Call for industrial stimulus package for KP

RECORDER REPORT

PESHAWAR: Former president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Senator Haji Ghulam Ali has urged the federal government to announce special incentives for the industrial development of Khyber-Pakhtunkhwa and tribal areas falling under federal and provincial control.

Talking to reporters here at the Tribal Area Chamber of Commerce and Industry (TACCI), he complained that during the past four years, the provincial government had failed in taking any initiative for the promotion of industries. He told reporters that the Prime Minister's Relief Package for reviving economic activities in Khyber-Pakhtunkhwa was also going to lapse on June 30 this year.

Stressing the need for using the help of private investors in the hydel sector, he said that the government should remove bureaucratic bottlenecks in this regard to overcome the prevailing energy crisis.

Criticising the federal government for its inaction in overcoming the energy crisis, he said that it was negatively affecting industrial and trading sectors, besides creating public outrage.

He said that the government was going to unveil the budget for next financial year at a time where industrial production had completely halted in the country in general and Khyber-Pakhtunkhwa and Fata/Pata in particular.

Calling upon the federal government to announce special initiatives for the industrial development of Khyber-Pakhtunkhwa, Fata and Pata, he said that all industrial units in tribal areas had been forced to shut down because of unjustified taxes and terrorism.

Stressing the need for eliminating terrorism, he said that utill terrorism was completely overcome, the province would not be able to compete with industrial units based in Karachi, Lahore and other parts of the country.

He said there was a need to grant relief in taxes and extend the Prime Minister's Relief Package for another three years, adding that newly-established industrial units in Khyber-Pakhtunkhwa and Fata/Pata should be granted a five-year tax holiday.

Citing geographical disadvantages, energy crisis and terrorism, Senator Ghulam Ali demanded of the government to reduce the mark-up rate on loans by 50 percent and said that these factors were impeding local industries. He also called for a special package for industries in terrorism-hit areas of the province and tribal areas, besides calling for the formation of a committee to study their problems and prepare a strategy to solve them.

Specifying various factors, the Senator said that it was difficult to achieve trade and revenue targets for the current financial year. 

Proposing the issuance of interest-free loans between Rs100,000 and Rs500,000 for small traders and shopkeepers, he said that it was necessary to generate employment opportunities.

He also urged the government to cut down its non-development expenditures, check corruption, he said that good governance was necessary to resolve such major problems.

Regarding the promotion of trade between Pakistan India, he said that Pakistan had no problem in trade with India and China, adding that trade should be boosted with all neighbouring countries, especially those belonging to the Saarc bloc. He said that Pakistan's total trade volume with Saarc countries was just 2 per cent against China's 23 per cent regional trade.

Commenting on difficulties in trade with India, he said that trade bodies should play their role in this regard, adding that trade bodies of the two countries should build up pressure on their respective governments.

FPCCI's Vice-President Zubair Ali was also present on the occasion.