MULTAN, Oct 15th: The Federal Secretary for Industries and Production
Khizar Hayat Gondal has assured that a full fledged regional office of SMEDA
would soon be established in Multan to facilitate the people of Southern Punjab
and he also stressed the need for increasing the contribution of Industry to
the country's GDP by taking far -reaching steps. Currently ,the industrial
sector contributes to around 20.8 percent to the GDP, and is also a major
source of tax revenue for the government apart from contributing significantly
in creating job opportunities. Delivering his speech at a meeting of Multan
Chamber of Commerce & Industry (MCCI) chaired by Khawaja Jalaluddin
Roomi,its president, Mr.Gondal said “The government has planned and implemented
comprehensive policy measures on fast track to revive the economy, as a result
industrial sector started revival and recorded remarkable growth at 5.8 percent
as compared to 1.4 percent in last year. He said that present regime believed
in free market economy and ministry of Industries and production was conveying the
voice of entrepreneurs, industrialists and traders to the Government to resolve
their problems. The secretary urged the assemblers to increase deletion of auto
parts as auto assemblers having achieved localization of 60-70 percent
components still pay higher amount on the balance 30-40 percent imported
components. He said that Pakistan was now manufacturing almost all body parts
and mechanical parts, plastic components, tyres, batteries, seats and some
engine parts of cars. Some critical parts of the units are still imported by
assemblers. The deletion level in cars ranges from 50-70 percent. The
assemblers that have achieved higher deletion levels are correspondingly cheaper
than those that have lower deletion level. “Local car assemblers take four to
six months in delivery of cars,” he said, adding that the government has now
introduced a “mark-up against money deposited” to assemblers if they fail to
deliver vehicles in the stipulated time. the government had repeatedly asked
the local car assemblers to ensure timely delivery of vehicles, but to no
avail. Another factor which may also have contributed towards the rise in
demand for cars, is the State Bank’s decision to reduce the interest rate from
10% to 7%. He said that there was a demand of 3,00,000 cars per annum while the production is stagnant to
1,75,000. There was a dire need of huge investment in automobile sector. Of the
total $35bn investment in power projects, nearly $10bn is for Sindh, $7bn for
Punjab, $8.5bn for Baluchistan, $2.5bn for Azad Kashmir, $1.8bn for KP, $4.5bn
for projects involving Punjab and another province and apparently nothing for
Gilgit-Baltistan which provides Pakistan access to China on the economic
corridor but is facing the risk of unemployment. “Nearly 60 per cent work on
the coal-powered Sahiwal plant has been completed. It will start generating
electricity in the middle of the next year,” work on the project had started in
July last year and that it would be completed in record time of 23 months.
“Such projects are [usually] completed in four to five years across the world,”
he said.He said the Sahiwal plant would produce 1,320 megawatt compared to 900
by the Neelam-Jhelum scheme.The zero production mode has pushed PSM losses and
liabilities beyond Rs385 billion that stood around Rs200 billion when Pakistan
Muslim League-N government assumed power in May 2013 elections. He further said
that Government was also safeguarding the interests of farmers and agriculture
sector.In his welcome address Khawaja Jalaluddin Roomi said that new industrial
estates must be developed in southern Punjab like upper punjab and export
processing zone be established in Multan. A help desk of SMEDA be established
in Multan chamber to facilitate the people. An export display centre be setup
in Multan to introduce the local products.He also offered to contribute in land
acquisition for this centre. Khawaja Jalaluddin Roomi further said that due
representation be given to Multan Chamber in the board of governors of
subsidiary entities of ministry of industry and production. Senior Vice President
Ata Shafi tanvir Sheikh said that we have presented the case of southern Punjab
and put the ball in the goal of federal Government.Now it is responsibility of
the Government to resolve their problems.
