PESHAWAR, Feb 16: The NWFP government has been moved to seek ‘remedial measures’ from Islamabad for the revival of Gandoonamanzai Industrial Estate (GIE), official sources told Dawn here on Friday.

Under recently submitted recommendations to the provincial government, the industries, commerce and mineral development department, NWFP, has proposed that Islamabad should be moved to come up with short-term and long-term measures to help the GIE come out of the dock.

Set up in the late 1980s with primary objective of eliminating poppy crop from the Gadoon area, in Swabi district of NWFP, over 75 per cent of the established industrial units in the GIE, presently, stand closed down as industrial operations in the officially set up GIE, apparently, rendered difficult following the withdrawal of incentives that have been announced by Islamabad from time to time to ensure alternate income opportunities to the local population.

According to official sources, the NWFP industries department has stressed the provincial government to make Islamabad give incentives in line with the set of recommendations already formulated and forwarded by the Peshawar customs collectorate.

The customs collectorate, said sources, in its recommendations had asked for ‘remedial measures’ for the GIE to help it (collectorate) improve its revenue.

The collectorate, sources added, had moved the Central Board of Revenue after it underwent substantial decline in its revenue following the withdrawal of incentives available to GIE industries.

“As a result of withdrawal of GIE incentives, the Peshawar customs collectorate recorded a decrease by over 60 per cent in its revenue during the July-March 2000-01 period in comparison with the corresponding months of 1999-2000,” official sources said.

The said incorporating the customs collectorate’s recommendations, the NWFP industries department had asked for remedial measures to restore the confidence of investors in GIE by exemption under SR 108(i)/95, dated Feb 2, 1995, without negative list be extended for an other five-year term apart from seeking exemption from one per cent warehousing surcharge.

Whereas, as long-term measures, contained an official document available with Dawn “during the period of partial exemption for five years as proposed in short-term measures, the units will hopefully be scrambling out of financial crisis and further exemption may be gradually decreased allowing them to stand on their feet and to compete in the market.”

“Wapda may also consider restoring the concessionary tariff during the initial period of five years to be gradually decreased to normal tariff during the next five years.”

At present, according to sources, some 61 industrial units, involving over Rs8 billion investment are operational whereas over 160 unites, set up with around Rs4.5 billion investment are closed down.

At the time of its establishment, the GIE-based industrial units enjoyed 10 years income tax holiday, exemption of customs duties on the import of machinery/raw material and components of machinery, loans at three per cent mark-up for fixed investment, 50 per cent rebate in electricity charges and sales tax exemption.