[ad_1]
KARACHI/ISLAMABAD: While announcing initiatives to bring down the cost of doing business to spur industrial activities in the country’s economic nerve centre, Caretaker Commerce Minister Gohar Ejaz on Thursday said that Karachi is going to have a Garment City besides an enormous area of Pakistan Steel Mills (PSM) will be converted into a special zone for industrial development.
Presiding over a meeting with businessmen of Karachi at Governor House on Thursday, the minister said a modern infrastructure has been planned on 300 acres of Karachi Garment City (KGC) while a plug-and-play environment unit will also be set up followed by water recycling and treatment plants.
The board of directors of KGC approved a plan to transform 300 acres into export processing zones where land will be offered on a lease basis, while the fate of PSM will be decided on Friday.
After multiple failed attempts to sell off PSM since 2019, the government shelved the idea and transferred the country’s largest steel producer to the Ministry of Industries and Production in November.
Port city will have 300-acre garment city and zone on Pakistan Steel Mills’ land
According to a reliable source, a delegation led by Mr Ejaz would meet with Sindh Caretaker Chief Minister Maqbool Baqir to make a final decision regarding establishing a special economic zone (EPZ) or export processing zone (EPZ) on PSM territory.
The meeting will include three federal secretaries of commerce, industry, and the board of investment. The details of the plan will be decided on Friday, the source added.
The federal cabinet was informed in October that upgrading the PSM would cost $1.4 billion. However, it was unclear from where funds would be raised for its resurrection.
The PSM plant currently has a capacity of 1.1 million tonnes per annum (mmtpa), with the potential for additional growth to 3mmtpa.
Chairing the KGC board meeting, Mr Ejaz said that investment in contemporary and environmentally friendly projects will be increased.
He claims that as a result of these facilities, industrialists’ manufacturing costs will fall and KGC’s exports will skyrocket.
According to an official announcement from the commerce ministry, the commerce minister also met with representatives of the Pakistan Business Council (PBC) to explore ways and measures to revitalise the city’s exports at the Governor’s House.
Pakistan has enormous economic potential that has to be exploited and explored, he said, adding that the business community should step up and seize this chance.
Answering a question, the minister said that we must be optimistic about Pakistan because it is endowed with natural resources and would grow into a significant economic force in the future.
He urged the corporate community to step up and take advantage of the 250 million people. He stated that with such a large population, Pakistan’s economy is $350bn, while China’s economy is $5.5 trillion.
Furthermore, Pakistan has a $25bn trade deficit with China. “We should come forward and reduce the trade deficit by increasing exports to China,” he stated.
Gas holiday
On the potential of Karachi, he said that because there’s a seaport, Karachi is a business hub of Pakistan, therefore, the business community should utilise the prospects of the city’s business environment.
Acknowledging the energy issues, the minister said that gas and electricity tariffs are being rationalised but “we need to shift our industries to renewable energies as well.”
Meanwhile, Sui Southern Gas Company Ltd (SSGCL) on Thursday said that due to the shortages the gas supply to all industries including their power generation units and all CNG stations in Sindh (including those being operated on RLNG) will remain suspended for 48 hours from 8am on Dec 30.
SSGCL, in a statement, said it would take strict action against any industry found violating this gas holiday period and subsequently their gas supplies will be disconnected for at least seven days.
Published in Dawn, December 29th, 2023
[ad_2]
Source link
