RECORDR REPORT
MULTAN (March 15 2010): Federal Secretary
Production & Industries, Abdul Ghaffar
Somroo has said that government is in the
process of framing a comprehensive
'Industrial Policy' with the consent of all
chambers of Commerce and Industry. He said
this while addressing the members of Multan
Chamber of Commerce & Industry (MCCI) here
on Sunday, which was chaired by MCCI
President, Malik Asrar Ahmed Awan.
He assured that draft of proposed Industrial
Policy would be released and publicly
discussed by the stakeholders. The input
would be collected and then reflected into a
national consensus before implementing the
same.
Targets for a period of 3 to 5 years would
be set in respect of growth of industrial
sector. He said that agro-based industry
would be focused in this policy.
While the law of demand and supply
determines the establishment of industrial
enterprises, many keep inquiring about the
directions to which industrial units would
be established.
Considering backward and forward linkages,
import substitution and export potential,
our recommended package of sectors in which
industrial units should be set up are
suggested below: light engineering,
agro-based industry, fisheries, leather
goods, garments, Halal meat processing,
DAIRY industries, fruits and vegetables.
The secretary said that our main problem is
low productivity and less tax ratio.
To a question he said that Rental Power
Plants (RPPs) were allowed with the
permission of Asia Development Bank (ADB)
and present regime was giving top-priority
to end energy crisis.
He further said that SMEs have played a
productive role in promoting employment,
accelerating exports, ensuring
sustainability in growth, adding variety to
industrial goods composition and paving the
way for social stability.
SMEs must be given proper attention and
credit allocation must be done on mandatory
basis. This will ensure poverty alleviation
and will narrow the gap between haves and
have-nots.
He said that micro enterprises growth has
been considered vital for accelerated
economic development in the world. SMEs have
made productive contributions and deserve
full support for their development.
It is high time that due and appropriate
attention is given to this crucial area and
banks and development finance institutions
should play their positive and constructive
role of extending micro credit.
He said that mark-up rate must be reduced to
reasonable level besides granting long-term
loans. He also demanded imposing ban on the
import of tractors to encourage the local
manufacturing industry and local automobile
industry should also be promoted.
According to him, the Grameen Bank
experience of Bangladesh has earned a high
respect and has been instrumental in
associating 2.3 million persons with
overwhelming majority of women in
socio-economic development of Bangladesh and
with positive results in poverty alleviation
efforts.
Several countries have replicated this
experiment and we need to share this
successful experience in Pakistan.
In his welcome address Malik Asrar Ahmed
Awan said that the government should not
take measures on ad hoc basis and it must
introduce a five-year industrial policy and
the process of privatisation should be
transparently undertaken to off-load public
enterprises and transfer these to private
sector.
Priority list should be prepared and
Privatisation Commission should be
encouraged to initiate accelerated efforts
to privatise the state owned enterprises.
He said that the government must redefine
their role and concentrate on strengthening
law and order and become facilitator for
business growth.
In each divisional headquarters of each
province, Export Process Zone (EPZs) should
be set up with freedom to operate and with
no interference from government
functionaries.
Pakistani expatriates should be motivated to
invest in EPZs and pave the way for export
led growth in Pakistan. There is a need to
give a serious thought to developing a
strong and attractive industrial policy for
Pakistan with the objective of accelerating
industrial growth through the advantages of
strengthen backward linkages and translate
the benefits generated from forward
linkages.
Copyright Business Recorder, 2010
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