February 4, 2002	Monday	Ziqa’ad 20, 1422

CONTRACTORS and builders have geared up their efforts to take a major share in the construction and rehabilitation works in the war-torn Afghanistan before any neighbouring country grabs this lucrative opportunity.

They have estimated that Pakistan’s capacity for participation in the reconstruction effort may range between $400 to $500 million.

The government has started a series of marathon meeting with the contractors and the builders to seek Pakistan’s possible role in Afghanistan’s reconstruction. An ‘Afghanistan restructuring cell’ has been planned to be set up by the ministry of housing and works.

Pakistan can provide services and materials on competitive rates for the construction of low cost houses, schools, hospitals, infrastructure like water supply, sanitation, roads etc. At a time when the construction activities have been at a low ebb since May 1998’s nuclear test followed by the government policies and suspension of lending facility by the House Building Finance Corporation, contractors and builders have now diverted their attention to cash their luck in Afghanistan before any other country takes the major share.

Representatives of the All Pakistan Contractors Association (APCA) and the Association of Builders and Developers (ABAD) have recently informed the government that some Pakistani firms and entrepreneurs are also trying to establish their contacts on personal basis and they need government’s help in the identification of schemes and projects by the Afghans.

Besides these developments, Chairman ABAD Hafeez Butt says that some Turkish construction firms have already become active to participate in Afghanistan’s reconstruction but they need assistance and help of Pakistani contractors and builders. A delegation of Turkish contractors is arriving this month and a memorandum of understanding (MoU) will be signed between the Turkish contractors and the All Pakistan Contractors Association on February 18. The ABAD chief maintains that it now has become imperative to quickly reactivate Pakistan’s Embassy in Kabul and the Consulate in Jalalabad. The APCA has offered to place two to four staff members in the Pakistan Embassy in Kabul at their expense.

Both ABAD and the APCA are sharing the view to immediately set up export warehouses near Peshawar and Chaman to facilitate those engaged in the reconstruction and the rehabilitation activities in Afghanistan for purchasing necessary goods, particularly the building material from Pakistan at competitive rates.

The conditions and procedure for obtaining bank guarantees and bonds by the Pakistani contractors and builders need to be simplified. Taxes and duties on the materials and items for export to Afghanistan may be rationalized or reduced.

The road and rail link up to Afghan border at Torkham and Chaman is required to be improved. The road network within Afghanistan also needs rehabilitation to facilitate the trade.

Both the organizations feel that the Pakistan Embassy may arrange visit of its businessmen, consultants, constructors and builders to Afghanistan to explore the possibilities of participation.. Duty-paid construction machinery may be allowed to be taken to and brought back from Afghanistan without the levy of additional taxes.

The Islamabad Chamber of Commerce and Industry (ICCI) has suggested to the government to appoint a standing coordination committee comprising representatives from the CBR, contractors, manufacturers of construction material and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to resolve any problems faced by the private sector.

Meanwhile, Pakistani cement has already found its way into Afghanistan as one of the leading producers is sending 250 tons daily while other manufacturers may follow the suit.

Private sector is destined to play an effective role in rebuilding Afghanistan. It is identifying a list of exportable items, besides seeking simplification of procedures and opening of new routes for trade with Afghanistan. The Karachi Chamber of Commerce and Industry (KCCI) has planned to send a delegation to Afghanistan shortly to assess the requirement of food and the consumer goods.

Gas companies have also now focussed their attention towards Afghanistan and the government has sought details from the Sui Southern and Northern gas companies as to what roles they can play in the gas infrastructure and rehabilitation programme in Afghanistan. These companies are ready to involve in exporting their technical expertise with transmission and distribution systems.

The oil marketing companies (OMCs) are looking for future orders from Afghanistan to meet the rising demand of the POL products, while the petroleum exploration companies will try to win major contracts.

The FPCCI has already asked the government to be vigilent before other countries carve out a big share in the billion-dollar infrastructure developments.