INDUSTRY

 

Sept  15 - 21 , 2003

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

PLAN TO INCREASE PER CAPITA INCOME

The government has finalized a new plan that seeks to increase per capita income from the present $420 to $1,000 by 2010. According to official sources the substantial increase in the per capita income will be achieved by encouraging public-private sector partnership to set up proper Export Promotion Zones (EPZs) and Industrial Estates throughout the country. Under the new plan, share of manufacturing sector will be increased to 25 per cent of GDP by the year 2010. Similarly, the share of engineering sector is estimated to grow to 30 per cent of manufacturing in 10 years. The industrial sector will be prepared to cope with post WTO scenario by making the products internationally competitive.

 

 

 

For rapid industrial growth, emphasis will be on the construction industry for which liberal house loans will be provided to meet the present shortfall of 5 million houses. The new plan jointly worked out by the ministries of finance, commerce and industries and production also calls for technological upgradation, technical manpower development and support for appropriate infrastructure (physical, financial, technical and intellectual). The plan also seeks to facilitate tripartite arrangement among investors, technology suppliers and local partners to achieve better industrial productivity. It emphasises on cluster development particularly for areas like Gujranwala, Sialkot, Wazirabad and Hyderabad.

Sources said that the main objective of the plan is reversal of downward trend of investment and industry, elimination of the awkward phenomena known as "De-industrialization", ending of stagnation and to ensure that the economy is again at the take-off stage, with the government's assertions of its strong commitments to adhere to the last three years reform programme.

INDUSTRIAL SECTOR GROWTH UP BY 5.18PC

The overall production growth of 39 Large Scale Manufacturing items was recorded 5.18pc in July 2003 as compared to same period last year. The production of cigarettes during July 2003 has increased by 9.55pc, cotton yarn 1.32pc, cotton cloth 24.28pc, cotton cloth (non-mill sector) 2.50pc, jute goods 17.20pc, printing papers 49.45pc, writing paper 5.95pc, packing paper 2.15pc, chip board 7.78pc, soda ash 1.05pc, caustic soda 2.82pc, sodium phosphate fertilizer 49.42pc, cement 12.53pc, bicycles 7.35pc, motor tyres 6.38pc, coke (steel) 13.72pc, iron and steel products 8.32pc, cars 47.46pc, light commercial vehicles 1.63pc, trucks 30.56pc, and motorcycles 57.53pc.

According to official figures, the production of fertilizer sector fell by 3.32pc during July 2003. The production of sheet glass is recorded 7.33pc low. The production of motor tubes was also low by 15pc. The production of jeeps, buses and tractors was also recorded low by 9.09pc, 40.59pc and 13.61pc, respectively.

TEXTILE INDUSTRY FACES NON-TARIFF BARRIERS

The major textile exporting countries including Pakistan will face yet another dilemma in the post-textile quota regime when the developed countries will take advantage of non-tariff barriers (NTB) for restricting exports from these countries.

Pakistan along with other textile exporting countries must stress on the developed countries that NTB, which would mostly include social compliance issues, environmental issues, and labour standards may not be used against them, which might affect their exports to reach their markets, said former chairman, All Pakistan Textiles Mills Association (Aptma), Nadeem Maqbool.

 

 

107 UNITS CLOSED

One hundred and seven out of 204 industrial units at Lasbela Industrial Estate have been closed, while only 20 sick units have been rehabilitated so far.

SERVICES SECTOR

Along with other developing countries Pakistan should take care in giving access to foreign services suppliers since the liberalization in the services sector has already showed a decline in quality standards of services and increased the prices, says a senior research scholar in the services sector.

WAPDA SEEKS DIRECT POWER SUPPLY FOR KESC

Pakistan's biggest power utility is seeking the government approval for the construction of a grid station that would enable independent power producer Hub Power Company to directly supply power to Karachi Electric Supply Corporation by 2006, industry sources said. The state-run Water and Power Development Authority has sent a proposal for the project to the government for approval, a Wapda source said.

KESC is facing a power shortfall of 800-1000 megawatts. KESC can get a maximum of 600 megawatts from Wapda's transmission line, but if the new proposal is approved then the utility can directly obtain power from Hubco's 1,200-megawatt plant, a KESC official said.

NWFP INDUSTRY FEARING ANOTHER HIT

With well over 40 per cent of the total number of industrial units established in NWFP already experiencing closure, the feeble industrial sector of the Frontier province appears to be hardly prepared to face future challenges emanating from the enforcement of World Trade Organization's regime in 2005. NWFP industrialists believe that due to unfavourable business environment local industry would get further hit once WTO agreement becomes effective in January 2005.

SMALL UNITS MAY FACE CLOSURE

Trade and industry predict closure of a large number of small and medium size industries after 15 months when the rules and regulations regarding phasing out of quota and cut in import duties under the World Trade Organization (WTO) will come into force from January 2005. Industry people say that chances for survival of the organized or big units are there because they have been spending millions of dollars to comply with the requirements of the global trade. However, small and medium size units will face difficulty as they have not enough capital to meet the requirements of WTO.