KARACHI: Federal Minister for Finance, Economic Affairs and Revenue Asad Umar has promised quick resolution of various issues that have hampered the development of industries at Korangi Creek Industrial Park (KCIP).

During a visit to KCIP on January 12, the minister assured members regarding the reconstitution of National Industrial Park’s (NIP) board.

He said the government wants to promote industrialisation and the main purpose of mini-budget is to remove obstacle and improve ease of doing business. He took a round of KCIP and reviewed the progress and pending issues.

KCIP Standing Committee Chairman Shahid Ghoury highlighted the prevailing hurdles of power, non-execution of sublease and excessive charges being imposed by Cantonment Board, thus rendering industries in the park uncompetitive.

He said if these are tackled, around 80 more industries would start their operations in the next few years.

Another industrialist, Abdul Rasheed Chohan, pointed out the delay in approvals from State Bank of Pakistan for remittance and bank guarantee regarding international businesses between Turkey and Pakistan.

In another example, two joint ventures could not be finalised as the Pakistani partner could not get even get electricity at the industrial zone.

Muhammed Amin, Member KCIP Standing Committee, highlighted various issues in taxes and administrative matters which are slowing down the process of industrialisation.

Only 20 industries are currently operational at KCIP, about 20 are in the construction phase while the remaining 70-80 are held back due to the lack of promised facilities.

New companies, which have completed their construction, are not getting electricity confirmation. Furthermore, unit price charged by power supplier is 50 per cent higher than K-Electric despite getting low price gas approved for captive power projects.

NIP, a subsidiary of PIDC, established its flagship KCIP in 2010 and invited industrialists to start their industrial units, promising them facilities such as one-window operation, availability of electricity at competitive rates, effluent treatment plant.

Published in Dawn, January 15th, 2019