The Sindh government has sought Rs 500 million from the federal government for carrying out infrastructure improvement work in industrial areas of Karachi. "The total estimated cost of infrastructure development work stands at Rs 1 billion for which the federal government has been requested to contribute half of the total cost", official sources told Business Recorder here on Wednesday.
The other half of the cost, sources said, would be contributed by provincial government, which sanctioned the amount for the project in the last meeting of the Sindh Cabinet.
The plan to develop infrastructure in industrial areas is part of government's initiative to put in place proper infrastructure in line with the requirements of new trade norms, especially the WTO regime, which got under way since the start of this calendar year, is the main reason for forcing the government to this project, they added.
Also, in view of persisting demand of industrial and business community to provide them the level playing field through provision of various facilities and development of infrastructure made the government to think seriously particularly in Karachi, which is industrial and commercial hub of the country, sources said.
They said the existing infrastructure is in poor condition, and it is expected that after rehabilitation and improvement in the infrastructure, efficiencies of industries located there will increase and new industries will be established.
Sources said that major industry-oriented initiatives have been taken by the Sindh government to boost the economic and industrial activities in the province Sindh.
For instance, the industrial areas up-gradation, the funds in Sindh's Annual Development Program (ADP) for fiscal 2005-06 have gone up to Rs 90 million. In addition, the provincial government is going to set up industrial areas for small and cottage and large-scale industries in different parts of the province.
"An area of 100 acres have been identified for small industries at Karachi Northern Bypass whereas the Board of Revenue has been asked to allocate 500 acres of more land for setting up such areas in some other part of the city", sources added.
They said that another 2,000 acres of land has been sought for industrial areas for large industry while areas for small and cottage industry have been proposed at Hawksbay and Bin Qasim and Power-looms in Hyderabad.
They hoped that once the work on these plans completed, a major change would be witnessed in industrial areas, which have gone through worst negligence over the years, consequently, ruining the physical infrastructure there.
Regarding the existing industrial areas of Karachi, sources said that a plan is under consideration to set up companies in industrial areas except Site, where such companies already exist to carry out development work following the demand of industrialists of these areas.
They claimed investment-friendly climate in the province with no requirement of any 'no objection certificate' (NOC) to set up industry except few. "An investor is not required to go through hassles to get clearance from different government agencies by seeking their NOCs", they added.
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