ISLAMABAD: The construction of Gwadar Shipyard has been delayed as the provincial government of Balochistan has not allocated the required land for the project.
This was stated by senior officials of the Ministry of Defence Production in an in-camera briefing to a sub-committee of the Public Accounts Committee of the Parliament (PAC) held under the chairmanship of Mushahid Hussian Syed.
The officials said that the federal and Balochistan governments in February 2021 signed an agreement regarding the development of the Gwadar Shipyard Project, but the land allocated for the project is far away from the port, and this ‘promised land’ is not allocated, which has resulted in delaying the establishment of the shipyard.
The Balochistan cabinet on January 21 approved to allot 750 acres of land to the ministry for construction of the yard on 30 percent equity basis. The shipyard would initially offer ship repair and maintenance services at two dry docks. The facility would eventually lead to shipbuilding.
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The chairman committee said shipyards are considered strategic assets for any country as they not only contribute to the country’s indigenous commercial and defence pursuits but also help it earn a lot of revenue through ship exports.
He emphasised the need to expedite work on the project for its timely completion.
The committee decided to take up the matter with the Balochistan government and to write a letter to the chief minister in this regard. It also decided to have an exclusive session on the overall progress made on the project.
The chairman said at the time of its creation, Pakistan only inherited one shipyard at Chittagong which was developed in 1922 by the British, adding that after the breakaway of Bangladesh in 1971, now Pakistan has only one shipyard while “Bangladesh now has 23 shipyards and has become ship exporting country”. Pakistan remains dependent on the Karachi Shipyard and Engineering Works Limited (KS&EW) constructed in 1957,” he added.
The officials informed the panel that a small port city of Turkey has 30 shipyards and potentially in Gwadar various shipyards can be established if suitable pieces of land near the port are provided to the ministry.
They said that Pakistan is sitting right on one of the major global maritime routes and should also invite the private sector to set up shipyards which could not only generate thousands of job opportunities but also enable Pakistan to earn foreign exchange by exporting goods and services.
He emphasized that no compromise should be made on quality in order to remain internationally competitive.
The committee called for making the defence production establishments more vibrant to compete in the international markets.
Copyright Business Recorder, 2022
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