HUB: Out of total 204 units in industrial estates, falling under Lasbela District, Balochistan, 107 are closed, with only 97 units in operation. Perhaps the most startling disclosure is that majority of investors in the industrial areas belong to Karachi, while there are hardly any native Baloch who has dared to set up any unit, a random survey in the industrial estates in Balochistan reveals. An estimated 20,000 workers and labourers earn their livelihood from around 100 industrial units operating in various industrial estates of Lasbela District. However, the top bosses, running the affairs in their industrial estates, still hire skilled workforce from Karachi.

A break-up of present state of units in industrial estates reveals that only 82 industries are in operation out of total established 176 units in Hub Industrial Trading Estate (HITE), while 94 units have closed down. In Winder Industrial Trading Estate (WITE), out of only 17 established units only nine are in operation.

Uthal Industraial Estate (UIE) also portrays a dismal picture where only two out of total five units are working. In Gaddani Industrial Area (GIA), two units are functioning out of a total of three established units. In Special Industrial Zone (SIZ) of Winder two units are running out of total three units.

Major types of industries established in Lasbela Industrial Estate Development Authority (LIEDA) are cotton yarn spinning, polyester yarn spinning, textile weaving and polyester fibre, automobile engineering, precession casting and light engineering, pharmaceutical units, food and confectionary, chemical industries, marble processing, electric and electronics, oil blending and lubrication as well as packaging.

An estimated 20-25 multinational companies belonging to countries like the US, Japan, UK, etc., are running their industries under joint ventures with local counterparts.

In spite of the fact that the cost of production in Lasbela district has also surged like other industrial estates, it is still cheaper by 8-10 per cent compared to Karachi. There is a marked difference in the rate of land as against Karachi. It is strange on the part of the Baloch people of being reluctant in investing in their home provimce as they prefer trading in agriculture and other businesses.

For instance, the rate of one acre plot in open market in industrial estates of Lasbela costs Rs3-3.5 million as compared to the controlled rate of Rs2 million. While in Karachi, the price of one acre of land is not less than Rs20 million in Site, Korangi, etc. However, the rates of wages are almost the same as in Karachi.

Despite above benefits and improved law and order situation, these calm and secure industrial estates have failed to attract massive investment in the last two to three years.

Secretary, Lasbela Chamber of Commerce and Industry (LCCI), Abdul Rasheed says that it is true that investment has not come in the last two to three years but it is a fact that “industries have revived and many industrialists have expanded their business.”

He links the closure of units to multiple reasons like high cost of production, management and working capital problems, etc.

Despite adverse conditions like rising cost of production, some industries have been revived and people are planning to set up new industries. Many existing industrialists are busy in business expansion programmes.

However, there are many problems that need to be resolved. Rasheed says there is no gas in Winder and Uthal industrial area. In other industrial areas, only export-oriented units are enjoying gas facility. Roads, power, water and sewerage are available in Hub and Winder. Gas supply is available only in Hub. However, these industrial estates have telecommunication and banking facilities.

LIEDA was set up in 1984 and a total of 3,186 acres were allocated to it. The Authority controls four industrial estates (HITE, WITE, GIA, UIE and one special industrial zone in Winder).

A new allotment policy was unveiled in 2000 providing free cost of possession to prospective investors besides allowing 18 months grace period to settle cost of land in 10 six monthly equal instalments after commencement of production. Since 2000, 14 units were allotted land, while four units commenced production and five units were under construction.

So far 20 industries have been revived since 2000 while six units are in the process of revival - three in Hub, two outside Hub and one in Uthal.

A review of new investment since 2000 reveals that 24 plots were allocated in HITE in which five are in operation, eight under construction and 11 are open plots. In Winder, only one plot was allocated which was under construction. In Uthal there were two open plots which were allocated since 2000.

In order to boost industrialisation, LIEDA has suggested special incentives for marble and mineral related industries like duty free import of machineries, subsidiary of power and marble processing training institute in Hub with foreign collaboaration. There is a need for construction of dual carriage way/road from Northern Bypass Karachi to zero point Uthal, construction of Sakaran Bypass and construction and development of Gaddani, Hub and Hawksbay roads. There is also a need of developing alternative water supply resources like completion of K-3 project from Karachi to Hub, installation of a desalination plant in Gaddani and construction of small dams to store rain water, share of water from Hub, control over supply of water from Hub and supply of gas to Winder.

Many industrialists are exporting various items but the quantum of volume and quantity could not be known.

Abdul Rasheed paints a rosy picture of the LIEDA estates saying that situation would further improve in the industrial estates when Gwadar Port would become fully functional.

Besides, a plan is under way to set up water treatment plant and windmill power generation plants. Talks are also being held with railway authorities to set up a 40-km railway track from Karachi to Hub and link it to the Karachi Circular Railway. On this project, consultancy work has started, he says.