The Economic Coordination Committee (ECC) of the Cabinet on Monday (today) will determine solutions to critical issues facing companies in existing Special Economic Zones (SEZs), despite billions of rupees investment.
Presided over by Finance Minister, Asad Umar, the committee will also consider a proposal of Ministry of Overseas Pakistanis & Human Resource Development Division titled "strategy for increasing overseas employment for Pakistani workers" and Petroleum Division proposal Machike- Tarujabba oil pipeline project.
Giving the background of SEZs issues, the sources said, Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood on February 2, 2019 met with the concerned companies in Karachi and assured them that their issues will be sorted out.
According to sources, recently, five companies facing hardship in National Industrials Park (NIP) have sent an SOS (Save Our Souls) to Abdul Razak Dawood, seeking his help in resolution of their issues.
The companies, including three from the auto sector, have commenced construction of industrial plants in Bin Qasim Industrial Park (BQIP) Special Economic Zone, National Industrial Park (NIP), Karachi, with a combined planned investment of Rs 35 billion.
The federal government recently appointed Rizwan Bhatti as Chief Executive Officer (CEO) of NIP. These companies argue that their investment of Rs 35 billion has been hijacked . However, the visit of Razak Dawood has given them hope that their issues may be resolved on priority basis.
According to the affected persons over the last year, more than 9 meetings have been held to facilitate BQIP investors by the Provincial Government (Sindh Economic Zones Management Company, SEZ Authority, Government of Sindh) and yet the Federal Government/concerned Ministries/NIP have not moved an inch to resolve their issues.
The companies, in their SOS, have claimed that they have suffered massive losses due to the Ministry of Industries and BoI inability to deliver on their SEZ obligations, obligations on which the companies had agreed to purchase BQIP's Pakistan Steel Mill (PSM) land at almost double the land price prevailing in Port Qasim Eastern Zone.
"Despite holding billions of rupees in their bank account, NIP has failed miserably in meeting its obligations, as per SEZ Act /Rules, to deliver state-of-the-art industrial park with provision of utilities (electricity, gas, water, sewerage, effluent plant etc.), infrastructure (road boundary walls, security etc) & allied facilities," said a representative of one of the companies.
The affectees further stated that the most critical and long pending issues that need to be resolved immediately by NIP are as follows: (i) execution of lease agreements & permission to mortgage letters - PSM has already approved the lease draft and is awaiting execution from NIP since last 3 months; (ii) Provision of Electricity- KE has already provided the requisite documents to NIP for release of payments to KE so that work on the electricity connection can begin; and (iii) availability of water and sewage connections, development of boundary wall and road network inside BQIP and availability of natural gas or RLNG.
The SOS further stated that Hi-Tech Alloy Wheels Ltd applied for SEZ status 12 months ago and its process has not yet been completed, and the imported plant is lying in bonded warehouse and attracting penal levies.
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