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Implementation of govt policies to bring about industrial revival

LAHORE: Trade and industry has linked the industrial revival to the implementation of government policies in letter and spirit, and the ability of its economic managers to deliver the promises they make with industrialists at different forums. Representatives of important trade associations at a program on capacity building journalists, organized by the Lahore Economic Journalist Association, pointed out that the economic turmoil in the country is due to inability of successive governments to implement their policies rather than the global recession.

The representatives of Pakistan Readymade Garments Manufacturers Association, Pakistan Hosiery Manufacturers Association, All Pakistan Textile Mills Association, Pakistan Industrial Traders Association Front and Lahore Chamber of Commerce and Industry gave their views on current economic scenario. President Leja Mansoor Ahmad, Vice President Itrat Bashir, General Secretary Muhammad Sudhir Chaudhry and Treasurar Imran Adnan spoke on the occasion. They said that many policies failed in the past although they were formulated by joint consultation with stakeholders this was because there were flaws at the implementation stage. The interpretation of bureaucracy on many policy matters were not in line with the spirit of the policy.

Former chairman PRAGMEA (Punjab), Naseer Malik cited the example of current trade policy. He said the textile policy formulated with input from all textile stakeholders is an excellent document. However, the facilitations provided under the textile policy are linked with the registration of all the exporters with the Textile Ministry through their respective associations. He said some SMEs are not in a position to fulfill all the requirements incorporated by the ministry for registration. He said the prudent thing would have been to get them registered through the association and then made it mandatory for them to fulfill the requirements within 3-6 months so that they could avail the facilitations and boost exports. Moreover he added that in cases where the requirements of registrations have been fulfilled the registration has not yet been granted which has denied them facilitations of refunds, SBP incentives, grants etc.

Former Chairman PHMA, Shahzad Azam Khan said: “Federal Finance Minister Shaukat Tareen has been promising since last one-year that Research and Development refunds held for the last two years would be immediately released but the promise has not yet been fulfilled.” He it is unjust to withhold genuine refunds of the exporters and create negative impact on the creditability of the government.

He said former advisor to PM on Petroleum Dr Asim promised that apparel and knitwear units would be exempted from natural gas load shedding – a promise awaits fulfillment.

Vice Chairman All Pakistan Textile Mills Association, Mohammad Akber said: “Power and energy shortage has crippled the basic textile industry.” He said: “Prime minister and other government functionaries promised that textile spinners would be treated at par with fertilizer units.” However, he regretted that SNGPL has already notified APTMA of gas cuts for three months beginning in November 2009.

In addition, for the last six months textile sector is subjected to daily five hours load shedding. He said financial constraints of basic textile units have been compounded by the high mark-up of the banks.

Chairman PIAF Irfan Qaiser Shiekh said high mark-up, high energy cost and its shortage, deteriorating law and order and political instability have played havoc with the manufacturing sector. He said electricity tariff for industrial sector in Pakistan is Rs 9 per unit against Rs 6.50 in India, Rs 6 in Bangladesh and Rs 7 in Sri Lanka. He said bank markup in Pakistan is 16 per cent while it is 7 per cent in India.

Farooq Iftikhar representing LPG distributors said government should grant licenses for 900 tonnes LPG gas that we are currently burning at the state owned gas fields. While talking about measures that government should adopt, he said that government should address the legal issues that have stalled opening of tenders for installing LPG production plants at sites where LPG could be produced.

President LCCI said that the audit of the corporate sector at their premises is not acceptable to the trade and industry. He praised the Kerry-Lugar Bill and said that conditions detrimental to Pakistan’s interest were removed at the time of its passage. He said power shortage is a regional issue. Electricity shortage in Indian Punjab is to the tune of 80000 MW and industries in Indian Punjab are mostly run on furnace oil run through generators. He said Pakistan should concentrate on producing electricity from Thar coal to reduce the cost and shortage of power.

Later the trade bodies’ representatives distributed 23 laptops to the economic journalists of Lahore. staff report

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