Textile City to fetch additional $2.5 billion foreign exchange per annum
KARACHI (November 23 2003): The creation of the proposed Textile City is estimated to fetch an additional foreign exchange of $2.5 billion per annum through increased exports, besides attracting about US$ 12.5 billion private sector investment and providing 80,000 direct employment opportunities.
Minister for Industries and Production Liaquat Ali Jatoi stated this while throwing light on the performance of his ministry on the completion of its first year (ie November 22, 2002-November 22, 2003) during a press conference on Saturday.
He explained that the main purpose for the establishment of the city was to face the upcoming challenges of quota-free market in the wake of World Trade Organisation (WTO) regime.
It was aimed at providing all the basic utility and infrastructure facilities to the manufacturers that they could effectively compete in the international market.
Value addition of the Pakistani products was another main target so that we could get better prices for our products, he added.
The Minister mentioned that the feasibility study of the project was underway and work had been accelerated on it.
He pointed out that adequate supply of water was the major challenge for the establishment of this city, which requires 18 mgd initially and 25 mgd afterwards.
However, the matter had been thoroughly discussed with the MD, Water Board who has assured the required water supply from the Indus source by 2004, he said.
Highlighting the prevailing investment climate in the country, the Minister expressed his satisfaction and said that the policies pursued by the Musharraf government and later its continuation by the political government had brought a lot of improvement in it.
Now various foreign investors were showing their interest to invest in Pakistan. In this connection, he pointed out that a New York-based company, GSP had shown its interest to set up a power generation plant at the cost of US$ 500 million, while another Saudi company is interested in the establishment of steel manufacturing plant worth US$ 100 million.
“We hope to have many more such agreements with the foreign companies in future as a number of inquiries, pertaining to establishment of industries in Export Processing Zones (EPZs) are already being received from foreign investors,” Jatoi said.
He said that several steps are being taken to make the EPZs more attractive for investors, which include reduction in land prices, fee, tariff incentives, etc. He also discussed EPZs expansion plan and said that 100 acres more land has been approved for this purpose, while another piece of 100 acres would also be sought soon.
The minister said that 100-acre land has been approved for expansion of the Export Processing Zone, Karachi. Moreover, he said, the Karachi EPZ would shortly be connected through road with the Port Qasim.
The Minister said that noticing the robust economic activities in various sectors during the last year the industrial growth of the country had registered an impressive 11.87 percent increase over the preceding year.
Giving a sector-wise break up of this industrial growth he mentioned that during the same period the textile sector grew by 5.07 percent, leather 29 percent, chemical, plastic and rubber Industry 10.25 percent, non-metallic sector 16.41 percent, basic metallic 13.52 percent, automobile 50.22 percent, and mineral 16.44 percent.
He also thoroughly discussed the improved performances of various institutes/corporations, working under the ministry which included Pakistan Steel Mills, National Fertiliser Corporation, State Cement Corporation and Pakistan Engineering Corporation, besides highlighting the restructuring plans carried out at Pakistan Machine Tool Factory, Utility Stores Corporation and Small and Medium Enterprise Development Authority.
Massive restructuring, re-modification had been planned for the Pakistan Machine Tool Factory by the government after which it would hopefully start assembling and production of motorcycles locally, he added. About the Sindh Engineering, he said that in collaboration with Dong Feng Corporation, it had started production of various makes of buses, trucks and military vehicles.
He gave full credit to President Musharraf for pursuing investors-friendly policies and rendering untiring efforts for bringing a turn around in economy of the country and described his recent visits to various countries as part of his sincere efforts to attract foreign investment in Pakistan.
Furthermore, he also discussed at length the programme for the establishment of 200 technical/industrial training institutes/villages under the National Productivity Organisation (NPO) and setting up of 26 Business Support Centres all over the country.
About the automobile policy he said that the matter is still under consideration and would be soon taken up to the President and the Prime Minister for a final decision on the issue.
Federal Industries and Production Secretary Javed Ashraf and Pakistan Steel Mills (PSM) Chairman Colonel Mohammad Afzal Khan (Retd) were also present at the occasion.
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