28 - Sep 03, 2000
Musharraf stresses economic revival
The chief executive, Gen Pervez Musharraf, on Wednesday urged
the businessmen, particularly those in the textile business, to come forward and
invest so that the country, which he thought was at the cross-roads, could move
forward breaking off the shackles of debt.
The chief executive, who was speaking at the annual dinner of
the All Pakistan Textile Mills Association, noted that the country was facing a
'do or die situation' and, therefore, all the stakeholders in the country should
work unitedly to achieve the dream of joining the comity of nations with
"our heads held high."
He said the time for discussion and preparing strategies was
over and "now it is the time for implementation."
Gen Musharraf appreciated the fact that the textile industry
in the last several months had invested about $500 million in BMR, "but
that is not enough, we need more investment in order to revive the
"Survival of Pakistan lies in its economic revival and
for economic revival we need to revive the industry, specially the textile
sector," he added.
He said his government was making allout efforts to develop
investors' confidence and usher in a business-friendly atmosphere.
"I have hosted a number of small lunches and dinners to
discuss the matter with the Pakistan businessmen and find out what can be done
to revive the confidence of the investors."
Deletion plan to be operative from Sept: ISDP 2000
The industry specific deletion plan (ISDP) 2000 will become
operative from September 2000. Certain amendments have been inserted into the
ISDP 1998-99, which envisage prevention of all kinds of deviations by the local
industry from the formula for induction of technology indigenization. On the
other hand, it offers more protection to the downstream units which have been
suffering due to these deviations.
According to informed sources, the new indigenization plan
lays stress on prohibiting all kinds of violations of the category "A"
deletion-based conditionalities, which specify that no import of the items
produced locally by the vending units and notified as such, would be allowed at
concessional duty and tax rate in future. These items have been placed on the
list attached to Customs General Order No 7, 1998, which has been updated after
notifying a range of new items as deleted from the concessional list.
IDB lauds efforts to revive economy
The President of the Islamic Development Bank (IDB), Dr Ahmed
Mohammad Ali called on Chief Executive Gen Pervez Musharraf in Islamabad on
During the meeting, the Chief Executive informed the IDB
chief about the measures being taken by the government for reviving the economy.
He thanked the IDB for its support and assistance to
Pakistan, which includes latest agreements worth US $130 million. The Chief
Executive lauded the role of the Islamic Development Bank for improving the
state of the Muslim Ummah.
The government has approved a sum of Rs100 million for the
development of tea on commercial ground in the Northern areas of the country.
Official sources said on Tuesday the government had also asked the Agriculture
Development Bank of Pakistan (ADBP) and Micro Credit Bank (MCB) to provide
interest free credit facilities to tea farmers of these areas.
Gas pipeline project
Special task force will pursue $ 5 billion
Iran-Pakistan-India gas pipeline project which is expected to post around $ 700
million revenue per annum to Pakistan. Under this project, 2670 kilometres
pipeline is required to be laid for the supply of gas from Iran to India of 56
inches diameter which would ensure flow of 3.3 billion cubic feet. Pakistan,
sources continued will reap transit fee of the pipeline line project worth $ 500
million annually while another amount of $ 200 million will be mopped per annum
by getting cheaper gas from this project.
Package for tractor industry
An interim tax relief package has been agreed with the
tractor industry under which the withheld import consignments of parts and
components have been released by the Central Board of Revenue.
An undertaking has been obtained from the management of the
industry for such consignments' release which provide for payment of duties and
taxes on all the items being released, would be payable if the revision of the
deletion plan is not allowed to the industry in the process of next meeting of
the relevant authorities in this connection.
64 sick units revived so far
The committee for the revival of sick units has so far
revived 64 industrial units and restructured an amount of more than Rs15 billion
involved in these units.
Chairman of the committee Tariq Hameed said on Thursday that
the committee has so far taken up 120 cases.
He pointed out that Rs4.5 billion was the defaulted amount in
Rs15 billion stuck-up in these units. "The entire amount has been
restructured and it is now performing loan", he added.
Exploration for oil
The government has directed the ministry of petroleum and
natural resources to conduct oil and gas exploration in some tribal areas of
It has been decided that specific area and districts in which
gas or oil deposits are found would be provided substantial financial and
development grants for the benefit of the local residents.