Pakistan Economy - News & Updates - Archive

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FDI On The Rise In Pakistan Because Of Attractive Returns: Boi​

KARACHI, Oct 10 Asia Pulse - Volume of foreign direct investment is rapidly increasing because of attractive returns on investing in Pakistan despite the political and law and order issues, Mushtaq Malik, Secretary Board of Investment (BoI) stated on Monday.

In a meeting with President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Tanveer Ahmed Sheikh, pointed out that there has been a positive change in the magnitude of the inflow of foreign investment - portfolio and FDI in the country and said that it was notable that the inflow of foreign investment had increased manifold after 9/11. ADVERTISEMENT



The Secretary of BoI extended his cooperation to provide his best support to solve the business sector's problems in all the areas where his cooperation is required.

The meeting also discussed the role and possible benefits of the ROZs (Reconstruction Opportunity Zones) for investment promoting activities.

Mr Sheikh highlighted the issues being faced by the private sector to invest in the country.

He highlighted that private sector has fulfilled its commitments to invest in Pakistan but the government, in certain areas, was not successful to fulfil its commitments.

He exemplified the 'Textile Vision 2005' programme where industrialists invested their funds in the textile sector according to the targets determined by the planning authorities.

The sector imported and installed the machinery and enhanced investment through equity based financing.

As a consequence the textile sector increased its production capacity and modernised the facilities.

However, MINFAL failed to provide the targeted production of textile raw material cotton.

As a result, the textile sector is facing unutilised capacity, which is hampering its profitability.

"The permission for the import of cotton from India through Wagah border is the only immediate solution to fill the gap between the demand and supply of cotton," he said.

Mr Sheikh also highlighted the efforts of the FPCCI in promoting investment activities in Pakistan.

FDI On The Rise In Pakistan Because Of Attractive Returns: Boi - Yahoo!7 News

 

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Rice, cotton targets likely to be missed ​

Thursday, October 11, 2007

ISLAMABAD: Two major cash crops of the Kharif season will slightly miss the targets set by the Federal Committee of Agriculture while the other two will likely witness a record production, official sources revealed to The News on Wednesday.

The estimates of Kharif crops would be submitted before the Federal Committee on Agriculture (FCA), which is scheduled to meet on Oct 17 with Federal Minister for Food and Agriculture Sikandar Hayat Khan Bosan in the chair.

Paddy, a foreign exchange earner, would miss the set target of 5.72 million tonnes by nearly 10 per cent because of floods, rain damage, and pest attack. The crop is now estimated to be around 5.1 million tonnes, the sources said.

Last year, rice production was recorded at 5.42 million tonnes and for 2007-08, the target was fixed at 5.72 million tonnes from a cultivated area of 2.6 million hectares.

Irri-6 the coarse rice cultivated in riverine areas of River Indus and irrigated areas of Balochistan was damaged in floods and monsoon rains and also pest attack, they added.

Similarly basmati rice cultivated in Punjab also came under pest attack of bacteria blight. This whole situation leads to miss the target by 10 per cent and the production is estimated to be above and over 5.1 million tonnes, the official said.

Pakistan exported more than 3.6 million tons of rice during the current year earning around $1.2 billion from the export of the commodity.

Cotton, second major cash Kharif crop, would also miss the set target of 14.1 million bales for this season because of mealy bug and viral attacks and the crop size would remain 12.5 million bales, they said.

Last year, Pakistan achieved 13 million bales against the set target of 14.6 million bales.

Sugarcane production is expected remain much above the target of 58 million tonnes against the set targets for 2007-08 of 54 million tonnes form an area of 1.015 million hectares while last year, its production was 52.9 million tonnes, the sources said.

The sugar availability at the end of this month would be 0.9 million tonnes and millers will starts the crushing from Nov 1st both in Sindh and Punjab, they added.

Maize production fixed at 3.2 million tonnes for 2007-08 from an area of one million hectares would also cross the target because of high prices both at the international and domestic markets.

Rice, cotton targets likely to be missed

 

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New industrial vision stressed ​

Thursday, October 11, 2007

KARACHI: Sindh Minister for Labour and Industries Adil Siddiqi has directed SITE Ltd and Sindh Small Industries Department to work on a new vision for establishing more industrial areas equipped with modern infrastructure and facilities so as to meet the requirements of the future.

He called for chalking out such a strategy for big and cottage industries which may serve as a role model for the whole country. In a statement on Wednesday, the minister pointed out that a new era of fast industrial development has started due to modern technology and it wants to carry out future planning to meet the challenges ahead.

He said the government will do marketing in other countries for attracting investment in Sindh and for speedy economic and industrial development.

He pointed out that SITE Phase I and II is the country’s only industrial area where under-ground electric system has been laid as per international standards.

Referring to residential areas situated near these industrial zones, the minister said steps have been taken to control pollution in view of establishment of industries in the future.

The industries to be established here will have to be certified by ISO and each of them has its own effluent treatment plant so that human lives remained safe from harmful effects of industrial environment.

New industrial vision stressed

 

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American labour supports economic opportunity zones in FATA​

Washington: American labour federation, AFL-CIO, says it supports the establishment of economic opportunity zones in NWFP and Balochistan tribal areas, and appreciates the price Pakistan is paying for being an American ally in confronting terrorism and extremism.

Majyd Aziz, former president of the Karachi Chamber of Commerce and Industry, was assured of this by AFL-CIO’s Thea Lea when he called on her in Washington recently. She told him that the federation appreciates the building of a Pakistani middle class and understands the need for development of the far-flung areas. The ‘reconstruction opportunity zones’ (ROZ) are backed by the administration and have bipartisan political support, to which, Lea said AFL-CIO will now add its own.

She said industries in the ROZ must adopt all labour standards so there is no child labour, workers get proper wages, enjoy freedom of association and are not abused or exploited. Aziz said the ROZ are part of the counter-terrorism strategy since they will provide economic opportunities, employment to village women, and help in building schools, vocational training centres and hospitals.

Daily Times - Leading News Resource of Pakistan

 

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Inflation surges by 8.4pc in September​

ISLAMABAD, Oct 10: Led by a double digit increase in food inflation, the overall consumer prices jumped again by 8.4 per cent in September over the same month last year, the Federal Bureau of Statistics (FBS) said on Wednesday. This would be the highest increase in inflation so far recorded in any month of the current fiscal year because of the soaring food prices particularly wheat flour, vegetables and fruits which touched new heights.

In the first two months — July-August — the overall inflation remained between six to seven per cent. However, the food inflation during the same period remained less than the double digit growth.

The government has projected 6.5 per cent annual inflation to be achieved during 2007-08. The annual inflation in 2006-07 was 7.77 per cent as against the projected target of 7 per cent.

When contacted Economic Advisor to Prime Minister Dr Ashfaq Hassan Khan told Dawn that the Consumer Price Indicator (CPI) based inflation was registered a growth of 8.4 per cent in September as against 8.7 per cent in the same month last year.

He said that inflation during the first quarter of the current fiscal year (July-September) was estimated at 7.1 per cent as against 8.4 per cent during the same period last year.

He said that the CPI based inflation in September 2007 was largely driven by food inflation, adding that SPI based inflation during the week ended on October 4 stood at 10.7 per cent against the corresponding week of last year.

Mr Khan said that prices of essential commodities during Ramazan remained stable adding that the SPI based inflation remained at around 10 per cent during the holy month.

He said that 6,000 utility stores would be set up by December end which would impact the market prices providing relief to the consumers.

Among the food group, the products which registered growth in prices include tomatoes, onion, besan, wheat, wheat flour, gramwhole, eggs, pulse gram, betel leaves, gur, cooking oil, mustard oil, dry fruit , tea, readymade food, vegetable ghee, vegetables, rice, jam and pickle and vinegar.

Similarly, the continuous increase in the house rent, doctor and education fees have also pushed up inflation in September 2007 over the corresponding month last year thus hitting the low income group.

Analysts said that the tight monetary policy had resulted into bringing down the core inflation — non-food, non-energy — which curtailed the overall inflation during September 2007.

However, the challenging issue of food supply and overcoming of shortage of food items still persisted as the food inflation is on the higher side, which recorded a growth of more than 10 per cent during September 2007 over the same month last year.

Similarly, the government had frozen oil prices in the domestic market that had also resulted into lowering the transportation cost and fares. With this the non-food inflation also witnessed steep decline during the month under review.

Inflation surges by 8.4pc in September -DAWN - Business; October 11, 2007

 

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$5bn refinery approved for Hub​

ISLAMABAD, Oct 10: The government approved on Wednesday construction of the Coastal Refinery Project costing $5 billion at Khalifa Point in Hub area of Balochistan.

It also decided to advise the Oil and Gas Development Corporation to allocate and dedicate at least 80 per cent of the Liquefied Petroleum Gas (LPG) produced from Chanda filed for distribution in the Federally Administered Tribal Areas (Fata).

These decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet held here on Wednesday with Prime Minister Shaukat Aziz in the chair.

Briefing newsmen, Adviser to the Finance Ministry Dr. Ashfaq Hassan Khan said the refinery would be established as a joint venture by the Abu Dhabi-based International Petroleum Investment Company (IPIC) and Pak-Arab Refinery Company (Parco) with equity participation of 74 and 26 per cent, respectively. The project would be completed and commissioned by the first quarter of 2011.The Ministry of Petroleum and Natural Resources had been allowed to sign the implementation agreement with IPIC within a month, he added.

Mr Khan said that the project with a refining capacity of 200,000 to 300,000 barrels per day would cost $4-5 billion and the preliminary work had already been started.

He said that various concessions, including a 20-year tax holiday, exemption from five per cent workers’ profit participation and exemption from 0.5 per cent services charges under the export processing zones rules, had been announced for the project.

“These initiatives would be applicable for all the refineries and petrochemical projects to be installed along the coastal belt of Balochistan, particularly Gwadar,” he added.

Answering a question, the adviser said that the products manufactured by the refinery would be exported as well as sold in the local market.

The ECC also approved reduction of duty on the import of bitumen from 15 per cent to 5 per cent, he said.

Mr Khan said that a summary for the provision of LPG to Fata had also been approved. He said that the Oil and Gas Regulatory Authority would ensure that the LPG dedicated from Chanda field was marketed in these areas.

The finance ministry adviser said that the meeting reviewed flour prices and expressed satisfaction over its availability in the market. He ruled out any increase in flour prices the days ahead. He said as of October 7 the wheat stock stood at 3.79 million tonnes.

He said that the foreign exchange reserves reached the highest ever $16.34 billion.

Mr Khan said that the sales of utility stores recorded a three-time increase during Ramazan as compared to the previous month. He said that the number of utility stores outlets would reach 6,000 by the end of 2007.

$5bn refinery approved for Hub -DAWN - Top Stories; October 11, 2007

 

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ECC approves incentives for refineries: 0.1 million tons wheat to be imported from Russia ​

ISLAMABAD (October 11 2007): The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved incentives for oil refineries and petrochemical projects to be established along the coast of Balochistan, particularly in the vicinity of Gwadar.

Presided over by Prime Minister Shaukat Aziz, the ECC meeting also slashed customs duty on import of bitumen from 15 percent to 5 percent, to be imported by Pakistan State Oil (PSO) from Saudi Arabia.

Announcing the decisions of ECC, Dr Ashfaque Hasan Khan, Special Secretary, Finance, said that the incentives for refineries and petrochemical projects include 20 years tax holiday, waiver of 5 percent workers' profit participation fund under the Companies Profits (Workers Participation) Act, 1968, and waiver of 0.5 percent service surcharge under the EPZA Rules 1981.

"These incentives will be applicable to all refineries and petrochemical projects to be set up in the coastal belt of Balochistan, particularly Gwadar," he added. He said that the ECC has also allowed the Ministry of Petroleum and Natural Resources to sign 'Implementation Agreement' with International Petroleum Investment Company (IPIC).

However, there would be no guaranteed rate of return for this refinery as the project is purely based on commercial consideration. It is expected to be completed and commissioned by the first quarter of 2011.

An oil refinery at Khalifa Point, near Hub, in Balochistan, with an estimated cost of $4-5 billion with 200,000 to 300,000 barrel per day refining capacity, is going to be established for which preliminary work has already started. This project is a joint venture of IPIC of Abu Dhabi and Parco with equity participation of 74 percent and 26 percent, respectively.

Dr Ashfaque said that incentives for the refineries had been recommended by the Energy Task Force headed by Dr Akram Sheikh, Deputy Chairman Planning Commission. He said that total wheat stock was 3.971 million tons as of October 7; of which, Punjab had 7772.275 million tons, Sindh, 0.498 million tons, Balochistan, 0.027 million tons, NWFP 0.062 million tons, and Passco 1.107 million tons.

He said that Trading Corporation of Pakistan (TCP) had floated two tenders to import 100,000 (50,000+ 50,000) tons wheat, and the parties had quoted price of $523 and $445 per ton. "TCP has accepted tender of $445 to import 50,000 tons Russian wheat," he said, adding that the other tender of equal quantity may also be awarded to the same party.

He said that inflation (CPI-based) in September 2007 was 8.4 percent, against 8.7 percent in September 2006, and 8.5 percent in September 2005, admitting that CPI was high in September as against August due to Ramazan.

"CPI based inflation in the month of September was largely driven by food items price hike," he said. SPI-based inflation during the week ended on October 4, 2007 stood at 10.7 percent against the corresponding week of last year. During the entire month of Ramazan (beginning from September 13, 2007), SPI-based inflation remained at around 10 percent.

The prices of 18 items increased in the week ending October 4, 2007 while the prices of 9 items registered a decline. The prices of 26 items remained unchanged during the week. This week's increase in SPI was largely driven by tomato prices, which had increased by 47 percent.

The recent increase in prices of essential items was relatively less in Pakistan compared to South Asian Region. Out of 16 food items, prices of three items, namely eggs, sugar and tomato, were higher in Pakistan while the prices of remaining 13 items were less in Pakistan. Most important among them were wheat flour, all kinds of pulses, chicken, potatoes, onion etc.

There are 3500 utility stores operating in Pakistan. By December 2007, the number will increase to 6000, he said, adding that sale in utility stores is up three times. The ECC also approved the summary of the provision of LPG to FATA.

It was proposed that OGDC will be advised to allocate LPG through competitive and transparent process and at least 80 percent of the LPG produced from Chanda filed be distribution in FATA. The OGRA will ensure that the LPG dedicated from Chanda field is marketed in the FATA area. The ECC has approved the proposal.

Business Recorder [Pakistan's First Financial Daily]

 

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'OICCI contributes 32 percent of GDP' ​

ISLAMABAD (October 11 2007): The Overseas Investors Chamber of Commerce and Industry (OICCI) contributes over 14 percent of GNP of Pakistan and approximately 32 percent of the GDP of the manufacturing sector. President OICCI Zubyr Soomro told Business Recorder on Thursday that OICCI has 168 members, representing all major sectors of the economy.

He said a recent survey indicated that the OICCI membership contributes 33 percent of the total tax revenue of the government of Pakistan, and directly employs approximately 100,000 people. He said that the Chambers' primary function is to promote the commercial, industrial and finance interests of foreign investors engaged in Pakistan.

He said that OICCI recently conducted its first annual perception survey of its members in which they were asked to summarise the quality of their interaction with various ministries and autonomous bodies over the past 12 months.

He said it was a matter of satisfaction that the results of this survey indicated that Pakistan was an attractive investment destination because of a growing domestic economy, consistent and business friendly policies and sound macro-economic management. He said OICCI works closely with the Board of Investment to promote FDI and is looking forward to its on-going dialogue with respect to the formation of Foreign Investors Council.

Business Recorder [Pakistan's First Financial Daily]

 

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$1.5 billion 'unofficial' trade conversion to benefit India and Pakistan alike ​

KARACHI (October 11 2007): The volume of trade between India and Pakistan through third country and other illegal means has been estimated at around $1 to 1.5 billion annually. The goods include chemicals, industrial machinery, spices, tyres, tea, medicines, videotapes, cosmetics and viscose fibre.

Which find their way either through third countries, like Dubai and Singapore, or through smuggling. According to a paper contributed to the symposium on doing business in South Asia held in New Delhi early this month under the aegis of Saarc Chamber of Commerce and Industry (S-CCI), the volume of 'unofficial' trade indicates tremendous potential between the two countries.

If the illegal trade is converted into official business, the current volume of trade may touch $3 billion mark, besides huge revenue gains for both countries. As a result of 'Confidence Building Measures' (CBMs) between Pakistan and India, trade had crossed $1.5 billion in 2006-07, showing five times growth since 2000-01. Pakistan's exports to India in 2006-07 were to the tune of $315 million against imports worth $1.18 billion, showing $866 million trade balance in favour of India.

At least eight trade and investment sectors have the potential for joint ventures in which both countries can complement each other's needs and produce cost-effective quality goods.

These relate to engineering industry, automobile sector, pharmaceuticals, textile industry, chemicals, plastics & melamine, textile and food & agribusiness. By importing iron and steel from India, Pakistan will have significant advantage of bring down the prices of steel products by over 50 percent and those of finished engineering goods by 10 to 20 percent.

Pakistan imports iron ore at a high cost from Brazil and Australia although it is available in India at lower rates. In order to avoid the possibility of Indian auto manufacturers capturing Pakistani market, as they are 25 percent cheaper as compared to Pakistan manufactured vehicles, establishment of joint ventures is the best way out.

A similar situation exists in pharmaceutical industry where Indian products are 30 percent cheaper than Pakistani products. To avoid conflict, establishment of joint ventures could be more effective.

At present, Pakistan imports machinery, including textiles and pharma worth over $2 billion per annum. It is expected that opening of trade with India would help Pakistan to acquire this machinery directly at much lower prices, instead of importing at higher rates from Germany.

Pakistan imports about 4.5 million tons diesel annually, mostly from Kuwait, but forbids imports from India, which exports over five million tons diesel annually. The import of diesel from India could lower the cost due to lower transportation cost.

In order to attract export-oriented foreign direct investment (FDI), establishment and strengthening of export processing zones (EPZs) need to be given priority. The EPZ concept encompasses different types of zones (eg free trade zones, duty-free zones, and special economic zones) reflecting the variety of activities performed by them. Pakistan and India may not be able to reap the true trade and economic advantages until the Kashmir problem is resolved, trade and industry circles believe.

Business Recorder [Pakistan's First Financial Daily]

 

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'Conducive environment for business women in Pakistan' ​

KARACHI (October 11 2007): The working conditions for woman entrepreneurs are more suitable and secure in Pakistan, rather, in United State of America (USA). This was stated by Ann. E. W. Stone, Entrepreneur and activist, USA at a meeting held here to encourage women to contribute and make a helpful hand for the growth of Pakistani economy.

The meeting was organised by Women Chamber of Commerce and Industry (WCCI) at Islamic Chamber of Commerce and Industry (ICCI) here on Wednesday. Salma Ahmed, Chairperson, BSA Inc, Attiya Nawazish Ali, Assistant Secretary General Coordination, ICCI, Yasmeen Hasnain and other WCCI members were also present on the occasion.

"USA is a developed country and countrymen are provided with all amenities but businesswomen are not being facilitated to establish business or to enhance their running businesses yet", Ann said. She noted that USA was a male dominated country, where businesswomen were being suppressed and not being facilitated as per women rights laws. Ann said that women in US were still not had given due role in taking financial decisions.

She noted that working condition in Pakistan has improved a lot and women were contributing in every sector besides. She hoped that Pakistan would came at par with the developed countries of the world shortly. Salma said that WCCI was facilitating all its members' entrepreneurs besides welcoming every businesswoman to be a part of WCCI family. She emphasised on the women to learn accountancy and computer education.

Business Recorder [Pakistan's First Financial Daily]

 

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'Record development schemes completed in Punjab' ​

LAHORE (October 11 2007): It is an unprecedented example that the present government has completed record developmental projects and distributed 100,000 acres of state land and 1,14,000 plots of five marlas among the landless farmers and shelter-less people in Punjab during the last five years.

Punjab Colonies Minister, Mian Manazar Ali Ranjha expressed this while talking to different delegations here on Wednesday, disclosed an official. He said the government has taken concrete steps for providing maximum relief to the people in every field.

Ranjaha said that the state land provided to the farmers at the ratio of 12.5 acres to each family is more than Rs 15 billion in total. "Roofs have been provided to the thousand of families by allotment of 5-marla plots. Second phase of these schemes would be announced soon during which 150,000 five marla plots and 100,000 of land would be distributed. Distribution of 250,000 plots would help housing sector to overcome its needs," he added.

The minister also said that the government is implementing a policy to retrieve the land from "qabza mafia" and allot it to the landless formers. This policy would bring huge area of land under cultivation, which would increase production help reduce unemployment in the rural areas of Punjab, he added.

Business Recorder [Pakistan's First Financial Daily]

 

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'India six times behind Pakistan in gas pipeline' ​

ISLAMABAD (October 11 2007): Pakistan has connected 1050 towns and villages through gas connectivity while in case of India, the connectivity is only restricted to 20 cities.

Pakistan is nearly six times ahead of India in terms of gas pipeline network as its pipeline network stands around 56,400 km as against 10,500 km that of India with its current pipeline density measuring at 1044KM/MMSCMD per day compared to 116KM/MMSCMD (million metric standard cubic meter per day) of India. According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), IINS reported.

In a paper brought out by the ASSOCHAM on gas sector - a comparison between India and Pakistan - has highlighted that as a result of intensive pipeline network, Pakistan has connected its 1050 towns and villages through gas connectivity.

In case of India, its connectivity is only restricted to 20 cities. Pakistan has created a 31,000 kilometers of distribution network to serve its domestic and commercial consumers in large locations as against 11,000 kilometers of distribution network that have so far been created in India to serve the requirement of its consumers in limited pockets.

Interestingly, while Pakistan has its possession nearly 1600 CNG (compressed natural gas) stations, in India their number is just at 380 and the gas throughput Pakistan is 38MMSCMD per day as against 8.5MMSCMD gas throughput in India.

The number of gas customers in Pakistan is estimated at 19 lac, which in case of India is just 5.50 lac and Pakistan runs vehicles on CNG whose number is estimated at 15.60 lac while in India, their number is just 4.60 lac.

Business Recorder [Pakistan's First Financial Daily]

 

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CPI-based inflation up by 7.07 percent ​

ISLAMABAD (October 12 2007): The Consumer Price Index (CPI) based inflation is up by 7.07 percent in 2007-08 over the same period last year with double digit, 12.97 percent, food inflation, said Federal Bureau of Statistic data released on Thursday.

Summary inflation rates based on CPI, Sensitive Price Indicator, (SPI) and Wholesale Price Index (WPI) were up by 7.07 percent, 10.22 percent, and 8.30 percent respectively over the corresponding period last year.

Further analysis of the data showed that inflation based on CPI, SPI and WPI increased by 8.37 percent, 11.65 percent, and 9.28 percent respectively in September 2007 with an increase of 2.13 percent, 2.63 percent, and 1.62 percent over August 2007.

The double digit food inflation poses a great challenge for the government as it has been recorded 12.97 percent, followed by Medicare 7.77 percent, house rent 7.46 percent, apparel, textile and footwear 7.62 percent, fuel lighting 2.70 percent, cleaning, laundry and personal appearance 6.47 percent.

The only area where some decrease in inflation was witnessed is transport and communications which recorded a negative growth of 3.06 percent and recreation charges 0.02 percent during the period under review when compared with the same period last year.

In wholesale Price Index (WPI), the food inflation grew by 14.25 percent, in 2007-08 followed by raw materials 6.92 percent, general 9.28 percent, fuel lightening and lubricants 6.38 percent, manufactures 3.72 percent and building materials increased by 9.81 percent over the same period last year

The main commodities, which showed an increase in their prices under CPI during September 2007 over August 2007, are onions (53.15 percent), vegetables (22.96 percent), tomatoes (17.72 percent), potatoes (10.54 percent), wheat (9.90 percent), wheat flour (8.50 percent), maida (7.66 percent), eggs (7.16 percent), cereals (3.12 percent), mustard oil (2.92 percent), fresh fruits (2.67 percent), chicken farm (2.56 percent), sweetmeat & nimco (1.82 percent), dry fruit (1.79 percent), besan and rice (1.65 percent each), pulse masoor (1.63 percent), vegetable ghee (1.53 percent), gur (1.51 percent), cooking oil (1.41 percent), milk products (1.23 percent), milk-powdered (1.04 percent) and jam, tomato ketchup, pickles and vinegar (1.01 percent).

Business Recorder [Pakistan's First Financial Daily]

 

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Small industries facing crisis due to budget policies ​

FAISALABAD (October 12 2007): Muhammad Hamid Sultan, Coordinator Micro Industries Development Resource Centre has said that small scale industries including sewing machine manufacturing units are facing severe crisis due to budget policies, while Engineering Development Board has taken no serious initiative to bring this labour intensive sector on the road of progress.

Talking to newsmen, he urged that while working for the stability of big industries, due attention be diverted to micro engineering development sector which badly need the patronage of EDB because in the last seven years nothing has been done for the promotion of this sector, commenting upon the adverse position of this sector.

He said that during the past years our exports of handicrafts and small engineering products declined to 78 percent whereas in the same period Indian exports in this sector reached to 3 billion dollars from 90 million dollars.

Ten years before Pakistan was exporting domestic sewing machines and now he is the largest importer in Asia for the import of domestic sewing machines having burden on foreign exchange exchequer in spite of having full human resources to compete globally.

India exporting 1.1 billion dollars sewing machine parts and he got stable establishment of micro industry. On the one side there is ministry of micro industries development which through strategic planning playing vital role for technology awareness, upgradation of this sector with financial support to meet with the global competitiveness challenges, whereas for regulatory mechanism Micro Small Medium Enterprise Development Act, Bill for the Development of Micro Industries playing remarkable role in the self sustainability of their economy, he added.

Hamid Sultan said that the role of micro industries in developing countries in this labour intensive sector is playing prominent part in poverty alleviation whereas our planners neglected this sector at large.

Rapid technical changes, shrinking economic distance, new forms of industrial organisation, tighter links between national value chains and widespread policy liberalisation creating hurdles with great intensity for small industries, the experience of the tigers of Asia indicate that coherent and carefully crafted policies can accelerate shifts in competition and promote entry into very complex and high technology, he added.

Business Recorder [Pakistan's First Financial Daily]

 

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Government to provide jobs to 70,000 people: minister ​

LAHORE (October 12 2007): The Provincial Minister for Trade and Investment Dr Sohail Zafar Cheema said that the government has developed a plan to provide jobs to 70,000 capable people. He said this while talking to a delegation of investors and industrialists on Thursday.

According to him, seven thousand small industrial units are being established in all districts of Punjab so that poverty and unemployment can be eradicated completely from the province. The minister said the government had evolved a plan to solve problems being faced by the industrialists and investors in Wapda, telephone, Sui gas, excise and income tax departments. Through TEVTA and other technical institutions, the government wants to make Punjab a skilled and self-reliant province.

"An exhibition for local products will also be arranged by the government in foreign countries and the government is encouraging investors and industrialists at every level," he added.

Business Recorder [Pakistan's First Financial Daily]