UNUSUAL delays in the execution of projects are a normal practice in Sindh. One such case is that of Agro Export Processing Zones — announced in early 2,000 for seven districts of Sindh, including Karachi — which are yet to be established.

These zones were to be set up in Karachi, Benazirabad, Badin, Mirpurkhas, Hyderabad, Ghotki and Naushahro Feroze.

After nearly a decade’s delay, it is only Karachi’s zone that, lately, has seen some progress in land allotments, and towards registration of sub-leases. The Sindh government’s lack of interest, belated fund releases, encroachment of land and lack of facilities have contributed to delays in allotment of plots for growers and traders.

After nearly a decade’s delay, it is only Karachi’s agro export processing zone that, lately, has seen some progress in land allotments and towards registration of sub-leases

Karachi will become Pakistan’s first ever agro-processing zone, located off the Super Highway near Sabzi Mandi, on over 50-acres. According to project director Azam Channa, 30-acres of land have been fully secured with boundary walls around the zone and 50pc of the plots’ sub-leases will be handed over to plot owners soon. Zones in other districts are to be set-up on 10 acres each, he said.

There are plans to hold seminars to encourage growers to apply for plots in six other zones. The management committee, which supervises Karachi’s export zone, is headed by Khalid Ejaz. He says the main roads have been built but link roads are yet to be constructed. Payment for the provision of electricity has been made to K-electric.

“The project will facilitate increased exports of surplus commodities like vegetables and fruits. We will be meeting phytosanitary conditions and the zone will function on industrial lines where dehydration plants, cold storages and value addition will be available to benefit exporters and consumers at the same time”, says Ejaz.

Growers will get 70pc of the plots in the zone and traders/exporters, the remaining 30pc. But there are reports that growers are ready to sell their plots to traders/exporters instead of using them. Sindh Abadgar Board leader, Mahfooz Ursani, who plans to set up a dehydration plant for onions and chilli, says it is true that growers always look for an opportunity to sell such plots. By and large, they tend to avoid investing in market-oriented businesses and stick to the cultivation of crops.

Long delays have also discouraged investors. But Ejaz insists that they are now being persuaded to set up plants in the zone.

Although an amount of Rs150m is said to have been released for Karachi’s processing zone, the fate of those planned for the other six districts seems to be hanging in the balance. Suitable lands are either to be identified or obtained by the agriculture department.

According to the Sindh Chamber of Agriculture General Secretary Nabi Bux Sathio, the Sindh government should consider one more processing zone for Tando Allahyar that has one of largest vegetable markets in the Sultanabad area. Mango and banana orchards are located in and around Tando Allahyar, too.

Land-grabbing is a major problem. The site of vegetable market, off the Hyderabad by-pass, spread over 100 acres, is occupied by people who are close to the Sindh government. The government’s lethargy usually complicates matters, enabling land mafias to take recourse to fake claims and frivolous litigation.

Published in Dawn, Business & Finance weekly, August 29th, 2016