Expansion of regional trade: Umar says PM is for exploring ‘alternate’ avenues

KARACHI: Federal minister for Planning, Development and Special Initiatives, Asad Umar, said on Saturday that the government has taken a principled step on the issue of trade with India as oppressive actions in Indian Illegally Occupied Jammu and Kashmir cannot be overlooked and Prime Minister Imran Khan has directed his cabinet colleagues to explore “alternate” avenues for expansion of regional trade instead of relying on bilateral trade with India.

Talking to media persons during his visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said that the government is fully optimistic about the revival of Pakistan Steel Mills (PSM). According to him, some four international parties have shown interest for revival of Steel Mills and they will be coming to Pakistan in August to explore the revival opportunities. “I still stand by my statement that Pakistan Steel can become functional again and it could be turned into a fully operational and profitable entity and there is no reason to shut it down.”

Federal Minister informed that the China Pakistan Economic Corridor (CPEC) has now entered its second phase, in which projects relate to agriculture, industry and employment are being planned.

“In the first phase of the CPEC, basic infrastructure, energy sector particularly hydro-electrical power generation were given priority. Now, a multibillion dollars railway project ML-I is in an advanced stage and remarkable progress has been achieved in relation to the financing of the project. The joint committee on CPEC would consider the project in its next meeting,” he said.

He further said that work on Rashakae and Faisalabad trade zones is also in progress. The entire work on Western Corridor of the CPEC has been carried out by the PTI government, he added.

Umar said that Karachi Trade Corridor, “a parallel track from Karachi port to Pepri,” will be constructed and “initial work on Karachi Trade Corridor with an estimated cost of Rs 130 billion has started and tenders of the project under BOT [build operate transfer] mode would be floated this year,” he said.

Replying to a question, he said that earlier the mega water project for Karachi, K4, was being constructed by the Sindh government and now this project would be completed by Wapda. Its completion is expected in the second half of this year,” he added.

He said Karachi is going to get extra power as promised. “The federal government has committed to add 900MW to KE’s system but it is now going to add more than one thousand (1,000) MW to it,” he added.

On a question about the exchange rate, Asad Umar said PTI has stabilized the exchange rate without spending a single dollar from the foreign exchange reserves.

Talking about the Karachi Package the federal minister said that most of the development projects would be completed this year as federal government is actively pursuing the projects under its Rs 1100 billion Karachi development package.

He further said that mass transit Green Line project is in final stage and the buses under this project would be on roads of the metropolis by August this year. In addition, the design of Karachi Circular Railway has also been completed as well and work could be started by the end of the year.

The federal minister said that PTI government is facilitating the industrial sector and with rationalization of electricity tariff for industrial sector has accelerated industrial activities. The production of cars and cement has also increased. Export sector is also performing well. “For the first time in the history of Pakistan the quantum of monthly exports remains above $ 2 billion for consecutive 7 months,” he added.

Regarding Covid-19 measures, Asad Umar vowed full support to the Sindh government and its decision for closure of markets on weekends. “The number of Covid-19 cases is increasing in the country and currently some 3400 patients are in critical condition”, he said.

He said that in order to improve the rain water drainage system of Karachi, the federal government has taken responsibility and development work on Mehmoodabad, Korangi and Gujjar Nullah is in full swing.

Earlier, President FPCCI, Mian Nasir Hayat Maggo, in his welcome address, highlighted various issues being faced by business community.

He demanded “effective” representation of trade and industry in policymaking process to achieve the maximum output of the measures taken by the government.

Copyright Business Recorder, 2021