US Ambassador Ryan C Crocker pledged continued U S assistance to build and expand three major industrial sectors dairy, marble and granite, and gems and jewellery as an essential component of its overall $1.5 billion assistance package to Pakistan.
He was talking at the press briefing on policy reforms adopted by the Government of Pakistan through Usaid's Pakistan initiative for Strategic Development and Competitiveness (PISDAC) held at a local hotel on Friday. New US Consul-General Marry Witt, Mission Director Usaid Lisa Chiles, representatives of dairy, marble and granite, gems and jewellery and Smeda were also present.
The PISDAC is an Usaid-funded activity aimed at increasing competitiveness of Pakistan's small and medium enterprises. The sectors currently covered under the project are dairy, marble and granite, and gems and jewellery.
A broader break-up of this US money shows that $300 million would flow each year to Pakistan, out of which $200 million would be for budgetary support. From the remaining $100 million, $66 million would be for health and educational activities and the rest would have about 14-15 million dollars for dairy, marble and granite, and gems and jewellery sectors through Small and Medium Enterprises Development Authority (Smeda). What is left would be used for technical support, project identification and training of those who are involved in these three identified sectors.
Crocker said he was impressed by the economic development in Pakistan, which has great potential for foreign investment.
He said that PISDAC had been enormously successful and its results were encouraging.
He said that import duty was a major source of revenue generation but it might prove harmful in certain cases as, at times, it prevents competitive environment. "The reduction in import duties on packaging materials for dairy and food products, folding cartons and aluminium foil is a good sign and the step is in the right direction."
He said that the aim of this project is to identify the needs of gems and jewellery, dairy and granite and marble sectors and to develop training programme for those who are engaged in these sectors so that quality assurance could be made an important consideration.
He said that through proper training these sectors could be made more commercially viable and competitive at world level. "In our perspective, the process is very successful. The Government of Pakistan is using this vehicle to conduct detailed, open, and frank dialogue among the stakeholders to evolve some strategy to make them more competitive," he said.
Crocker appreciated the quality of stone Pakistan has and said that its quality was "extraordinary", but there was need to improve upon the production of finished products. "The finished product is still in need of quality control," he added.
Mission Director for Usaid Lisa Chiles said that the project, dairy, marble and granite, gems and jewellery, would get $10 million from the Usaid and $10 million would come from the government of Pakistan for support.
It would be for capacity building, training and ancillary support to bring these sectors at par with international standard.
She gave brief overview of Usaid's involvement in these projects through Smeda.
The Government of Pakistan is providing trade and other incentives to three major industrial sectors--diary, marble and granite, and gems and jewellery. These incentives and trade policy reforms are based on recommendations generated by a Usaid-funded project--Pakistan Initiative for Strategies Development and Competitiveness (PISDAC).
Under the project, targeted industries are organised into "strategic working groups" (SWOGs). Together with industry leaders, GoP officials academia and relevant NGOs, members of SWOGs work as a team to develop strategies for upgrading production and improving the international competitiveness of Pakistani products.
In the dairy industry, import duties on packaging material materials for dairy and food products have been reduced considerably. The duties on folding cartons and aluminium foil have been reduced from 25 percent to 15 percent and 10 percent, respectively.
To help increase milk collection and improve milk quality in rural areas of Pakistan, the GoP has abolished duties on milk chillers of less then 3000 litres capacity. Similarly, the GoP has reduced the customs duties to 5 percent and completely eliminated the sales tax on imported machinery and equipment used for mine development and mineral extraction.
Representatives of dairy, gems and jewellery, granite and marble and Smeda gave briefing on the potential and need of their respective sectors.
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