New vision and role of PIDC

An Impromptu Comment: Pakistan Industrial Development Corporation (PIDC) is a name synonymous with the industrialisation of Pakistan; it is a name without mention of which no discussion, review or analysis of industrial matrix could find any credibility. Indeed the entire spectrum of commerce and industry is rooted deep down to PIDC.
Establishment of PIDC; The Raison D'être
PIDC was established in 1952 under an Act of Federal Legislative. The raison d'etre for its establishment was the critical condition Pakistan was engulfed in at the time of independence. There was at all no industry and the agricultural base was also mild, unable to cater alone for the funding requirements of the nation. The story of PIDC thus, is the story of the Government of a newly created country, successfully undertaking the daunting task of building up the industrial base of the country virtually from scratch.
The broad mandate entrusted to PIDC was planning, promoting, organising and implementing programs for (1) establishment of industries, (2) exploration and development of mines and (3) exploration, exploitation and development of any material that government may specify.
The primary task of the corporation was to set up industries in such fields where the private sector was shy and where large amount of capital outlay with long gestation period was required. Secondly the object was to set up industries in such areas which were backward with a view to creating employment opportunities and removing regional disparities.
Operations invigorated
Establishing, developing and expanding industrial base
Proving true to the trust and promise the government reposed in it, PIDC embarked on the gigantic task of bringing up the industrial base from infancy, nay, rather conception to the magnificent edifice as it exists today.
No doubt all that we find today on the industrial horizon is the fruit of concertedefforts put in by PIDC. It may not appear any exaggeration if it is said that the private sector that holds the market today has taken the lead from the path set by PIDC. No doubt PIDC played a pioneering role in developing industries in the fields of Fertilisers, Ship building, Heavy Industries, Jute, Textile, Cement, Chemicals, Sugar.
Activities Truncated
PIDC has established a total of 94 industrial units during 1952 - 1988, list enclosed (annex A). Indeed a remarkable achievement. The saga of PIDC however, is punctuated with stretches of hectic, continuously expanding activity as well as phases of low profile diluted posture.
The chronology of vicissitudes is as follows
-- 21 of its prestigious units were lost in East Pakistan in 1971.
-- In March 1974, PIDC had to transfer a number of projects to newly formed Public Sector Corporations under a President ordinance that aimed at re-organising the Public sector. List of 18 no units transferred to corporations under M/o I & P and those 26 no transferred to other government bodies is annexed at C & D respectively.
-- In 1984, through a Presidential ordinance PIDC was converted into a Corporate body (hitherto it was Statutory Corporation). Resultantly PIDC's role was truncated, it took the status of a Holding Company, all the units operating under it were converted into Limited companies having their own Board of Directors operating as subsidiaries of PIDC. Ipso facto the role of PIDC was confined to mere policy directions, evaluation and general guidance thereby investing full autonomy in the operating units.
-- During the course 17 no units had been sold & disinvested, list enclosed (annex E). It is noteworthy that most of the units taken away from PIDC have not operated well in the new hands; the majority of them having been closed by the new managements.
-- Six no unit, found no manageable/ non-profitable have been liquidated during last ten years, list enclosed (annex F)
New Roles
As a result of some units transferred to other Ministries/ Corporations and some sold out / disinvested / liquidated, and PIDC relieved of its primary task entrusted to it in 1952, a new role/ mandate was given to PIDC, as reproduced below.
"PIDC to be the Primary Vehicle for facilitating industrialisation by creating enabling environments for different segments of industries".
Activities Re-energised
Working with the same zeal and spirit, PIDC has acted promptly on the revised mandate and established nine no Skill Development Companies and Skill Development Centers with 100% investment of PIDC and management handed over to private sector. Similarly two joint venture companies (JV) on public private partnership bases, also related to Skill Development, have been formed and under process of commissioning (list at annex G). Through these SDCs and JVs PIDC has penetrated quite effectively in engineering, furniture, Gems & Jewellery, embroidery & technical training centers, the ultimate focus being the development and uplifting of qualitative and HR Skills in all these areas of social importance.
Besides, PIDC has ventured for mega projects and initiated feasibility studies on Coal Port/ Terminal for Imported Coal, Petrochemical Production facilities in Pakistan, Leather Sector Development Strategy and National fertiliser Strategy.
PIDC has also planned addressing the farm and livestock sector. In this context process for setting up a modern Cattle Fattening and Breeding Farm in outskirts of Karachi has been put into gear, as a joint venture.
The current management of PIDC is quite optimistic in exploring further avenues of expanding its activities under the new role set by the ministry.
New vision and role:
The role of PIDC has been recently redefined to act a "Primary Vehicle of facilitating industrialisation by creating enabling environments for different segments of the industries". Now PIDC is actively pursuing its revised role to achieve the desired goals and objectives. The Board of Directors of PIDC has also been reconstituted, which includes some of the leading industrialists in the country from diverse sectors as its members and the Ministry of Industries and Production as its Chairman.
To achieve these objectives, the following new companies have been incorporated:
1. National Industrial Parks Development & Management Company:
National Industrial Parks Development & Management Company is one of the subsidiaries of PIDC, established on public private partnership basis envisioning focused industrial growth by developing world class industrial parks in the country.
2. Technology Upgradation & Skill Development Company:
Established in 2005 under the direction of PIDC, Technology Upgradation & Skill Development Company has implemented a wide range of development initiatives in various sectors of the industry by setting up fully-equipped Common Facility and Skill Development Centres across the country.
3. Karachi Tools, Dies & Moulds Centre:
Karachi Tools, Dies & Moulds Centre is wholly owned subsidiary of PIDC. The main objectives of the company are to design, develop and manufacture Tools, Dies and Moulds (TDM) and provide training, consultancy and skill development services relating to TDM to public and private sectors.
4. Pakistan Stone Development Company:
Pakistan Stone Development Company is focused on a strategy that have trickle down effects throughout the value chain of the dimensional stone industry, achieving tremendous transformational impact.
5. Pakistan Gems & Jewellery Development Company:
Pakistan Gems & Jewellery Development Company was established in 2007 as a subsidiary of PIDC which took the task on priority basis and took all necessary steps to achieve its objectives.
6. Pakistan Hunting & Sporting Arms Development Company:
Hunting & Sporting Arms sector was one of the most neglected sectors in Pakistan. With a view of its importance and to explore its potential at national and international levels, PIDC established Pakistan Hunting & Sporting Arms Development Company.
7. Furniture Pakistan Company:
To promote and enhance the compatibility of furniture industry and craftsmanship of Pakistan in international markets, the Government of Pakistan developed a strategy to establish the company Furniture Pakistan. The project was taken up as a joint collaboration between Small and Medium Enterprises Development Authority (SMEDA) and USAID. Furniture Pakistan initiated its operation under the administration of PIDC.
8. Aik Hunar Aik Nagar:
Aik Hunar Aik Nagar is operating as a not-for-profit company since 2007. It is registered under Section 42 of the Companies Ordinance 1984 and is a subsidiary of PIDC, under administrative control of Ministry of Industries and Production, Government of Pakistan. Aik Hunar Aik Nagar concept is designed emulate the One Village One Product (OVOP) of Japan and One Tombon One Product (OTOP) of Thailand programs which have been quite successful in modernising non-farm micro and small-enterprises (SMEs) and thus improving employment prospects of the poor.
9. Pakistan Chemical & Energy Sector Skill Development Company:
Pakistan Chemical & Energy Sector Skill Development Company is one of the collaboration set-ups, which was planned during 2009 with an initial capital of Rs 175 million. PIDC is its major shareholder by contributing Rs 100 million as an initial capital. Other stakeholders are the local industries like Engro Foundation and Mari Gas Company Limited etc. It is a non-profiting Private Public Partnership Company, registered under Companies Ordinance Section 42 of 1984.
10. South Punjab Embroidery Industries:
Enlightens the cultural heritage with handmade and machine embroidery products. South Punjab Embroidery Industries has been designed as project composite textile units and a Head Office consisting upon 700 stitching machines and in our embroidery division, we have 60 latest embroidery machines backup with latest designing software. South Punjab Embroidery Industries also have a complete hand embroidery division.