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PESHAWAR, Jan 31: The NWFP government has drawn up a "draft private sector development strategy" which recommends giving major incentives to the manufacturing sector.
The strategy calls for tapping natural resources of the province - forest, agriculture, minerals, hydel power, and gems - to give economic activities the much-needed shot in the arm.
It has recently been prepared by the industries, commerce and mineral development department in collaboration with the Small and Medium Enterprizes Development Authority (Smeda).
It puts forth recommendations for the promotion of sub-sectors of agriculture, minerals, gems, forest, furniture, industries, light engineering, hydel power, leather, tourism and textile to achieve the broad objectives of economic growth.
The strategy - which would be implemented after being consolidated by the World Bank - suggests policy and legislative measures to be undertaken by the provincial government, a pro-active role for the trade and business community and capacity building of institutions to exploit natural resources of the province.
According to official sources, a special committee consisting of representatives of various associations of businessmen and experts of Smeda formulated the strategy by holding consultations and meetings with stakeholders representing the sub-sectors listed above.
It recommends setting up of an 'agriculture-business development board' to resolve issues relating to agriculture marketing.
Besides, it asks for strengthening market mechanisms and management for the development of horticulture trade and extending technical assistance to stakeholders (contractors) for post-harvest treatment to increase shelf life of their products
In addition, the strategy paper notes, it will encourage fruit dealers and contractors (middle men) to go for value addition to promote horticulture trade through fruit treatment and storage plants already established in Swat, Dir, Mardan and Peshawar districts.
Proposals for the promotion of agro-based industries, processing units in addition to introducing non-traditional agriculture products, including cut flowers and mushrooms, have also been made.
MINERAL SECTOR: Adequate representation for the private sector miners on the mineral investment facilitation authority has been proposed in addition to the setting up of a steering committee to involve private sector stakeholders in official decision-making to take maximum benefit of the mineral resources.
It has been suggested to the provincial government to prepare a master plan for infrastructure development to facilitate the private sector and notify mineral bearing areas of the province in addition to envisaging enactment of a special law to stop the growing interference of land owners in mining activities which has adversely affected mining practices and revenue generation.
GEMS SECTOR: The strategy asks for introducing gemstone cutting and polishing as subjects of learning in the technical training centres and vocational training centres, particularly in areas with high concentration of gems and its business. Besides, it asks for encouraging the private sector to develop such training centres with the financial and technical support of donor agencies and the provincial government.
Similarly, it asks for setting up a facilitation and clearing desk at all airports to facilitate gem exporters and suggests that the provincial government undertake measures to support the establishment of 'export trade and display centre' at Peshawar and Mardan to promote gems and facilitate the private sector.
FOREST SECTOR: It asks the forest department, NWFP, to encourage private sector by launching market-driven projects in all the 24 districts of the province and envisages holding of a feasibility study for the establishment and promotion of wood-based cottage industry. It recommends that movement of farm forestry products should be encouraged to promote legal export and that alternative arrangements should be made in areas where forest cover is fast depleting due to increasing use of wood as fuel.
FURNITURE SECTOR: The strategy recommends upgradation of the provincial public sector 'Pak-German Wood Working Centre' to impart training with the financial support by international lending agencies. It also asks for establishing a 'market information centre' to help the private sector know about different international markets, their consumption pattern and requirements vis-a-vis quality standards.
INDUSTRIES SECTOR: It suggests that in an attempt to encourage industrialization in the province, new industrial units be provided incentives by waiving all provincial fees and taxes for at least five years and that industries in the NWFP be supplied electricity on subsidized rates by Wapda.
LIGHT ENGINEERING SECTOR: The strategy asks for promoting vendor industry in the province on the part of the provincial government by creating linkages with large industries set up in other provinces and envisages establishment of 'common facilities centre' to help light engineering sector, in a specific area, to avail facilities of material testing labs, foundries, surface treatment, heat treatment and designing on a need basis.
HYDEL POWER SECTOR: It recommends that the provincial hydel power policy should be 'fine-tuned', making it more investment-friendly. In this respect it envisages greater role for the provincial public-sector Sarhad Hydel Development Organisation (Shydo).
LEATHER SECTOR: It proposes that the Charsadda leather institute board needs to be revamped and restructured with more representation to be given to the private sector stakeholders to help it play an active role in addition to suggesting the creation of an information centre so that the private sector is kept updated on the market trends the world over.
TOURISM SECTOR: The strategy asks for ensuring active involvement of the private sector in exploring the tourism potential of the country. Institutional strengthening of the provincial public-sector Sarhad Tourism Corporation and operationalization of the tour guides and hotel personnel training institute, at Swat, form other recommendations to promote tourism in the province.
Similarly, the Sarhad Tourism Corporation is asked to identify new tourism spots to be developed by the private sector.
TEXTILE SECTOR: Setting up of a design institute and business development centre, display arrangements for products in different cities and capacity building of textile sector's stakeholders to adopt modern manufacturing techniques are some of the recommendations made for the promotion of textile sector in the province.
