ISLAMABAD, April 5: The Economic Coordination Committee of the cabinet here on Monday accorded the status of Export Processing Zone to an existing Industrial Estate-III at Gujranwala and to the Duddar Lead Linz Project in Lasbela district of Balochistan.
The decision, a meeting presided over by Finance Minister Shaukat Aziz observed, would encourage small and medium enterprises, especially in engineering, ceramics, textile and powerlooms and help generate employment opportunities in these areas.
The ECC, to ensure early establishment of the EPZ at Gujranwala, approved a mechanism whereby all plots at the EPZ would have to be converted into productive industries within three years.
The parties failing to meet this deadline would have to pay a non-utilization penalty fee and, in case of their failure to establish industries within a given period, the plots would be cancelled.
As regards the Duddar project, with an area of 1,500 acres, the objective is to exploit the mineral potential of the area for 10 years. It would be operated by Chinese investors MCC Resources Co, Beijing.
The ECC noted with satisfaction the interest expressed by private companies in the construction of Rajdhani, Gulpur and Kohala Hydro power projects. The private sector companies would be encouraged under the new power policy to undertake feasibility studies and construct hydel power facilities at these stations.
In the event of the private sector showing lack of interest, the government would invoke Wapda's intervention, it was decided.
LIVESTOCK: The finance minister directed the ministry of food and agriculture to give an update on export of livestock situation in the next ECC meeting. He expressed his desire that Minfal should brief the meeting about steps being taken to check formal and informal exports of livestock and their relationship with meat prices.
CEMENT: The minister for industries informed the meeting that the cement industry had achieved around 100 per cent production capacity. Similarly, the prices of re-rolled steel had decreased by Rs15,000 to Rs16,000 per ton due to reduction of duty from 25 to 10 per cent.
This in turn has increased construction activity in the country. As a result, the daily wages of workers related to the construction industry in 17 urban centres of the country have registered an increase between 6.5 per cent and 9.5pc, thus indicating an increased demand of labour and employment in the country.
The meeting noted with satisfaction the availability of sufficient stocks of wheat, sugar, fertilizer, oil and other essential commodities. It also noted that prices of essential commodities remained stable and overall inflation (CPI) for the period July-February was 3.5pc, which was similar to last year's increase for the same period.
To evolve a uniform and reliable mechanism of measuring poverty in the country, the ECC decided to assign this task to the Centre for Research on Poverty Reduction and Income Distribution in the Planning Commission.
The Federal Bureau of Statistics, which has remained without its director general for the past 16 months, was directed to coordinate publication of poverty, unemployment and investment data to provide timely and up-to-date data.
The meeting approved, in principle, proposals for swapping of existing expensive loans with local soft loans by the Civil Aviation Authority. The facility would create fiscal space for CAA to divert funds for development of airports, the meeting thought.
The ECC took note of investment abroad by three Pakistani companies totalling $6.7 million, as approved by the State Bank of Pakistan.
SUGAR: While reviewing the sugar situation, the ECC noted that during the current financial year, the sugar production was expected to be around 3.8 million tons.
To ensure payment to growers, inject liquidity in the sugar industry and stabilize prices, the ECC directed the TCP to procure 200,000 tons provided the PSMA made the commitment in writing to ensure: payment to growers not later than May 15; to start the next crushing season not later on November 1, 2004 and; all the stakeholders, including Abadgar associations, the Pakistan Sugar Mills Association and provincial governments through mutual arrangement ensure that these conditions are enforced.
The ministry of industries will coordinate these deliberations so that an equitable solution can be reached, it was decided. The ministers for industries, petroleum, water and power, education, information technology, the State Bank governor, the deputy chairman of the Planning Commission, the BoI chairman and federal secretaries of the divisions concerned attended the meeting.
