ISLAMABAD, June 17: The new National Industrial Policy, currently being finalized, is focusing on providing "low cost and affordable infrastructure facilities" to the private investor to promote local and foreign investment in the country.

Official sources told Dawn here on Thursday that the Ministry of Industries and Production had started consulting all the stakeholders to significantly reducing the cost of doing business in Pakistan by proposing what was termed an "innovative new industrial policy" to be announced in two months.

So far the ministry of industries and production has got 6 studies conducted to finalize the new industrial policy. Another study was being completed by Pakistan Institute of Development Economics (PIDE) over the issue.

The purpose, the sources said, was to remove the genuine complaints of the private investors relating to high power and gas tariff, law and order, lack of consistency and to have a long term industrial policy for the investors.

Recommendations were also being made to develop the human resource development programme for promoting investment and break the "mind set" of the bureaucracy that was blocking local and foreign investment in Pakistan.

The Ministry on Thursday arranged a meeting of all the stakeholders in connection with the new industrial policy. Dr. A.R. Kamal, Director, PIDE, chaired the meeting in which the representatives of Chambers of Commerce and Industry, major manufacturing associations, industrialists and provincial industries and planning departments also participated.

Dr Kamal told Dawn that the government was being proposed to finalise the new industrial policy in such a manner that it should sort out issues like diversification and value addition.

"Why there is no adequate diversification and value addition of products for export is a major challenge, which should be figured in the new industrial policy," he said.

The PIDE director said that quality and standardization was another problem that needed to be effectively addressed to increase the country's exports. "Why foreign private investment is not substantially increasing is another issue", he said adding that the government should offer more incentives to the investors.

The idea, he said, was to promote greater economic activity by proposing some effective and innovative industrial policy to the investors. "I think this is also important to determine how much investment is required and what new incentives can be given to the investors in this behalf," Dr Kamal said.

Talking about the meeting, he said, the participants discussed impediments faced by the overall industrial sector as well as specific issues and made recommendations, which they required from government to incorporate in the new industrial policy. They also stressed the need for linkages between agriculture and industry and provision of reliable database.