Federal Secretary Production & Industries, Abdul Ghaffar Somroo has said that government is in the process of framing a comprehensive 'Industrial Policy' with the consent of all chambers of Commerce and Industry. He said this while addressing the members of Multan Chamber of Commerce & Industry (MCCI) here on Sunday, which was chaired by MCCI President, Malik Asrar Ahmed Awan.
He assured that draft of proposed Industrial Policy would be released and publicly discussed by the stakeholders. The input would be collected and then reflected into a national consensus before implementing the same.
Targets for a period of 3 to 5 years would be set in respect of growth of industrial sector. He said that agro-based industry would be focused in this policy.
While the law of demand and supply determines the establishment of industrial enterprises, many keep inquiring about the directions to which industrial units would be established.
Considering backward and forward linkages, import substitution and export potential, our recommended package of sectors in which industrial units should be set up are suggested below: light engineering, agro-based industry, fisheries, leather goods, garments, Halal meat processing, dairy industries, fruits and vegetables.
The secretary said that our main problem is low productivity and less tax ratio.
To a question he said that Rental Power Plants (RPPs) were allowed with the permission of Asia Development Bank (ADB) and present regime was giving top-priority to end energy crisis.
He further said that SMEs have played a productive role in promoting employment, accelerating exports, ensuring sustainability in growth, adding variety to industrial goods composition and paving the way for social stability.
SMEs must be given proper attention and credit allocation must be done on mandatory basis. This will ensure poverty alleviation and will narrow the gap between haves and have-nots.
He said that micro enterprises growth has been considered vital for accelerated economic development in the world. SMEs have made productive contributions and deserve full support for their development.
It is high time that due and appropriate attention is given to this crucial area and banks and development finance institutions should play their positive and constructive role of extending micro credit.
He said that mark-up rate must be reduced to reasonable level besides granting long-term loans. He also demanded imposing ban on the import of tractors to encourage the local manufacturing industry and local automobile industry should also be promoted.
According to him, the Grameen Bank experience of Bangladesh has earned a high respect and has been instrumental in associating 2.3 million persons with overwhelming majority of women in socio-economic development of Bangladesh and with positive results in poverty alleviation efforts.
Several countries have replicated this experiment and we need to share this successful experience in Pakistan.
In his welcome address Malik Asrar Ahmed Awan said that the government should not take measures on ad hoc basis and it must introduce a five-year industrial policy and the process of privatisation should be transparently undertaken to off-load public enterprises and transfer these to private sector.
Priority list should be prepared and Privatisation Commission should be encouraged to initiate accelerated efforts to privatise the state owned enterprises.
He said that the government must redefine their role and concentrate on strengthening law and order and become facilitator for business growth.
In each divisional headquarters of each province, Export Process Zone (EPZs) should be set up with freedom to operate and with no interference from government functionaries.
Pakistani expatriates should be motivated to invest in EPZs and pave the way for export led growth in Pakistan. There is a need to give a serious thought to developing a strong and attractive industrial policy for Pakistan with the objective of accelerating industrial growth through the advantages of strengthen backward linkages and translate the benefits generated from forward linkages.
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