Sindh Land Ord impediment to investment: ECC under study
By Sabihuddin Ghausi
KARACHI, Oct 11: Since the existing Sindh Urban Land Disposal Ordinance 2000 is being considered a big impediment to the implementation of investment proposals from foreign and local groups, the government is seriously considering setting up an economic coordination committee (ECC) with the provincial chief minister as its head to circumvent the ordinance.
Ironically, the ordinance was implemented by the handpicked Sindh administration of the military government after accusing former chief ministers and previous governments of scandalous and discretionary in allotment of land. The present government now wants the same discretionary powers of land allotment for itself.
The formation of the ECC in Sindh is being proposed following the futility of several attempts made by the Sindh government to help German, British, Chinese and other prospective investors in getting industrial and commercial lands at “reasonable price”.
The Sindh government and the investors find the existing ordinance an impediment to the allotment of land. There is now a move to repeal this act. Till a new law for the land allotment is put in place, the proposal is to entrust the ECC with these powers.
Besides the chief minister as its head, the proposed ECC would have many ministers, chief secretary and senior officers of the government to ensure that the allotment of land is in the name of genuine investors and that it would be utilized only for the purpose for which it is given.
Waiting in line for land allotment are investor groups from Germany, China, Britain and the Aga Khan University, Karachi.
“There are about a dozen investment proposals from foreign groups who want to set up an electric power plant project, a taxi cab assembly plant, a fruits and vegetable export zone and a chain of retail stores, with packaging and processing facilities in and around Karachi,” Muslim Abbasi, head of Chief Minister’s Investment Cell, informed Dawn on Tuesday.
The allocation of industrial and commercial lands in Karachi and other parts of the province is made through public auction. Market report suggests that a small cartel of speculators, which includes a few stock brokers, commodity traders and real estate dealers, controls the land auction that makes it impossible for the genuine investors to obtain land at affordable and reasonable price.
A German investor — Metro Cash and Carry department store — plans to invest 150 million euros in the first phase and has identified a 10-acre plot in the city that belongs to the government. But the land can be given only through auction. The investment proposal promises direct job opportunities for at least 3,000 persons, as it plans to open a chain of stores in the city in the first phase and then extend it to other parts of the country.
Mr Abbasi said that the project would give a tremendous boost to farm products by the store chain as all these products would be processed, packed and marketed locally. The company also plans to explore the export market for Pakistan’s farm products.
A team of two executives of the German group is in the city for the last several weeks and is reported to have held several meetings with the Board of Revenue and other departments for the acquisition of land. So far no results have been obtained and a proposal is now being mooted to form an ECC which should be given discretionary powers through legislation.
An American company is asking for a 20-acre plot near the Port Qasim for setting up a 220-megawatt power project on barge, which is being identified as a unique concept. Initial estimate of the investment is $185 million, with prospects of 100 jobs in the initial phase. The sponsors of the project met the chief executive of Sui Southern Gas Company and discussed the acquisition of a 20-acre plot on lease with the Port Qasim Authority chairman.
Meezan Bank has recently proposed the construction of a 50-storey structure on a vacant plot near Sheraton Hotel, which is now being used for car parking. The sponsors want to construct the largest auditorium facility in Karachi, head quarters of Meezan Bank, head quarters of Pak Kuwait Investment Company, Deluxe office space, a six-star shopping mall and a large capacity car parking area to accommodate 1,000 cars.
A private transport company is also asking for a plot to set up a taxi assembling plant in collaboration with UK-based Black Taxi. It also wants land allotment in different parts of the city to set up taxi depots and allied facilities. The sponsor claims to be the largest satellite taxi operator who would introduce taxis equipped with instruments and devices of latest test technology — cameras, sensors and wireless communication system. The project is claimed to be highly job intensive.
An ‘education city’ is being planned in the outskirts of the city where the Aga Khan University intends to set up its arts and science faculty on a 500-acre of land. A committee of four ministers is said to have given a set of recommendations for setting up of the education city, which is expected to attract an investment of $400-500 million, besides generating employment of 400 to 500 persons.
The prime minister and the Sindh chief minister are said to be thrilled at investment and job generation prospects of these investment proposals and had planned press conferences on two occasions during the last few weeks. But since the implementation of proposals remains a big question mark because of the land allotment policy, these press conferences have been called off.
