30 - Nov 05, 2000
Govt hikes share of manufacturing sector in GDP
The government has decided to increase the share of
manufacturing sector in GDP from 17 per cent to 17.5 per cent, and to
enhance textile exports from existing $4.5 billion to $13.8 billion by
The Three-Year Development Programme 2000-2003
finalized by the Planning Commission aims at enhancing efficiency and
international competitiveness of the local industry through optimal
utilization of capacity, technical innovations, tariff
rationalization, not only removal of impediments but active
facilitation of exports and a consistent and comprehensive industrial
Three-year programme will have the following
objectives:(a) increasing the share of manufacturing sector in GDP
from 17 per cent to 17.5 per cent; (b) diversification to
export-oriented industrialization of value-added and high tech
products; (c) establishing of an efficient industrial structures with
competitive advantage with the WTO regime; (d) increasing textile
products from existing $4.5 billion to $13.8 billion by 2005; (e)
acquiring modern technology, technical and managerial know-how, and
access to foreign market; (f) promotion of indigenization for self
reliance; (g) adoption of environment-friendly technologies.
The programme also calls for adoption of a
strategy, which will be compatible with national aspirations and
national capabilities in achieving national goals.
The major elements of the strategy will be to
instituting measures for higher capacity utilization and activating
Industrial Facilitation Boards for provision of physical
The Planning Commission believes that the major
issues in manufacturing include slow growth rate, high cost of
utilities, lack of physical infrastructure, low investment, revival of
sick industry, development of Small and Medium Enterprises (SMEs),
total quality management and productivity enhancement, R&D,
vocational training and the role of chambers of commerce and trade
associations in achieving rapid industrial progress.
Edible oil refinery
A Malaysian business group is willing to invest
$100 million in edible oil, refining and edible oil jetty at Karachi
and in manufacturing of fertilizers.
A four-member delegation of Felda Groups of
Companies, Malaysia led by its Chairman Tansri Raja Mohammad Ilias met
the Chairman Board of Investment (BoI), Wasim Haqqie on Monday and
discussed with him the possibility of investment in various sectors.
"But the Malaysian business group is
interested mainly, in establishing edible oil refinery at a cost of
about $25 million", said the chairman BoI.
Wasim Haqqie, however, told that the Malaysian
group was seeking certain concessions from the Central Board of
Revenue (CBR) to set up this refinery.
He said the group has also expressed its interest
in fertilizer. But he said some of the issues relating to crude oil
and fertilizer duties by the CBR have been referred by the ministry of
industries and production to the Economic
Relocation of industry
The country can attract investment of billions of
dollars from Europe and North America in the shape of relocation of
textile industry from there before lifting of quota restrictions by
Industrialists said that many advanced countries
had shown keen interest in relocating their textile industry to
Pakistan for having advantage of its cotton and required labour.
But, they said, proper policies would be required
to attract such investment opportunities.
They said that the much talked about "Textile
Vision 2005" is completely silent on such investments.
The textile vision policy had laid down such
suggestions, which would need huge foreign exchange for upgrading the
local textile industry through Balancing, Modernisation and
Rehabilitation (BMR) and expansion projects. A foreign exchange to a
tune of $6 billion was hinted in the textile vision for this purpose
but with poor reserves, the country could ill afford to meet such
ICI Pakistan to hive off PTA arm into separate co
ICI Pakistan announced, on Thursday that it was to
hive off the PTA arm into a separate company. "The intention of
directors is to separate PTA and non-PTA businesses so that each
company can follow its own imperatives for profitable growth",
the company said.
The move marked one element of a "growth
strategy", that the company said, had been formulated to
'revitalize' ICI and 'restore shareholder value'. The other major
decision was to raise the Staple Fibre Plant capacity from current
60,000 to over 100,000 per annum. "It is intended to secure third
party funding for the $20 million cost of (expansion) project through
setting up of a Modaraba in order to avoid additional liabilities
being added to the balance sheet", the company stated.
Poland keens on joint ventures
Poland's Deputy Minister of Economy, Henryk
Ogryezak, has expressed willingness for joint ventures with Pakistani
entrepreneurs in light industries.
According to information received on Wednesday from
Warsaw, the Polish Deputy Minister expressed his keeness at a meeting
with a visiting Pakistani trade delegation at Poland's capital.
Ogryezak said that Poland was keen to increase the
level of economic and commercial cooperation with Pakistan.
Oil, gas fields
The Privatization Commission has engaged a
consortium of Jardine Fleming and Gaffney Cline and Associates as
financial advisor for laying off of government's direct working
interests in nine oil and gas fields.
An agreement between the PC and the representatives
of the consortium was signed on Tuesday.
At present the nine licences together at Minwal,
Pariwali, Turkwal, Badin-I & II, Mazarani, Adhi, Ratana and
Dhurnal have daily production of over 5,000 barrels of oil and 2,000
million cubic feet of gas.
The government has 10-40 per cent working interests
in a number of oil and gas fields operated by private companies. The
PC as part of the overall divestment of its holdings in these nine
fields, has prepared a short-term plan.