KARACHI, Jan 17: The formation and registration of five independent companies with a task to take up the rehabilitation of infrastructure of city’s industrial estates is taking a long time, thereby inhibiting the much-needed progress required to meet global environmental standards and other related conditions in industrial areas.

In a recent communication with five industrial estates of the city -– the Site Association of Trade and Industry, Landhi Association of Trade and Industry, North Karachi Association of Trade and Industry, Federal ‘B’ Area Association of Trade and Industry and Korangi Association of Trade and Industry — the office of the minister for industries, production and special initiatives has asked them to provide an update on formation and registration of these companies.

For long city industrialists have been complaining of poor and dilapidated conditions of infrastructure, many a time causing production loss and also resulting in poor quality. However, the successive governments failed to do anything about this acute problem which not only needs huge funds but also dedication and consistent efforts to resolve these deep-rooted issues.

During a meeting held in Karachi on July 13, 2005, President Pervez Musharraf was briefed by businessmen and industrialists on various problems faced by the city’s industrial estates. The president directed that each industrial estate in Karachi should form an independent company, with its board of directors to manage its affairs.

However, so far no such company has been established, and all the heads of the five industrial estates of the city when contacted by Dawn said that they had submitted their necessary registration papers with the National Industrial Parks Development and Management Company (NIP) for onward transfer to the Securities and Exchange Commission of Pakistan (SECP).

In the follow-up meeting of the industrialists with President Musharraf held here on August 5, 2005, it was decided that Rs2 billion (Rs1 billion each from the federal and provincial governments) would be allocated as grant for rehabilitation of infrastructure of the city’s industrial estates.

Industries and Production Minister Jehangir Khan Tareen also held meetings with the industrialists and discussed in details how these independent companies will operate under the umbrella of NIP.

According to details, the funds would be given to NIP which would lay down procedure and coordinate the work in consultation with the provincial government and respective industrial associations. Under the new setup, each industrial association will have to form an independent company and the federal and provincial governments will give powers to these companies for smooth implementation of rehabilitation of infrastructure.

Each independent company will have 12 directors, with three government-nominated (ex-officio) members and a chairman who could also be a chief executive officer.

Since the funds will be released to NIP, therefore contractual agreements would be signed between NIP and companies for release of funds to them. NIP will also set priority needs and areas and also do quality control and monitoring work and will provide technical assistance, but actual implementation will be done by the companies themselves.

A section of the industry expressed resentment over special treatment being given to the Karachi industry and felt that it should also be given to other industrial estates of the province.

Therefore, even after the lapse of over five months these independent companies could not be established and it was not clear who should be blamed for this shortcoming. There is also a strong feeling that in the absence of local government’s involvement the required results would not be achieved and the funds would go to waste. Besides, this setup will also involve the bureaucracy more than needed.