate with each other. This would facilitate technology transfer and commercialization of research. For sustainability, HEC has agreed to host PiNET.

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3.1 COMPONENT 1: TRADE POLICY CAPACITY BUILDING

3.1.1 INSTITUTIONS INVOLVED IN TRADE POLICY AND REGULATORY REFORM ARE ALIGNED WITH INTERNATIONAL BEST PRACTICES (OUTPUT 1.1, 1.2, 1.3 AND 1.6)

A major contribution of Component 1 has been the strengthening of the technical capacity of government officers. This has always been considered important as in order to comprehend trade policy issues and design interventions to address them, policymakers need knowledge of often complex multilateral and domestic trading environments.

To advance such knowledge in a sustainable and cost-effective manner, Component 1 objective has been to reinforce PITAD as the leading agency to train governmental officers in trade related issues In the Extension phase of the Program, a similar objective motivated the decision made to strengthen the Competition Commission of Pakistan (CCP), but, to a lesser extend given the limited resources allocated to this activity. The aim was to strengthen the institutional capacity of these institutions, which in turn impart their expertise to government officers and private sector stakeholders.

PITAD

First, PITAD Has Been Equipped With High Standards Tools And Expertise Attuned With Cutting Edge Topics Which Are Key For Trade Policy Formulation And Trade Negotiations.

While the objective was to align PITAD to international best practices, it was also to respond to the specific needs of the Government in terms of trade policy trainings. A conducted PITAD self- assessment revealed the dire needs in terms of trade policy trainings, as the existing courses were not in line with the Government aspiration to recruit officers with solid knowledge on cutting edge trade policy issues. The assessment revealed, among others, that:

• At the substance level, the STP’s outlines were not aligned with the requirements of the modern international trading system, that some modules were outdated and needed revision, and that there was a lack of qualified resource persons to teach the modules. • At the institutional level, the STP course was not internationally accredited, which hindering the pursuing of international qualifications by the participants and giving an uncompetitive edge to PITAD’s course. • At the resource availability level, one of the main identified issues was the lack of resources, as despite the library, updated content was not available and that no digital content could be accessed. Component 1 has advanced a range of capacity building initiatives with the aim of addressing these identified issues to ensure that overall PITAD would be aligned with the international best practices to deliver trade related trainings to Governmental officers. This has been achieved in particular by:

• Providing PITAD with the necessary equipment to enable it carry the research and develop the expertise to deliver the trainings, and • Developing training material in collaboration with a world-wide recognized institution to develop material and skills aligned with international best practices to be inserted in an internationally accredited joint training course.

Through close mentoring of the World Trade Institute (WTI), Bern, Switzerland, eleven Master Trainers and four Substitute Master Trainers were trained, twelve modules passed the international accreditation and were integrated into PITAD’s STP.

The twelve internationally approved modules were assembled to form a joint WTI-PITAD Certificate Course on International Trade Law and Commercial Diplomacy, which is internationally accredited. As of April 2016, the joint WTI-PITAD Certificate has been awarded to the three batches of STP trainees. Through an impact analysis survey, the joint certificate holder STP trainees indicated that the acquired 105

knowledge is instrumental in performing their official functions and 100% respondents showed satisfaction and a great majority specified the immediate use and dissemination of the acquired knowledge during their official endeavors.

Acknowledging the in-depth capacity building of the process, two Master Trainers were positioned in key diplomatic position for Pakistan to be responsible for trade policy issues respectively in Japan and Argentina. The success of this trainer/mentor approach was recognized by PITAD and the Ministry of Commerce as given the departure of the two Master Trainers, the same approach was requested to be conducted to train the other four Master Trainers in replacement and fill-in the gaps.

PITAD’s notoriety for trade policy training has increased and it is now generating greater demand for its upgraded training services. While traditionally, all requests for training would come from the Ministry of Commerce and/or the Foreign Service Academy, the intervention of Component 1 has resulted in a number of public and private sector organizations requesting PITAD to conduct trainings for them. These include inter alia the Provincial Government of Punjab, through its Industry, Commerce and Investment Department, Agriculture Department of Punjab, Trade Development Authority of Pakistan (TDAP), Directorate General of Trade Organizations, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Rawalpindi Chamber of Commerce, Multan Chamber of Commerce, Faisalabad Chamber of Commerce, Pakistan Plastic Manufacturers Association.

In responding to these demands PITAD has successfully increasingly delivered series of trainings for a very wide range of stakeholders amounting to a total of person trained to more than 2300 (for details see Annex 1.5). Recognizing PITAD as a leading training institution, the CBI Netherlands has also partnered with PITAD to hold training sessions in Islamabad. The trainings used the upgraded curriculum and trainers in addition to international experts and were as such a valuable chance to further test the Master Trainers and curriculum developed. Participants’ results indicated that the trainings had strengthened their understanding of the current trade policy issues.

Overall, PITAD’s Portfolio Of Services Has Expanded.

PITAD is now better equipped to offer the following services:

• the nine-month pre-service training course of the commerce and trade group of the civil service of Pakistan, the STP (reshaped through the. Certificate Course on International Trade Law and Commercial Diplomacy) • short training courses for commercial diplomats designated, and • ad-hoc trainings for both public and private stakeholders

PITAD Equipped To Deliver Training In The Region.

A further evidence of this enhanced capacity of PITAD is that the Ministry of Commerce has positioned PITAD to advance its technical services at the regional level. Accordingly, PITAD has offered its technical trainings to Afghanistan, Nepal, Korea and Sri Lanka under the Pakistan Technical Assistance Programme through the Economic Affairs Division of Pakistan. The international recognition of the training modules is likely to provide PITAD with a marketing argument which contributes in building PITAD’s regional attractiveness.

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CCP

With the approval of CCP all activities were designed and implemented to address three specific sets of recommendations stemming from UNCTAD’s report:

• Addressing the institutional capacity through exposure to international best practices, improved modus operandi, better understanding and implementation of Competition Law related concepts, and enhanced ability to conduct research and analysis; and • Developing CCP’s linkages with academia.

CCP Exposed To International Best Practices

Assistance was provided to expose it to the practices of international institutions recognized worldwide for their role in shaping competition law/practices. In particular, this was achieved through the mentoring programmes aimed at developing the training modules and research studies involving CCP officers and the European Union DG Competition, the United States Federal Trade Commission, and the King’s College London.

Some of these institutions such as the US FTC have agreed to continue their support to CCP.

Improved Modus Operandi And Enhanced Understanding/Implementation Of Competition Law Related Concepts.

To strengthen the role of CCP as a regulator and facilitator in mergers, UNCTAD had recommended developing guidelines and incorporating a reference to supply-side substitution in the identification of the relevant market. To address this recommendation, Component 1 supported the development of a Module on substantive enforcement of competition law with a focus on mergers which provides, in particular:

- guidelines on how mergers are conducted within the CCP; - recommendations based on the international best practices; and - extensive reference on the functioning of market assessment methods, including supply-side substitution.

Besides setting the guidelines, this module is designed to be used by the CCP as a tool to train the private sector, in particular law firms, whose role is critical in properly notifying mergers for CCP’s clearance. As such, this module is providing an opportunity to the CCP to reach out for the law firms, share the Commission’s aspiration on how the legal requirements are to be interpreted, and sensitize them about the fairness of mergers process in public interest. In addition, CCP is currently mobilizing its funds to conduct trainings based on this module for the law firms and other stakeholders in Islamabad, Lahore and Karachi. The first set of these trainings, demonstrating the sustainability of the action, will be held by the CCP on May, 9th.

The second module on Competition Authority Operations has been developed to establish a framework for sustainable and effective development of CCP. This module builds on the work of the International Competition Network’s Agency Effectiveness Working Group operational handbook for competition agencies. Indeed, this module includes the specificities of the CCP to enhance its functioning and enables it to adopt good practices for strategy and planning, operations, and enforcement tools and procedures. This module sets the guidelines for the CCP and its senior management on how to enhance its functions and performance through an analysis of the seven categories of performance and questions to consider for improvement.

The modules on Substantive Enforcement of Competition Law and on Standard Competition Authority Operations have been used to train CCP newly inducted officers and senior management respectively in order to improve CCP’s strategic action. 107

Furthermore, acknowledging the quality of these modules and the enhanced capacity of CCP, the Commission was invited to provide trainings to Afghan officials in October 2015 in Istanbul under the auspices of the Commercial law development programme of the US.CCP is now planning beyond the programme to continue building on this enhanced capacity.

CCP’s capacity to carry out research and solid analysis both on the competition and economic perspective has developed .

There is a constant need to adjust competition law to the challenges arising by the ever changing business models and practices stemming from the global economy. Accordingly, a key function for competition authorities relates to their ability to conduct research in order to foster thought leadership for policy makers.

The studies, based on UNCTAD recommendations to develop them both on competition and economic aspects of certain issues, have enhanced the CCP’s capacity in domains where only limited expertise was available and where sound evidence-based analyses were needed to advocate for a change.

The study on Road Freight Transport Sector and Emerging Competitive Dynamics analyses the potential of the sector for economic growth. The study advocates for better competition rules in this sector in order to reorganize it based on mainly small operators with insecure finances. The study finds that the trucking companies are price takers and the absence of barrier to entry or exit does not create competition concerns at present. Nevertheless, the distortion comes from the National Logistic Cell, a Government company with 10% of the freight transport market share, benefitting from preferential treatment and tax exemptions that create market distortions and an anti-competitive environment for the private sector.

The study Towards a South-Asian Competition Network provides an analysis of the necessity and feasibility of the implementation of UNCTAD COMPAL programme in the region. This study builds the case for the implementation of the programme in the region by presenting the upsides of the programme for the region, for instance, the production of essential tools and information products to tackle anti-competitive behavior (market studies, guidance manuals, knowledge managements tools, i.e. competition impact assessments, etc.). This study has provided the necessary arguments for CCP to advocate within the region for the creation of the Competition Network.

CCP’s linkages with academia have developed.

The last module on the Academic Aspects of Competition Law has been key for CCP to reach out to academia. This very comprehensive module presents the theoretical and practical aspects of competition law. Through this module the CCP has been addressing the needs for competition related lectures to be taught in Pakistan and complete their own curriculum to provide post selection training to the newly recruited officers.

The module also enabled the CCP to achieve its objective of creating a bridge with academia. With the support of the Training and Outreach department, CCP has successfully concluded a training arrangement with the National University of Science and Technology (NUST) in January 2016. According to the arrangement this module has now become a permanent part of NUST’s Programme on Economics of Regulation and Competition Policy. The CCP is currently unremittingly exploring similar options with other universities including National University of Modern Languages and Foundation University.

With the support of this new department the CCP has extensively enlarged its outreach. Based on the module it has provided a series of training for its internal staff and external competition agencies officers.

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3.1.2 FOSTERING INFORMED POLICY FORMULATION (OUTPUT 1.4 AND 1.5)

Over the last 6 years, Component 1 has incorporated and promoted the key ingredients of best practices of policy making in Pakistan: ownership of the policy makers of the mechanism, an inclusive approach featuring in particular the participation of the private sector, evidence based researches developed by academic and research institutions, and well-trained policy makers. Ultimately, this process has contributed in creating the necessary momentum for the adoption and implementation of key trade policy reforms.

Public Private Consultation Process Continuously Implemented As Per Best Practices

Ownership

For the past 6 years, the Government of Pakistan has demonstrated its ownership of the process through the role of high level representatives of the Ministry of Commerce also serving as co-chair of the (PPDSC). This continued ownership has been acknowledged to be extremely useful in terms of the contributions in shaping critical trade related strategies of Pakistan. As a result, the Ministry of Commerce made direct requests to Component 1 to use such mechanisms to also inform other initiatives (e.g. TDRO Law, GSP+).

PPDSC has continuously managed, operated and guided the consultation process using a demand driven approach. Final outputs stemming from the consultation process have been conveyed to PPDSC for follow-up action and interaction with policy makers.

Inclusive approach featuring in particular the participation of the private sector

For each consultation processes initiated, a large number of stakeholders were informed about policy issues/reforms under consideration and encouraged to engage by submitting their position. This has been achieved through wide awareness raising campaigns conducted by sending letters and emails along with study briefs. The objective was to reach out to a large scope of stakeholders for their involvement in the process.

This effort has been rewarded with deep stakeholders’ involvement during the whole consultation process and participation in each public-private dialogue. It is important to stress that the stakeholders acknowledged the importance of this process, and the participation rate remained very high despite the total absence of pecuniary incentive and participation facilitation being provided. This was envisaged for the institutionalization of the dialogue process that the stakeholders participate in the process not for any material benefit but out of motivation and responsibility to express and become better informed about issues being faced in a particular sector for policy reforms. This also goes a long way to demonstrate the sustainability of the process

Evidence based researches developed by academic and research institutions

The collaboration between academic institutions and policy makers plays a key role in transforming the evidence based advocacy processes into trade policy formulation. The mentoring approach implemented to assist local institutions to conduct researches has allowed Component 1 to produce high quality evidence-based recommendations derived from international best practices (the list of evidence- based research stemming from the consultation mechanism and shared with the Ministry of Commerce is available under Annex 1.9).

Well-trained policy makers

This component of policy formulation process was supported through output 1.1., 1.2, 1.3 and 1.6 of Component 1.

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The contribution of the public private consultation process to key trade related strategic initiatives has been recognized.

The contribution of the public private consultation process to key trade related strategic initiatives has been recognized by the government in numerous fora and occasions. In addition, the recommendations which have stemmed from this process advocating for policy reforms and further interventions to be made to enhance the competitive edge of Pakistan’s businesses have assisted the Government in shaping initiatives aimed at enhancing the export competitiveness of Pakistan.

The stakeholders also endorsed the process and according to them, the public-private consultation mechanism has improved the trade policy formulation process by making it more legitimate and evidence-based. Stakeholders are now more associated with the process and they find it more convenient to convey their concerns. The presence of Minister of Commerce, Secretary Commerce and other senior officials from different government departments in the PPDs give confidence to the stakeholders that their suggestions are taken seriously and their concerns reach the appropriate platform. For instance, according to the Vice President of Pakistan Gemstone and Minerals Association, the PPD mechanism has ensured participation of the business community in policy making. He acknowledged that businesses are revisiting their traditional demands on subsidies and are starting to look beyond fiscal benefits. According to him the process has brought accountability and transparency in trade policy making.

Finally, the international community also acknowledges the importance of this mechanism for Pakistan, in particular other international organizations such as CBI and USAID. The CBI has expressed interest in cooperating with the ITC to carry out this mechanism for the implementation of the recommendations on how to maximize the benefits of the EU GSP+. The USAID has also acknowledged the importance of the whole process and has developed a project in order to continue this mechanism beyond the end of TRTA II programme (Pakistan Regional Economic Integration Activity - PREIA; 2015-2020).

This consultation process has directly contributed to a number of policy changes for an enhanced business environment, including (further details are provided in the key achievements section of the report):

(i) Preparation of Strategic Trade Policy Frameworks (STPF) 2012-15 and STPF 2015-18 (ii) Obtaining and maximizing the use of the GSP+ (iii) Drafting the Trade Dispute Resolution Organization law (iv) Contributing to drafting the national export growth strategy (NEGS) (v) Advocating to revamp the National Tariff Commission; and (vi) Accession to the International Transport of Goods Convention

Recent official statements which accompanied the launch of the Strategic Trade Policy Framework 2015-2018 have clearly acknowledged the role of public private consultation. Specific recommendations stemming from Component 1 have been factored in the STFP. Similar evidences, including formal letters from the Ministry of Commerce sent to ITC acknowledged the contribution of the consultation process supported under Component 1 in designing the STPF 2012-2015. The letter includes a list of recommendations stemming from the process which have directly inspired the design of this strategic document.

Component 1 has provided solid support to assist Pakistan in anticipating and operationalizing the benefits of the GSP+ scheme. As early as 2012, Component 1 conducted a research study and held a PPD in 2012 to help the stakeholders better understand the scheme and assist them with the compliance procedure to gain admission to the scheme. Building on that work and on the recommendations from the PPDSC, Component 1 developed a Business Guide in 2014 on EU GSP Plus scheme which aims at helping the exporters to comply with market entry requirements in selected export sectors that are of particular interest to Pakistan. Indeed, even though the granting of the GSP Plus status to Pakistan

110 allowed it to benefit from preferential tariffs, the Non-Tariff Measures (NTMs) remain strictly in force and require compliance. The Guide has been translated into Urdu at the request of the Ministry of Commerce and other stakeholders and printed in large quantities for distribution among the stakeholders. The Urdu version of the Guide was launched officially in a ceremony held in Karachi which was attended by the Pakistan Minister for Commerce, the ambassador of EU in Pakistan and other senior officials from the government, private sector and diplomatic community.

For the development of the draft TDRO law, Component 1 has provided technical assistance and advocacy services to conduct a nation-wide consultative mechanism. A first series of consultations were held, which were key for the inclusion of the needs of the Organization and stakeholders. The TDRO further conducted bilateral consultations with the business community in different provinces of the country. These efforts culminated in the production of a draft law, which could help support the production of all trading interests and improve Pakistan’s standing internationally, especially in contract enforcement. The outcomes of this consultative process and the production of the law were acknowledged by Engr. Khurram Dastgir Khan, Minister for Commerce who expressed that “This law would serve Pakistan for many decades to come and allow our exporters to compete internationally with confidence”, and by DG TDRO, Ms.DG TDRO Roubina Taufiq Shah who stated that “'No doubt the TDRO Law will change the face of Pakistan’s foreign trade and propel it to the top of international dispute resolution mechanisms available to global trade. If left unsupervised and unguided, trade disputes could lead to serious conflicts between governments quite apart from damaging private sector business interest and clogging, even further the current court structure in Pakistan. The technical assistance from ITC enabled us in introducing a law which ensures effective, swift, transparent, and cost efficient dispute resolution which would promote an environment of confidence among the investors and traders”.

Acknowledging the effectiveness of the policy research and PPD mechanism, the Ministry of Commerce in two separate letters requested Component 1 to assist in the capacity building of Services Trade Development Council (STDC) and to contribute to drafting the National Export Growth Strategy (NEGS). Accordingly, two local researchers were hired for the drafting of two chapters of the NEGS in consultation with the working groups established by the Ministry of Commerce. The Institutional and Policy reform components/studies have been submitted to the government, in which main recommendations have been included in the STPF 2015-18.The final version of the STPF 2015-18 has factored in main recommendations from these studies, among which restructuring/reorganizing trade promotion organizations (including TDAP). Furthermore, other key recommendations of prior studies have also been embedded in the STPF 2015-18, with for instance the policy strategic vision of the inclusion of Pakistan top export products in high-concession categories during the review of the Pakistan FTAs (c.f. STPF 2015-18 rice, cotton yarn, fabrics and garments categorization will be revised in the review of the Pakistan-China FTA).

As part of the Government’s will to support its exports to India, the Ministry of Commerce has associated Component 1 through the PPDSC in 2012-2013 to conduct a national wide consultation process to analyze the possibility to enhance the agricultural sector’s exports to India. Following the consultative process, the recommendations that emanated was to revamp the National Tariff Commission (NTC) as established under the 1990 NTC Act. The recommendations concur in considering that the NTC had to protect the interests of the small land-owning farmers, and more generally to address the unfair trade practices faced by Pakistan – with a particular emphasis given to delays of procedures. This recommendation was acted upon in 2015 when the GoP adopted the new NTC Act, providing easier access to complaints mechanisms to the private sector stakeholders. The Government also associated Component 1 to understand how to enhance trade with ECO countries. One of the main challenges identified by stakeholders in developing trade with ECO countries is the transport and the fact that Pakistan was facing difficulties during trade operations through road from Central Asian Republics to Europe. To address this challenge the consultation mechanism has recommended Pakistan to become part of the TIR Carnet Convention, which it did become part to in May 2015.

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3.2 COMPONENT 2: EXPORT DEVELOPMENT THROUGH IMPROVEMENT OF QUALITY INFRASTRUCTURE

The initial baseline studies and value chain analysis covering the fisheries, horticulture and industrial product sectors were successfully completed, thus providing the basis for elaboration of the Inception Report relating to SPS compliance, value-added productivity and conformity assessment infrastructure.

Mapping of testing and calibration laboratories in Pakistan was carried out and a brochure featuring profile of the laboratories including services provided was published. Similarly, stakeholders analysis and donor mapping was undertaken to determine requirements and programme interventions.

20 testing laboratories, which were accredited to ISO 17025 under TRTA I, were able to gain their accreditation status by arranging for traceable calibration of their laboratory balances and conduct of surveillance/reassessment visits by the Accreditation Body.

3.2.1 COMPONENT 2.1: STRENGTHENING SPS SYSTEM MANAGEMENT

NAPHIS Bill TRTA II intervention has created significant awareness on SPS issues where very limited knowledge and capacity existed before and has also contributed towards the development of national level legislation and structure.

National consensus was achieved, with TRTA II support, to establish a National Food Safety, Animal Health and Plant Health Authority (NFSAPHRA) at the Federal level replacing NAPHIS as the lead agency responsible for all SPS and food safety issues in Pakistan.

The NAPHIS Bill was re-drafted with TRTA II support with a view to establishing an umbrella organization for food safety, animal and plant health at the Federal level.

Linkage between work done at the provincial level and at the federal level has been established. TRTA II acted as an important bridge between the two a support that was necessarily required in wake of the 18th Amendment.

The draft NAPHIS Bill was shared with a wider set of stakeholders to develop awareness and generate feedback and discussion on the area.

Following three additional rounds of consultative meetings, with provinces, Ministry of Science & Technology (PSQCA) and the various departments within the MNFS&R, the Food Safety Bill under NAPHIS was finalized and approved by the Secretary and sent to the Minister (December 2012) for further processing.

The NFSAPHRA Bill (NAPHIS Bill) was considered by Cabinet on 15 April 2014, and agreed to in principle.

In September 2015, the Prime Minister’s Secretariat approved the NAPHIS Bill and requested MNFS&R to first get the Bill vetted by the Law Division. Following which MNFS&R developed a concept note/brief on the National Food Safety, Animal and Plant Health Regulatory Authority, detailing out the organizational structure and financial proposal which was submitted to the Planning Commission and Finance Division, respectively. These documents would then be collectively presented to the Parliamentary committee for discussion and eventual enactment by the Parliament.

10 delegates from relevant ministries and attached government bodies met with several food safety and SPS management agencies in the UK and DG SANCO in Brussels to learn and exchange ideas on SPS and develop strategic linkages during study tour to UK from14-25 November 2011 (Annex 2.9).

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10 participants from fish processing plants were trained in HACCP and traceability systems, and 28 participants from the Marine Fisheries Department and Karachi Fishery Harbour Authority were also trained in hygiene controls along the supply chain.

PGDC in Food Safety & Controls was launched in October 2012 at the following universities; University of Veterinary & Animal Sciences, Lahore; University of Agriculture, Faisalabad; University of Karachi, Karachi. These Universities are interested in converting this PGDC into a full-fledged research-based degree programme leading to MSc. and/or MPhil. This initiative underlines the value of this course and ensures suitability.

There was no robust standard academic/ training course in the country to train food inspectors. In its efforts to establish the overall SPS management system TRTA II realized that it was necessary to have professionally trained food inspectors. As a result of efforts made under the TRTA II programme there now exists complete syllabus and book lists for the Post Graduate Diploma Course in Food Safety and Controls and agreement from three national universities to offer them as standard courses from September 2012.

Post Graduate Diploma course in food safety & controls was accredited by Royal Environmental Health Institute of Scotland (REHIS) through the TRTA II support.

UVAS and UAF converted this PGDC into a full-fledged research-based degree programme leading to MPhil and MSc, respectively. This initiative underlines the value of this course and ensures sustainability.

6 food inspection kits (2/university) were delivered to the three universities.

3 day pedagogical training of AUP faculty members on teaching methodology and learning objectives of PGDC in Food Safety and Controls conducted.

20 officials of Food and Health Department, KPK and 10 academics from the Department of Food Science and Technology at UAP were trained on practical inspection of food and food establishments, including use of using food inspection kits.

The PGDC in Food Safety & Controls at AUP was also accredited by REHIS is February 2016 and the university launched the Diploma Course in April 2016.

Resumption Of Exports Of Fishery Products To The EU (March 2013)

Expert advice was provided to MFD for meeting requirements for removal of restrictions on fish exports to EU countries through trainings, review of dossier to be submitted to DG SANCO, elaboration of inspection plan, HACCP auditing of processing units, sampling plan for testing at PCSIR Karachi as well as in-house testing by MFD.

Record Increase Of Fish Exports Following The Opening Of EU Markets

After the MFD had satisfied the sanitary, hygiene and traceability requirements of FVO, DG SANCO allowed resumption of fish exports from Pakistan as of 12 March 2013. Following this the MFD has certified the shipment of 160 containers for export to the EU, with zero (0) rejections. The main destinations of these exports are: Valencia Spain (3-4 containers/month) and Felixstowe, UK (2 containers/month). Over this period of 36 months the exports of fish to EU has surpassed US$ 16 million.

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Figures released by the Pakistan Bureau of Statistics (PBS), show that the export of fish & fishery products has increased by 15.68% (in value) & 12.25% (in quantity) during financial year 2013-14 as compared to the figures of financial year 2012-13. According to PBS, during Financial Year 2013-14, the fish & fishery products valued at US$: 367.472 million (quantity: 155,671 metric tons) was exported. Whereas, during financial year 2012–13, the total export was US$: 317.652 million (quantity: 138,680 metric tons).

This is a record increase in export of fish & fishery products from Pakistan. Export earnings of US$: 367.472 million is over and above the target fixed by Marine Fisheries Department which was US$: 340.00 million.

MFD has taken further steps to extend sanitary control capacity for export of fishery products to KPK (Peshawar) and Baluchistan (Gwadar) Provinces, as recommended by TRTA II.

Strengthening Of SPS Inspection System In The Provinces

The Ordinance for Punjab Food Safety and Standards Authority was promulgated, following which TRTA II provided technical support in structuring the Authority and elaboration of the bye-laws and regulations associated with food safety issues.

Training of 30 Food Safety Officers, Assistant Food Safety Officer, Public Analysts and senior officials of the Punjab Food Authority was conducted. A manual/guide document on Establishing Food Safety/SPS Authorities has been prepared.

9 food inspectors kits distributed to PFA and staff trained on the use of the kits and inspection procedures.

Punjab Food ‘Official Control’ document (Pure Food Rules) drafted and submitted to PFA.

8 technical regulations related to food have been drafted and submitted to PFA.

Roadmap for the setting up and launch of the KPK Food Authority prepared and submitted to the Health Department, KPK.

A draft report evaluating the performance of the PFA, containing a critical and wide-ranging review of PFA prepared. The draft report was presented to the DG PFA and the Secretary Food, as well as Director Technical and Director Operations of the PFA and detailed discussions were held on the rationale and implementation issues involved.

Three day training conducted and 22 Food Safety Officers and Assistant Food Safety Officers of PFA trained on advanced food inspection techniques.

PVS (Performance Of Veterinary Services)

OIE (World Animal Health Organization) mission conducted of PVS. The mission completed a 3 week review of animal health status and veterinary services and controls in Pakistan. This PVS report (confidential document) has been submitted to the MNFS&R in May 2015.

3.2.2 COMPONENT 2.2: IMPROVED QUALITY, VALUE ADDITION AND COMPLIANCE IN FISHERY, HORTICULTURE & INDUSTRIAL SECTORS

MoU between NPO and WNPO The National Productivity Organization (NPO) of Pakistan formally signed an MoU with World Confederation of Productivity Sciences (WCPS) and World Network of Productivity Organizations (WNPO).

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The CEO of NPO Pakistan was officially designated as coordinator, by WCPS, for the South Asia and Middle East region which includes Sri Lanka, Bangladesh, Afghanistan, Iran, Iraq, Maldives and Nepal at present. The designated coordinator will nominate individuals from the above countries for award of fellowships to those who have contributed in the area of productivity.

The NPC-Turkey (MPM) and NPO Pakistan also signed a protocol of cooperation for carrying out joint projects, arranging study visits, expert and information exchange, training programmes, consultancy, and sharing of research results and recent developments in productivity related topics and dissemination of best practices.

Benchmarking

Two Benchmarking Tools were developed covering the fan, cutlery and surgical instruments sector and five staff members of NPO were trained in employing the Benchmarking Tool.

The Competitiveness Benchmarking Tool was piloted in two key industrial sectors, namely cutlery and fans. The tool is available as a downloadable user friendly software.

11 key staff members of NPO were trained in the application of the CBS tool. The training included both field data collection and in-house analysis by engaging the CBS tool.

Sector benchmarking reports highlighting key productivity bottlenecks for cutlery and fan sectors were produced and finalized. NPO has agreed with the key recommendations and they will be taking it forward as evidence for policy formulation process.

22 firm level productivity enhancement intervention reports were produced and finalized with relevant enterprises to move forward in implementing the recommendations.

A PC-1 has been developed and put up for approval by NPO to implement recommendations made in the benchmarking report to fund mechanical upgradation of the polishing process in the cutlery sector.

The International Productivity Congress held in Islamabad on 17-18 November 2011 proved to be useful and invaluable for establishing international attire and linkages of NPO.

Fellowship awards were presented to five individuals from Pakistan by World Academy of Productivity Sciences (WAPS) arranged under TRTA II programme.

Capacity Building Of NPO

NPO was not only well known among local industrial sectors but was also recognized by various international agencies as a lead productivity organization in Pakistan.

IT Equipment Provided To NPO Being Used In The Field

With the provision of CBS tool and its related IT equipment NPO has further established its role as a key agency to conduct sector benchmarking in Pakistan. This had been demonstrated through NPO’s replication of sector benchmarking in the surgical sector.

Master Trainers In Lean Manufacturing Developed

Lean manufacturing is the key to improving productive efficiency on factory floors. NPO and other industry related agencies in Pakistan had no capacity to implement and monitor lean productivity for manufacturing sectors. TRTA II had been able to create this capacity by training and certifying 25 master trainers in the field of lean manufacturing. These trainers were made available to NPO which can use these trainers to run lean manufacturing in any sector in Pakistan. 8 of the 25 trainers trained have already demonstrated their expertise by working in fan factory in Gujrat. NPO can now conduct

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further training programmes to train workers, factory owners and employees of related agencies in lean manufacturing. Moreover, this trained pool of master trainers can help NPO implement recommendations that come out of the further sectoral benchmarking work that NPO conducts.

NPO Ranked As The Top And Preferred Institution To Work On Benchmarking In Pakistan Using CBS Tool And TRTA Approach

The Ministry of Textile, Government of Pakistan recently launched a mega scale project to measure productivity of the garments industry. Garments industry offers employment to highest number of workers, including substantial proportion of women, in the manufacturing sectors and adds the maximum value in the textile sector of the country. NPO has been selected after a competitive process by the ministry to conduct this exercise using the UNIDO CBS tool provided under TRTA II. This is a major recognition of NPO by the Government of Pakistan.

NPO Capacities Build To Carry Out Benchmarking

NPO conducted a sector level benchmarking study in the surgical instrument sector and a firm level Overall Effective Efficiency (OEE) based on the approach adapted and implemented by TRTA II programme in Cutlery and fan sectors. This is the direct impact of the TRTA II interventions concerning the capacity building.

A More Credible Mechanism For Delivering Of Technical And Vocational Skills

The concept paper developed for TEVTA Punjab seeks to significantly improve service delivery and credibility of TEVTA in providing relevantly trained workforce. This intervention positively came even earlier than expected and it is likely to have a significant impact on employability of TEVTA graduates.

Cutlery Polishing Machines Installed And Commissioned

Four members team of the Chinese supplier has installed, commissioned and trained the personnel of model units on two sets of cutlery polishing machines under the TRTA II programme. Pakistan Cutlery Association has been apprised on the new technology through the meetings with the Chinese engineers and through the demonstration session held at a cutlery beneficiary unit.

Pakistan Cutlery Association (PCSUMEA) has developed a PC-1 through TUSDEC following the model of TRTA II programme to upgrade the technology in other cutlery manufacturing units of the sector.

ELECTRIC FANS SECTOR GUJRANWALA & GUJRAT

Pilot Factories Implemented Lean Production System

Fan manufacturing time reduced from 6 days to one day reducing working capital requirement by around Rupees 5 million. 50% time saving on paint drying process and 80% time saving on packaging and final testing stage.

The design modification in the paint section was the other major success achieved. The modification allows the fan motors and rods to be painted and dried simultaneously hence reducing the production time to half and also cutting the heating costs by half. This is again a major achievement under TRTA II.

The packing section was the slowest mover and was dragging down performance in pilot factory where we implemented lean manufacturing. Now, a simple design modification had reduced the packing time by 80% and this process is now better aligned with remaining processes. TRTA II has modified the design specification through the mechanical engineers from NUST.

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In addition to the above twelve more changes have been identified in the pilot factory, however, they need more time to be implemented. The real success is that most of these changes were identified jointly by the master trainers and the workers that were trained on lean manufacturing under the TRTA II programme. This demonstrates immediate success and impact. The employer has also agreed to increase the wages of the workers that have been certified as lean trained by TRTA II.

Success Stories Disseminated

CSR and Process Control intervention was rendered successful in the pilot phase where 10 companies from three industrial sectors including electric fans, protective gears and cutlery and knives witnessed huge gains in productivity and quality and better working conditions for their workforce. From 30% to 120% increase in productivity and 53% to 68% improvement in quality defect rates have been observed. One hundred personnel from 10 companies were trained on the 5S approach to create a cleaner and organized workplace.

Table 1 Achieved KPI Target Values

Companies Achieved KPI target values SGS Royal Starco Hansa Fans Fans Fans Leather Quality % Improvement Defect Rate 61 68 53 65 Productivity % Improvement WIP Pcs 86 80 75 NA Batch Travel Distance m 84 65 83 0 VACTR* % 51 30 51 120 NVACTR** % 54 40 57 49 Average Production / Day Pcs/day 78 0 42 64 No of Workers Nos 0 30 0 76 CSR done done Done done 5S awareness campaign Nos trained 30 45 20 10 Segregation of Material Impl'd √ √ √ √ Red Tags Impl'd √ √ √ √ Arrang't Tools and Eq. Impl'd √ √ √ √ Cleaning Impl'd √ √ √ √

Through a dissemination seminar, the results were shared among the stakeholders and industry in order to show the power of CSR and Process Control tools and techniques and other necessary ingredients like top management commitment and team development at enterprise level, to sustain such initiatives and to instigate a sense of urgency to unveil the huge potential of cost reduction and quality improvements leading to enhanced competitiveness and growth. More than one hundred manufacturing units from different manufacturing sectors participated in the seminar and applauded the achievements of TRTA II.

PEFMA Knowledge Centre Established

Pakistan Electric Fan Manufacturers Association (PEFMA) has established a Knowledge Centre and has hired some resources. PEFMA provided with 12 new fan manufacturing units who were willing to share the cost of these resources while TRTA-II provided with the expertise to train these resources. This endeavor helped PEFMA to carry on CSR and Process Control initiative sustainably after the capacities of newly hired resources had been developed.

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CSR And Process Control Implemented At 7 New Units In Electric Fan Sector

During the second phase of the intervention pertaining to CSR and Process Control, the IE and PMO team evaluated 12 units, 9 at Gujrat and 3 at Gujranwala, and out of these 12 units 10 were selected for CSR and Process Control interventions. The factories selected at Gujrat were provided with the guidance through the resources hired at PEFMA knowledge centre.

10 companies in the fan sector received guidance on CSR and Process Control as a result of this intervention. 7 units, in addition to the 3 units of phase 1, have been able to achieve substantial gains in terms of Productivity, Quality and CSR improvements during a period of 10 months starting from January 2015 to October 2015. Five of these companies were enrolled under PEFMA knowledge centre. As a result of this intervention, the selected units in fan sector witnessed quantitative gains in terms of quality, 44% to 81% Batch Travel Distance, 52% to 86% Work in Process (WIP), 30% to 71% Labour Productivity, 70% to 103% Line Balancing Efficiency, 105% to 240%, Average production per day, 9% to 280%, and Number of Workers 6% to 26%. Due to this CSR implementation, the companies saved PKR 6.3 M along with training of 150 personnel on shop floor management techniques.

Inline Process Control Implemented At Two Units In Electric Fans Sector

After the successful completion of 1st phase, where the KPIs pertaining to productivity, quality and CSR were improved at three fan manufacturing units, in the 2nd phase two factories have been selected and the implementation of the “in-line process control” was initiated. Since the sector is not following the drawing standards with engineering tolerances, the teams of these factories are being trained on measurement techniques to establish the control limits for the selected product lines. So far the dimensional data of the selected products has been measured and in a step by step approach the control limits are being established. Once control limits are established, it would be possible to prepare drawing standards for the products under consideration with quality control data points. 6 personnel from two factories are being trained on in-line process control techniques. The replication of this pilot phase approach is being implemented also in other lines of these units as well.

Since the engineering drawings of the fan products were not available with the companies, the basic dimensions of selected ceiling fans models have been measured as per the guidelines provided by the TRTA team. After having shared these data with the top management of these companies, they not only have understood the major weakness of not implementing the in-line process control, but also the real cause which is the, non-availability of engineering drawings necessary to formulate the quality measuring standards. As a result they have fully accepted the approach of formulating control limits, conversion of these limits into drawing specifications, evolving of the in-line process control measurement system on the basis of these drawings and then the development of necessary measurement tools and gauges and the training of the concerned personnel to ensure the conformance of developed standards.

Replication Of CSR And Process Control Completed

One of the first phase companies has replicated the approach of Process Control and CSR in Louver fans line and winding section of ceiling fans. The results of these replications are very promising.

The other company has replicated TRTA approach in its packing section and also worked on die casting section, which has been exhibiting worse scenario. PMO team has engaged UET final year students to gauge the current conditions and it is expected that after implementation of productivity tools and modification of the existing furnace the company will substantially improve fuel consumption per unit and working conditions of this section will improve many folds.

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Saving Potential Of PKR 225 Million Identified

PMO team along with the IE conducted a study on die casting section in fan sector and it was found that a number of best practices were missing. By adopting these best practices the companies can save up to PKR 0.9 M per furnace per year. Conservatively, if there are 250 furnaces in operation in fan sector the potential of saving will be more than PKR 225 M/year.

Development Of Process Control Plans Based On Engineering Drawings And Standardization

2 companies were also provided with the guidance on standardization of products through collection of control limits data and development of engineering drawings. This working then converted into Process control planning and development of Work instruction sheets for the operators and QC staff. This exercise has helped the companies to standardize their products and processes by converting the implicit knowledge into the explicit one through documentation and training of the qualified staff.

Implementation Of CSR And Process Control At Selected Surgical Instruments Manufacturing Units

TRTA team, under guidance of the IE, has collected and analyzed data in order to identify the base line KPIs in terms of Productivity, Quality and CSR. Improvement plans then developed and factory teams were engaged in the implementation of these improvement plans. Out of six selected surgical units two have implemented the improvement plans whereas two more units are in the process of construction of new halls. By December 2015 these units will have implemented the proposed layouts and will ascertain gains in Productivity, Quality and CSR.

The two units that implemented CSR and Process Control techniques have witnessed up to 61% improvement in quality defect rate and improvement in labor productivity up to 114%, improvement in batch travel distance up to 96%, line balancing efficiency up to 167%, average production per day up to 76% and manufacturing lead time reduction up to 93%.

Training Workshops In Collaboration With CBI Conducted

Centre for promotion of imports from developing countries (CBI) of Netherlands and PMO in collaboration with SIMAP, PEFMA and PGMEA have conducted two training workshops on the process control tools and methodology utilization conducted where more than 70 personnel from the fan, gloves & boots sector participated and as an outcome of the workshops more than 10 units from these two sectors have requested to enrol them in the programme.

In collaboration with CBI and Surgical Instruments Manufacturers Association of Pakistan (SIMAP) two training workshops, three days each, were conducted for surgical instruments sector where around thirty (30) surgical instruments manufacturers participated. Two international and one national expert were provided by the CBI. These Experts trained the participants on contemporary tools and techniques of productivity, quality and CSR improvements.

CSR And Process Implemented At 4 Surgical Instruments Manufacturing Units

Following the recommendations of benchmarking study and SIMAP and SCCI’s request to implement CSR and process control interventions in surgical instruments sector. Mr. Wouter Put, the IE in CSR and Process Control, along with PMO team were engaged to evaluate the 13 units nominated by SIMAP. The IE and PMO team devised selection criteria on the basis of the top management commitment, availability of team, potential of building and seriousness towards CSR improvement. Out of 13 nominated units, 6 qualified for the CSR and Process Control intervention. The 6 selected units have been informed and PMO team has started work on the CSR and Process Control interventions with them.

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4 units implemented CSR and Process Control techniques have witnessed up to 61% improvement in quality defect rate, up to 114%, improvement in labour productivity, up to 96% improvement in batch travel distance, up to 167% in line balancing efficiency, up to 76% average production per day and manufacturing lead-time reduction up to 93%.

NPO Personnel Trained On CSR And Process Control Tools And Techniques

During the implementation of CSR and Process Control intervention in Industrial Sectors NPO personnel have been engaged and were thoroughly trained on how to execute CSR and Process Control at Sector and factory level. The personnel from NPO travelled along with the PMO team on weekly basis to the factories in Fan, Surgical and Cutlery units. Now NPO resources are in a position to take up such initiatives on their own and can facilitate the sustainability of CSR and Process Control intervention in the long run.

FISHERIES

Fisheries Value Addition An assessment was done in consultation with Fish Processors and other stakeholders to identify potential technologies that can be sustainably introduced for value addition in fish processing sector of Pakistan. Based on the findings of the assessments, feasibility reports are under preparation for tapping opportunities in identified added value areas such as ready-to-eat sardine in soft foils, production of smoked fish and refined fish oils and mobile block freezing etc.

Training Plan For Around 2000 Fisherman Finalized

The process of identifying a reputable international institute to build capacity of the Fisheries Department Balochistan for providing training to their extension officials as master trainers was completed. These master trainers trained around 2000 poor fishermen and navigational crew of boats on the developed Codes of Practice for improved handling of fish on boats that in turn helped them in improving their income.

Prefeasibility Study For Operationalization Of Korangi Fish Harbour

The National Engineering Services of Pakistan (NESPAK) was engaged by the TRTA II programme to undertake a feasibility study for development of Business Park along with a business plan to sustainably run the business park and up gradation of Jetties and related facilities such as auction hall, at Korangi Fish Harbour so as to operationalize this Fish harbour. This study was approved by the Korangi Fish Harbour Authority and the Ministry of Ports and Shipping.

Development Of Roadmap For Trade Linkages For Fish Processing Industry

Roadmap for Trade linkages for fisheries processing industry was prepared by International expert in consultation with Seafood Exporters Association and representatives of Processing Industry.

Training Of 35 Master Trainers From Baluchistan For Training Fishermen Of Baluchistan

For enabling master trainers build local codes of practice for handling fish on small boats, relevant for Balochistan and to develop fishermen’s skill to improve the catch quality and their livelihood, the design and all the relevant preparation was completed. The training of master training programme was conducted in Karachi from 18-29 November 2013.

Prefeasibility Study For Operationalization Of Korangi Fish Harbour

The second draft of the prefeasibility study has been prepared by NESPAK based on analysis of report in the light of TORs and comments and the comments of international expert after reviewing the document. 120

The final draft of the prefeasibility study prepared by NESPAK has been submitted to Ministry of Commerce, Korangi Fish Harbor Authority and other stakeholders for review and finalization through a subsequent validation meeting.

Training OF Fishermen BY Master Trainers IN Lasbella District

Fishermen of Baluchistan Trained by Master Trainers in good handling practices of fish on small boats. About 800 Fishermen belonging to 6 coastal fishing villages/landing sites were trained by Master trainers. The training sessions for fishermen generated a felt-need to change their post- harvest practices, for improving the quality of their fish catches that could lead to better income and livelihood through adoption of CoPs.

Codes of Practice for handling fish on small boats, relevant to Balochistan, which were developed earlier by the Master trainers and TRTA II experts was printed in the form of first version of an illustrated book . This version was reviewed thoroughly during the training sessions and the final version of the CoP was printed and disseminated.

Codes Of Practices CoPs Revised

The CoPs for the handling of fish on small boats were revised based on the feedback received from the fishermen during the training of first batch of fishermen in Lasbella district of Baluchistan. The guidelines for the sorting and grading of Crabs and Shrimps were also included in the revised CoPs.

Training Of Fishermen By Master Trainers In Gwadar District

A seven-day pilot training of the 1,260 Fishermen of the Gwadar district, was organized by the Fisheries Department (BFD) Government of Baluchistan in conjunction with the EU-funded UNIDO/TRTA II programme as a continuation of the trainings earlier imparted to 700 fisherman of the Lasbella District.

Fishermen at 11 districts of Gwadar (1,260 fishermen) were trained based on developed COP for small fishing boats by Master Trainers under the supervision of TRTA II programme.

Altogether, 1,960 fishermen belonging to 17 different coastal villages/ fish landing sites along the coastal belt of Baluchistan were trained.

Fisheries Value Addition

The report available, identified potential technologies (fish oil production , mobile block freezing, fish smoking and sardine ready to use products etc) that can be sustainably introduced for value addition in fish processing sector of Pakistan. The study report is based on field study and current fish processing profile.

HORTICULTURE SECTOR

PAK GAP

PAK GAP PC 1 revised and submitted to PHDEC. The finalized PC-1 for PAKGAP was submitted by PHDEC to Ministry of Commerce for approval.

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DOCUMENTATION ON COST OF CONTROL ESTABLISHED

The other achievement under the TRTA II in horticulture sector is the documentation of real costs of control. Although Pakistan has a huge agro-sector no basic data on how much it costs per harvest to control production (pesticides, irrigation etc) existed. Such data has been collected for the first time under TRTA II for the Kinnow and Mango Sector.

Codes of Practice (CoP) Brochure Printed

This CoP brochure is meant as promotional material for interventions implemented in kinnow and mango sectors under the TRTA II programme in collaboration with ASLP and PHDEC. The information contained in the brochure aims to inform potential buyers of the work being carried out in this sector to ensure the quality of the produce in compliant with international requirements of food safety, SPS measures and Good Agricultural Practices.

Horticulture Equipment Kit Provided To Kinnow And Mango Farmers, CRI And MRS

22 equipment kits (10 to Mango farmers and 10 to kinnow farmers) provided to support the farmers to produce quality fruit. The kit contains the basic equipment to help the farmers to effectively prune the trees, assess the water and fertilizer requirements, etc.

Kinnow Harvesting Bag easy to use for labour designed and distributed.

Mango Fruit Fly Controlled Effectively

Fruit fly a major hurdle in export of mangoes was successfully controlled without using any chemical or pesticide spray. Farmers witnessed and learned the effectiveness of fruit fly control without chemicals.

As a result of this intensive control programme, the fruit exported to Middle East, Europe and South Asia. In fact the fruit quality was appreciated by the buyers in the international market. Due to the fact that fruit fly was controlled biologically, no MRL issue was reported. In the coming years, farmers can now apply the effective control themselves.

Researchers from CRI and MRS trained on international best practices of Kinnow and mango farming and post-harvest processing at University of the Philippines, Los Banos. COPs and CCPs refined according to the international best practices.

MRS through prepared a model SSHWT unit for demonstration. MoC through TDAP/EDF mobilized the funds for the manufacturing of the 10 SSHWT units to be placed at the 10 farm clusters receiving TRTA II support.

Installation And Operationalization of SSHWT Units

Six SSHWT units were manufactured and installed at the selected farm clusters. In the mango season 2015, the farmers and processors used the SSHWT units for processing the mangoes for both domestic and export markets. The hot water treated mangoes were sent to different export destinations including USA. Some farmers/processors also sold the Hot water treated mangoes in the local market.

Training Of Master Trainers In Kinnow Sector In Collaboration With ASF

Thirty Five (35) persons including the officers from the directorate of Agriculture Extension, Agriculture Marketing of the Government of The Punjab, Kinnow farmers, processors/exporters, middlemen and the research scholars of the University of Agriculture Faisalabad were trained as master trainers in Kinnow.

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Promotional Campaign For Pakistani Mangoes In Malaysia And Singapore Launched

TRTA II programme, in collaboration with TDAP, has successfully developed and executed the Mango Promotion Campaign in South East Asian market. Twelve supermarkets in Malaysia and two supermarkets in Singapore participated in the promotion campaign lasting 6 weeks. The supply of mangoes for sampling and the promotion with promoters were fully funded by the commercial stakeholder.

Direct Deliveries Of Mangoes To Supermarkets In Malaysia And Singapore

Pakistani Exporters through the Rush Group and Chop Tong Guan (CTG) made direct deliveries of mangoes to the renowned supermarket chains of AEON, TESCO, Econsave, NSK, Mydin, Giant, SAM’s Groceria, Village Grocer, MBG, ISETAN, Max Value, Sunshine in Malaysia that have sold the Pakistani mangoes in their stores.

Similarly, mangoes were supplied to Sheng Siong and Cold Storage Supermarkets in Singapore in specially designed boxes.

A total of 25 metric tonnes were shipped to Malaysia and Singapore through the TDAP and TRTA supported mango campaign.

Establishment Of A Permanent Research Desk At Trade Development Authority Of Pakistan (TDAP)

A permanent research desk has been established in Trade Development Authority of Pakistan for the analysis based on the approach provided by TRTA II programme. The desk consists of research analysts who will carry out sectoral competitiveness, value chain and market analysis for public stakeholders and policy makers.

Codes Of Practice In Kinnow And Mango Sectors Finalized And Disseminated

CoPs and CCPs for the entire Kinnow and mango supply chains were finalized, printed and distributed to all stakeholders.

CE Mark Awarding Notified Bodies Identified

Preliminary contacts have been established with potential Notified Bodies in Europe for fans, gloves and boots. The formal quotations have been obtained from these notified bodies by sharing the initial documents related to the products selected for CE marking.

CE Mark Guide Books Developed

The two CE marking Guides, one for electrical equipment and the other for protective clothing, had been adjusted as a result of comments received from UNIDO and from PCSIR. They were further reviewed by the Expert during the mission, some minor technical and editorial improvements were made, and the guides are now complete. These books have been uploaded on the TRTA website as well as have been distributed widely in the relevant sectors.

Trainers Pack Developed For Master Trainer On CE Marking

Trainer Pack for master trainers on CE marking for fans and protective gloves/boots was prepared and distributed to selected master trainers. This initiative is to build capacity within Pakistan to help companies interested in CE mark certification. An action plan for master trainers has also been developed and is under implementation.

123 Twenty (20) EN Standards Purchased And Distributed

Twenty EN standards have been purchased from Denmark Standards Body for distribution to the enterprises selected from Electric fans and protective gloves/boots sectors for TRTA support to achieve CE mark certification. These standards are copy right protected and need to be purchased for the purpose of usage.

Protective Gloves Achieved CE Marking

Eleven (11) models of protective gloves have fulfilled all the requirements and have achieved CE marking. As a result, an increase of 30% in exports of CE marked gloves has been reported during 1st year. One of the protective gloves manufacturer has won the international bid of US$ 100,000 from Australia as a result of CE marking. This manufacturer has conformed six more gloves model in view of the benefits achieved on earlier CE marked products.

Manufacturers Trained On CSR And Process Control Tools And Techniques

Two training workshops on the process control tools and methodology utilization have been conducted where more than 70 personnel from the fan and gloves & boots sectors participated.

CSR And Process Control Implemented At Protective Gears Sector

One success story has been created at one of the protective gears manufacturing unit where, initially, the quality defect rate at the gloves manufacturing line was 30% with line balancing efficiency of only 40% and non-value added time per week was 4300 minutes or 10 man days. After implementing the quality control system and productivity improvement tools we have achieved the defect rate below 10% along with 72% line balancing efficiency and reduced the number of workers from 23 to 13. The reduced workforce has been employed in another production line.

Pool Of Consultants Developed In 10 Demand Driven Certifications

TRTA II in collaboration with PCSIR and Bureau Veritas Certifications (BVC) has conducted 10 demand driven certifications to develop a pool of consultants. Overall 10 courses have been selected while the training course on FSSC 22000 LA has been conducted twice as IRCA permits only 10 number of participants per session of the course. Around 150 personnel have been certified collectively in these courses.

One hudnred and Seventy (170) personel tranined in 10 different certification sysytems (FFSC 22000, SA 8000, SA 8000-LA, Supplier Ethical Data Exchange (SEDEX), Traceability, Good Manufacturing Practices (GMP), ISO 13485 (QMS Medical Devices), Global GAP, Internal Auditing British Retail Consortium (BRC) and BRC LA.

Of the 170 personnel from various sectors (public and private), 136 (80%) qualified their respective courses by passing the exam on the final day. Details of each training are as follows:

Food Safety System Certification - 22000 Lead Auditing

In the two training courses 20 people participated from public and private organizations. The course duration had been of 5 days. FSSC 22000 contains a complete certification scheme for Food Safety Systems based on the food safety management standard ISO 22000: 2005 'Requirements for any organization in the food chain' and the publicly available specification for Prerequisite programs on food safety for food manufacturing, BSI PAS 220: 2008 or ISO/TS 22002-1:2009ISO 22000 standards, exercises and the exam by International Register of Certified Auditor (IRCA).

Awareness And Internal Auditing SA – 8000 And SA -8000 LA

Awareness and internal auditing SA- 8000 has been conducted at Gujrat in collaboration with PEFMA, Pakistan Cutlery Association and PRGMEA Sialkot. 20 people participated in this training course.

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Supplier Ethical Data Exchange (SEDEX)

This course has been conducted in collaboration with Pakistan Readymade Garments Manufacturers and Exporters Association in Lahore where 25 personnel participated in this training course.

Traceability

18 people from industry, academia and public organizations participated in this training course . Traceability, under EU law, “traceability” means the ability to track any food, feed, food producing animal or substance that will be used for consumption, through all stages of production, processing and distribution.

Good Manufacturing Practices (GMP)

29 people from industry, academia and public organizations participated in this training course. Good manufacturing practices (GMP) are the practices required to conform to the guidelines recommended by agencies that control authorization and licensing for manufacture and sale of food, drug products, and active pharmaceutical products.

ISO 13485 (QMS Medical Devices)

23 people participated in this training course from industry, hospitals, freelance consultants and public organizations. The course has been conducted in collaboration with Surgical Instruments Manufacturers Association of Pakistan (SIMAP) at Sialkot. ISO 13485:2003 specifies requirements for a quality management system where an organization needs to demonstrate its ability to provide medical devices and related services that consistently meet customer requirements and regulatory requirements applicable to medical devices and related services.

Global G.A.P

This course is specially designed for the farmers and exporters of horticulture and agriculture products. 20 people participated in this training course from the agri products supply chain. GLOBAL G.A.P. is a private sector body that sets voluntary standards for the certification of production processes of agricultural (including aquaculture) products around the globe.

Internal Auditing British Retail Consortium (BRC) and BRC LA

18 people from industry, academia and public organizations participated in the BRC internal auditing whereas in BRC LA 16 people participated. The certificates of achievements will be awarded by BVC for BRC internal auditing and BRC UK of the LA, respectively.

TRADE LINKAGES

Three Consignments Of Mangoes Sent To China On Trial Basis

This was a joint effort with ASLP and PHDEC. The fruit (mango) was sourced from the farm clusters receiving TRTA II support, processed at the HORTIFRESH pack house facility established by PHDEC through public-private intervention and exported to buyers in China identified by the ASLP. The consignment was accompanied by the ASLP supply chain management official and it was reported to have been well received.

Awareness On Market Requirements Of The Mango And Kinnow Growers And Exporters Enhanced

The awareness of the Mango and Kinnow growers/exporters and processors on the foreign market dynamics increased and understood buyers' [market] requirements. This was the outcome of the study tour of the exporters/processors and growers to Europe.

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Business Contacts Established

All Visited companies/buyers in the Netherlands expressed an interest to investigate possible business opportunities. At Hanos (Super market) the purchase manager for fruits agreed to develop a project to promote mango and Kinnow in their stores all over the Netherlands. Similarly, the buyers in France and UK (Dole, MMW & ASDA) also showed a serious interest in mangoes and in exploring opportunities to work together.

Export Consortia Of Four Progressive Farmers Established

TRTA facilitated the establishment of a consortium of four progressive growers of Mangoes from Multan. The members of the Mango Growers Consortium pooled the resources to export mangoes directly to ASDA/Wall Mart, UK.

Retailer Partnership For Mangoes From Pakistan

Twelve (12) shipments of Mangoes (Sindhri, Chaunsa) were prepared under the supervision of TRTA II experts and sent directly to ASDA by the commercial exporter from Karachi and TRTA II facilitated Consortium of Growers from Southern Punjab.

Two Shipments of mangoes (white Chaunsa) were prepared by the Mango Growers Consortium and sent to Econsave supermarket in Malaysia. This is the direct result of the visit of the Malaysian buyers facilitated by the TRTA II programme

In mango season of three months in 2013, ASDA, Walmart subsidiary, ordered first shipments for its UK stores. During twelve weeks period, about 43,000 boxes of mangoes were successfully sold.

Pakistani Exporters/Progressive Farmers Of Kinnow & Mango Presented Their Products At Fruit Logistica, Berlin (5-7 February)

Eight Pakistani Exporters, processors and progressive farmers of Kinnow & Mango, with the joint facilitation of TRTA II programme, TDAP and CBI, on cost sharing basis, professionally presented themselves and their products at Fruit Logistica 2014 held in Berlin.

Pakistani Kinnow Branded As Fresh To-Be-Squeezed For Juicing And Mango As An Exotic Fruit

At the trade fair an effective professional brand image and promotional campaign for Pakistani Kinnow and mango was launched. Two juicing machines were installed for offering fresh Kinnow juice to introduce the Pakistani Kinnow to-be-squeezed as fresh juice. Observers and the potential buyers liked and admitted freshness of the juice and relished the idea of introducing it in European markets.

Likewise, the Pakistani Mango was introduced and branded as an exotic fruit having unique taste and aroma. The three videos documentaries prepared under TRTA II programme covering the supply chain of Kinnow and Mango in Pakistan, were on continuous display the LEDs at the TRTA booths for the visitors.

ASDA/Walmart Of UK Confirmed To Continue And Upscale The Commercial Shipments Of Upcoming Mango Season 2014 From Pakistan

The IPL and Mango Grower Consortium agreed that the mango season for supply to ASDA would include four months (June, July, August and September) instead closing the supply by August. This year all aromatic varieties will be included for supply such as Sindhri, Dusari, SB Chaunsa, White Chaunsa and fajri. A price was agreed for volume orders along with the other terms and conditions.

ASDA/Walmart agreed to increase the number of stores from 32 to 78 or even more for the sale of Pakistani mango and placed the orders to Mango Growers Consortium.

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Trade Linkage Approach Initiated In The Horticulture Sector

Two focus group meetings were held in Multan and Sargodha for Mango and Kinnow sector on approach to develop linkages of Pakistani exporters with buyers. The growers as a result were made aware of the buyer requirements and a selection of more progressive growers was done to further support them in creating trade linkage.

Sector Experts To Be Fielded For Acquiring Market Information And Trade Contacts

Terms of Reference developed to engage and field sector specialist. These specialists will specifically work on identifying buyers, compiling market information and facilitating sellers from Pakistan to distribute their products in key identified markets.

Exporters And Processors Of Horticulture Sector Trained On Marketing And Trade Linkage

A three day training workshop was organized on Marketing and Trade Linkages for Kinnow Exporters and processors in Sargodha and Multan. As a result the exporters/processors are now more aware of the requirements of key export markets and also aware of the UNIDOs targeted approach to enhance trade.

The Promotional Campaign For Kinnow Mandarins In Malaysia And Singapore Launched

The joint TDAP and TRTA II supported promotional campaign for Kinnow in Malaysia and Singapore was successfully carried out in Malaysia and Singapore. Five supermarkets in Malaysia and two supermarkets in Singapore undertook the juice sampling exercise for a period of 2 weeks. The juice sampling Kinnow stocks and extended promotion with promoters were fully funded by the commercial stakeholder.

Direct Deliveries Of Kinnow To Supermarkets In Malaysia And Singapore

Pakistani Exporters through the Rush group made direct deliveries of Kinnow to the renowned supermarket chains of Aeon-Big, Giant, Jaya Grocer, Village Grocer, Econsave in Malaysia that have not previously been stocking the Kinnow in their stores.

Similarly, the Kinnow were supplied to Mustafa Center and Sheng Siong Supermarkets in Singapore in specially designed box by Pakistani exporter.

3.2.3 COMPONENT 2.3: IMPROVING CONFORMITY ASSESSMENT INFRASTRUCTURE AND SERVICES

Final Draft Of The National Quality Policy

A number of comments were received by the Ministry of Science and Technology following their circulation of the 2nd Working Draft to about 80 stakeholders. A number of comments were made by the Working Group and the Ministry of Science. The National Quality Forum meeting also resulted in a small number of comments sent to the Ministry after the event. All of these were incorporated in the 2nd Working Draft, it was edited, and it can now be considered as the Draft National Quality Policy for Pakistan.

National Quality Policy Submitted To Cabinet

The National Quality Policy along with the implementation plan and its budget has been submitted to the Cabinet by Ministry of Science and Technology for consideration and approval. This Draft National Quality Policy has now been submitted to the Ministry of Science and Technology for submission to the Cabinet for consideration and approval for implementation in the appropriate manner

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Re-Engineering Of PSQCA

A proposal for the re-engineering of PSQCA was developed with input from all the departments within PSQCA. This proposal will serve as the major input for the actual re-engineering of PSQCA.

Twenty Seven (27) PSQCA staff members were trained on the subject of setting national strategies and assessing priorities for standardization.

Eleven (11) staff members of PSQCA associated with TBT/WTO National Enquiry Point (NEP) were trained on its operations and functions. Action plan to operationalize the NEP was developed and approved by DG PSQCA.

NPSL achieved, with continued TRTA II support, international recognition in its measurement services and signed MRA with BIPM/CIPM.

National Enquiry Point For Exports Close To Being Operational

TRTA II supported PSQCA to operationalise the National Enquiry Point. TRTA II programme assisted PSQCA to convene the first National Coordination Committee Meeting. This meeting brought together stakeholders from all four provinces. Once the NEP is functional PSQCA will be able to act as a focal point and one stop shop on all information relating to standards requirements of international markets buyers. Manufacturers, exporters and other stakeholders in Pakistan as well as importers outside Pakistan will have easy access to quality and standard requirements of their export markets through one window at PSQCA. This availability of information readily and clearly will assist manufacturer’s better meet standards and enhance their exports.

Traceable National Metrology Services

The 6 Metrology Laboratories of NPSL were accredited by PNAC

• Mass • Temperature • Pressure • Volume • Length & Dimension • Electrical quantities

NPSL Achieves MRA Status

NPSL signed MRA with BIPM/CIPM through continued support of TRTA II programme. This has resulted in NPSL being internationally recognized as the NMI (National Metrology Institute) of Pakistan and as such can participate in all activities befitting such an NMI, such as:

• Inter-laboratory comparisons of their results with other NMIs • Posting of their results of key comparisons on the BIPM/CIPM website, resulting in the further recognition of the calibration services of NPSL

PNAC Is Internationally Recognized For Its Accreditation Services For Testing, Calibration Laboratories, Cbs, Ibs And PT Schemes.

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Pakistan is able to certify and accredit its laboratories, testing and inspection and certification services PNAC maintains its internationally recognized status for its accreditation services of testing and calibration laboratories through renewed MRA with ILAC/APLAC

PNAC internationally recognized for accreditation of CBs and IBs for QMS and EMS through MLA with PAC/IAF

An additional 39 technical assessors have qualified and been added to the pool of external assessors of PNAC, bring the total to 100 qualified technical assessors empanelled by PNAC through TRTA II support.

Accreditation Of Testing Laboratories, National PT Scheme And Implementation Of The Business Plans.

As of April 2016, 19 testing laboratories and 1 National PT scheme supported by TRTA II have achieved accreditation by PNAC and their testing services are now accepted worldwide. These laboratories include:

• PCSIR Lahore 5 (pesticide, proximate analysis, materials testing, Heavy metals and electrical light) • PCSIR Karachi 1 (Dioxin lab) • PCSIR Peshawar 3 (microbiology, chemical testing & calibration) • NRLPD, Islamabad 3 (serology, PCR and heamagglutiniation) • NVL Islamabad 2 (ELIZA & Veterinary medicine) • FSC&RD 3 (Seed germination, seed health & seed purity • FQCL – Lahore 2 (microbiology & chemical testing)

National Proficiency Testing Scheme launched; PC1 approved by MoST for financing this scheme for 3 years (Rs. 55 million)

First two rounds of PT (HM & chemical compounds in water) completed. Third PT round initiated for microbiological tests in water.

National PT Scheme at NPSL accredited by PNAC.

All Laboratories have commenced the implementation of the Business plans even though some grey areas have yet to be addressed.

A roadmap with specific milestones to be developed for key actionable points for the implementation of the business plan and an evaluation carried out in 4-5 month time.

Key Performance Indicators (KPI’s) developed for the shared ownership of the Customer orientation and Marketing functions of the Laboratories.

30 testing laboratories, belonging to seven institutions namely: PCSIR, Lahore, Karachi and Peshawar, FSC&RD, NRLPD, PCRWR, and SARC are now implementing a business plan based on customer relations mechanism s and marketing strategies to ensure sustainability of their services and accreditation status.

Implementation Monitoring And Impact Assessment

Monitoring reports for the three quarters from January 2011 to September 2011 produced in the revised template jointly with PITAD.

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Donor Coordination

PITAD, with support by PMO, has collected data on activities of 21 donors working in the area of trade; ADB, IFAD, FAO, IFC, ILO, IDB, UNDP, WB, AusAID, DFID, AFD, JICA, NORAD, RNE, USAID, PPAE, AAPK, BMZ, CIDA, EU, ASLP

PITAD and PMO has developed working paper and has updated the information.

The MoC/PITAD and TRTA II Programme PMO jointly organized the Donor Coordination meeting on 8 February 2013.

The Donor Coordination forum is an outcome of the initiative undertaken by the Trade Related Technical Assistance (TRTA II) Programme, funded by the EU and implemented by United Nations Industrial Development Organization (UNIDO) is being run in cooperation with the government of Pakistan, through its various organizations, to provide support to Pakistan in building its capacity to address trade related issues thereby fostering its integration into the world economy and contributing to poverty alleviation.

3.3 COMPONENT 3: STRENGTHENING OF THE INTELLECTUAL PROPERTY RIGHTS SYSTEM

3.3.1 RESULT AREA 3.1: STRENGTHENED IP INSTITUTIONS

IPO Officers Completed The LLM Course At Turin

In total, 3 IPO officials acquired a deeper understanding of IP law. This would strengthen IPO’s capacity to analyze legal IP issues, and facilitate improved inputs (papers, policy briefs, comments) on specific IP law questions.

IPO Officials Trained On Digitization

4 IPO staff were trained on digitization during September 2011. This resulted in conversion of millions of pages of IP paper records to electronic form. This digitization of IP records was indispensable to the upgrade of the IPO automation systems and services planned under the TRTA II.

IPO ICT Infrastructure Reviewed

The review highlighted the importance of the development of an ICT strategic plan, integration of operations, inter-office connectivity, establishment of a consolidated data center, a core IT team, upgraded technical skills and use of international IP standards.

IPO Officials Trained On IP Classifications

4 IPO staff members were trained on IP Classifications for patents, industrial designs and trademarks in September 2011 in Geneva. The use of these standard classification systems (IPC for Patents, Locarno for Industrial Designs, Nice and Vienna for Trademarks) is essential for effective search of the respective IP records and provides a uniform tool that can be used by the IP offices and IP community around the world, independent of language and systems.

Contribution Made To PPD On Services Sector

An IP expert contributed at the the Public Private Dialogue on the “Services Sector Export Development Strategy for Pakistan” on 27 October 2011 which was organized under Component 1.

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Patent Examiners Trained And Patent Procedures Reviewed

The patent examiners in Karachi Patent office were trained by a WIPO Patent Expert in October 2011 in Karachi as well as an on-site review of the patent administrative procedures was carried out and completed. This facilitated the examiners in examining national and international patent applications and in interpreting the international search and preliminary examination reports

Training Workshop On GIs

Training of four IPO officials on Geographical Indications (GIs) was completed in October/November 2011 in Geneva. The officials acquired a better understanding of the legal framework, implementation policy and best practices of national GI administration practices.

Business Processes Of IP Registries Streamlined For Automation

The initial training on the upgraded automation system, IPAS Java, has enabled the IPO IT team to map the business processes for automation and establish a test system to become familiar with advanced features of the system. This, along with further planned trainings, would facilitate the smooth customization, deployment and rollout of the IPAS Java system at the IPO Patent Office and the Trade Marks Registry.

Trademark Process And Procedures Strengthened

Streamlining of trademark procedures was facilitated by the review conducted by the international trademark expert. Implementation of the expert’s recommendations would speed up the processing time of trademark applications.

Trademark Examiners Trained

Training of trademark examiners has strengthened the Trade Marks Registry’s capacity to improve the quality of search and substantial examination of trademark applications. This helped the examiners in a better understanding of citation of well known marks, distinctiveness, certification and collective marks and domain names.

Technology Training On System Administration Completed

The System Administration technology trainings would contribute to improving the technical skills and expertise of the IPO IT team and their technical support staff to support the upgraded systems and services that are being implemented under the TRTA II Program.

Training Of IPO Officials On Modern Management Practices Completed

The training workshop helped develop the capacity of IPO-Pakistan’s officials with modern management tools and skills for systematic management of the organization’s program and budget. This would have a positive impact on the management of existing financial and human resources and on longer term planning.

Paper On The “Establishment Of A Collective Management Organization (CMO) In Pakistan” Completed

The paper provides an updated assessment of the economic viability of operating a CMO; evaluates recent initiatives by the private sector and the government to establish a CMO; and suggests measures required for having an effective CMO in Pakistan, with a view to strengthening the music industry in Pakistan. This paper will serve as a key input in further stakeholder consultations to be held next year.

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Digitization Equipment Procured

As a first step in the digitization of IP records, a local vendor has been contracted, through a tendering process, for procurement of the digitization equipment as per required specification. The equipment was delivered in January 2013. The equipment consisted of 2 heavy-duty scanners, 1 high-end server and a Storage Area Network (SAN) with a large capacity (3 Terra Bytes) for storage of electronic IP records belonging to the Patents Office, the Trade Marks Registry (TMR) and the Copyright Office.

Final Consultations Completed On Establishment Of A Collective Management Organization (CMO) In Pakistan

Following consultations, an agreement was reached by national stakeholders to implement the key recommendations of the CMO study to operationalize a single national CMO for distribution of royalties to rights owners of musical works and sound recordings.

IPO Pakistan IT Team Trained On Standard IPAS Java For Testing

The two trainings helped IPO Pakistan to test and customize the upgraded automation system (WIPO IPAS Java) for the Patent Office and the Trade Marks Registry as well as to support the ongoing digitization of IP records. Due to the wide scope and complexity of the automation systems, further training is planned to implement and put into operation the upgraded automation system at these two IP registries.

Digitization Of IP Records Completed

The IP digitization work (scanning, data capture and database validation) has been completed. The digitization work consisted of: 1) scanning of over 6 million pages of IP records from Patent Office, Trade Marks Registry and Copyright Office; 2) data entry of about 25,000 patent and trademark records to bring up-to-date the IP databases; and 3) validation of IP databases containing over 300,000 trademarks and 50,000 patents. IPO Pakistan now has a full set of electronic IP records and an up-to- date and validated database for patents, trademarks and copyrights for internal use as well as for online publications.

Upgraded IPAS Java Operational And IPO Pakistan IT Team Trained The trainings helped IPO Pakistan to configure, customize, test and deploy the upgraded automation system (WIPO IPAS Java) at the Patent Office and the Trade Marks Registry, as well as to support the ongoing digitization of IP records. IPAS java is now being used for end-to-end workflow processing of patents and trademarks from their application through to grant/registration in a streamlined manner with automatic generation of reports, notices, certifications and publications.

IPO Pakistan Web Portal Development Nearing Completion

Existing IPO Pakistan website would be upgraded to a comprehensive dynamic web portal which would include: online Patent Gazettes and Trademark Journals; public search of IP databases; online checking of IP application’s processing status; registration and online access codes for IP Attorneys and applicants; and an intranet for internal communication and sharing of information between the five offices of IPO Pakistan that are located in Karachi, Lahore and Islamabad. The Portal would also serve as a gateway to other relevant IP resources in Pakistan and elsewhere in the world.

Implementation Of Admin System For IPO Pakistan Started

Admin Modules software package for HR and Finance management of IPO Pakistan would be implemented by the selected vendor. Deployment of these Admin Modules aims to enhance IPO Pakistan’s service delivery and integrate its day-to-day general administration work in a timely and efficient manner in its five offices across the country.

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3.3.2 RESULT AREA 3.2: STRENGTHENED IP LEGISLATION & POLICY FRAMEWORK

Consultations On Accession To The Madrid System Completed

The IPO, and the IP attorneys, are better informed on issues involved in acceding to the Madrid Protocol, and the corresponding legislative and administrative requirements for its implementation. Following the Prime Minister’s directive on accession to the Madrid Protocol, given on the IP Day on 26 April 2012, good progress can be expected on this matter.

Paper On “Utility Model Protection In Pakistan - An Option For Incentivising Incremental Innovation” Completed

The paper contributed to a better understanding of the legal and economic issues involved in utility model protection, and reasons for and against introducing it in Pakistan. The paper indicated that a tailored utility model system may potentially be useful for facilitating incremental innovation in Pakistan, for instance, in sectors such as manufacture of automobile parts, surgical instruments, and electrical home appliances.

Consultations On Accession To The Patent Cooperation Treaty (PCT) Completed

The Pakistani officials are better informed on matters pertaining to the accession to PCT including the legal framework, practices and procedures, international and phases, planning and preparation and measures required to benefit from the Treaty. IPO Pakistan is now engaged in an internal exercise on identifying the measures that they would need to take if they are to accede to the PCT.

Final Consultations Completed On Feasibility Of Utility Model Protection In Pakistan

The national stakeholders now have a better understanding of the legal and economic issues involved in utility model protection, and the reasons for and against introducing it in Pakistan. IPO Pakistan to prepare a position paper and present it to the concerned authorities for further action.

WIPO Tools For Development Of National IP Strategy Provided

This set of standard tools would assist IPO Pakistan to gather relevant information that would help in formulation of a national IP strategy.

Expert Mission On Plant Breeders Rights (PBR) And Paper Completed

International experts held consultations with national stakeholders on provisions of Pakistan's draft Plant Breeders Rights (PBR) law and practical measures required to administer it. The report has been finalized and shared with IPO Pakistan. The report would facilitate the national authorities' efforts to establish a legislative and institutional framework for protection of new plant varieties.

Roundtable On Development Of National IP Strategy Completed

A number of useful suggestions were generated that could be incorporated in an eventual strategy document. Some of the invited national experts volunteered to be part of any drafting exercise for a IP strategy that could be used as a basis for further national consultations. IPO Pakistan taking a lead role in preparation of a draft IP strategy.

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3.3.3 RESULT AREA 3.3: IMPROVED IP ENFORCEMENT

Enforcement Officials Trained

The study visit of enforcement officials has equipped them with greater knowledge of enforcement issues. They could now be able to take the lead on developing training programs on IP enforcement in their respective organizations.

Colloquium For Judges On IPR Enforcement Completed

The Colloquium imparted an increased knowledge on IPR enforcement to the Pakistani judges which would strengthen capacity of the judiciary to address IP cases. Topics discussed included: scope and impact of counterfeiting; justification for criminal sanctions; strategic approach to enforcement; and capacity building needs. An inter-agency focus group on enforcement has been set up by IPO-Pakistan to follow up on IP enforcement issues, especially on training of enforcement officials.

3.3.4 RESULT AREA 3.4: INCREASED USE OF IP BY BUSINESS AND RESEARCH INSTITUTIONS

Contribution To A PPD

Participation of the WIPO official in the Public Private Dialogue (PPD) on regional trade contributed to a better understanding of IP issues involved in improving trade in textile and light engineering sectors.

Paper On Branding Options For Kinnow Completed

The paper on branding options has been finalized after consultations with stakeholders. The paper would help the government and stakeholders to consider a more systematic marketing strategy for Kinnow, which makes an appropriate use of IP instruments, i.e. various marks and/or GIs. The paper could also provide insights on IP issues involved in the marketing of other agricultural products.

IP Curriculum Consultations And Paper

The paper on development of an IP curriculum for law, business and engineering universities in Pakistan was completed following consultations with stakeholders. The paper focuses on: 1) on appropriate learning objectives for law, business and engineering and IT students; 2) identifying the main content to be covered for all courses; and 3) developing a structure for the individual IP courses. The paper was finalized and would serve as an IP curriculum guideline for Pakistani universities.

IP Reference Publications Delivered For PITAD And IPO Pakistan Libraries

This set of publications will serve as IP resource material for PITAD and IPO Pakistan. It will provide the staff and users of the two organizations with access to a broad range of in-depth information covering key aspects of IP.

Roundtable Held On Technology Management Offices (TMOs)

A Roundtable was held on establishment and strengthening of TMOs in order to promote transfer of technology from research institutes / universities to the private sector in the country. A forum was created by an informal group of Islamabad and Rawalpindi based technology managers to take these discussions forward and to help improve the effectiveness of TMOs in the country.

E-Forum (PiNet) Pilot Version Completed

PiNET would be a central point of contact for Pakistani research/academic institutions and industry to make it easier for them to communicate, engage and collaborate with each other. This would facilitate technology transfer and commercialization of research. HEC has agreed to host PiNET.

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4. DIFFICULTIES ENCOUNTERED & LESSONS LEARNED

COMPONENT 1

In addition to the normal project management difficulties that were encountered which were addressed through standard project management techniques, since the beginning of the implementation of the program, nine DG PITAD have been appointed and each transition included a period ranging from a day to two months where no DG was appointed. This institutional turnover within PITAD has not had any major impact at the operational level (activities have all been implemented as per work plan) but could affect the sustainability of the intervention and the effective operations of PITAD. Delivery to PITAD of all the produced documents and the creation of the pool of resource persons to ensure storage of the enhanced knowledge have mitigated he risk of institution memory failures.

COMPONENT 2

Following the submission of this dossier, the TRTA II programme received an inflammatory letter from the PFA accusing the programme of not delivering workable solutions. The language used in the letter was not only rude but is also factual incorrect. A rebuttal to all the comments has been prepared, but the programme feels that with this kind of unprofessional behavior it may be very difficult to work with the PFA under the current administration. Therefore, it is requested that the Federal Government, through the relevant Ministry, kindly take up this matter with its Provincial counterpart to resolve this matter.

Due to the security situation the intake of students for Post Graduate Diploma Course in Food Safety and Controls at University of Karachi was less. The University has now started evening classes to accommodate the private sector.

There were some contractual issues and as result the national industrial expert was separated from the programme for six months from June to December 2012. This resulted in discontinuity of the activities underway in the fan and cutlery sector resulting in slowing the implementation momentum. The issue of contract has now been resolved and the national expert has resumed activities from January 2013.

At Baba Bhit Island, TRTA II has earmarked technical assistance to the Baba Bhit Fishermen Educational Society (BES) for the development of pilot landing sites through provision of designs and expert services during construction phase along with a business plan for its viable operations. However, it appears that the BES does not have anymore the financial capacity for the investment on infrastructure development. The technical assistance related to this activity could therefore not be initiated. A decision should be made with the stakeholder on whether to maintain this activity of a feasibility study (and under which conditions) or not, and/or to shift this possible support to another area.

The project has experienced a number of problems and delays compared to what was expected at its beginning in July 2012. Some of these delays have been caused by changes to the EU regulatory provisions and second has been because, when samples were Pre-screen/tested in Pakistan where some fans and motorcycle gloves did not meet the requirement.

The procurement and provision of polishing machines to the selected companies is delayed because of limited suppliers’ available and protracted procurement procedures. Now these problems have been tackled and PO has been issued to the selected supplier.

135 Re-engineering of PSQCA.

After working primarily as a regulator as regards mandatory standards for the past decades, the notion of becoming a service organization that also has the additional responsibility for the administration of mandatory standards will need a change of business culture within PSQCA. This will not come about easily and would probably require outside intervention before the transition will be successfully concluded. Continuous and lengthy dialogue with MoST and PSQCA was necessary to initiate the process. A “win-win” situation as regards conformity assessment and providing for “firewalls” as regards the pure regulatory work was developed which found general acceptance within PSQCA and MoST.

Recruitment of an IE in Plant Health

Despite numerous meetings, letter from DPP requesting for assistance and an agreement between all relevant shareholders, FAO has yet to identify an appropriate person to be recruited by the Programme to help GoP, DPP to address the reformation of plant health law and address the IPPC requirements for PCE analysis.

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5. SUSTAINABILITY, CATALYTIC EFFECT AND IMPACT OF TRTA II PROGRAMME

COMPONENT 1:

Strengthening the technical capacity of government officers on trade policy issues has always been considered important in order to comprehend trade policy issues and design interventions to address them. Policymakers need knowledge of often complex multilateral and domestic trading environments and to advance such knowledge, the programme included a sustainable, catalyst and cost-effective approach. TRTA II (under Component 1) seeks to strengthen the institutional capacity of Pakistan Institute for Trade and Development (PITAD), which imparts expertise to government officers (under output 1.1, 1.2 and 1.3).

PITAD

Impact

• Delivers training services aligned with international best standards and are internationally recognized; • Has gained a competitive edge with the delivery of an internationally accredited training course; • Strengthened its client oriented services by providing a wider range of services including for new types of stakeholders and is capable to address the immediate trade policy capacity needs; • Has received an increasing number of requests from various stakeholders in Pakistan • Has delivered an increased number of training (in comparison with period pre-TRTA II) • Has been positioned by the Government of Pakistan as a potential provider of training services in the region

Sustainability for PITAD

• National (by the Federal Public Service Commission) and International accreditation (by the World Trade Institute) ensures the prestige and the continuation of the programme; • PITAD’s curriculum attuned to global trends and issues is in line with the actual needs for capacity building • PITAD has created a reliable pool of expertise that it can rely on to face the increased training demands.

CCP

Impact

• The extension phase of the programme includes a number of actions aimed at strengthening the institutional capacity of the Competition Commission of Pakistan (CCP) through a built-in sustainable, catalyst and cost-effective approach. A work plan has been designed based on UNCTAD’s peer review of Pakistan’s competition laws and policies (focusing on the CCP) and in close cooperation with CCP. • Operations enhanced according to international best practices; • Competition law culture promoted amongst the academic community and private sector at large; and • Enhanced strategies and advocacy giving CCP the means and aspiration to play an influential role in the region.

Sustainability for CCP

• Conclusion of permanent partnerships with academic institutions (e.g. NUST); and • Training and Outreach Department is established for the promotion of a competition law culture in Pakistan and to provide training/research services and/or advocate its positions to other competition agencies (e.g. proposal to establish a formal network of SAARC’s competition agencies). 137

Informed Policy Formulation Process

For the last 6 years, trade policy formulation process has been informed by evidence based researches and nationwide public private consultation process under the auspices of a Public Private Dialogue Steering Committee comprising equal representation of the public and private sectors (PPDSC). The PPDSC was established with the formal approval of the Ministry of Commerce of Pakistan and has been chaired and steered by the Ministry of Commerce. The programme has built local capacities and know-how to conduct public private consultations for good governance in a sustainable fashion. All critical parameters for efficient public-private consultations have been addressed (output 1.4 and 1.5).

Impact

• Best practices to inform policy formulation were advanced, (e.g. private sector consulted, evidence based analytical papers developed by academic institutions); and • Trade policy and business environment reshaped with informed policy recommendations (e.g. STPFs, GSP+, TDRO Law, NTC). Sustainability of the public private consultation process: • Consultation process is owned, acknowledged and solicited by the Ministry of Commerce • Consultation process is acknowledged by the private sector as a relevant process to mature its views and constructively engage with the policy makers; • Collaboration between academia and policy makers in this consultation process has anchored the evidence-based advocacy process; and • Ministry of Commerce is extending the scope of the process by creating sector/thematic specific consultation process through institutions (e.g. Service Trade Development Council); International recognition of Pakistan’s enhanced governance through this process and international organizations assisting beyond the programme this public private consultation process (e.g. The USAID funded programme Pakistan Regional Economic Integration Activity - PREIA; 2015-2020).

COMPONENT 2:

SPS & Food Safety

• The NAPHIS Bill for the establishment of a National Food Safety, Animal and Plant Health Regulatory Authority approved by the PM; the organizational structure of the authority and its financial implication sent to the Cabinet. The Bill has now been readied for submission to the Parliament for enactment. • TRTA II programme strengthened the Punjab Food Authority by capacity building of food inspectors and provision of modern inspection equipment to the authority. KPK and Sindh have now established their Food Safety Authorities along the same lines as the Food Authority in Punjab. • Post Graduate Diploma Course in Food Safety and Controls launched at 04 Universities (02 in Punjab, 1 each in Sindh & KP). The course is internationally accredited by REHIS and the accreditation is valid till 2016/17. • 02 universities converted the Diploma course into a degree programme (UVAS & UAF). University of Karachi in Karachi prefers to keep it as a Diploma course as it offers the course in the evening and exclusively to those working in the food industry. Another 02 universities have launched a diploma/degree course in Food Safety & Controls, using their own funds, based on the same syllabus developed under TRTA II. • PGDC and Degree programmes approved by HEC and incorporated as a regular feature in the university programmes. • To date over 300 students have graduated from the course and more than 80% of them are employed by the public and private sector firms in Pakistan and abroad; others went on to enrol for further studies.

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Fisheries

• After the completion of the TRTA programme's interventions, the competent authority Marine Fisheries Department Karachi [MFD] has been carrying out all sanitary, traceability and HACCP inspections along the entire fisheries supply chain, autonomously. • Applications for 5 additional fish processing plants were submitted by MFD to DG SANCO, 2 in January 2015 and 3 in March 2015, thereby expanding the platform for exports. 2 Planning Commission 1 [PC1] projects of the MFD were also approved for expansion of sanitary controls at Korangi and in Baluchistan and KPK (Rs. 500 Mil/USD 5 Million). • Fisheries exports to the EU resumed in March 2013. As of April 2016, more than 160 consignments of fish have been exported to the EU (UK, Spain & Italy) valued at in access of US$ 16.5 million, with zero rejections. • Government of Pakistan/Government of Sindh and the private sector (boat owners, fish processing plant owners) provided funds for the renovation work for the auction halls (Euros 270,000), more than 800 boats (lining with food-grade fibreglass @Euros 300/boat), and 10 processing plants (Euros 50,000/plant).

Horticulture (Mango and kinnow)

Codes Of Practice Along Supply Chain For Kinnow & Mango (Farm, Harvesting & Processing/ Packaging Levels)

• Agriculture Department Punjab, through its designated institutions (MRS, CRI), has taken complete ownership of the COP manuals and the guide to address CCP along the entire Kinnow & Mango supply chain developed with the support of TRTA II. • Agriculture Department Punjab initiated the process to include these manuals and guides as part of the curriculum for the in-service agriculture training institute to disseminate this knowledge on a regular basis to all its extension officers. • The extension officers trained by TRTA II will conduct Field Farm Schools in their various districts under the direct supervision of MRS and CRI. After the conclusion of TRTA II, the cost of these FFS will be covered through the regular budget allocated to the Agriculture Department. • Federal Government, through its independent subsidiary companies (ASF, PHDEC), adopted these guides and manuals and independently trained and disseminated these documents, with the TRTA II collaboration, amongst farmers, processors, exporters and commission agents. • The project interventions achieved a 25% increase in yield & a 9% reduction in inputs cost, and improved quality of mangoes and Kinnow/mandarins with a significant reduction in rejections.

Market Linkages

• TDAP & the private sector contributed more than 63% towards the cost of Mango and Kinnow promotional campaigns & agreed to replicate the market approach elaborated with TRTA II in other countries. The model will be cost-shared with private sector intervention. • 43,000 boxes of mangoes [US$ 200,000] shipped directly to ASDA-Walmart, UK and 12,000 boxes of mangoes and more than 1000 tons of Kinnow worth US$ 05 million shipped to Malaysia and Singapore through TRTA II linkages. • Pakistani farmers/processors continue to participate in trade fairs regularly after their visit to Berlin Fruit Logisitica facilitated by TRTA II. • Promotional campaign aimed for 3 days extended by exporters and buyers for an additional two weeks at their own expense.

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Industrial Sectors

• An MoU being worked out between NPO and PEFMA to hand over the Process Control and CSR intervention to NPO as NPO personnel have been trained on these techniques during the programme and can now take up the task independently. A similar kind of MoU will be signed between NPO and SIMAP.

National Quality Policy (NQP)

• The NQP Bill & Technical Regulations Regime along with an implementation plan & associated budget submitted to the Cabinet for approval.

Accredited Testing & Calibration Services

• 19 testing labs accredited by the NA in 2007. A joint assessment and accreditation of these 19 testing laboratories was carried out by the NA & PNAC in 2010. • A further 19 testing labs accredited by PNAC in April 2016. • 06 metrology labs accredited by PNAC for on-site calibration services in 2013. • 02 PT schemes in public & private sectors accredited by PNAC in April 2016. • Accredited testing services within Pakistan now cater for nearly 80% of all export products from Pakistan at a reduced cost. It is estimated that the cost reduction is more than 50%. • The turn-around time reduced and consumer confidence increased, resulting in increased revenue for the lab. • Government of Pakistan mobilized funds for the renovation work for the up gradation of the laboratory infrastructure and provision of equipment. • State-of –the-art Dioxin, PCB and POP testing laboratory has been established in Pakistan. • Accredited testing services of these environmental parameters applicable not only for fisheries but also for other food items. • Government of Pakistan/Ministry of Science & Technology provided funds of Euros 25,000 for the renovation work to setup the Dioxin/POP/PCB laboratory • Within months of its establishment (March 2013), the laboratory achieved accreditation (September 2013) and generated revenue (Euros 17,000) through increase in clientele. • Business Plans for 49 testing laboratories and 06 metrology labs developed. • 30 labs implementing this BP and are self-sustained; the remaining labs need policy change at GoP level to allow for certain percentage (60-70%) of the revenue generated to be re-utilized by the labs to cover their operational costs. Implementation of the future National Quality Policy will facilitate this policy change.

Proficiency Testing Scheme National PT Scheme Launched In January 2014

• Cost reduction in participation in PT by 70%. The turnaround time has also been reduced. • Provision of PT in Pakistan has resulted in saving of foreign exchange. • GoP has mobilized funding for an approved 3-year plan to support the establishment of PT Scheme (USD 500, 000). • 3 PT rounds completed, 2 of which are chemical & 1 microbiological. • National PT Scheme accredited to ISO 17043 by PNAC

Accreditation Services

• International recognition of PNAC for its accreditation services (ISO 17025 & ISO 17020) has contributed toward income generation leading to the laboratory’s self sustainability. • PNAC continues to accredit testing and calibration labs, CBs & IBs. • 19 testing labs accredited by NA in 2007. • 27 technical assessors empanelled by PNAC in 2007. 140

• PNAC signed an MRA with APLAC/ILAC for accreditation services (ISO 17025) in 2009. • 6 metrology labs of NPSL accredited by PNAC for on-site calibration in 2013. • 19 labs re-accredited jointly by NA & PNAC in 2010. • PNAC signed an MLA with IAF/PAC for accreditation services of CBs (QMS & EMS) in 2013. • 23 technical

COMPONENT 3

A. Strengthened IP Institutions

Time to grant IP rights reduced:

• from 5 to 3 years for International Patents • from 5 to 2 years for Domestic Patents • from 30 months to 12 months for Trademarks

Internal Efficiency at IP Registries:

• Trademark examiners examine 3 times more applications than before • IP Publications available on time and online instead of several months delay • Work backlog reduced from several months to few weeks

Revenue impact for IPO: • Faster workload processing and throughput has resulted in increased revenue for IPO by about Rs 50 million per year

Collective Management Organization (CMO):

• Recommendations made for operationalization of a Collective Management Organization (CMO) for distribution of royalties to composers, lyricists and performers. A CMO was established and is currently in process of operationalization.

Sustainability - Strengthened IP Institutions:

• IPO continuing recruitment of adequate manpower (IT, Examiners, support staff, etc.) for IP Registries which are currently understaffed and taking measures for retention of trained staff, in particular its IT team, to ensure sustainability • Ongoing capacity building of IPO staff to keep their skills upgraded to further improve the effectiveness of operations of the IP registries • IPO allocating adequate budget for maintaining the upgraded automation infrastructure and systems (network, servers, workstations, scanners, Internet, security, databases, etc.) • IPO facilitating operationalization of the newly formed CMO

B. Strengthened IP Legislative and Policy Framework (Impact):

• Enhanced knowledge and understanding in IPO on issues involved in accession to the Madrid System for registration of International Marks. IPO is in ongoing consultations with national stakeholders and WIPO on measures to be taken for accession • Recommendations made on protection of Geographical Indications (GIs), Plant Breeders Rights (PBR) & Utility Models. Position papers being further elaborated by IPO on the way forward for protection of GIs, PBR and Utility Model • Stakeholders sensitized on possible elements of a national IP Strategy, and consensus developed on a methodology for developing an IP Strategy document. IPO taking the lead in the drafting exercise, and eventual submission of an IP Strategy paper to relevant authorities

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C. Improved Enforcement of IPRs (Impact)

• Initiation of IP enforcement teaching module in the Federal Judicial Academy (FJA) • Discussions underway on introducing IP modules in training academies of Customs and Police/FIA • Regular consultations taking place between IPO and enforcement agencies on IP enforcement issues • IPO facilitating introduction of regular courses on IP enforcement by the Customs and Police/FIA Academies, and strengthening IP courses in the FJA • Institutionalization of the consultation process between IPO and the enforcement agencies

D. Increased Use of IP by Business/Research Institutions

• Creation of an Islamabad based forum of ORICs (Offices of Research, Innovation & Commercialization) on strengthening of Technology Management Offices in the country - Increased frequency of meetings of the Islamabad ORICs Forum, and replication of similar fora in other major cities • Establishment of a knowledge based e-Forum (PiNET) for strengthening of linkages between research institutions and industry - Population of PiNET database by universities and its use by industry • Ownership of ORICs fora and PiNET initiatives by the Higher Education Commission (HEC)

6. TRTA II EXIT STRATEGY

Review Of Completion Of Activities And Exit Strategy

The Trade Related Technical Assistance (TRTA II) Programme is going to end in May 2016. The following table reviews the completion of activities. The PMO, inclusive of the three implementing agencies (UNIDO, ITC and WIPO), has also identified a set of responsibilities/ownership of respective government departments, which will take over the intervention areas under components 1, 2 and 3:

• Strengthening the institutional capacity of PITAD through a built-in, sustainable, catalytic and cost effective approach.

PITAD’s skills and tools have been aligned with the best international standards (in particular through its partnership with the World Trade Institute). The Ministry of Commerce has started positioning PITAD as regional hub and offered its services to the trade officials of Sri Lanka, Nepal, Korea and Afghanistan. PITAD has developed a Master Training Plan under the supervision of Ministry of Commerce which will provide capacity building services not only to the officers of Ministry of Commerce but to the other organizations and private sector bodies.

PITAD is creating a talent/knowledge pool which would include the data base of all the training material, Master Trainers, Mentors, trainees, and researchers, that were involved in the interventions of Component 1. They would keep on using these resources for the implementation of their training and research agenda.

Ministry of Commerce, besides regular annual financial support, has provided 197.6 million Rupees to PITAD so that it can meet its needs to implement its agenda of extending its services at national and international level.

After the inclusion of PITAD in Pakistan’s Technical Assistance Programme, the federal government would continue to offer PITAD’s services to different countries. In order to match its expanding agenda, the Ministry of Commerce is increasing PITAD’s regular annual financial support. Its annual budget has been increased 400% from 2009 to 2016.

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• Policy formulation/implementation is informed through a regular public private consultative process

During the implementation phase of TRTA II, the PPDSC has continuously overseen the planning, development and dissemination of the recommendations resulting from the public private consultations. The role of the PPDSC as well as the extensive participation of the private sector has validated the legitimacy of the findings that have been stemming from the process. Local research institutes (PITAD, PIDE, etc.) have been involved (through international mentoring) in carrying out researches to make the consultations process more effective. All stakeholders have recognized, on numerous occasions, the usefulness of this process in formulating balanced (between public and private sector interests) and coherent policy options and in feeding concrete ongoing policy formulation initiatives such as the STPFs and the TDRO draft Law. The Ministry of Commerce has acknowledged the same in the press brief for the Strategic Trade Policy Framework 2015-18.

As a result, the programme has built local capacities and know-how to conduct, in a sustainable fashion, public private consultations for policy formulation. All critical parameters for efficient PPDs have been addressed.

The co-chairs of the PPDSC need to agree on the subsequent course of action. While the PPDSC could maintain its current mandate, an institution will have to facilitate the consultation process by forming a secretariat. While PITAD could play this role, it will require political will (financial implications are expected) and ownership from both institutions. It is a positive sign that PITAD is ready to shoulder the process and it has moved the case to Ministry of Commerce to hire the researchers who would carry out trade policy research. Additionally, it has required funding available through Export Development Fund to carry out research activities.

Building on the ownership and capacities established by TRTA II, the Ministry of Commerce/PITAD could partner with the USAID funded programme Pakistan Regional Economic Integration Activity - PREIA; 2015-2020 to work out an action plan to maintain the public private consultation process in place.

• Strengthening the institutional capacity of CCP through a built-in, sustainable, catalytic and cost effective approach.

The UNCTAD needs assessment for CCP provided the basis for interventions under Component 1. The interventions aimed at building the capacity and providing foundations to ensure proper operationalization of a competition authority in line with international standards and best practices. The implementation approach was similar to the one applied for PITAD.

The CCP has established a new division that aims at carrying forward its training and research agenda. After hiring the relevant staff, the division has become fully functional to pursue the capacity building and research initiatives. The CCP has the financial strength, human resource and will to undertake its training and research agenda. It is working on conducting the trainings under the newly developed modules on quarterly basis not only in Islamabad but in other cities as well. The newly established department would continue to add on what has been achieved under Component 1. It has so far succeeded in negotiating the successful conclusion of a partnership between CCP and the NUST and is vigorously exploring training and research partnerships with other the leading universities and think tanks. A matrix stating the exit strategy is at Annex VIII.

The limited scope and budget of this intervention needs to be taken further (as reflected in UNCTAD’s report). Under TRTA II, synergies to support CCP were built with the US Federal Trade Commission. Further support from the US FTC is being discussed between the two institutions.

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Table 2 TRTA II Exit Strategy

Deadline Responsibility/ (of handing Ownership over Remarks responsibility) Component 1 - Result Area

1.1 Strengthening of PITAD's institutional capacity - Assessment of PITAD's equipment needs PITAD/MoC 2013 - Provision of updated tools and publications - Advice on these tools and publications

1.2 Strengthening of PITAD's and other research institutes' expertise on trade policy - Needs assessment of ministries and 2011 implementing governmental agencies

- Survey of key institutes, LUMS, IBA, and TDAP, to obtain their current expertise and 2011 potential for trade policy research PITAD/MoC

- Review and enrichment of Specialized Training Programme and other government career 2014 development programmes delivered by PITAD so as to align with international best practices

- Upgrading and development of PITAD's training modules and initiate research projects by 2015 TDAP, LUMS and IBA staff members under international mentoring

- Training of Pakistani trainers and 2014 researchers by international training institute for ad hoc courses

1.3 Strengthening of Government officers' capacity on specific trade policy and international trade negotiations - Series of training for policy makers conducted PITAD/MoC 2015 by PITAD with technical support as appropriate, from IBA , TDAP and LUMS

1.4 Conducting research studies contributing to the development of a national export strategy - Studies carried out to support the public private dialogue undertaken under output 1.5 in order to PPDSC/MoC/PI 2016 establish a coherent framework for trade policy and TAD regulatory reform for a national export strategy; peer review mechanism established 1.5 Fostering public-private dialogue for a coherent national export strategy - Orientation on the framework/methodology for PPDSC/MoC/PI 2016 developing national export strategy TAD - Series of public-private consultations

144 Deadline Responsibility/ (of handing Ownership over Remarks responsibility) 1.6: strengthening the analysis and enforcement capacity of the CCP - Needs assessment undertaken to uncover the training needs of the CCP and public and private sector CCP 2016 - Thematic modular learning programs and masters trainers persons selected from CCP on competition developed under international mentoring - Master Trainers receive international training/ short traineeship - Research wing of the CCP is strengthened - Series of short trainings organized for public sector and private sector - Sensitization workshops held on major thematic competition issues in diverse Pakistan cities - Capacity of media (journalists/ editors) is built through CCP on technical issues through specialized training/ briefing prior to sensitizations workshop/ trainings

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Status & Activity Completion Partners Remarks Date Component 2 - Result Area 2.1.1 Strengthening the SPS management Upon passing MNFSR & NAPHIS Bill has been system of NAPHIS NAPHIS approved by Prime - SPS Policy Development (Federal & Bill (Federal) Minister Secretariat. Provincial) (September 2015) - SPS Policy workshops (3) and drafting of Punjab (2014) Punjab, NAPHIS Bill KPK (2015) KPK and MoU signed with Food - Development of New Food Safety and Baluchistan: Baluchistan Department of Phytosanitary Laws (2) upon Food Government of The - Development of Model Technical establishment Authorities Punjab Regulations (3) of Food - Strengthening of SPS Management Authority Capacities - SPS systems planning studies 2.1.2 More effective application of food safety controls Completed MoU signed with 2014 UVAS, UVAS, UAF/NISFAT - Development of inspection guidelines, 2014 UAF, UoK and AUP manuals and checklists 2015 UoK, - Provision of inspection equipment 2016 AUP PGDC recognized by - Building technical capacity of food safety HEC; Accredited by inspection staff REHIS; converted to degree Programme 2.2.2 Improving competitiveness in selected pro-poor manufacturing sectors Completed MoU signed with CBI - Pilot application of Improved 2013 manufacturing practices(Key drivers) in 2 NPO Knowledge center groups of enterprises established - Build manufacturing capacity to meet market requirements - Identification of Export requirements - Firm level interventions - Identify interventions for value added production 2.2.3 Improving competitiveness in the Completed FDB PC1 projects of the fishery sector 2013 MFD approved for - Development of code of practice expansion of sanitary workshops (2) controls at Korangi and - Code of practice workshop to get sector Completed MoPS buy-in 2014 PAKFEA in Baluchistan and - Dissemination of code of practice training 2013 KPK (USD 5 Mil) - Technical framework for landing sites in Balochistan USD 2.65 million were - Feasibility study for Korangi business park approved by the - Options for value added production Baluchistan Fisheries Department to implement best fishing practices as per TRTA II developed CoPs

146 Status & Activity Completion Partners Remarks Date 2.2.4 Improving competitiveness in the The guides & manuals horticulture sector 2012 PHDEC/ on critical control - Support PHDEC in developing PAKGAP MoC points along the supply and pilot implementation in kinnow & MRS, CRI, chain are adopted by mango sectors ASF/ Mango Research - Dissemination of code of practice to MNFSR Station and Citrus farmers Research Institute and - Implementation of standards/CoPs disseminated to trained - Options for value added production farmer, processors, and exporters.

US AID funded Agri- business Support Fund (ASF) signed an MOU with the TRTA Programme for the mass dissemination of the developed Codes of Practice (COPs) for Kinnow and mangoes 2.2.5 Improving consultancy services and NPO carried out certification of enterprises benchmarking in textile - Training and qualification of trainers / Continue and surgical sectors consultants (170) in management systems 2016 NPO, using TRTA II (quality, environment, food safety, GAP, PCSIR/ approach and tools CSR) in collaboration with NPO MoST - Preparation of 40 enterprises to achieve PKR 745.8 million certification in above management have been approved by systems Government of - Assistance provided to 6 selected Pakistan for a enterprises to achieve CE Marking of compliance products. certification incentive programme for SME’s.

Pakistan Cutlery Association (PCSUMEA) has developed a PC-1 through TUSDEC to upgrade the technology in other cutlery manufacturing units in particular to better protect workers through improved polishing techniques.

2.2.6 Development of business Trade Development arrangements along the international Completed Authority of Pakistan supply chain 2015 TDAP/Mo (TDAP), together with - Facilitate business linkages C the private sector to - Trade Corridor visits from delegations contribute more - Development of freight forwarding towards the cost of future promotional 147 Status & Activity Completion Partners Remarks Date campaigns

A permanent research desk has been established in Trade Development Authority of Pakistan for the analysis based on the approach provided by TRTA II programme 2.3.1 Improving and streamlining The National Quality standardization and technical regulations Policy provides the practices 2014 PSQCA/ overall vision for - Consultations on development of MoST quality infrastructure voluntary standardization and technical development and it is regulations supported by GoP - Operationalization of PSQCA National funding of USD 7 Enquiry Point million - Strengthening of Consumer Liaison Office at PSQCA 2.3.2 Traceable national metrology 06 calibration labs services Completed accredited by PNAC; - Development of traceable temperature, 2013 PCSIR/ NPSL now conducts measurement and calibration capabilities NPSL ‘on-site’ calibration - Assistance to achieve internationally MoST services recognized accreditation of mass National PT scheme metrology laboratory established through PC - Support to NPSL to achieve MRA project and accredited signatory status with CIPM by PNAC - Development of National PT Scheme 2.3.3 Internationally recognized national Completed The National Quality accreditation services 2013 PNAC Policy provides the - Strengthen the pool of external assessors Completed overall vision for - Support to PNAC to achieve MLA 2015 PNAC quality infrastructure signatory status with IAF development and it is - Accreditation National Proficiency Testing supported by GoP (PT) Schemes funding of USD 7 million 2.3.5 Support to testing laboratories 38 testing; 06 - Support to 20 accredited testing Completed calibration labs laboratories (surveillance, PT, CRMs, 2014 PCSIR/ accredited by PNAC; reference cultures & calibration) 2014 MoST laboratories - Support to achieve internationally 2016 MNFSR implementing business recognized accreditation of 24 testing Fisheries plan; revenue laboratories Dept generation increased - Facilitate in PT participation, provision of Punjab multiple fold Certified Reference Material /Reference cultures to the testing laboratories targeted for accreditation - Assistance in development of business plans to commercialize testing services of the laboratories to ensure sustainability (2 Training Workshops)

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Status & Activity Completion Partener Remarks Date Component 3 - Result Area

3.1 Strengthening IP Institutions a) IPO Pakistan - Strengthening IPO’s policy and planning capacity Completed - Strengthening IP administration and examination 2015, except for the two capacity - Upgrading ICT infrastructure remaining - Streamlining and automation of IP procedures activities - Digitization of IP Records currently in IPO - Upgrading IP Automation Systems progress which - Improving financial/human resources management will be systems completed by - Improving technical skills and expertise to support end April 2016 automation - Developing online IP Services & Interfaces b) Collective Management Organization (CMO) Completed - Conducting study on the establishment of Collective 2015 IPO & COMP Management Organization (newly formed CMO) 3.2 Strengthening IP Legislative and Policy Framework - Development and implementation of New IP Laws 2014 IPO - Facilitation of Accession to International IPR 2014 IPO Agreements 2015 IPO - Inclusive planning and policy development - 3.3 Improving enforcement of IPRs - Organizing an IP colloquium for the judiciary Completed IPO - Training of trainers from the Customs, Police/FIA 2013 IPO and the Judicial Academies 2013 - Support for training courses for Customs, Police/FIA 2015 IPO/FJA, and the Judicial Academies Customs/Police 3.4 Increasing use of IP systems by businesses and research institutions Completed - Improved Public Awareness of IP 2014 IPO - Improved businesses awareness of IP 2014 IPO / SMEDA - Strengthened IP linkages between Research 2016 IPO / HEC Institutions and Industry

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7. VISIBILITY

The programme maintained compliance with EC guidelines for visibility in all its publicity efforts. The EU logo as well as those of GoP and implementing partners were displayed at conferences and workshops including publications, Newsletters and material produced under the TRTA II programme

The TRTA II website was launched on 2 February 2011 at Pakistan Institute of Trade and Development (PITAD). The website is a joint effort of the implementing agencies (UNIDO, ITC and WIPO) in association with PITAD and EU Delegation to Pakistan. The website structure accommodates all the relevant information for various interest groups. More specifically, it covers aspects such as:

• Programme activities • Sector activities • Stakeholders • Key partners • Monitoring and Evaluation • Donor Coordination • Information Centre on publications, newsletters, pictures, videos, training material, news and other work produced under TRTA II programme

The TRTA II website, since its launch in February 2011continues to be updated on a regular basis to cover:

• Latest News • Component Activities • Newsletters • Specific material relevant to Component 1 • Workshop / Trainings / Conferences reports • Advertisements • Pictures and Video

The table below reflects the number of website visitors from the year 2011-16:

Year Visitors

2011 5,769

2012 7,370

2013 12,967

2014 13,736

2015 15,659

2016 5,601

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Yearly average of website visitors

SPS E-NEWS LETTER: SPS is a major intervention area under TRTA II and of significant importance for the Government of Pakistan. Its concepts and operations require to be well explained and understood by all. In order to keep a wide variety of stakeholders and interest group abreast with the programme activities and international news on the SPS, TRTA/PMO is issued 18 SPS e-newsletters

TRADE TIME: The quarterly Newsletter of TRTA II programme, contains articles and write-ups covering areas such as programme highlights, programme interventions at the policy and field levels, news and views on conferences, workshops and trainings, stakeholders forum, upcoming events, press coverage, etc. A total of 21 issues of Trade Time were published.

PRESS RELEASE: The PMO has also been proactively engaging the media to publicize TRTA II programme activities and achievements. During the reporting period, official press releases for all the key events.

PRESS COVERAGE: A number of articles highlighting TRTA II activities were also featured in the print media. The articles provided strong publicity of TRTA II interventions and acknowledged the positive contributions and efforts of the programme, the EU and implementing partners.

BROCHURE ON TRTA II PROGRAMME: A Brochure on TRTA II Programme highlighting the concept, genesis and inception of the programme as well as its activities and successes has been developed, printed and issued in November 2011.

DESK CALENDARS AND WALL PLANNERS: Desk Calendars And Wall Planners for the year 2012 were produced and distributed to the TRTA II programme stakeholders.

DIARIES AND DESK CALENDARS: Diaries and Desk Calendars for the year 2014 were produced and distributed to the stakeholders in the mailing list which is based on the updated database of the stakeholders including 106 Foreign Embassies and their consulates in Pakistan, 92 Pakistani Embassies in foreign countries and their 63 commercial offices (27 Embassies in all EU countries). 151

CERTIFICATES: Certificates were produced and distributed after the trainings organized by the TRTA II, with logos of all parties, including the EU.

BACKDROPS: Backdrops were produced and placed in all the trainings, workshops, conferences, forums, PPDs, etc. organized by the TRTA II programme with logos of all parties including the EU.

UN70 PANEL DISCUSSION: On the occasion of United Nations’ 70th anniversary, TRTA hosted a panel discussion. The theme of the discussion was “UNIDO-EU TRTA: Pakistan’s Integration to Global Trade”. This was aimed at highlighting the Programme’s efforts and the impact it has made to the trade in Pakistan, while discussing it’s sustainability for the future. Renowned panelists participated in this discussion from academia, public and private sectors, in addition to senior government officials and the deputy ambassador to EU Delegation to Pakistan. The discussion concluded on a positive note commending the achievements and initiatives consolidated under the TRTA Programme and the impact it has created in the sustainable growth and development of industries. The event was attended by 200 guests from all sectors of trade.

EXIT STRATEGY: A folder pertaining to the exit strategy of the TRTA II Programme has been created and uploaded on the TRTA website, concerning the catalytic effect, impact and sustainability of the interventions made under the programme. TRTA II further highlighted the 12 selected beneficiaries whose lives have been improved through their involvement in the Programme’s activities. The stories have been placed on the website, printed versions compiled in a folder to distribute with publications and they have been presented in the form of standees to place at events hosted by TRTA, in order to provide visibility to the positive contributions and efforts of the programme.

STORIES: The Programme identified 12 persons whose lives have been improved through their involvement in the Programme’s activities. Theirs stories have been documented and printed in the form of folder. The folder will be shared with key stakeholders including the Donor.

PROMOTIONAL MATERIAL FOR KINNOW AND MANGO: The programme produced brochures for the promotion of Pakistani Kinnow and mango in the Berlin Fruit Logistica and in the European and South East Asian High end markets. A brochure on the implementation of Codes of Practice in Kinnow and mango sectors was also produces and disseminated.

END OF TRTA II PROGRAMME BROCHURE: End of TRTA II programme brochure “HIGHLIGHTS OF A PARTENERSHIP WITH PAKISTAN” was produced and distributed.

PROMOTIONAL VIDEOS: Seven videos were produced for the promotion of Pakistani Kinnow, mango fruits and the industrial sector products (fan and surgical) in the high end markets. A video on the impact of the interventions of the component 3 (Strengthening of the Intellectual Property System) of the TRTA II programme was also produced. Another video reflecting the impact of TRTA II programme on Trade Policy Capacity Building was also produced.

Detailed list of the TRTA II publications is given in Annex 4.

152 8. Key Performance Indicators (OVIs)

The achievements as per log frame are indicated in the table below (Page 47 of the Inception Report)

Indicator Monitoring variable Unit Target Achievement Target Achievement Target Achievement Target Achievement No. 2011 2012 2013 2014 1 Strengthening of PITAD’s Binary Yes Achieved Yes achieved Yes Achieved No No institutional capacity

2 Training rate for PITAD (trainers No./ year 6 7 Master Trainers 6 7 Master Trainers - - - 4 Substitute and researchers) and LUMS, IBA, trained trained Master TDAP (researchers) staff Trainers trained 3 Trade policy research capacity No./ year 2 3 completed and 3 3 completed and - - - - accredited accredited 4 Trade policy course development No./ year 3 3 completed and 3 3 completed and - - - 3 training accredited accredited modules updated. 5 Short training course given by No./ year 1 2 trainings 3 3 trainings 2 10 completed - 2 completed PITAD to government officers conducted conducted

6 Local institutions rate of research No./ year 4 4 research studies 5 5 research studies 6 7 in progress - 7 completed studies for PPDs completed completed

7 Series of public-private dialogues No./ year 2 2 completed 3 3 completed 3 1 done 5 in 1 5 completed process 8 STP enriched and MOU signed Binary Yes Yes, MOU signed No No but MOU signed No No. But the No No. But the between PITAD and International in 2011 being MOU signed in MOU signed training institute implemented 2011 in 2011 implemented implemented

153

Component 2

Indicat Monitoring variable Definition Unit 2009 Target Source or No. Base 2011 2012 2013 2014

9 EU equivalence (fishery product controls) Access to EU market for Pakistani fishery products Binary No No Yes Yes Yes DG SANCO

10 EU RASFF alerts rate No. of EU RASFF alerts for products of plant origin/year No/year 22.6 15 10 5 0 DG SANCO

11 No. of fishery product export enterprises with access to No. of establishments compliant with EC market requirements No. NIL 0 0 2 2 MFD EU market

12 SPS compliance rate (horticulture) % of enterprises with full & minor non-compliance/no. enterprises under control % 14 25 50 75 100 TRTA II CA survey

13 SPS compliance rate fisheries sector % of enterprises with full & minor non-compliance/no. enterprises under control % 13.4 25 50 75 100 TRTA II CA survey

14 Market limitation rate (in horticulture) % of enterprises reporting market access limits due to SPS controls % 96 75 50 25 0 TRTA II Enterprise survey (2)

15 Market limitation rate fisheries sector % of enterprises reporting market access limits due to SPS controls % 40 30 20 10 0 TRTA II Enterprise survey (2)

16 Productivity benchmarking implementation rate Total no. of sectors with productivity benchmarking plans in implementation No. 0 1 2 3 4 NPO Report

17 Change in value added in seafood export sector Av. Export value (Value export ($)/Volume export (kg)) US$/kg 1.74 1.77 1.81 1.85 1.89 National Statistics

18 Change in value added in horticulture export sector Av. Export value (Value export ($)/Volume export (kg)) US$/kg 0.68 0.69 0.70 0.72 0.74 National Statistics

19 Sustainable accreditation services offered by PNAC International recognition by ILAC (MRA) and IAF (MLA) Binary Yes Yes Yes Yes Yes PNAC Annual report

No No Yes Yes Yes

20 No. of laboratories with accreditation to ISO 17025 Internationally recognized certificate No. 20 20 20 35 50 PNAC Annual report

21 No. of metrology laboratories with accreditation to Internationally recognized certificate No NIL 1 2 3 6 NPSL/PNAC Report ISO 17025

22 Traceable measurement and calibration services provided by NPSL International recognition by CIPM (MRA) Binary No No No Yes Yes NPSL report

23 Quality certification rate % of fishery/horticulture enterprises certified % 9 11 13 15 17 TRTA II Enterprise survey (2)

24 Digitization of IP records and completion of IP databases % of IPO database records available in verified, digital, searchable formats % 20 25 50 90 IPO Pakistan annual report (overall estimate for patents, trademarks, designs and copyright records)

25 IP legislation/policy formulation capacity Number of papers on IP legislation/policy issues produced by experts No. 0 0 2 2 IPO Pakistan annual report

154 26 Online IP services for IP users Availability of key e-services offered by the new IPO web portal (public search No 0 0 3 3 IPO Pakistan annual report on IP databases, application status query, e-filing, IP data exchange, online fees payment, e-notifications, etc.)

27 IP registration efficiency Time taken to process IP applications from reception to registration % decrease in 30 5 10 10 IPO Pakistan annual report months mont h

28 Poverty reduction Poverty rate % of population 22.6 21.6 UN Human & Income Poverty Report

29 Rate of human development Annual rate of change of Pakistan HD Index %/year 1.3 1.5 NDP 2010 Asia Pacific HDI Report

30 Exports as share of GDP % contribution of exports to GDP % 27.1 32.1 UN Commodity Trade/ FBS

155

Key Milestones and their achievement status (Component 1) – As per extension log-frame

Activities Key milestones Description Status COMPONENT 1: Trade Policy Capacity Building 1.1 Strengthening of PITAD’s institutional capacity - Assessment of PITAD's Provision of updated 3 annual reviews of PITAD software and Achieved completely equipment needs tools and publications as hardware needs have been conducted and the - Provision of updated tools and well as advice given on agreed equipment and resources have been publications their use provided to PITAD along with advice on use - Advice on these tools and where needed publications 1.2 Strengthening of PITAD's and other research institutes' expertise on trade policy - Needs assessment of ministries Survey is produced, and Survey was conducted at the start of the Achieved completely and implementing key outcomes are derived programme which helped to identify key governmental agency outcomes. The survey has been uploaded on the - Survey of key institutes, TRTA II website LUMS, IBA, and TDAP, to obtain their current expertise and potential for trade policy research - Review and enrichment of Diagnostic assessment of PITAD training courses were reviewed jointly Achieved completely Specialized Training PITAD's needs for with WTI at the start of programme and annually Programme and other module improvement and afterwards during meetings between WTI, government career research to be undertaken PITAD (DG) and ITC. development programmes delivered by PITAD so as to align with international best practices

156 - Upgrading and development of Contents of PITAD's Module development process and research Achieved Completely. 12 PITAD's training modules and course modules are projects contributing to PITAD training training modules were initiate research projects by TDAP, designed/revised; modules/curriculum was initiated, monitored and internationally accredited LUMS and IBA staff members under research projects are steered under international mentoring to against the target of 6 modules international mentoring designed complete 12 training modules and international accreditation of 12 modules for a joint WTI and PITAD certificate course on International Trade Law and Commercial Diplomacy.

- Training of Pakistani trainers and Trainings successfully 15 masters trainers were trained during 2011 and Achieved completely. 15 researchers by international training completed; attendees pass 2012 under international mentoring at WTI Master Trainers were trained institutes for ad hoc courses course Switzerland against the target of 12 Master Trainers.

1.3 Strengthening of Government officers' capacity on specific trade policy and international trade negotiations

- Series of training for policy makers Trainings successfully 28 trainings have been conducted against the Achieved Completely. conducted by PITAD with technical completed target of 6. More than 2300 stakeholders support as appropriate, from IBA, participated in the training activities. TDAP and LUMS

1.4 Conducting research studies contributing to the development of a national export strategy

- Studies carried out to support the Research studies 20 Research studies have been completed which Achieved Completely public private dialogue undertaken completed and pass peer passed international peer review against the under output 1.5 in order to establish review target of 15 research studies. a coherent framework for trade 2+2+1 more research studies initiated/completed policy and regulatory reform for a during reported period more research national export strategy; - Peer review mechanism established

157 1.5 Fostering public-private dialogue for a coherent national export strategy

- orientation on the PPD mechanism is PPDSC established with the approval of Ministry Achieved Completely framework/methodology for established of Commerce. PPDSC and other stakeholders developing national export strategy orientated on the mechanism of PPD

- Series of public-private sector PPDs are held in various 14 PPDs have been conducted in different cities Achieved Completely consultations cities on different issues against the target of 10+2 PPDs, which resulted and include a wide range in concrete policy recommendation. Some of participants; recommendations were incorporated in the Discussions feed into Government policies. government decisions on trade policy 1.6 Institutional capacity building of Three training modules The three training programs strengthened the Achieved Completely CCP developed through an institutional capacity of CCP by providing international mentorship trainings with different and complementary program (8 to 12 months) scopes. The module on Competition authority operations aims to provide CCP with the means to reform/strengthen its institutional proceedings on competition law. The module on academic aspects of competition provides a training tool both for junior staff and the academia (mainly to expand its activities), and the last module on substantive enforcement also aims at training junior staff and provides CCP with greater means to inform the private sector on competition related issues and the ways to deal with anticompetitive practices within CCP.

Two research studies The two research studies, on the SAARC Achieved Completely developed through competition network and transport sector, have international peer- strengthened CCP in their advocacy role as they reviewing mechanism provide CCP’s recommendations to enhance the competition related situation in these fields. 158 Trainings on the The first sets of trainings have been held on the Achieved Completely developed modules module on academic aspects of competition. Trainings on the substantive enforcement module have been carried out within CCP in order to train their newly inducted staff. These two modules have been subsequently used by CCP to carry trainings for foreign competition institutions’ officers.

The module on the competition authority operations has been used to brief CCP’s senior management on lead competition agencies (US FTA and EU DG Competition) ways of implementing international best practices.

159 Component 2

Results Aimed (Logical Framework) Objectively Verifiable Indicators (OVIs) Achievements

2.1 Strengthened SPS controls Controls on exports of fishery products “at least equivalent” As of April 2016, following the resumption of fish exports to EC by 2012 to the EU (March 2013), more than 160 consignments of No. of EU RASFF alerts for products of plant origin/year fish/fishery products have been exported to the EU (UK, reduced to <10/year by 2014 Spain & Italy) valued at over US$ 16.5 million, with zero rejection. 10 additional fishery establishments compliant with EC market requirements by 2014 02 fisheries established approved by EU-DG SANCO; an additional 05 have sent applications/supporting documents to DG SANCO for their approval.

NAPHIS Bill for the establishment of National Food Safety, Animal and Plant Health Regulatory Authority approved by PM (October 2015); organizational structure and budgetary implication sent to Planning Commission and Finance (February/March 2016); awaiting submission to Parliament for enactment (April/May 2016).

PGDC & Degree programmes in Food Safety & Controls launched at 04 universities, accredited by REHIS, approved by HEC and incorporated in the university curricula.

Over 300 PGDC/MSc/MPhil graduates in food safety & controls: more than 80% employed by the public and private sectors in Pakistan and abroad;

The Government College University and Forman Christian College both in Lahore have launched this PGDC course at their own expense.

2.2 Improved quality, value addition 10 additional fishery establishments compliant with EC Corporate Social responsibility (CSR) and poor branding and compliance in fishery, market requirements by 2014 were the major issues identified of the surgical sector. horticulture and industrial Value of fishery/horticulture products at first sale increased Nine companies in the fan sector received guidance on sectors by 5% in real terms by 2014 CSR and Process Control because of this intervention. 7 160 Results Aimed (Logical Framework) Objectively Verifiable Indicators (OVIs) Achievements

40 fishery/horticulture/fans/cutlery enterprises certified to units have been able to achieve substantial gains in terms of quality, environment, food safety, GAP, CSR management Productivity, Quality and CSR improvements during a systems including CE marking by 2014 period of 10 months starting from January 2015 to October 2015.

Five of these companies enrolled at PEFMA knowledge centre.

The selected units in fan sector witnessed huge gains in terms of quality; 44% to 81%, batch travel distance, 52% to 86%, Work in Process (WIP), 30% to 71%, Labor productivity, 70% to 103%, Line balancing efficiency, 105% to 240%, Average production per day, 9% to 280%, and number of workers, 6% to 26%.

Because of CSR implementation, the companies saved PKR 6.3 mil along with training of 150 personnel on shop floor management techniques.

Companies can save up to PKR 0.9 M/furnace/year. Conservatively, if there are 250 furnaces in operation in the fan sector the potential saving will be more than PKR 225 M/year.

NPO now is in a position to take up such initiatives on their own and can facilitate the sustainability of CSR and Process Control intervention. Six SSHWT units were manufactured and installed at the selected farm clusters. In the mango season 2015, the farmers and processors used the SSHWT units for processing the mangoes for both domestic and export markets.

The hot water treated mangoes were sent to different export destinations including USA. 161 Results Aimed (Logical Framework) Objectively Verifiable Indicators (OVIs) Achievements

Some farmers/processors have initiated the use of Hot Water Treatment for the local market.

Thirty Five (35) persons including the officers from the directorate of Agriculture Extension, Agriculture Marketing of the Government of The Punjab, Kinnow farmers, processors/exporters, intermediaries and the research scholars of the University of Agriculture Faisalabad were trained as master trainers in Kinnow in collaboration with ASF.

Twelve supermarkets in Malaysia and two supermarkets in Singapore participated in the 6 week promotion campaign arranged by TRTA II in collaboration with TDAP. The supply of mangoes for sampling and the promotion with promoters were fully funded by the commercial stakeholder.

Pakistani Exporters through the Rush group and Chop Tong Guan (CTG) made direct deliveries of mangoes to the renowned supermarket chains; AEON, TESCO, ECONSAVE, NSK, Mydin, Giant, SAM’s Groceria, Village Grocer, MBG, ISETAN, Max Value, Sunshine in Malaysia.

The mangoes were supplied to Sheng Siong and Cold Storage Supermarkets in Singapore in specially designed boxes.

A total of 25 metric tonnes were shipped to Malaysia and Singapore through TDAP and TRTA.

A permanent research desk has been established in TDAP for the analysis based on the approach provided by TRTA II programme. The desk consists of research analysts who 162 Results Aimed (Logical Framework) Objectively Verifiable Indicators (OVIs) Achievements

will carry out sectoral competitiveness, value chain and market analysis for public stakeholders and policy makers. 2.3 Improved conformity assessment Internationally recognized accreditation (1) NQP and the associated Technical Regulation Framework infrastructure and services compliance testing (24), metrology (6), system certification along with the implementation plan, budgetary implications (5) and metrology (6) services achieved by 2013 have been submitted to the Cabinet for approval. 30 testing/metrology labs paying accreditation fees to PNAC by 2014 As of March 2016, additional 19 testing laboratories have been accredited by PNAC to ISO 17025.

The 06 metrology labs at NPSL are accredited by PNAC for on-site calibration services as well as in-house services.

This brings to a total 38 testing laboratories and 06 metrology laboratories that have received TRTA support since 2004 and have achieved and sustained their accreditation to ISO 17025 through PNAC.

1 National PT Scheme (public sector) and 01 PT scheme in the private sector has been accredited by PNAC to ISO 17043.

PNAC is now internationally recognized for its accreditation services for testing & calibration laboratories (2009) and certification/inspections bodies for QMS and EMS (2013).

30 testing laboratories, belonging to seven institutions namely: PCSIR, Lahore, Karachi and Peshawar, FSC&RD, NRLPD, PCRWR, and SARC continue to implement their business plans based on customer relations mechanism and marketing strategies to ensure sustainability of their services and accreditation status.

163 Component 3

Results Aimed (Logical Framework) Targets Achievements

3.1 Strengthen IP Institutions 3 IPO officials to obtain LLM degrees by 2014. 3 IPO officials completed Turin LLM course.

Adoption of results based management practices in IPO- Workshop on results based management completed Pakistan by 2014. and implementation of its recommendations is in progress. Complete Report on validation of Trademark and Patent Administration procedures by 2012. Report on Trademark and Patent Administrative procedures completed. Examiners trained on Trademark and Patent search and examination by 2012. Training of Trademark and patent examiners completed. Upgraded IT infrastructure established by 2014. Expert's recommendations being implemented by IPO Pakistan regarding IT infrastructure. Upgraded IP automation system (IPAS Java) deployed and streamlined IP procedures automated by 2013. IPAS Java operational at the Patent Office and the Trade Marks Registry with streamlined procedures. IP records digitized and IP databases completed by 2014.

Back-office administrative systems identified and first Digitization of IP records and validation of IP phase implemented by 2014. databases nearing fully completed.

Train 4 IPO IT officials with certificates in technical skills Admin Modules implementation almost completed by 2013. (under testing).

Availability of online IP services and interfaces by 2014. Trained 7 IPO IT officials with upgraded technical skills to support upgraded automation. CMO study available by 2012. Web portal development nearing completion (online IP services).

CMO study completed.

164 Results Aimed (Logical Framework) Targets Achievements 3.2 Strengthened IP Legislation and Position paper on utility model protection by 2013. Paper and final consultations on Utility Model Policy Framework protection completed. National stakeholders consultations on GIs and PBRs by 2013. Consultations on GIs and Plant Breeders Rights (PBRs) completed. National stakeholders consultations on Madrid System and PCT by 2013. Study Visits & Consultations on Madrid System and PCT completed. National Roundtable on IP Policy by 2013/2014. Roundtable on development of a national IP strategy completed. WIPO tools provided for formulation of an IP Strategy.

3.3 Improved enforcement of IPRs Judges colloquium by 2012 Colloquium for judges on IPR enforcement completed (17 judges participated)

Up to six (6) officials trained from FIA/Police and Customs Training of 4 Police/FIA/Customs officials completed Academy by 2012 (7 invited but 3 no-shows)

IP enforcement training courses commenced by Police, IP subjects being taught in Federal Judicial Academy. Customs and Judicial Academies by 2014 Similar modules in Police and Customs academies are considered.

165 Results Aimed (Logical Framework) Targets Achievements

3.4 Increased use of IP system by Public information campaign (media briefings, provision of Media briefings held with subsequent press coverage. businesses and research institutions public awareness materials) commenced by 2011 IPO Pakistan given membership of WIPO Depository Library that provides continuous access to WIPO publications. IP reference publications delivered to PITAD & IPO Pakistan. Up to 15 national trainers on IP for businesses trained by 2012 Training on IP for businesses for 12 national trainers Roundtable on IP and trade policy by 2014 from SMEs completed.

IP and Trade Policy incorporated in an overlapping IP modules in up to six public-private consultations by Roundtable on a National IP Strategy (completed). 2013 IP input provided in requested PPDs. National Roundtable on TMOs by 2013

Roundtable on Technology Management Offices e-Forum (PiNET) on technology transfer to industry (TMOs) completed. established e-Forum (PiNET) pilot version completed.

166

9. WORK PLAN (YEAR 5, 6 & 7)

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