Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen has said that the government has chalked out a special programme to invite foreign experts to help Pakistani garments sector to be more competitive and face the post-WTO challenges in an effective manner.
He hoped that the project aimed at up gradation of garments sector would be approved and launched during the next fiscal year. Initially, 10 existing garment factories would be converted in to 'model factories' and gradually the number would be increased to 70, he said while talking to journalists after presiding over the farewell ceremony of JICA senior volunteers, who spent 24 months in different textile units for improving their efficiency, productivity and cost efficiency.
The project was implemented under Smeda-JICA industry support programme, in which five experts took part.
Throwing light on the project to be launched for garments sector, Tareen said that 70-percent cost of the foreign experts would be borne by the government, while 30-percent would be borne by the unit to be selected under the scheme.
To another question, he said the government would seek help of foreign experts for up gradation of local industry, wherever need arises. However, he said that garments sector was getting priority of the government due to post-WTO challenges.
Regarding SME Policy, he said that it would hopefully be announced by next month (May 2006). He also expressed the hope that Pakistan would achieve double-digit growth in the industrial sector this year.
Replying a query about sugar and cement crisis, he said that the government had asked Earthquake Rehabilitation and Reconstruction Authority (Erra) that it should see the possibility of direct import of cement for its needs, as there was no duty on its import.
He said that cement prices had increased due to surge in demand. However, he said that he would also be holding a meeting with cement manufacturers.
About sugar crisis he said it was due to increase in its prices in the international market. He said that per ton price of sugar had increased from 325 dollars to 340 dollars in the international market. He said that Brazil, top sugar producer, also went in to Ethanol production. He said Pakistan was also facing shortage of sugar and this year it had to import one million tonnes of sugar. However, he said that benefit of increase in the sugar prices, was also passed on to farmers, who get prices up to Rs 80 per maund of sugarcane as compared to Rs 40 per maund last year.
He disclosed that the government had not sold 14,500 acres of land of Pakistan Steel Mills and negotiations were on with the Sindh government to set up an Industrial Park on that land.
He said that it had been made clear on the consortium, which bought Pakistan Steel, that the land given to them with Pakistan Steel could not be used for any other purpose except of the Steel Mills. He said that Steel Mills employees would get a package of Rs 12 billion. He said that the government had asked its employees to go for a bid and one-month delay in the bidding was due to time given to the employees.
Earlier, speaking at the function, Jehangir Khan Tareen said that the Industry Support Programme between government of Pakistan and Japan was not over with departure of present group of senior volunteers.
JICA had agreed to send a fresh group of senior volunteers for auto sector. Whereas, a number of other industrial sectors including Fisheries, Foundry and Light Engineering are also being reviewed for further co-operation under Smeda-JICA Industry Support Programme, he added.
Chief Executive Officer, Smeda, Shahab Khawaja in his address said that the JICA volunteers visited 158 factories and arranged eight training programmes. He said that these volunteers worked for 900 working days to help Pakistani textile industry be more efficient, competitive and enhance productivity.
Textile sector representatives, including Owais Mazhar, Ayub Khan, Shafqat Elahi and others also spoke on this occasion and gave their feedback on the effectiveness and importance of the programme.
Resident representative JICA Pakistan, Takao Kaibara and senior volunteers co-ordinator JICA, Kunihiro Sakai also spoke on this occasion.
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