KARACHI, Dec 3: Instead of guiding industrialists and giving them futuristic vision about industrial development, the government should provide an enabling environment for the growth of this sector.

This was observed in the “First Pakistan Industry Conference 2005” here on Saturday. A number of speakers discussed various factors and areas related to industrial growth.

Minister for Privatisation Dr Abdul Hafeez Sheikh said that problems “cannot be resolved because of government monopoly over several sectors”. He said investors wanted to invest and needed gas supply but “gas cannot be supplied because the cabinet committee would decide who should be given permission for this facility”.

“I believe this is an opportunity that investors are ready to make investment. But gas is under control of the government which delays the decision,” said Dr Hafeez. He explained the impact of deregulation and privatization on various sectors, citing examples of growth in telecommunication, media and financial sector. He said Nestle, a Swiss company, which has operations in 140 countries, “gets the best return in Pakistan as it is involved in milk business”. He said “we have hundreds of products and areas where investment can be made but it needs to be explored by investors”.

Earlier, deputy chairman of Planning Commission Akram Sheikh told a questioner that the government had finalized a plan to set up a ‘Land Bank’. The Land Bank would help the investor get property through it while the government would identify the pieces of land available.

He said once this bank was established, there would be no problem for investors. The bank might come within weeks or a month.

Industrialist Yousuf Sherazi expressed surprise that the government, instead of emphasizing on increasing production capacity, was still trying to meet the demands through import substitution.

Managing Director of PICIC Mohammad Ali Khoja said cotton was the backbone of the economy but “we could hardly produce 35 per cent certified cotton seeds for sowing”. He said this should be realised and 100 per cent certified seeds must be produced.

Advisor to the Prime Minister on Finance and Economic Affairs Dr Salman Shah said that size of the government should be reduced with maximum possible deregulation of the authorities.

He said that the government “works on long-term basis and not with a short-term vision”. He said that monetary policy could be tightened or relaxed in keeping with the requirements of economic activity and the prevailing conditions.