February 7, 2003	Friday	Zul Hijjah 5,1423

ISLAMABAD, Feb 6: The government is considering to allow overseas Pakistanis to import duty free machinery to set up their industries in the country.

Official sources told Dawn here on Thursday that the Board of Investment (BoI) is working out details to allow duty free machinery to overseas Pakistanis specially those now returning from the United States.

Initially, it is being proposed to allow duty-free machinery for five years. However, the World Bank and the IMF were not likely to endorse the idea as it will scuttle the efforts of the Central Board of Revenue (CBR) to collect required revenues.

The sources said, the ministry of finance has been urged to support BoI in offering what was termed a “good move” to attract overseas Pakistanis to invest in Pakistan.

The government, the sources said, has directed the presidents and chief executives of the commercial banks to offer 80 per cent financing for the projects to be set up by the overseas Pakistanis. “Overseas Pakistanis including those now returning from the United States would be asked to invest their 20 per cent equity while the remaining 80 per cent financing will be extended by the banks on reduced mark-up,” an official said.

Some of the representatives of overseas Pakistanis, who have recently established contacts with the government for the import of duty free machinery, have been asked to ensure transfer of technology for the machinery they wanted to import.

The BoI, the sources said, was also proposing to use 10 per cent sale proceeds of the privatization for developing new infrastructure facilities in Pakistan. Currently, 90 per cent sale proceeds of the privatization are being used for debt retirement and the remaining 10 per cent for poverty alleviation. “And now we are proposing that 80 per cent sale proceeds be used for debt retirement and the remaining 20 per cent (10 percent each) be used for poverty alleviation and developing infrastructure facilities,” a source said.

When contacted he said that a number of new proposals concerning overseas Pakistanis were currently being finalized to be incorporated in th new budget after the approval of the higher authorities.

Responding to a question he said that decision has been taken to develop two “model industrial estate” in each province. In this behalf the Chairman BoI, Waseem Haqquie met Chief Minister Punjab Chaudhry Pervez Illahi on Tuesday and discussed with him the setting up of two model industrial estates in the province. The CM agreed and assured all possible support to the BoI chief in attracting local and foreign investment in the country. These two model industrial estates were being established on the directive of President Gen Pervez Musharraf.

At present there are 77 main industrial estates, comprising 25 big and 52 small estates, besides 6 special industrial zones.

the sources said it has also been decided to invest in the “image building” for which bigger industrial houses and multinationals will be asked to contribute financially to remove various wrong perceptions about Pakistanis.

For this image building, the success stories of 300 bigger companies will be highlighted both in the local and foreign media. “And for this purpose funding will be provided by the government, multinationals and state sector units including PIA, PSO, OGDC, EPB, Steel Mills and PTCL,” another source said. He said that different kinds of programmes will also be shown on BBC and CNN and other international media to project better image of Pakistan.