Import of raw materials: Erstwhile FATA, PATA factories’ owners say they will move court

PESHAWAR: Factories’ owners here on Wednesday decided to approach court against allotment of less import quota of raw materials to ghee, steel, plastic factories and other industries against total installed capacity for their industrial being situated in erstwhile Federal Administered Tribal Areas (Fata) and Provincial Administrative Tribal Areas (Pata).

The decision was taken during a meeting of factories owners chaired by Malakand Chamber of Commerce and Industry (MCCI) president Muhammad Shoaib Khan in Peshawar, according to statement issued here.

Factories owners during the meeting termed allotment of less import quote of raw materials against total installed capacity by Federal Board of Revenue (FBR) to the factories of ghee, steel, plastic and others, situated in Mohmand, Dargai, Bara, Buner, Swat, Chakdara and other merged districts as unlawful and injustice. A ghee mill, which has a total production capacity of 7500 tons, was allotted import quota of only 1500 tons of raw materials that has decreased production capacity of the unit, becoming prime reason for retrenchment of factory workers, the owners added.

Similarly, they said a steel mill production of 10,000 tons, has been allotted import quota of 2000 tons of raw materials, which is making it difficult to run the industrial unit.

The factory owners asked to avoid decreasing the import quota of raw material for the industrial units on a basis capacity determination survey.

Though, they also highlighted income and sale tax-exemption was granted till June 2023 to erstwhile Fata/ Pata, while on the other hand, the FBR has decreasing import quota of raw materials for the aforementioned regions, which is a completely unjust and unfair move.

If they were available to import goods/raw materials in the open market on low-cost and procurement above their requirements, the fixed import quota of raw materials disallowed them to take benefit of the open market, the owners said.

The participants viewed on initiatives to attract foreign investments in Khyber Pakhtunkhwa through holding roadshows and donor conferences, while import is decreasing by leveling baseless allegations of smuggling on industries, which are damaging the image of the industrialists.

Likewise, they pointed out that owing to faraway from port, ex-Fata/Pata had become uncompetitive with settled areas owing high transportation charges. Whereas, they said the frequent power outages and low-voltage issues are compelling to run factories units on generators.

On the occasion, the participants informed that Dargai Industrial Estate was established early 2013 but electricity was unavailable in the estate in 2022 so industrial units are running through generators in the estate.

Copyright Business Recorder, 2022