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December 2024
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Agricultural trade comes to a halt at Pakistan’s ports after FIA arrests nine DPP inspectors over rice exports to the EU 

The issue arose when the Prime Minister gave orders for the arrest of the DPP officials over alleged mismanagement of Basmati exports to the European Union. 

By Ghulam Abbas

ISLAMABAD: In a dramatic development, the Federal Investigation Agency (FIA) raided the Department of Plant Protection (DPP) headquarters in Karachi, arresting nine inspectors and effectively halting agricultural export and import activities at Pakistan’s ports. 

The raid and arrests are linked to an ongoing investigation into the interception of Pakistani rice shipments at European Union (EU) ports due to contamination concerns. A few months ago, a number of Pakistani vessels carrying rice had been stopped reportedly because of food safety risks, including pesticide residues (MRLs), mycotoxins (aflatoxins), mineral oils (MOAH, MOSH), genetically modified organisms (GMOs), and other toxic contaminants.

The effects are already being seen. Following the raids, DPP inspectors and entomologists are reportedly reluctant to inspect and clear shipments at the port. This has caused delays in rice exports, with one ship destined for Indonesia currently awaiting clearance. It is a typical case of over-the-top action resulting in a scared bureaucracy refusing to work. 

The apprehension among DPP employees stems from fears of facing similar legal actions, as the consignment approval procedures remain unchanged from those previously practiced.

Adding to the tension, authorities are allegedly pressuring DPP inspectors to issue phytosanitary certificates based on third-party reports from SGS, without conducting mandatory sampling or tests for Maximum Residue Levels (MRL), Aflatoxin, Genetically Modified Organisms (GMO), or Mineral Oil. Experts assert that the involvement of third-party agencies like SGS in this process is not permitted under existing regulations.

When contacted, an official source within the DPP confirmed that inspectors had been directed to clear consignments at the port on Monday morning. However, the official acknowledged the employees’ concerns, stating that the prescribed procedures to prevent interceptions were still not being fully adhered to.

Pakistan’s rice exports 

The arrests come at a disastrous time for Pakistan’s rice exports. In the financial year 2023-24, Pakistan saw a boom in its rice trade because India, otherwise the world’s largest producer and exporter of rice, had placed a ban on exporting its rice to control prices domestically. Pakistan had filled in some of this void because of the high quality of rice produced in the sub-continent. 

Overall, the European market has proven a rich area for Pakistani rice, and the Indian exporters have failed to capture it in the same way. In 2019/20 Pakistan’s exports to the EU grew to over 250,000 metric tonnes while those from India fell to under 120,000 metric tonnes. During the last two decades, Basmati rice imports into  Europe increased significantly, were valued at $ 551.8 million in  2020, and are projected to reach   $ 866.5  million in  2031.  In 2021  imports of rice from  Pakistan valued at 329 million euros in comparison to 166 million euros from  India according to the European Commission.

However, it should be noted that this success of the Pakistani imports over those from India was mainly due to pesticide residues in  Indian  Basmati and in particular to a decision by the  EU commission to decrease the maximum residue level  (MRL) for the fungicide tricyclazole from  1  to  0.01  mg/kg starting January 1st, 2018. Instantly the imports from  India decreased significantly and Pakistani imports took over. The trend has continued in the past couple of years, but Pakistan’s rise might be a very temporary one.

Now, Pakistan is facing similar problems as India in terms of contamination complaints from the EU. 

Back in October, Prime Minister Shehbaz Sharif had formed a committee to investigate the rising number of rice consignment interceptions in the European Union (EU). The primary task of the committee is to investigate the reasons behind the non-compliance with food safety standards that have led to rice interceptions in EU countries. The main force being investigated by this committee was the DPP, which has failed to enforce these standards, which has negatively impacted Pakistan’s external trade. The stated aim was to identify responsible officers within the DPP who issued inaccurate phytosanitary certificates and investigate claims that DPP employees created monopolies by selectively licensing fumigation services for personal gain.

The inquiry committee, led by retired bureaucrat Shahid Ali Khan, was formed to investigate the interceptions. However, critics note that the committee lacked experts in sanitary and phytosanitary (SPS) measures. While food safety does not fall under the DPP’s mandate—which primarily handles biosecurity—the committee alleged that 46 of the 72 interceptions were linked to phytosanitary certificates issued by DPP officers without proper documentation.

How the arrests played out

Sources reveal that prior to the raid on the DPP office, FIA Karachi also raided the official residence of the DPP Director General, Dr. Muhammad Tariq Khan. Allegedly conducted without a search warrant or registered case, the raid involved FIA personnel, including two female sub-inspectors, and occurred late Thursday night. The team, led by Malik Junaid Hassan, Inspector of the FIA Corporate Crime Circle, reportedly harassed Dr. Khan’s family while conducting a search of the premises.

The FIA’s actions stem from a directive issued by Prime Minister Shehbaz Sharif during a high-level meeting on Thursday evening. The directive followed a report by the Economic Minister at Pakistan’s Embassy in Brussels, Omar Hameed, highlighting 72 interceptions of Pakistani rice shipments at EU ports. The Prime Minister ordered arrests of those responsible for issuing phytosanitary certificates without proper verification of food safety risks.

The FIA’s case centers on procedural lapses by DPP officers. According to the FIR registered by the FIA’s Anti-Corruption Circle in Karachi (FIR 40/2024), officials bypassed required procedures, such as field inspections, lab tests, and compliance verification, when issuing phytosanitary certificates.

The accused officials include Fakhar-u-Zaman, Muhammad Waleed Mukhtar, Shahzad Salman, and  Shehzad Salman who were previously implicated in FIA FIR 4/2024 dated 23-02-2024 along with Dr. Muhammad Qasim Khan Kakar, Director Admin in DPP (who is on deputation from Balochistan Agriculture Research Institute, Quetta) related to clearance of highly infested food consignment.

Critics within the Ministry of National Food Security and Research (MNFSR) point out that food safety inspections and certifications are not part of the DPP’s mandate. Instead, these responsibilities fall under the Ministry of National Health Services Regulations and Coordination. Furthermore, Pakistan lacks federal legislation governing food safety, as the subject has been devolved to provinces following the 18th Constitutional Amendment.

Serious Implications and Concerns

The raids and arrests have sparked concerns about their potential fallout on Pakistan’s international trade reputation. Industry insiders fear the EU could impose a blanket ban on Pakistani rice exports, similar to the ban on PIA flights following controversies over pilot credentials.

Notably, 26 of the 72 intercepted rice shipments had all required documentation, yet they were still flagged at EU ports. This indicates that issues extend beyond procedural lapses at the DPP. On the other hand, some shipments issued certificates without proper documentation were not intercepted, further complicating the narrative.

Experts argue that such interceptions are common in international trade, even for countries with robust food safety systems like India, China, and the USA. They question the FIA’s approach, emphasizing that the DPP’s role is limited to biosecurity measures and not food safety compliance.

Section 8 of the Pakistan Plant Quarantine Act 1976 provides indemnity to DPP officers for actions performed in good faith. Legal experts suggest that unless malafide intent or bribery is proven, disciplinary action—not criminal proceedings—should be pursued.

Critics also highlight the lack of legal grounds for charges like forgery and fraud in the absence of complaints from rice exporters. The Rice Exporters Association of Pakistan (REAP) has denied any allegations of misconduct by DPP officers, further undermining the FIA’s case.

Arrests and Future Actions

The FIA has arrested nine DPP entomologists, including Muhammad Mujeeb, Mansoor Karim, Sohail Ahmed, Fakhar u Zaman, Shahzad Salman, Muhammad Waleed Mukhtar, Muhammad Shahzaib, Akbar Sajjad and Muhammad Usman by conducting raids at Karachi, Mirpurkhas, Multan, Sargodha, Bhalwal and Balochistan.

Whereas the officials —including Fakhar-u-Zaman, Muhammad Waleed Mukhtar, Shahzad Salman, Muhammad Shahzaib, Shabi ul Hasnain, Abdul Rehman, Faisal Manzoor, Akbar Sajjad, Sail ul Islam, Sohail Ahmed, Umer Musaab, Muhammad Mujeeb, Amanullah, Azeem Javed, Mansoor Karim, Muhammad Usman, and Tetheer Zahra, culpable for bypassing necessary documentation along with DPPQ-Form-27 (Application for phytosanitary certification), biosecurity inspection, compliance procedure (field inspection during the growing season, regular inspections of facilities and premises, laboratory testing, verification of treatment, visual inspection of the product, verification of survey results or distribution of pests, etc., or any combination thereof), leading to interception were nominated in FIR.

Insiders fear that these actions could compromise the integrity of Pakistan’s biosecurity system and its standing in the international community. Calls are growing for a balanced approach that addresses procedural lapses while safeguarding the country’s trade interests.

What Triggered FIA’s Action?

Sources within the Ministry of National Food Security and Research (MNFSR) revealed that the committee ignored critical explanations from the Department of Plant Protection (DPP). The DPP clarified that its mandate is limited to phytosanitary measures and does not cover food safety inspections, compliance procedures, or certifications, which fall under the jurisdiction of provincial food safety authorities and the Federal Health Ministry. Responsibilities for managing Maximum Residue Limits (MRL) at the farm level rest with provincial agriculture departments, while exporters are accountable for controlling aflatoxin levels during storage, processing, packaging, and transportation.

The DPP emphasized that it is tasked with inspecting and certifying importable and exportable agricultural commodities solely for plant health and phytosanitary compliance—not food safety measures. Despite this, the committee overlooked the fact that the Ministry of Commerce, under the leadership of Suleh Farooqui and Shakeel Ahmed Mangnejo, and the MNFSR, led by Zafar Hassan, had previously decided to limit the DPP’s role to visual inspections and issuing phytosanitary certificates. Exporters were made responsible for compliance with MRLs, aflatoxins, and heavy metals.

Additionally, the DPP highlighted that of the 72 EU interceptions, only one, involving a red flour beetle found at a Dutch port, fell under its jurisdiction. Exporters were responsible for the remaining interceptions, but the committee dismissed this crucial distinction.

Prime Minister’s Premature Actions

According to insiders, Secretary MNFSR Ali Tahir reportedly failed to convince the Prime Minister that food safety compliance does not fall within the DPP’s mandate and that the department lacks sufficient personnel to perform even phytosanitary certifications adequately. Despite the absence of evidence for malfeasance or bribery, the Prime Minister ordered the arrest of DPP officials, citing alleged criminal misconduct. This decision led to the premature termination of short-term contract employees, leaving the DPP understaffed and hampering its operations. 

The Role of REAP in the Enquiry

REAP’s role in the committee’s proceedings has also drawn criticism. The association failed to effectively advocate for the DPP, particularly in highlighting that its officers were merely issuing certificates based on policies set by the MNFSR and Ministry of Commerce. REAP’s new chairman attributed the interceptions to poor institutional frameworks within the DPP but failed to emphasize the record-high rice exports of $4 billion in 2024, achieved despite these systemic challenges.

Broader Implications of the FIA Case

The FIA’s actions have sparked widespread controversy, drawing criticism from the Rice Exporters Association of Pakistan (REAP) and other stakeholders. Exporters argue that the coercive measures have created an atmosphere of fear among DPP officials, many of whom are now unwilling to inspect and certify shipments destined for high-end markets like the EU. This has resulted in delays, potential rejections, and stranded consignments at ports.

The EU may respond to these developments by imposing stricter biosecurity conditions or even banning imports from Pakistan, which could set a precedent for other importing countries. These measures might include pre-clearance inspections within Pakistan by foreign experts, significantly raising costs and making exports unfeasible.

The situation has escalated as remaining DPP officials have either gone on leave or resigned, leaving the department incapacitated. As of Friday and Saturday, no inspections or certifications were conducted, leading to port congestion and shipment delays. Some officials are even suggesting that the government hand over the DPP’s operations to the FIA to prevent further disruptions.

Latest Developments

Late Friday, the MNFSR suspended DPP Director General Muhammad Tariq Khan for administrative failures and appointed junior technical director Shahid Abdullah in his place. Abdullah’s close ties to the MNFSR high ups have raised concerns about favoritism, as senior officers with years of experience remain sidelined.

Insiders revealed that the heads of DPP had repeatedly proposed implementing effective sampling and testing programs to verify food safety risks before issuing phytosanitary certificates. However, successive MNFSR secretaries and ministers, under pressure from REAP and political influences, prevented these programs from materializing. Instead, the DPP was forced by various ministries, REAP and political figures to rely on exporters’ self-implemented compliance measures.

Structural Weaknesses in the DPP

Since its inception in 1947, the DPP has faced chronic neglect. As Pakistan’s designated National Plant Protection Organization under the International Plant Protection Convention (IPPC), the DPP plays a critical role in regulating agricultural trade. Yet, successive governments have routinely appointed non-technical officials to key positions, ignoring the need for expertise in entomology, plant pathology, and regulatory experience.

Temporary and politically influenced appointments have hindered the department’s capacity to enforce proper biosecurity protocols, jeopardizing Pakistan’s export potential. While the committee found no evidence of bribery, the arrests of DPP officials appear to reflect political pressures rather than substantive wrongdoing.

The controversy underscores the urgent need for structural reforms in the DPP and broader export compliance frameworks. Addressing systemic weaknesses, including chronic understaffing, lack of accountability, and political interference, is essential to restoring confidence in Pakistan’s agricultural export procedures.

https://profit.pakistantoday.com.pk/2024/12/09/agricultural-trade-comes-to-a-halt-at-pakistans-ports-after-fia-arrests-nine-dpp-inspectors-over-rice-exports-to-the-eu/ QR Code

Published Date: December 9, 2024

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