Rs5 billion needed every year: Industrial infrastructure
KARACHI, July 15: Commerce Minister Humayun Akhtar Khan said on Thursday he has suggested to the government to allocate Rs4 to Rs5 billion in the federal budget every year for rehabilitation of infrastructure in the existing industrial estates.
He was responding to various proposals and demands of the Sindh government for incorporating in the Trade Policy for 2004-05. Sindh Chief Minister Dr Arbab Ghulam Rahim, State Minister and Chairman Export Promotion Bureau (EPB) Tariq Ikram, cabinet members, Sindh Chief Secretary, Federal Commerce Secretary Tasneem Noorani and high officials of Sindh and federal governments were present on the occasion.
Sindh Governor Dr Ishratul Ibad Khan at the briefing of the commerce minister on the forthcoming trade policy pointed out that infrastructure facilities in Sindh Industrial Trading Estate (SITE) were at the verge of collapse and the provincial government could not alone rehabilitate it.
He said that the initial estimated cost for rehabilitation of these infrastructure was around Rs500 million. The Sindh governor noted that disparity in power tariff of Wapda and KESC was the major irritant in the way of growth of economic activities in the province.
He said the KESC tariff was on very higher side, increasing the cost of production of export-oriented industries. Speaking about the the trade policy the commerce minister advised the Sindh government to promote parboil Irri-6 rice in the province for export purposes.
The commerce minister said the federal government wanted the input from the Sindh government in the trade policy which will be announced on July 22. He said the federal government would provide all possible help in this regard.
He said that parboil rice was very popular in Saudi Arabia and other countries and Pakistan could earn a valuable foreign exchange from its export. He said the commerce ministry was trying to promote export of parboil rice from Pakistan and for this purpose the duty on import of parboil plant had been reduced.
He pointed out that Irri-6 was a low price rice and its value could be increased manifold by converting it into parboil rice. "You can talk to the growers as well as rice exporters in Sindh to convince them to produce parboil rice.
You also tell us how we can support you in this regard," Mr Akhtar said. The meeting was told that 85 per cent of Irri-6 was produced in Sindh. The commerce minister also suggested Sindh to prepare a "policy document" with the help of the EPB and the Board of Investment for development of granite stone in Thar area so that its quarrying on modern lines and export should be promoted.
He was of the view that granite should be excavated in a proper way through modern techniques to reduce damage and add value. He also suggested to award lease for mining purpose through bidding so that experts and technically sound parties should undertake quarrying.
The Sindh chief minister said that China clay was also available in abundance in Thar area. The commerce minister urged the Sindh government to provide 50 acres of land for establishing an agro-processing zone in Mirpurkhas for export purposes.
He said that this zone would be established on public-private partnership and a joint stock company would be set up for this purpose for running this zone on independent basis.
He said the private sector would be invited to set up grading and processing plants, cold storage and refrigerated vehicles for fruits and vegetables export. He said that this zone would help in minimizing the damage to the quality of fruits and vegetables and ensure better prices to the exporters as well as the growers.
Mr Akhtar also advised the Sindh government to inform the Centre about any exportable crop surplus two months in advance for arranging export freight subsidy. This will facilitate their export at competitive prices and help in stabilizing the prices of surplus crops in the country.
The Sindh governor informed the commerce minister that local traders were exploring the foreign markets at their own. He demanded their representation at federal level on delegations visiting foreign countries.
Dr Ibad praised the polices of the federal government for implementation of various mega projects which, he said, would ultimately benefit the people of Sindh as well as entire country. The meeting gave approval to the governor's proposals for representation of Sindh government on the Board of Directors of training institutes being run here by EPB. -APP
