The Federal Minister for Industries and Production, Jahangir Khan Tareen, in his address to the members of the Karachi Chamber of Commerce and Industry (KCCI) last Monday, unfolded his ministry's plans to launch a new strategy for promoting industrial development.
The new strategy, according to him, would be finalised by January next and would include comprehensive sectoral studies which would identify the problems impeding a sustained pace of investments. These studies would focus in particular on the prevailing inadequacies in infrastructure facilities like power, gas, water and communication links, as also the deficiencies in the industrial estates throughout the country.
In order to cope with these problems, the proposed strategy envisages establishment of Industrial Development Boards on the principle of partnership between the public and private sectors - the managing director of the Board from the private sector and the funds for the development of industrial estates to be provided by the government.
This move by the Ministry of Industries and Production will be welcomed by all concerned in view of the fact that the problem of increasing gap in the availability of infrastructure facilities in the industrial sector has undoubtedly taken an acute turn. At present, there is hardly any close liaison between the industrial estates and the authorities concerned either at the centre or in provincial governments to take care of the situation and solve the problems of inadequate infrastructure facilities. If the proposed Industrial Boards are able to find the desired answer to the prevailing problems, it would be indeed a highly welcome contribution to the growth of industrial investment in the country.
The minister has experience of similar efforts initiated under his guidance in Punjab when he was advisor to the chief minister for industrial investment. During this period the Multan Industrial Estate was successfully restructured and thus the problems relating to infrastructure facilities were brought under control. According to him, similar efforts were underway to improve infrastructure facilities in the Kot Lakhpat Industrial Estate near Lahore. It may be pointed out here that the development of industrial estates is the responsibility of the provincial governments which also have their own departments of industries in addition to industrial development boards. The industrial estates are developed at suitable locations in each province by the provincial governments which are also supposed to ensure availability of necessary infrastructure facilities. But the problem of shortfall in power, gas and water supplies can hardly be tackled by the provincial governments since these facilities are managed and controlled by the respective agencies. Consequently, a large number of large-scale industries have installed their own power generators.
It is to be seen as to how successfully the Ministry of Industries would be able to co-ordinate its programme with the provincial governments and also with the autonomous agencies responsible for the supply of power, gas and water. It may also be mentioned here that the Federal Ministry of Investment and Privatisation is already seized with the task of promoting investment activity by ensuring one-window facility to the intending investors for the prompt availability of all the infrastructure facilities at the site of a proposed project. The new strategy initiated by the Ministry of Industries would reinforce the efforts at the federal level to promote investment with greater success.
There can be no two opinions that SMEs have the largest potential for accelerating industrial development and export growth in addition to expansion in employment opportunities for both skilled and unskilled workforce. Although the specialised authority SMEDA established by the federal government, is fairly active to promote small and medium industries with necessary supportive measures, yet this sector seems to be still running from pillar to post to get its problems redressed. The proposed Industrial Development Boards should be able to make a major contribution to economic growth if they can find ways and means to help SMEDA implement its programme successfully.