MULTAN, April 9th:Federal Secretary Industry & Production Abdul Ghaffar Somroo has said that we are going to introduce an industrial policy in the light of recommendation, proposals of Chambers of Commerce & Industry and other stake holders to increase the industrial production and meeting the export target of 25 billion. Delivering his speech at a meeting of MCCI executive Committee chaired by Shahid Naseem Khokhar its president .The meeting was also attended by Yousaf Naseem Khokhar CEO of SMEDA, Khawaja Muhammad Yousaf CEO of National Productivity Organisation, Khawaja Muhammad Jalaluddin Roomi Chairman of All Pakistan Bedsheet & Upholstry Manufacturers Association (APBUMA),Mian Tanvir'A Sheikh Ex-President of FPCCI, Shehzad Ali Khan Vice Chairman of PCGA. Somroo said that a new Industrial Policy is under preparation envisaging two-pronged strategy of export promotion and import replacement. The focus would be on maximum use of indigenous primary products and human resources.The policy would lay emphasis on employment generation, increasing productivity, product diversification, competitiveness and moving towards knowledge-based hi-tech industry. He said that new industrial policy would focus on the boosting up the industrial production as well as revival of about 1909 sick industrial units across the country, in consultation with all relevant stakeholders.A.Ghaffar Somroo said that Since Pakistan is an agriculture country and we would have to increase our agricultural output and our 70 percent exports depends on textile sector. He said that we are main producer of cotton but Bangladesh had superseded Pakistan while it was importing cotton to run its textile mills.Federal Secretary said that Government had introduced long term loans for industry on 8 to 10 percent markup.However it was not possible to grant any concession in bank loans when the inflation rate is in two digit.He said that Government was fully aware of that 18 to 20 percent markup was not viable for industry.It can be cut if we managed to increase the production,he added.FPCCI's former President Tanvir A sheikh said that Private and public sector would have to play their role to increase the GDP growth which had dwindled down to 2.5 to 3 percent.He said that Government had introduced a textile policy in 2005 which had given a road-map for boosting up textile production and its modernisation.Then our cotton consumption had gone to 16 million from merely 8 million bales per annum.When incentives were given to farmers they had produced 14 million bales which had now fallen to 11 million bales. APBUMA's Chairman Khawaja Muhammad Jalaluddin Roomi has stressed the need for access to European union markets ,United States and other developed states.He said that Pakistan should negotiate with USA for the granting exemption of duty on the products manufactured in Pakistan from the cotton imported from US.He further said that Government should pay proper attention towards the import of Liquified Natural Gas (LNG) so that gas companies could supply gas to industries.He further said that Government should provide loans on concessional markup in flood hit areas like Khyber Pukhtoon Khwah where mark-up rate is merely 8 to 9 percent.He also demanded for the excution of Cottage village in Multan, for which 32 acres of land was earmarked in Industrial extate. PCGA's Shehzad Ali Khan expressed his anger on granting licences for establishment of sugar mills in cotton zone,which caused the reduction of cotton production.He said that Government should patronise the ginning industry which was a base of textile sector and its modernisation was vital.Khawaja Muhammad Yousaf announced to set-up a women business centre in Multan to promote their products in the area.This announcement was welcome by Dr.Aamna Awan and said that we would do our the best to make this project a success.
President Asif Ali Zardari has taken serious notice of gas supply suspension to the textile industry and has constituted a committee to oversee gas load management of SNGPL. The president has mandated that any further gas load-shedding would require approval from the committee. Referring to the meeting’s decision dated March 28, 2011, the President Secretariat has constituted a committee comprising of Minister for Religious Affairs Syed Khurshid Shah, Raja Pervez Ashraf, APTMA Chairman Gohar Ejaz and MPA KPK Anwar Saifullah to oversee gas load management of SNGPL. However, the SNGPL has still issued a schedule for 3.5 days gas supply, arbitrarily and contradicting clear-cut directions from the president for providing uninterrupted gas supply to textile for five days a week. In a letter to the SNGPL MD, APTMA Chairman Gohar Ejaz took serious notice of gas supply suspension to the textile industry and said that SNGPL was defying President’s direction. The APTMA Chairman has reminded of President Asif Ali Zardari’s direction to provide uninterrupted gas supply to the textile industry for five days a week, allowing the sector achieve textile export targets of $14 billion by June 2011. However, Gohar regretted that the SNGPL has arbitrarily issued weekly gas curtailment schedule of 3.5 days on March 30, without obtaining approval from the committee. He termed the latest gas load management schedule as a contradiction of the President’s desire and urged the SNGPL MD to provide uninterrupted gas supply to the textile industry.
The Minister said the country desperately needs another urea fertiliser plant to avoid import of urea after 2013. "At the moment we are self-sufficient till 2013 in urea production provided gas is supplied to fertiliser plants. Another urea fertiliser production plant must be operational by 2014 to avoid huge foreign exchange expenditure on urea import," Bijarani added. The country's present urea plants are facing 20 per cent curtailment in feed gas due to which the government is importing 0.225 million tons of urea.
Official sources told South Punjab news that Petroleum Ministry conveyed to MoI&P on several occasions that it cannot give any firm guarantee of gas availability for urea plants until gas is imported. On the other hand Ministry of Food and Agriculture (Minfa) and MoI&P are taking up this issue at different fora in an effort to ensure that there is no gas shortage for urea plants in years to come.
The German company's representative Lothar Jungemann presented a profile book to the Minister. The company delegation also discussed various aspects and possibilities for the establishment of a fertiliser plant in Kuwait. The delegation told the Minister that cost of fertiliser production in Kuwait could be cheaper and Pakistan has to bear transportation charges only.
"We have suggested to the Minister for Industries and Production that the company is ready to establish urea plant in Kuwait or Qatar due to feed gas availability. The plant will be dedicated to Pakistan," said a Pakistani representative of the company Asad Ullah Kazmi. The Minister welcomed the proposal and said any investment proposal submitted to the government would be discussed in detail. "If a proposal is viable, then it would be submitted to the federal cabinet for formal approval," Bijarani added.
Sources in the Ministry of Water and Power told Business Recorder that 20 per cent curtailment in feed gas to the urea plants will continue this season so that fuel demands of the energy sector can be met. Urea fertiliser plants are exerting pressure to restore full feed gas supply but their efforts have remained fruitless to date.This thorny issue is expected to be discussed in detail at the Energy Summit to be presided over by Prime Minister Yousaf Raza Gilani. Both the Ministry of Water and Power and Ministry of Industries and Production are preparing working papers to plead their cases at the Summit. The government has imported 100,000 MT of urea through open tender and 130,000 MT through Saudi Basic Industries Corporation (SABIC).TCP has sent a reference to Economic Affairs Division (EAD) stating that Saudi Fund Development (SFD) credit facility of $100 million caters for approximately 250,000 metric tons of urea from SABIC. Under the ECC decision, the import from SABIC has been restricted to 125,000 MT, accordingly 100,000 MT has been imported through tender by the TCP.
