NA informed: Study puts industrial sector's loss at 13pc

RECORDER REPORT

ISLAMABAD: The industrial sector's loss is estimated nearly Rs 130 billion per annum - 13 percent of total manufacturing sales.

In written reply to a question, Minister for Industries Chaudhry Pervaiz Elahi on Friday told the National Assembly that the industrial policy study commissioned by MoI in 2009-11 puts the loss at 13 percent.

He said that an independent study conducted in 2008 by the Institute of Public Policy, Beacon House University, estimated costs of outages to industry by surveying a sample of 65 industrial units. He added that the survey was conducted in four main industrial centres of Pakistan and included both continuous and batch-making industries.

The minister said the estimated cost of loadshedding for firms with self-generation facility was found to be Rs 74 billion, and for firms without self-generation Rs 83 billion.

Answering another question, he said that there are unconfirmed reports of some industrial units shifting. However new ones are also being established, he said. He said the government has taken steps to address the difficulties faced in the form of access to credit, loadshedding and access to technology.

The minister informed NA about the establishment of the first-ever SME Credit Guarantee Fund worth 10 billion. SMEs unable to produce collateral for bank loans will benefit from the facility. (scheme stands launched on March 19, 2010).

He said Venture Capital Fund of Rs 10 billion is being financed in the same manner as the SME Credit Guarantee Fund. He added that with a view to promoting industrialisation and value addition and/or promotion of exports, an Export Investment Support Fund worth Rs 40 billion has been set up.

He said the supplies to Export Processing Zones have been exempted from central excise duty vide SRO 333(1)/2002. However, the entry relating to supplies to EPZs could not be given in Third Schedule of the Act at the time of promulgation of the Federal Excise Act, 2005.

To remove this inadequacy, a new entry has been inserted in Table-I of the Third Schedule of Federal Excise Act to exempt goods imported or purchased locally for use in further manufacture of goods in export processing zones, he said.