KARACHI, Oct 27: Local tent makers have agreed to supply initially 60,000 fully fabricated tents to the Sindh government in the next one and a half months at the rate of Rs6,200 per tent.

Tent makers, who are the members of Pakistan Canvas and Tents Manufacturers and Exporters Association (PCTMEA), individually inked an ‘emergency purchase agreement’ with the Sindh government on Thursday for the supply of tents to quake victims.

Around eight makers in Karachi have been given the target to supply 60,000 tents by December 15 out of total allocation of 90,000 tents. However, some 50 tent makers in Punjab have been given the target to supply 210,000 tents, thus making a total supply of 300,000 tents.

Focal person of the Sindh government, Raisuddin Paracha, who signed the agreement, told Dawn that the tent makers had sought 25 per cent (about Rs90m) in advance of the total amount of Rs370 million for 60,000 tents. “We have assured them they will get the amount by Friday,” he added.

National Tent House and H. Nizamuddin & Sons will provide 13,500 tents each while Paramount Tarpaulin Industries and Zahra Industries will manage 8,500 and 7,500 tents. Siddiq Sons Denim Mills, Shamsi Pakistan, Manzoor Sons and Shamsi International will provide 8,000, 5,000, 2,500 and 1,500 tens respectively.

Mr Paracha said that an inspection team had also been formed comprising officials of ministry of industries and Pakistan Army and federal government representatives, which would monitor the quality and specification of the tents as per the agreement.

He said that the tent makers were demanding to allow the export of tents, which had already been manufactured before the October 8 earthquake, as it would help improve their liquidity position. The government had already imposed a ban on the export of tents. However, Mr Paracha said that under the terms and conditions, the Sindh government would ensure that all tent production would be supplied to the Government of Pakistan only.

He said that the fabricated tent was originally available at Rs4,000-4,500 a piece but the federal government had fixed the rate at Rs6,200.

He claimed that the fabricated tents were capable to provide protection from severe cold and snowfall, which is likely to hit the quake affected areas in the next fortnight.

He said that the tent makers had raised the issue of rising raw material cost and shortage of labour, but they had assured to manage things at their fronts by providing tents well on time.

Managing Director of H. Nizamuddin & Sons and PCTMEA Zonal Chairman, south zone, Naveed Ahmad said the eight tent makers were planning to provide first shipment of 3,000-5,000 tents by November 2. Later they would continue to their shipment as per the date fixed individually by them with the purchaser.

However, he pointed out that majority of workforce belong to Punjab, who have either left or planning to leave, hence shortage of labour persisted. There would be no problem of labour for Punjab tent makers. “But we will manage things here,” he said.

He said that the representative of the Sindh government had pledged to arrange 25 per cent payment in advance by Friday.

Naveed said that since the government had restricted the export of tents and its raw material, the tent makers were somewhat confused because they had already grabbed orders for 200,000 tents from the International Red Cross, NGOs, Dubai based companies and other global agencies after the earthquake.

“Our pending orders with NGOs and other organizations now hang in the balance and they will not buy from us next time in case the issue is not settled,” he said, adding that the prime minister was reported to have said that he would talk to the international organizations in this regard.

Under the terms and conditions of the agreement, there will be no withholding tax on the supply of contracted stores. Zero per cent sales tax with adjustable inputs will be allowed on all items to be used in the manufacturing of the contracted stores. However, these stores will be supplied under No Rebate Claim.

Since the export of tents and its raw material is banned during the delivery period of the contracted stores, the supply of contracted stores will be considered as an export performance for the purpose of penal interest on export refinance part II charged by the State Bank.

No additional social security, EOBI or any provincial or local taxes will be charged during production/supply of the contracted stores. Wapda and SSGC will ensure uninterrupted supplies during direct and indirect production of tents. Sindh Labour department will ensure all possible guidance and support to avoid any labour strike or slowdown during production. The DCO Karachi will coordinate with tent suppliers to ensure smooth supply and price control of raw material/canvas from the market.

During the period of delivery of the contracted stores, the federal or the provincial government will not exempt any supplier of the contracted stores from his obligation to the fulfilment of the instant contract in the first instance and to facilitate supplies to any other customer.

Since the procurement of stores under this contract is an emergency purchase and during the period of delivery of this contract — the contracted suppliers may be unable to honour their contractual obligations towards third parties -– this contract document reiterates that the emergency nature of the instant contract requesting for the unsupplied contracts to third parties to be valid after November 30, 2005.