The Economic Co-ordination Committee (ECC) of the Cabinet is reported to have refused to extend financial benefits to auto-disable syringes manufacturing industry, retrospectively, despite the fact that Prime Minister Yousaf Raza Gilani had declared it a 'pioneer industry', sources close to Industries Secretary told Business Recorder.
They said that the ECC in its meeting on December 15, 2009, constituted a committee comprising Chairman of Board of Investment (BoI), Industries Secretary, Commerce Secretary, Health Secretary, Investment Division Secretary and Chairman of Federal Board of Revenue (FBR) to evolve a mechanism/criteria for declaring an industry as 'pioneer industry' along with a package of incentives for it.
The ECC was informed in its meeting on May 3, 2010 that the ECC in its meeting held on February 9, 2010 had considered the recommendations of the Secretaries' committee and directed that the committee should meet again and come up with specific recommendations on the criteria and incentives for declaring an industry as 'pioneer industry' in any field.
It was further informed that in pursuance of ECC decision, a meeting of committee was again held on February 18, 2010. The committee further constituted a subcommittee to propose the possible sector/ sub-sector, promoted areas, incentives and criteria for the 'pioneer industry'.
On the basis of recommendations made by the subcommittee, the steering committee, in its meeting held on March 27, 2010, under the chairmanship of Chairman of Board of Investment recommended the criteria and incentives for 'pioneer industry' that: (i) To be first in Pakistan, which is to be duly verified by the concerned Ministry/Division; (ii) Minimum Rs 500 million upfront investment excluding cost of land; and (iii) Incentive(s) package for 'pioneer industry' may be the same as are allowed to Special Economic Zone (SEZ).
It was, however, pointed out that the Federal Board of Revenue did not agree with the proposal to extend incentive package of SEZ to 'pioneer industry', whereas other members of the committee agreed to the grant of SEZ incentive package to 'pioneer 'Industry'.
It was also observed that auto-disable syringes manufacturing industry has already been set up and due care should be exercised to avoid extending this facility to only selected group of industries. After discussion, the ECC agreed, in principle, to the idea of giving incentives to 'pioneer industry' in Pakistan with minimum Rs 500 million upfront investment, excluding cost of the land, subject to the condition that Ministry of Industries and Production will submit a fresh summary after evolving a well defined criteria and guidelines. The ECC also decided that the incentives will not be available with retrospective effect.
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