Provincial Minister for Industries Sheikh Alauddin has said that the Punjab government has so far paid Rs 730 million to the affectees of the Orange Line Metro Train (OLMT) project and promised to approach the Punjab Chief Minister for appropriate compensation so that traders could restart their businesses. He was speaking at a meeting at Lahore Chamber of Commerce and Industry that was also attended by the LCCI office-bearers and representatives of Multan Road Industrial Association and Mcleod Road Traders Association.
The minister assured them of taking up their case with the Punjab chief minister so that their issues could be resolved. The minister also constituted a committee headed by LCCI President Malik Tahir Javaid which would compile its recommendations for resolution of problems for onward submission to the minister.
Representatives of Multan Road Industrial Association informed the minister that demolition of industries for the sake of Hadyara Drain Project was not a good plan as it would not only deprive thousands of people of their jobs but would also air a negative message to the investors. They said that demolition of industries at Multan Road would cause huge loss besides impacting the government efforts aimed at progress and prosperity. The closure of hundreds of industrial units at Multan Road would cause huge lose to the national exchequer in terms of taxes and utility bills, they added.
Referring to a study conducted by the Lahore Chamber, Malik Tahir Javaid said the Punjab's share in value addition in large scale manufacturing declined from 49.3 percent to 48.9 percent during 2010-11 to 2014-15. However, Punjab has dominating presence in small scale manufacturing with a share of 71 percent in national value addition. Due to consistent boom in construction industry, the provincial share has significantly increased from 58 percent in 2010-11 to 75 percent in 2014-15, he added.
He said different experiments with federal and provincial industrial polices in the past led to low industrial growth in Pakistan. Similarly, the industry which is paying its taxes judiciously is facing trust deficit. It is need of the hour to stimulate industrial growth, leading to higher GDP growth, he added. The LCCI president further said that the Punjab industrial policy should incentivize the industry to move up the technology ladder. It will be even better that the industrial policy should focus on private sector led investment strategy which must lead to greater private investments in mega projects, he added.
He asked the banks to arrange sufficient funds for industrial credit rather than focusing more on short-term financing to general consumers. The plots' prices in industrial estates and cost of setting up hi-tech industry are significantly high, he said, adding that the government should provide basic infrastructure to private sector on lease so that the pace of industrialization could be increased. He urged the minister to immediately issue notification for regularization of industrial units set up on main roads under the Rural Industrial Scheme.
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