Sindh industrialists seek reopening of production units

Published April 5, 2020
KARACHI: Sindh Chief Minister Syed Murad Ali Shah presides over a meeting of leading industrialists to take them into confidence on government decisions on Saturday.
KARACHI: Sindh Chief Minister Syed Murad Ali Shah presides over a meeting of leading industrialists to take them into confidence on government decisions on Saturday.

KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Saturday told industrialists and exporters that the lockdown could not be withdrawn immediately but it would be eased out after April 14.

“This was not an easy decision to impose lockdown and stop the spinning wheel of the industry,” he said. “I had only one option, either to save the economy at the cost of the people or to protect the people [from coronavirus] at the cost of the economy and I opted for protecting my people.”

In a meeting with business community, Mr Shah said that he would discuss the necessary conditions and standard operating procedures (SOPs) with his cabinet members and government machinery to allow export-oriented industries to resume operations during the pandemic.Textile exporters have been pressuring the Sindh government to secure clearance for their pending shipments to foreign destinations ever since it imposed a province-wide lockdown to contain the pandemic.

During the meeting on Saturday, industrialists argued that they had received export orders and if they failed to deliver goods, the orders would be withdrawn. “This would not only be detrimental to the national economy but it is bound to damage our credibility in the international market,” they deplored.

They also said the lockdown had forced them to leave finished goods unpacked at the factories and semi-finished goods idle at production units, therefore they should be given an SOPs for maintaining hygiene, social distancing and transportation of their workers to the factory and be allowed to start operations.

They also proposed that exporters/factories with labour colonies be allowed to resume operations in the first phase. They also assured CM of ensuring proper social distancing at the labour colonies.

Chief Minister Murad hints easing of lockdown after 14th

Pakistan Fashion Apparel Forum Chairman Jawed Bilwani said exporters had handed over a list of 132 textile manufacturers to the provincial government including the names of 10 units who have their own labor colonies. “We have informed the CM that Sindh is dilly dallying in taking any firm decision despite several meetings while a number of textile units in other provinces have been allowed to work.”

Meanwhile, he said their customers are diverting orders to units based out of Punjab whereas Bangladesh is allowing the manufacturers to continue operations despite the pandemic.

As far as following SOPs and safety precautionary measures is concerned, he claimed that exporters are already equipped with these measures.

All Karachi Industrial Alliance President Mian Zahid Hussain reminded the CM of his assurances on allowing units to resume operations where consignments were ready to be loaded and shipped.

Hussain said of the 132 units, exports shipments at 40 were ready while remaining units have partially finished goods which would take 10-15 days more with the help of 20-30 per cent labor force.

He estimated around $1 billion of textile export shipments are pending since the lockdown was imposed. He said that “China has reopened and we should not waste time in clearing our shipments.”

CM Shah assured industrialists and exporters that the provincial government would consider their proposals purely on merit. “Let me discuss the matter with my cabinet members and other government team members as to how and to which extent their request or proposals can be entertained,” he told the industrialists.

He said that at the moment, the provincial government is facing difficulties in paying salaries. The monthly salary bill of the government/local government employees was around Rs45 billion for which major funds were being provided by the federal government from the divisible pool.

“As a matter of fact, in the last few months of every fiscal year, the federal government funding [usually] increases but last month, in March, it decreased drastically to Rs33bn,” he said. The reason for which, he explained, was the decline in revenue collection at the end of the federal government. “The federal government is also facing a difficult situation.”

In addition, leaders of bodies representing small traders also requested CM Shah for easy loans to pay the salaries to their workforce. Responding to this request, CM asked them to work out the amount of the salaries so that their request could be considered.

Published in Dawn, April 5th, 2020

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