PAKISTAN AFGHANISTAN CROSS BORDER TRADE MEETING on FORTIFIED WHEAT FLOUR AND EDIBLE OILS

Transcription

1 PAKISTAN AFGHANISTAN CROSS BORDER TRADE MEETING on FORTIFIED WHEAT FLOUR AND EDIBLE OILS (Insert group photo with Secretary Health). Workshop Report May 2016 Islamabad DISCLAIMER This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the sole responsibility of GAIN and do not necessarily reflect the views of USAID or the United States Government.

2 CONTENTS Acronyms... 3 Acknowledgement... 4 Executive Summary... 5 Key recommendations... 6 Government and regulatory agencies... 6 Industry, export and trading sectors... 6 General recommendations... 7 Next steps... 7 Conclusions... 8 Background... 9 Objectives Participants Day 1 - Opening speeches Day 1 - Presentations and discussion Day 1 - Breakout session Key recommendations of Working Groups Day 2 - Presentations and discussion Panel Remarks, Mr. Naeem Butt, Chairman, All Pakistan Flour Mills Association (PFMA), Pakistan Certification Distribution and Group Photo About the Organizers Annex 1. Agenda Annex 2. Participants List for cross border meeting

3 ACRONYMS ACCI AFTA ANSA CAR DFID DoH DoF FAO GAIN GOP GPF HR IDA IMR ISO KPK LSFF MAIL M&E MI MMR MNSHRC MoPH NFA NGO NTD PCSIR PFMA PND PSQCA PVMA QA/QC SDG SUN TDRO UNICEF USAID USDA USI WHO WTO Afghanistan Chamber of Commerce and Industries Afghanistan Flour Traders Association Afghanistan National Standard Authority Central Asia region UK Department for International Development Department of Health Department of Food Food and Agriculture Organization Global Alliance for Improved Nutrition Government of Pakistan GAIN Premix Facility Human Resources Iron deficiency anemia Infant Mortality Rate International Organization for Standardization Khyber Pakhtunkhwa Large Scale Food Fortification Afghanistan Ministry of Agriculture, Irrigation and Livestock Monitoring and Evaluation Micronutrient Initiative Maternal Mortality Rate Ministry of National Health Services, Regulations and Coordination Ministry of Public Health National Fortification Alliance Non-governmental organization Neural tube defects Pakistan Council for Scientific and Industrial Research Pakistan Flour Millers Association Public Nutrition Department Pakistan Standards and Quality Control Authority Pakistan Vanaspati Manufacturer Association Quality assurance and quality control Sustainable Development Goals Scaling up Nutrition Trade Dispute Resolution Organization (Pakistan) United Nations Children's Fund United States Agency for International Development United Stated Department of Agriculture Universal Salt Iodization World Health Organization World Trade Organization 3

4 ACKNOWLEDGEMENT This report is the collective effort of the core organizing team led by Dr. Mohamed Mansour and comprising of Sofiya Khan, Sayed Jamaluddin Sediqi, Kishwer Durrani, Fuad Hamid, Muhammad Qavi Khan, Uzma Litaf and Ali Mohiuddin. Special thanks to Dora Panagides, GAIN Senior Program Manager, LSFF, for her invaluable reviews and comments; to Sahra Mohamed for her effective backstopping and help in preparing meeting materials; to Caroline Manus for her advice on meeting logistics and setup, and to Dr. Wahdati for his overall guidance. We thank the general staff at the GAIN Pakistan office for working long hours. We would like to extend a special thank you to Mr. Muhammad Aslam Shaheen, Chief Nutrition Section, Planning Commission, who supported the meeting from its inception. His agreement to allow Dr. Ali Ahmad Khan to help facilitate the meeting s first day was highly appreciated, as was Dr. Ali Ahmad Khan s facilitation and coaching of Mr. Muhammad Qavi Khan for the second day. Special thanks to Dr. Baseer Khan Achakzai, Director of Nutrition and Secretary of the National Fortification Alliance who provided support and leadership and ensured high level participation from the Pakistan government, particularly the Honorable Muhammad Ayub Sheikh, Secretary of Ministry of National Health Services, Regulations and Coordination. This meeting was funded by USAID/Pakistan and USAID/Afghanistan. Dr. Mohamed Mansour Acting Senior Program Manager Pakistan Regional Food Fortification Project The Afghanistan Delegation 4

5 EXECUTIVE SUMMARY The Pakistan-Afghanistan Cross Border Trade Meeting on Fortified Wheat Flour and Edible Oils (Islamabad, May 23-25, 2016) aimed to facilitate and accelerate exports of adequately fortified foods wheat flour and edible oil/ghee from Pakistan to Afghanistan through engagement, dialogue, negotiations and knowledge exchange. The meeting targeted producers, exporters, traders, government and other bodies regulating production, import and export of flour and edible oil/ghee in both countries. Specific objectives included: Facilitating engagement, dialogue and negotiations among key stakeholders involved in production, regulation, marketing and trade of wheat flour and edible oil/ghee between the two countries, in order to stimulate exports of fortified wheat flour and edible oil/ghee to Afghanistan. Enhancing knowledge-sharing between the two countries on regulations, trade procedures, requirements, and market preferences among key trade partners. Identifying and agreeing upon practical measures for quality assurance/control of exported foods, and on specifications for packaging, labeling and logo design to meet Afghan market demand and consumer preferences. The meeting included presentations and discussions, as well as deliberations by a working group of exporters and traders of wheat flour and edible oil/ghee from both countries. The more than 80 participants (Annex 2) included: Government representatives from both countries - health, food and agriculture, commerce and industry, research, science and technology, and national regulatory bodies. Private sector participants from national chambers of commerce and industry, wheat flour millers, edible oil industry, trader s associations and national premix suppliers. A representative of the Bakers Association of Afghanistan was also present. Pakistan s international development sector (DFID, MI, SUN Business Network). The meeting was inaugurated by the Honorable Muhammad Ayub Sheikh, Secretary of Ministry of National Health Services, Regulations and Coordination (MNHS & RC) and Mr. S.A. Nasir Yousofi, Deputy Head of Mission, Afghanistan Embassy. Guest speakers included Mr. Mohammad Aslam Shaheen, National SUN Business Network, and Dr. Baseer Khan Achakzai, Secretary of the National Fortification Alliance. For security reasons, USAID/Pakistan was not able to participate in the opening and deliberations of the meeting. Day 1 began with key speeches from Pakistani and Afghan officials, followed by updates on food fortification at national and regional level from Pakistani and Afghan representatives. Five regional Pakistan health and food departments and one research and development department presented their findings. The day concluded with breakout sessions for regulatory agencies and the industry and trade sector. Day 2 saw presentations on fortification standards and regulations and on trade policies, as well as procedures and agreements between Pakistan and Afghanistan. A high ranking official from Pakistan s Ministry of Commerce spoke about their experience in relation to trade disputes. A joint inter-country traders panel enabled producers, exporters and traders to exchange experiences about exporting to Afghanistan, to discuss the problems they encountered and to identify what is needed for more effective trade between the two countries. 5

6 Day 3 was organized primarily for Afghan participants, who visited a Pakistan Flour Millers Association (PFMA) mill in Khyber Pakhtunkhwa (KPK) and an oil/ghee factory in Noshera and Peshawar. The major outcomes from the meeting are captured in the Recommendations and Conclusions section of this report. A section on next steps logically derived from the meeting recommendations has been prepared and added by the authors of the report. KEY RECOMMENDATIONS A summary of recommendations by sector is presented below: Government and regulatory agencies Vitamin D3 in edible oils should be added at a standard of 3000 IU (international units) per kg; Federal and provincial-level fortification standards for wheat flour should be harmonized (PSQCA and Provinces); The Government of Pakistan should eliminate import the high import tax on premix. (NFA with financial and technical support from GAIN and other partners); The Government of Pakistan may also control the price of premix (Follow-up from all partners); Fortified products for export to Afghanistan should be certified (Private and Public Sector) in Pakistan, through the Pakistani Food Authorities/PSQCA/PCSIR/accredited labs or certification bodies. Both countries should follow the same procedures (Both projects). Valid certificates of analysis should be issued by an accredited lab. A list will be provided by the GOP (PSQCA and PCSIR should provide the list and share with Afghan regulatory agencies and ANSA); Correct labeling/food specification should be mandatory: Certification/inspection bodies will be responsible for issuing mandatory labeling specification (PSQCA should disseminate the mandatory labeling specifications and share with producers associations); and, Export/Import verification: Governments should implement a robust M&E system (Both projects). Industry, export and trading sectors Awareness raising campaigns must be developed for the general populations in Pakistan and Afghanistan to promote food fortification (Both projects); Pakistani participants expressed the need to be exempt from import taxes on fortified wheat flour and oil entering Afghanistan. The Afghan delegation opposed this recommendation, as wheat flour and edible oil is a significant source of tax revenue for the government. (Needs follow-up); Donors should support the provision of iron premix for wheat flour for at least a year, during which PFMA/PVMA would advocate for government support; A coordination/negotiation committee should be established among traders from Pakistan and Afghanistan to handle common problems. (Both projects, particularly in KPK and Baluchistan where most traders operate); Pakistan s government should review the level of government support to millers and traders in Iran and Kazakhstan and replicate it in Pakistan. (PFMA/PVMA to lead); 6

7 QA/QC standards should be applied on both sides to avoid substandard wheat flour and oil trade (Regulatory agencies on both sides). General recommendations Guarantee a one-year business visa to Pakistani businessmen visiting Afghanistan; Hold a similar cross border trade meeting in Afghanistan. (Date to be announced); The Afghan delegation s general recommendation is to see Pakistan producers and exporters ship only fortified quality wheat flour and edible to Afghanistan. NEXT STEPS Meeting recommendations will be translated into actions and incorporated into future work plans. Immediate next steps derived from the recommendations need to be shared and approved by key stakeholders from both countries. These are: Preparing an agreement with PSQCA to revise the standards for fortified edible oils (addition of vitamin D3 at 3,000 IU/kg) and updating and harmonizing standards for fortified wheat flour based on the most recent WHO guidelines and in harmony with the CAR standards; NFA taking the lead and following up on the status of the exemption of premix from import and sales taxes, updating all stakeholders on the result of negotiations with the Federal Bureau of Revenue; Creating a follow-up mechanism/group including representatives of GAIN, key stakeholders and other partners on both sides of the border (Pakistan: NFA, DFID/SNIP, WFP, PFMA, PVMA, etc. Afghanistan: Ministry of Health, Ministry of Commerce and Industry, ANSA, Chamber of Commerce and Industry, AFMA, etc.) tasked to assess the feasibility, and how best to implement, key recommendations, advocate and push the policy agenda towards: o o o o o o o Exploring the feasibility and likelihood of premix prices being controlled in both countries; Identifying what is required to secure an inspection certificate for exported fortified wheat flour and edible oils to Afghanistan (Pakistan); Following up on Pakistani producers/exporters request that duty taxes on fortified wheat flour and edible oil products be exempt; Establishing an official list of accredited labs in Pakistan issuing valid certificates of analysis and sharing it with Afghanistan regulatory agencies (Pakistan); Following up with standards and regulatory agencies in Pakistan to disseminate mandatory labeling specifications among flour millers and oil producers/ manufacturers, exporters/traders, and professional associations (PFMA, PVMA, Traders Association), and advocating for compliance and enforcement of labeling specifications by millers (Pakistan); Following up with government officials (Pakistan Secretary Health; Deputy Head of Mission of Afghanistan) on promises made during the meeting to support food fortification, and in particular making food fortification mandatory in both Pakistan and Afghanistan; Initiating the establishment of the inter-country traders coordination committee and providing it with technical, financial and logistic support, beginning in KPK and followed by Baluchistan (GAIN/Uzma to take the lead with Mohammad Qavi in Baluchistan). 7

8 CONCLUSIONS By all standards the meeting achieved its objectives and expected results, in terms of the number of participants; the topics addressed; the level of stakeholder engagement on key issues pertaining to production, wheat price policies, trade policies and regulations, cost of fortification, standards setting and harmonization; and who will be responsible for quality assurance and quality control in the mills, regulatory monitoring, etc. The meeting reached consensus on certain issues and left others pending for further discussion. A follow-up mechanism will be put in place to advance discussions between partners on the outstanding issues. Participants recommended holding a second cross border trade meeting in Afghanistan, the date and location of which will be announced in due course. Lastly, the success of the meeting is measured not only by the pertinence of its conclusions and recommendations, but by the importance and relevance of the follow-up. In the weeks immediately following the meeting, several agreements were initiated or finalized with key stakeholders: A grant with Punjab Food Department aiming to improve wheat flour fortification regulations and monitoring for flour exports from Pakistan to Afghanistan; compliance with importing country (AFG) regulations; and the regulatory capacity of the Pakistan government and improve fortification quality monitoring in project assisted geographic areas; A grant with PFMA to strengthen its capacity to boost and monitor exports of quality checked fortified wheat flour at the mill level in compliance with Afghanistan regulatory and market requirements, including management of premix and packaging/labelling revolving fund. A cooperation program document and a grant with PCSIR to train mill staff and technical personnel on QA/QC, and on assessing the incidence, level and source of Aflatoxin in Afghanistan and Pakistan by surveying wheat and wheat flour supply in Pakistan. A draft grant with PSQCA aiming at revision of standards for wheat flour fortification in conjunction with the latest evidence-based WHO guidelines and harmonization between provinces, as well as the inclusion of vitamin D in fortification of edible oil/ghee. Beginning negotiations with oil manufacturers in KPK and Baluchistan to support selected oil refineries in fortification of edible oils for export to Afghanistan. 8

9 BACKGROUND Undernutrition affects most countries in Central and South Asia. In Afghanistan and Pakistan there is a severe vitamin and mineral deficiency problem. Known deficiencies include those of vitamin A, vitamin D, iron, and zinc. The 2013 National Nutrition Survey in Afghanistan 1 found the prevalence of vitamin A deficiency among children 6-59 months of age to be 50.4% and among women of reproductive age, 11.3%. Vitamin D deficiency was also found to be a severe problem with 64.2% of children 6-59 months, deficient and, 64.7% of women of reproductive age. The same survey found that 13.7% of children 6-59 months of age and 13.8% of women of reproductive age suffered from iron deficiency anemia and 7.4% of adolescent girls (10-19 years) had folate deficiency. In Pakistan, the 2011 National Nutrition Survey (NNS) 2 found that most children and women of reproductive age suffer from multiple micronutrient deficiencies. Iron deficiency anemia among non-pregnant women and children under five were found to be 19% and 43.8% respectively. Vitamin A deficiency is also of concern with 42.1% of non-pregnant women and 54% of the under-fives with low serum retinol levels. Furthermore, 12.7% of pregnant women were reported to be night blind. This is more than double the prevalence considered to be a public health problem. Deficiencies were also found in vitamin D, calcium and zinc. Also of concern in both Afghanistan and Pakistan is the very high levels of stunting among under-fives, both over 40% which is considered to be a severe public health problem by WHO. Furthermore, both countries are raked with Low Human Development as per the 2013 Human Development Index rankings, with Pakistan 146 and Afghanistan 169 of 187 countries 3. A proven long-term strategy for addressing micronutrient deficiencies and improving health outcomes is food fortification. The primary source of food energy intake in the region is wheat flour, most of which is not fortified. Fortification of flour and cooking oils can improve dietary intake of essential vitamins and minerals. The Government of the Islamic Republic of Afghanistan (GIRoA) and various stakeholders in Pakistan have recognized this. Under the USAID funded Regional Fortification in the Central Asian Republics (CAR) and Afghanistan Project, a study was conducted on trade flow of analysis of wheat, wheat flour and vegetable oil and ghee in the region. This study revealed that Afghanistan is a net importer of grain with 600,000 MT imported in 2013 for a total consumption of 5.8m MT. Afghanistan is also a net importer of wheat flour with 1.0 MT imported in 2013 for a total consumption of 4.4m MT. Kazakhstan is by far the major wheat flour exporter in the region, along with Pakistan; Afghanistan mainly imports from Pakistan (60%) and Kazakhstan (40%) 4. Furthermore, Pakistan is by far the major edible oil producer in the region; most of the edible oil trade in the region is between Pakistan and Afghanistan. 1 National Nutrition Survey Afghanistan Aga Khan University, Ministry of Public Health/Afghanistan, UNICEF Afghanistan 2 Pakistan National Nutrition Survey 2011, Aga Khan University; Pakistan Medical Research Council; Nutrition Wing, Ministry of Health, Pakistan; Supported by UNICEF Pakistan 3 HDI 2013, accessed 4 September Altai Consulting. Afghanistan/Central Asia Food Fortification Program. Trade Flow Analysis (Wheat Grain, Wheat Flour and Edible Oils). Draft, Sept

10 OBJECTIVES The aim of the meeting was to facilitate and accelerate exports of adequately fortified foods (wheat flour and edible oil/ghee) from Pakistan to Afghanistan through dialogue, negotiations and knowledge sharing among producers, exporters, traders, government and other regulatory bodies that regulate production, import and export of wheat and edible oils in both countries. Specific objectives: 1. Facilitate engagement, dialogue and negotiations among key stakeholders involved in production, regulations, marketing and trade of wheat flour and edible oil/ghee between the two countries in order to stimulate exports of fortified wheat flour and edible oil/ghee to Afghanistan. 2. Stimulate the sharing of knowledge between the two countries about their specific regulations, trade procedures, requirements, and market preferences among key trade partners. 3. Identify and agree on practical measures for quality assurance/quality control of exported foods, and on specifications for packaging, labeling and logo design that will meet Afghan market demand and consumer preferences. 10

11 PARTICIPANTS The meeting was attended by representatives of: I. The Government of Pakistan Ministry of National Health Services, Regulations & Coordination Ministry of Science and Technology: Pakistan Standards & Quality Control Authority (PSQCA) and Pakistan Council of Scientific and Industrial Research (PCSIR) Provincial Health Service Departments Provincial Food Departments Ministry of Commerce and Industries II. The Government of Afghanistan Ministry of Public Health (MoPH) Ministry of Commerce and Industry (MoCI) Ministry of Agriculture, Livestock and Irrigation (MAIL) Afghanistan National Standards Authority (ANSA), Office of the President II. The private sector Pakistan Pakistan Flour Millers Association (PFMA): National and Provincial chairmen, Technical Fortification Committee members, millers, Flour millers, Pakistan Vanaspati Manufacturers Association (PVMA): Secretary General and oil manufacturers Premix suppliers/distributors Traders companies and individual exporters / traders Consultants Afghanistan Chamber of Commerce and Industry (ACCI) Afghanistan Flour Millers Association (AFMA) Afghanistan Bakers Association Traders Association and individual traders III. Development partners United Nations World Food Programme (WFP) DFID MI GAIN Others (UNICEF, FAO, WHO, WB) were invited, but did not attend IV. Donors USAID (was excused because of security reason) The workshop agenda is provided is Annex 1. A full list of participants is in Annex 2. 11

12 DAY 1 - OPENING SPEECHES Sofiya Khan, GAIN Interim Country Director, Pakistan After recitation of the Holy Quran, Interim Country Director Sofiya Khan opened the workshop and welcomed participants, especially: Mr. Muhammad Ayub Sheikh, Federal Secretary Health Honorable S.A. Nasir Yousofi, Deputy Head of Mission, Afghanistan Mr. Muhammed Aslam Shaheen, Chief Nutrition Section, Planning Commission Dr. Baseer Khan Achakzai, Director Nutrition, Ministry of National Health Services, Regulation and Coordination Mrs. Khan thanked the delegations from Afghanistan and Pakistan for their participation. After describing the serious nutritional situation in both countries and in particular the micronutrient deficiencies affecting primarily children and women as revealed by population based surveys in 2011 in Pakistan and in 2013 in Afghanistan, Mrs. Khan thanked USAID for providing this platform to initiate dialogue between key stakeholders from both countries and wished the participants productive deliberations. Dr. Mohibullah Wahdati, Country Director, GAIN Afghanistan Dr. Wahdati emphasized Afghanistan s reliance on food imports from Pakistan for cultural, ethnic, religious and historic reasons, including fortified wheat flour and edible oils imported from Pakistan. He hoped the meeting would lead to actions to ensure that all foods exported from Pakistan to Afghanistan would be fortified. He called for solutions that could be both commercially viable in Pakistan and have a public health impact for the Afghan population. In the name of the closeness of our culture, faith and long historic relationships, we came here to plead to the Pakistan Flour Mills Association and the Pakistan Vanaspati Manufacturers Association to fortify their products exported to Afghanistan, and to contribute to help improve the health of the Afghan population, Dr. Wahdati concluded. 12

13 Muhammad Aslam Shaheen, Chief Nutrition Section, Planning Commission, Pakistan Mr. Shaheen highlighted the role of the Scaling up Nutrition (SUN) Movement created in 2010 in bringing people from governments, civil society, the United Nations, donors, businesses and researchers together in a collective effort to improve nutrition. Pakistan joined the movement in 2013 as the 34 th out of 57 SUN country members. Pakistan has also adopted the sustainable development goals (SDG) in 2015, and is committed to achieving them, in particular Goal 2 to end hunger, achieve food security, and improve nutrition, and promote sustainable agriculture. Mr. Shaheen urged participants to utilize this forum effectively and continue using these newfound linkages between the two countries to tackle malnutrition together. He concluded that assuring the quality of food products, especially their safety and nutrition levels, is an increasing focus of the government, companies, and global international trade. A better understanding can help to address key questions related to food fortification of wheat flour and oil. Dr. Baseer Khan Achakzai, Director Nutrition, Ministry of National Health Services, Regulations and Coordination and Secretary National Fortification Alliance, Pakistan Dr. Baseer presented GAIN's mission and the global significance of eradicating micronutrient deficiencies, emphasizing the importance of fortification as a cost effective method to eradicate micronutrient deficiencies or Hidden Hunger. Mr. S.A. Nasir Yousofi, Deputy Head of Mission, Afghanistan Embassy Mr. Yousofi stressed that iron deficiency in the region is still a problem, and the workshop can help find new approaches to address it. He urged the Government of Pakistan to encourage and stimulate trade between the two countries, indicating that closing the borders to trade, as had happened recently, does not work in the interest of both countries. In order to encourage economic cooperation, he announced that Afghan Consulates in Pakistan will grant a one-year visa to all Pakistan businessmen who apply for a business visa. 13

14 Mr. Muhammad Ayub Sheikh, Secretary, Ministry of National Health Services, Regulations and Coordination, Pakistan Mr. Sheikh highlighted the importance of food fortification and his belief that we must reemphasize that under-nutrition affects most of the countries in central and South Asia. In Pakistan and Afghanistan, the severity of micronutrient deficiencies portrayed in NNS 2011 were sobering. If not addressed in a timely manner, under-nutrition would affect the future development of both countries. He added that malnutrition is directly related to development. By targeting malnutrition today, we are investing in our future. He acknowledged that food fortification is a proven long-term intervention for addressing malnutrition, and that fortification of wheat flour, oil and ghee, as primary sources of food in the region, can increase dietary intake of essential micronutrients. Food fortification in Pakistan will not only be beneficial to Pakistan itself but to Afghanistan equally. He acknowledged the importance of NFA as a key platform for bringing stakeholders together to address malnutrition. He assured the Government of Pakistan s support, whether through policy formation, harmonization of standards or any other legislation necessary for mandatory fortification. 14

15 DAY 1 - PRESENTATIONS AND DISCUSSION Session 1: Status of Fortification of Wheat Flour and Edible Oils in Pakistan and Afghanistan Session 1 was chaired by Mr. Naeem Butt, Chairman of Pakistan Flour Mills Association, with PFMA province chairman as co-chairs: Iftikhar Ahmad Mutto, PFMA Chairman, Punjab; Sharif Agha, PFMA Chairman Baluchistan, Malik Iftikhar Ahmad Awan, PFMA Chairman KPK. In this session, officials from the provinces gave their perspective on food fortification in Pakistan and trade with Afghanistan. Session 1, Presentation 1: Update on Edible Oil/Ghee Fortification in Pakistan Mr. Umer Islam Khan, Secretary General, Pakistan Vanaspati Manufacturer Association (PVMA). Mr. Islam explained that PVMA is an organization registered with Directorate General Trade Organization, Ministry of Commerce, Government of Pakistan. Its 118 members manufacture vegetable ghee/cooking oil and allied products in all four provinces and the federal capital - 50 in Punjab, 41 in Sindh, 2 in Baluchistan and 25 in KPK. Annual turnover of the oil and ghee sector is of 600 billion Pakistan rupees (Rs) per annum and total duties, taxes and other levies paid to government is about 120 billion. Per capita consumption of edible oil and ghee in Pakistan is 17 Kg and total consumption is 3.8 million, with local production of million tons. To fulfill the need for edible oil, 17% and 83% of palm oil has been imported from Indonesia and Malaysia respectively in On import, 16% CED, 5.5% income tax and 1000 Rs /MT FED has been applied. There has been substantial increase in imports of edible oils every year i.e. 5.74% in 2014 compared to 2013 and in 2015 compared to Production at oil and ghee mills adheres to PSQCA standards in which IU / Kg ± 10% of Vitamin A is mandatory. Mr. Islam outlined the challenges facing the industry: Higher duty/taxes and other levies increase end-product price, lowering per capita consumption. In April 2015, the Government of Punjab capped the retail price of licensed, branded and fortified ghee/cooking oil, making it lower in most cases than the cost of production. Sales of non-fortified ghee have increased to fill the vacuum created by the lack of licensed, legitimate products. Due to economic hardship, families prefer to buy ghee/cooking oil in loose packing (non-branded, non-refined and unfortified), widely available with a price differential of at least 20%. Pakistan exports significant amounts of edible oil and has no control on price fluctuation in international market. Traders monitor edible oil trading prices, buying and keeping unprocessed loose oil in stock in unhygienic conditions. As a result, the free fatty acid (FFA) level rises and the oil loses all intrinsic Vitamin A and other nutrients. Sales of fortified, processed and packed products is stagnant, while sales of loose oil are increasing. Legislation regarding fortification exists, but its implementation needs to be strengthened. The prevailing tariff structure, trade and commerce policies, and national market forces are in favor of selling loose oil and discourage fortified packed products. Duty structure on import of vitamins is very high, reportedly up to 55%. 15

16 On behalf of PVMA, Mr. Islam made the following recommendations: Reducing duty/taxes/levies on ghee and cooking oil from the current high range of 32-37%. Making the sale of loose ghee and cooking oil illegal, with strict enforcement by authorities such as the Pakistan Standards and Quality Control Authority and Provincial Food Authorities. Improving the capacity of PSQCA and Provincial Food Authorities to reach remote areas where there are problems in implementing Pakistan Standards PS 221 and PS 2858 for Ghee and Cooking Oil by allocating extra funds and additional qualified manpower. Working with NGOs to ensure consumers are educated and educate others about their right to access to nutritious staple food items, both those who cannot afford a nutritious diet, and those who don t understand the benefits of food fortification. Session 1, Presentation 2: Update on Flour Fortification in Pakistan Mr. Asim Raza, Chairman PFMA Technical Fortification Committee, Pakistan Mr. Raza spoke about the current fortification situation in Pakistan and the efforts of flour mills in producing fortified wheat flour and the challenges faced by the millers, especially those exporting wheat flour. Following discussions with GAIN, PFMA began fortification at 30 flour mills last year in Punjab. There are now more than 250 micro-feeders at the mills, but the issue of premix supply must be resolved so that fortification can move ahead. Flour millers and PFMA are fully aware of the importance and benefits of food fortification and are committed to playing their part. Session 1, Presentation 3: Current status of export of wheat flour to Afghanistan and future perspectives Mr. Anjum Sardar, Deputy Secretary Technical, Punjab Food Department, Pakistan Mr. Sardar outlined the work of the Punjab Food Department s quality control laboratories and technical teams and highlighted progress in the export of wheat and wheat flour, including the issuance of a wheat/wheat flour export notification; discussions with GAIN on monitoring the quality of wheat flour exported to Afghanistan; equipping food laboratories with necessary monitoring equipment; and the constitution of a provincial fortification alliance. On the way forward, he suggested creating market demand for fortified flour in Afghanistan through an advocacy campaign; elimination of duties on premix; the introduction of a standard for fortification, labeling and packaging by the Afghan authorities, and production and supply of fortified flour to meet the demand. He also stressed the need for quality assurance by manufacturers and government regulatory bodies 16

17 Mr. Mehrab Khan, Additional Secretary, Food Department, Government of Baluchistan, Pakistan Mr. Khan said Baluchistan Food were already facilitating their mills and would also extend facilitation to mill owners to promote the export of wheat flour and edible oil to Afghanistan. Their laboratories could certify the quality of their products. He appreciated the interventions taken by GAIN and assured the audience of his support wherever required. Mr. Abdullah Khan, Additional Secretary, Health Development, Government of Baluchistan, Pakistan Mr. Khan stated that after the 18 th amendment, the Government of Baluchistan has taken responsibility of the entire preventive program including issues of malnutrition, and malnutrition a priority. Malnutrition contributes to Baluchistan s high rates of infant and maternal mortality, and the government is working to address this, with a dedicated nutrition program provincial level. Mr. Khan stressed the importance of fortifying staple foods in eradicating micronutrient deficiencies in Pakistan and Afghanistan. Fortifying staple food in Pakistan will support Afghanistan because Pakistan is one of the major exporters of wheat and edible oil to Afghanistan. He said that we have to find the opportunities to fight micronutrient deficiencies and expand cross-border trade through meetings such as this. Mr. Muhammad Anwar Khan, Director Food Khyber Pakhtunkhwa, Pakistan Mr. Khan said that flour mills association from KPK is well aware of the problem of malnutrition and their responsibility in this regard. He aacknowledged the current price related problems of the flour industry and suggested that a farmer awareness campaign should also be launched to balance the prices. He explained the dual role of Food Department in procurement of wheat and price as well as quality control of wheat and flour in KPK. He committed to extending support for flour millers by resolving their issues through regular meetings. He asked the Afghan delegation to promote Pakistani flour in their country as it is superior in quality and will also be fortified which is their requirement. as at 17

18 Dr. Jaffer Saleem, Director Health Services, Department of Health, Punjab, Pakistan Dr. Saleem asserted that food fortification is the most convenient and cost effective method to deliver micronutrients to deprived communities. In Pakistan, there are high rates of anemia reported in women and children and the remedy is iron fortification. He requested the business community to realize their corporate responsibility and take a step forward towards food fortification and assured the cooperation of the Health Services Department wherever required. Dr. Sakhawat Ali, Director General, PCSIR- Pakistan Dr. Ali stressed the importance of the meeting for industrial growth in Pakistan and Afghanistan. He described the role and strengths of PCSIR and its achievements during past few years with special reference to the food fortification industry. He mentioned the strengths of his laboratories and facilities and their ability to provide support services to the industries. Session 1, Presentation 4: Update on Wheat Flour and Edible Oil/Ghee Fortification in Afghanistan, Food fortification policy in Afghanistan and status of the legislation Dr. Homayoun Ludin, Director, Public Nutrition Department (PND), Afghanistan Dr. Ludin reviewed improvements in the health of the Afghan population between 2004 and Stunting dropped from 60.5% to 40.9%, iron deficiency in women 48% to 24% and iodine deficiency in women 75% to 41%. Anemia among women of reproductive age is 40.4% of which IDA is 24%. Other micronutrient deficiencies in women of reproductive age include vitamin A 11.3%, vitamin D 94.8%, Zinc 23.4% and iodine 40.7%. Among children from 6 to 59 months of age, total anemia is 44.9% out of which IDA is 26.1%. Other micronutrient deficiencies include vitamin A 50.4%, vitamin D 81.0%, Zinc 15.1% and Iodine 29.5%. The National Nutrition Policies and Strategies of Afghanistan have prioritized fortification of wheat flour with iron; edible oil and ghee with vitamin A & D; and edible salt with Iodine. Since USI become mandatory, donation of potassium iodate supply has been shifted to a revolving fund managed by the Iodized Salt Factories Association. 68,000 MT of iodized was been produced in Fortification of edible Oil and Ghee with Vitamin A and D started a few months back. There are three local manufactures and all have microfeeders installed. The process of drafting legislation for fortifying edible oil with vitamin A and D is under way. During 2015, Pakistan ranked as the second biggest oil exporter to Afghanistan after Malaysia. Wheat flour fortification, which began in Afghanistan in 2006, covers just 5% of overall need. Afghanistan requires fortification with Iron, Folic Acid, Zinc, Vitamin A and Vitamin B12. The MOPH/PND has established 18

19 standards for QA/QC of millings. Legislation of wheat flour fortification is also in process. The production trend of wheat fortification is quite significant and communication campaigns will be launched. Challenges and constraints include low quality and quantity of locally produced wheat flour; lack of attention on imported wheat instead of flour (which are not fortified); and lack of awareness and commitment among traders to import fortified instead of non-fortified flour from neighboring countries. He explained that regulation of wheat flour and edible oil fortified with minerals and vitamins has been set in accordance with the provisions of Article 33 of Public Health Act and Article 11 of the Constitution in order to fortified staple foods (wheat flour & edible oil) in the country, with the objectives of: Implementation of mandatory national standards of fortified foods with minerals and vitamins which are approved and finalized by the Afghan National Standard Authority; Supporting, strengthening and monitoring the activities of the manufacturers and importers of fortified wheat flour and edible oil in accordance with the provisions of this regulation and other applicable laws of the Islamic Republic of Afghanistan; The importer shall gain the fortified wheat flour import permit and license from the Ministry of Commerce and Industry. No importer will have the right to import non-fortified wheat flour six month after enactment of this regulation; Imported fortified wheat flour must be fortified with vitamins and minerals according to or matching with national standards; The amount and specifications of the vitamins and minerals must be in compliance with the rules and norms set by the ANSA or matching the standards (complete the national standard requirements); Any Sack(Package) of fortified wheat flour must include the label indicating type and the amount of micronutrients, manufacturing company, name of original country, and any other necessary trade specifications, it would be desirable if the text according to Afghanistan national standard was written on the package in the local language; All imported fortified wheat flour should be quality controlled at the borders, and only those who have certificates from MoPH related quality control labs that certifying that the amount of vitamins and minerals in imported flour is accordance with to or matching with national standards will be allowed to enter (complete the national standard requirements). He recommended: Supporting in-country production of fortified wheat flour and edible oil; Regional coordination to help support the governments of Afghanistan and Pakistan in finalizing their policy on importation of wheat instead of flour; Strengthening coordination & collaboration among governments to import fortified food (iodized salt, fortified wheat flour & edible oil); Increasing awareness among traders and the public on the importance of food fortification. He indicated that Kazakhstan was in favor of reviewing the existing flour fortification standards and updating the formula as necessary. The fact that 400 million Tenge ($2.5M) were budgeted by the MOH to support fortification during the past two years but never used was unacceptable. The President of the Kazakh Academy of Nutrition indicated that he was going to bring this issue up with the Minister of Health and with the President of Kazakhstan. 19

20 Session 1, Presentation 5: Update on the Pakistan Regional Fortification Project, Ms. Dora Panagides, GAIN Senior Manager of Large Scale Food Fortification, GAIN HQ Ms. Panagides presented the findings of Afghanistan 2013 Nutrition Survey, focusing on micronutrient deficiencies. Looking at the 2011 national nutrition survey in Pakistan, she concluded that both countries have similar nutrition epidemiologic profiles where micronutrient deficiencies reach prevalence levels of public health significance according to WHO classification. The similarity between the two countries is also found in the food consumption patterns, where wheat flour and edible oils compose the bulk of the dietary intake in terms of energy, and other macro nutrients. Analyzing the food trade data between the two countries, Dora concluded that Pakistan is an important exporter of wheat flour edible oils to Afghanistan. Given their physical characteristics and level of consumption, these two products are ideal vehicles for food fortification with the essential vitamins and minerals that are deficient in the diets of both countries, said Dora. These considerations were the basic foundation for the design, planning and implementation of the regional food fortification projects in both countries. She highlighted the objectives and strategic approach of the project in Pakistan, and emphasized the need for coordination with the DFID SNIP project at the policy, operational and implementation levels. Session 1, Presentation 6: Update: Afghanistan Regional Fortification Project, Dr. Mohibullah Wahdati, Country Director, GAIN Afghanistan Dr. Wahdati informed the audience that the flour fortification has been mandatory since October 2015and stressed that these initiatives would have a major effect on improving health and trade in the region. He described the prerequisites for fortified food export. He explained that the cost of fortification is limited as 1% of 10Kg oil and 2% of 50Kg wheat flour bag which can be easily digested by the importers. Producers should take the lead on fortification. Production challenges included lack of correct records at production point; the fact that quality certification of the product is not usually presented, and products are not properly labeled. For export, difficulties included lack of correct records at the border; the fact that a quality validation certificate is not issued for the exported product; and quality control mechanisms for foods entering Afghanistan are not yet well developed. He proposed next steps to strengthen exporter and importer engagement: Establish proper record keeping system at point of production; Improve awareness of exporters and importers on how best to export and import fortified quality, safe foods, ensuring their share in the Afghan market; Food regulation authorities in both countries must follow the WTO guidelines on food trade; Increase engagement for legalization of trade between the two countries; Enact mandatory fortification standards for industrially produced edible oils and wheat flour (locally produced and imported); Harmonization of regulations and enforcement mechanism with regional countries; Finalize and approve food law that includes regulatory monitoring framework for checking adequacy of fortification and compliance, including a system for enforcement of mandatory legislation; 20

21 Create an enabling environment for local production; Ensure effective supply of fortification premix; Establish a system for tracking the quality, coverage and impact of population-based nutrition interventions, such as food fortification. Discussion An interactive and fruitful discussion permitted participants to debate the regulatory requirements for the export of fortified wheat and edible oil. 21

22 DAY 1 - BREAKOUT SESSION Industry Traders Meeting Moderator: Naeem Butt, PFMA, Co-moderator: Iftikhar Ahmad Mutto, PFMA Chairman Punjab Government/Regulatory Agencies Meeting Moderator: Dr. Shazad Afzal, PSQCA Deputy Director General Co-moderator: Dr. Zakir Nasssimi, Head of Health and Food Safety Department, MOPH In separate rooms, two groups were formed: one composed of representatives from the private sector from both countries, moderated by Pakistan PFMA Chairman, Naeem Butt, and co-moderated by Punjab PFMA chairman, Iftikhar Ahmad Motto. The second group assembled representatives from government agencies, moderated by Dr. Shahzad Afzal, Deputy Director General of PSQCA of Pakistan, and co-moderated by Dr. Zakir Nassimi, Head of Health and Food Safety Department, MOPH, Afghanistan. 22

23 Key recommendations of Working Groups A summary of recommendations by working group/sector is presented below: Industry/traders Rapporteur: Asim Raza, Chairman PFMA Technical Fortification Committee- Pakistan Millers and traders would like to: Conduct a costing study; Hold a regional meeting for fortification; Ensure explicit inclusion of fortification; Provide training to technical specialists Strengthen technical and laboratory; Develop and implement administrative resources; Provide government subsidies to flour miller.s Government/Regulatory Agencies Rapporteur: Anjum Sardar, Deputy Secretary Technical, Punjab Food Department - Pakistan Government agencies and regulators made the following recommendations: Standards for vitamin D3 in edible oils: PSQCA should add it at 3000 IU/kg; Differing fortification standards in federal and provincial levels should be harmonized (PSQCA and Provinces); Import tax for premix is very high and should be eliminated; Government of Pakistan may also control the price of premix; Product certification: Fortified products destined for Afghanistan should have a certificate from Inspections (Private and Public Sector) in Pakistan. This is the responsibility of Food Authorities/ PSQCA/PCSIR /accredited labs or certification bodies. Both countries should follow the same procedure; Valid certificates should be issued by accredited labs. A list will be provided by the GOP; Proper labeling / food specification should be mandatory: Certification / inspection bodies will be responsible for issuing mandatory labeling; Exporter / Importer verification system: a strong M&E system should be implemented by both governments. Discussion During the second session participants were quite interested in the methodology and way forward to introduce fortified wheat and edible oil to the market. The discussion was facilitated by Mr. Mohamed Mansour who designed the technical portion of the meeting. The harmonization of the standards among Pakistan and Afghanistan was discussed among the Afghan delegation and PSQCA. They have also exchanged their standards. 23

24 DAY 2 - PRESENTATIONS AND DISCUSSION The morning session of day 2 was ably chaired by two general directors from Pakistan, PSQCA and PCSIR, and co-chaired by the General Manager of Nutrition, Afghanistan Ministry of Agriculture, Irrigation and Livestock (MAIL). Standards and Regulations for Fortified Foods in Pakistan and Afghanistan Chair: Dr. Shahzad Alam, Chairman, PCSIR Chair: Muhammad Khalid Siddiq, Director General PSQCA Co-chair: Mohammad Halim Ibrahimi, General Manager of Nutrition, Afghanistan Ministry of Agriculture, Irrigation and Livestock (MAIL) This session included four presentations and an address from the Chair to update the audience on the contribution and progress of PCSIR on food fortification in Pakistan. This was followed by a lively discussion. Morning session: The status of standardization and regulatory systems for wheat flour and edible oil/ghee in Pakistan Dr. Shahzad Afzal, Deputy Director General PSQCA, Pakistan Dr. Afzal described PSQCA s role and strengths and the standards for food and agriculture. National Standards Committees were explained, as were the procedures used to establish the standards. Pakistan s standards for edible oil and ghee food fortification include mandatory addition of vitamin A 30,000 in oil and Ghee, while vitamin D is in being discussed. Standards for wheat flour fortification recommend NaFeEDTA at 10ppm. He described the need to improve the milling techniques to address the loss of 40% of wheat s vitamins during the milling process. Future action proposed regarding food fortification standards in Pakistan include: Updating Pakistani standards so that the addition of Vitamin D value in edible oils is mandatory; Monitoring/market surveillance of Oil (Vitamin A&D) and Wheat Flour (for iron) in collaboration with GAIN and provincial health regulators; Facilitating adoption of Pakistan standards Increasing industry and consumer awareness through effective media campaigns. 24

25 Food Fortification standards and certification process in Afghanistan Dr. Homayoun Ludin (Director, Public Nutrition Department, Afghanistan) replacing Wakil Rahim, Head of Codification of Food Items & Agriculture Products, Afghanistan National Standard Authority (ANSA Dr. Ludin shared the current status of the standards established by the ANSA for wheat and edible oil fortification and described the standards of Iron s intrinsic & extrinsic values in wheat. He described NaFeEDTA as a cost effective methodology. He called for more stakeholder involvement at country level create an enabling environment for production, import and export of flour, including legislation and tax exemptions. He recommended establishing country working groups, identifying country stakeholders, and establishment of a revolving fund for premixes. Mutual recognition agreements on internal regulatory monitoring Dr. Mohammad Zakir Nassimi, Food Safety Director, Ministry of Public Health After describing the principles guiding the addition of specific nutrients to foods (evidence-based need, official and/or mandatory decision, specific characteristics of the food vehicle and its consumption patterns, cost-effectiveness), Dr. Nassimi defined a number of concepts and measures used for the protection of public health, consumers and fair trade such as level of protection or acceptable level of risk, audit, certification, legislation, inspection, accreditation, risk assessment and risk analysis. Mutually agreed requirements for trade between two countries or parties may consist of standards, provision for sampling, process controls, conditions of production, transport, storage, or a combination of these. He summarized the characteristics as: Consistency of requirements of imported and domestic foods; Clear definition of responsibilities of competent authorities; Clear definition of legislation and operating procedures; Giving precedence to the protection of consumers; Clear definition of the food control systems applied in the exporting country; Clear framework for import and export inspection and certification; Recognition of equivalence of inspection and/or certification and facilitation by government of fair trade taking into consideration appropriate level of consumer protection. In the design and operation of food import control systems, Dr. Zakir indicated that precedence should be given to protecting the health of consumers and not to economic or other trade considerations. Control of imported food by the importing country can be conducted at one or more points, including point of origin as agreed upon with the exporting country, for example at processing, transport and distribution, storage; and sale, (retail or wholesale). The importing country can recognize controls implemented by the exporting country. Pre-shipment clearance is a possible mechanism for ensuring compliance with requirements. 25

26 Update from the national expert group on harmonization of fortification Standards in the Region Dr. Baseer Khan Achakzai, Director Nutrition, Ministry of Health Services, and Secretary National Fortification Alliance, Pakistan Dr. Baseer Khan Achakzai said that Pakistan and Afghanistan are very close neighbors and we must realize the Torkham is not the only trade route between the two countries. We have several routes along the Chaman, Zhob and Killa Saifullah in the Province of Baluchistan as well. He recalled a meeting in Almaty with Dr. Humayun Ludin and other important officials from Pakistan, Kazakhstan and Afghanistan where there was assent that CAR region countries look towards Pakistan as a major trade contributor. Pakistan has a responsibility to provide an enabling environment to the industry for fortification. Plans were also being made to fortify rice, pulses and other food commodities. The Government of Pakistan is committed to food fortification, and to move forward, we need to work together to create an ideal and uniform environment for food fortification. Address of the Chair: Role and progress of PCSIR on food fortification Dr. Shahzad Alam, Chairman, Pakistan Council for Scientific and Industrial Research, Pakistan Dr. Alam said that PCSIR has 16 laboratory complexes in Karachi, Lahore, Peshawar, Quetta and other cities. Testing procedures are important in enhancing trade with Afghanistan, and laboratories in Lahore, Peshawar and Quetta could be engaged in quality control and quality assurance test of food. PCSIR could even establish labs on Pakistan-Afghan borders and even in Afghanistan. He rendered full commitment for the food fortification project and re-asserted that we need to strengthen our trade with Afghanistan. He announced that PCSIR were about to complete the assignment of producing the premix as well as micro-feeders locally which will substantially reduce the cost of fortification. He committed that by the next meeting, PCSIR will be able to share the prices of local premix and micro-feeders. 26

27 The mid- morning session of day 2 was chaired by Mr. Habibullah Assad from Afghanistan Ministry of Commerce and Industry and Madam Roubina Taufiq Shah Director General Trade Dispute Resolution Organization, Ministry of Commerce, Government of Pakistan, and co-chaired by Mr. Naeem Butt, Chairman, Pakistan Flour Mills Association (PFMA), and Mr. Asim Raza, PFMA, Chairman, Flour Fortification Committee Session 4 Trades of Wheat Flour and Edible Oil/Ghee between Pakistan and Afghanistan: Practices, rules and regulations Chair: Chair: Co-chairs: Habibullah Assad, Afghanistan Focal point for WTO, and Trade Policy Advisor at Ministry of Commerce and Industry Madam Roubina Taufiq Shah Director General Trade Dispute Resolution Organization, Ministry of Commerce, Government of Pakistan Naeem Butt, Chairman, Pakistan Flour Mills Association (PFMA) and Asim Raza, PFMA, Chairman, Flour Fortification Committee Trade policies, procedures and formalities for exporting wheat flour and edible oil/ghee to Afghanistan Mr. Mohammad Sulaiman, Consultant on Customs and International Trade, Sulaiman Associates - Pakistan Mr. Mohammad Sulaiman presented data on exports of wheat flour and edible oils to Afghanistan in tonnage and dollar value derived from Altai Consulting and Synergy Advisory & Solutions Analysis, and from Trade Map. 28 flour mills accounted for 77% of total exports to Afghanistan (0.6 million MT), the remaining 23% was produced in small quantities by many other mills. Most exporting flour mills are located in Punjab and KPK provinces. Subsequently, Mr. Sulaiman explained the basic requirements for the export of food materials to other countries, including Afghanistan. Exporting companies should be registered with sales tax and income tax; should have a national Tax Number (NTN); and should be registered with the Chamber of Commerce. Documents required for exports from Pakistan at export sites include: Goods Declaration Form GD I Commercial Invoice Certificate of Origin Packing List Form E Export General Manifest (EGM) Escort Letter Weight Slip Bilty As wheat flour fortification is not mandatory in Afghanistan or Pakistan, he said there is no control over wheat flour fortification by Afghan/Pakistan customs. With regard to oil and ghee, Mr. Sulaiman indicated that 12 oil factories account for 81% of total exports to Afghanistan (154,000 MT, 90% of it in the form of vegetable ghee) based on 2014 customs data. Although export quotas exist and limit edible oil exports to Afghanistan to 4,000 MT maximum per refinery on a yearly basis, they are in practice not implemented and it seems that refineries export way above these quotas, 27

28 notably because a significant share of edible oil production is unregistered and part of it is exported to Afghanistan. Mr. Sulaiman made the following recommendations to traders and exporters: Web Based One Customs (Weboc) systems should be made operational on both border custom Stations Torkham and Chaman for export and import; Bilateral trade statistics of both customs should be checked and updated to get correct figures in dollars; Testing facilities for premixes should be developed in both customs stations at Torkham and Chaman, preferably in Pakistan as well as Afghanistan. Trade policies, procedures and regulations for import of wheat flour and Edible oil/ghee in Afghanistan Dr. Massoud, Adviser for ACCI, Afghanistan Chamber of Commerce and Industries (ACCI) - Afghanistan Dr. Massoud presented an analysis of the trade between the two countries with the top problem being smuggling or unofficial trade which is equivalent in dollar value to the official trade, causing losses of billion dollars to government budgets. He attributed evasion of duty taxes to direct government domestic economic and trade policies. While decreasing custom tariffs from Afghanistan had encouraged smuggling of consumer goods from Afghanistan to Pakistan for decades, Pakistan reversed its policy during the last decade encouraging smuggling and duty tax evasion. The advisor of the Afghan Chamber of Commerce identified major areas of smuggling between the two countries - food products, including wheat flour and edible oil, pharmaceutical materials, and lubricants. Smuggling of the first three products bear potential health hazards and financial threats because they are not subject to any health, sanitary and quality inspection. Revision of Food Fortification Standards in Pakistan Dr. Khawaja Masood, National coordinator, National Fortification Alliance, Pakistan Dr. Masood updated the participants about the regional harmonization of standards meeting held in Kazakhstan. Following that meeting, processes have been initiated in Pakistan concerning the revision of fortification standards based upon WHO guidelines and requirements in the region keeping in mind the level of micronutrient deficiencies in Pakistan. As Dr. Lodi had mentioned, earlier, we do not have the necessary fortification for Vitamin D and will be working with PSQCA and PCSIR for this soon. Thirdly, we have also initiated formulation of National Fortification Strategy for Pakistan in consultation with the partners as well as the provinces and very soon we will be incorporating all the suggestion. 28

29 Trade Dispute Resolution Organization Mrs. Roubina Taufiq Shah Director General Trade Dispute Resolution Organization, Ministry of Commerce, Government of Pakistan Mrs. Shah, Director General of the Trade Dispute Resolution Organization explained that TDRO has administrative & adjudicating powers to take swift actions for resolution of international trade disputes. Among its objectives, TDRO aims to Bridge the trust deficit between local and foreign businessmen; Act as bridge between bodies responsible for standards and quality; Improve quality standards; Ensure foreign importers are not cheated by Pakistani exporters; Prepare database of exporters with confirmed cases of disputes; Provide assistance to Pakistani exporters defrauded in international trade; Educate and train exporters / importers to avoid disputes. Traders Panel: The Voice of Traders from Pakistan and Afghanistan Moderator: Panel Members: Discussion Mr. Daroo Khan, President Pak Afghan Joint Chamber of Commerce Haji Agha, Afghanistan Trader/Importer Chair of south side of the country Dawood Khan, Jamel s Traders, Peshawar Muhammad Taraq, Haq Bahoo Flour Mills, Peshawar Rasool Khan, s/o Qacim from Kadir Mandi, Jalalabad Khair Mohamed Rahmuden, trader, flour importer and Chair,Traders Committee Abdul Bari, Trader Baluchistan Ahmadi Mohammad Asif, Chairman Afghanistan Flour Traders Association (AFTA) At the end of the working group sessions, presenters from each working group shared their conclusions and proposed next steps. Panel Remarks, Mr. Naeem Butt, Chairman, All Pakistan Flour Mills Association (PFMA), Pakistan Mr. Butt said that Pakistani and Afghan traders have decided to work together and move further with fortification. They have formed a committee to identify solutions for problems faced by traders on both sides in order to better focus on fortification. If the committee faces any problems, then the Pak-Afghan Joint Chamber of Commerce will be involved in identifying a solution. Coordination and cooperation between traders and industry is vital for this project. The government of Pakistan has announced 120 US Dollars rebate on the export of wheat flour to Afghanistan and through this step, Pakistan will again capture the Afghan market. They agree that any flour exported to the Afghanistan will be fortified and the formula of premix and amount of micronutrients in the flour will be printed upon the bags along with the label. 29

30 He announced the names of the members of committee which are as follows: From Pakistan Asim Raza Chairman Naeem Butt Vice Chairman Badruddin Khan [Baluchistan] Iftikhar Mutto [Punjab] Mian Riaz From Afghanistan Alhaj Khair Muhammad Rehmuddin Chairman Engineer Ahmadi Muhammad Asif Vide Chairman Daud Musa Dr. Masud Mr. Butt thanked USAID and GAIN for arranging this conference where so much useful information was shared and important decisions made. He requested GAIN organize a similar meeting in to further strengthen the fortification procedure and build confidence and coordination between the two countries. Panel Remarks, Mr. Haji Khair Muhammad Rehmuddin, Afghanistan Mr. Rehmuddin stressed the important of a joint visit of Afghani traders to Pakistani flour mills to view the standard of wheat and its fortification. He also requested GAIN Pakistan and GAIN Afghanistan start behavior change campaigns in both countries to make people aware of the benefits of fortified wheat flour. He advised traders and government officials from both countries to work together and recommended formation of quality control labs on the trading borders for harmonization of standards. He advised Pakistani millers and traders to pay attention to competition that Kazakhstan has created in Afghanistan. He requested GAIN to work closely with the committee that has been formed and provide support for them wherever required. 30

31 CERTIFICATION DISTRIBUTION AND GROUP PHOTO 31

32 ABOUT THE ORGANIZERS Dr. Mohamed Mansour, Nutrition Consultant Acting Food Fortification Manager, Pakistan Regional Food Fortification Project technically designed the meeting, met with all Pakistani participants prior to the meeting and discussed their roles and contributions and provided technical guidance and leadership to the GAIN Pakistan organizing team. Organizers from GAIN The Pakistan organizing team consists of Sofiya Khan, Administration Manager, Program Associates Fuad Hamid, Mohammed Qavi Khan, Uzma Litaf, conference setup specialist, Kishwer Durrani, and financial assistant, Ali Mohiuddin. Afghanistan team was composed of country director, Dr. Mohibullah Wahdati, and large scale food fortification manager, Sayed Jamaluddin Sediqi. Dora Panagides, Senior Manager, Large Scale Food Fortification, provided assistance and leadership to both Afghanistan and Pakistan teams. Sahra Mohamed and Caroline Manus from GAIN s London office provided efficient support and backstopping on technical, logistic and planning level. (From left to right) Fuad Hamid, Muhammad Qavi Khan, Dr. Wahdati, Sofiya Khan, Dora Panagides, Uzma Litaf and Kishwar Durrani 32