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April 2, 2002
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Tuesday
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Muharram 18,1423
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EPB seeks $50m for guarantees: Afghan reconstruction
By Our Staff Reporter
KARACHI, April 1: The Export Promotion Bureau (EPB) is seeking $50 million fund from the government for arranging guarantees and collaterals for the construction companies aspiring to participate in Afghanistan’s reconstruction work jobs.
This was stated by Minister for State and Chairman EPB Tariq Ikram at a dinner given by FPCCI vice-president Haroon Rashid here on Saturday.
Tariq Ikram said for facilitating and guiding trade and industry with regard to emerging situation and opportunities in Afghanistan, the two committees set up by the EPB have started to function.
He said a separate committee for construction industry set up at Lahore was a necessity because the government wants to see a major breakthrough in this sector’s overseas performance and participation. The other committee operating from Islamabad, he said, would be dealing with all materials, including food items like rice, wheat, textiles, and pharmaceuticals.
Responding to a question, Tariq said Pakistani construction companies are fully capable of handing international work jobs of a medium size which are restricted to a volume of $50 to $70 million. But construction companies, he said are constrained with funds and are not in a position to meet bank guarantees required for participating in international tenders.
Consequently, the committee set up by the EPB, he said has recommended that a fund of up to $70m be arranged by the government to meet the bank and other guarantees needed by a company for getting a construction job.
He said it is not possible for any construction company to give cash as a collateral against bid bond, performance bond, advance mobilization guarantee normally required after winning a contract.
Nevertheless, he said it is encouraging to see that after Iraqi experience where our construction companies did participate in tenders on individual basis have now started to form consortium.
During last nine months, he said exports to Afghanistan stood at $55m and the government has taken quick measures to promote trade with the neighbouring country by removing negative list and now all category of goods could be exported.
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