The business community, associated with the surgical industry, has demanded of the government to declare the surgical industry "tax holiday" for at least five years with a view to enabling the century-old industry of the country from total collapse.
They pointed out that despite of various hurdles and lack of modern manufacturing facilities, the exporters and manufacturers were making strenuous efforts for their survival. The surgical industry was producing dental and veterinary instruments, pedicure and manicure items, tailor and barber scissors and beauty saloon instruments, they said, and pointed out that the value of exports of surgical instruments for 2005-06 financial year was 160 million dollars.
As many as 2,300 small and medium units are functioning in this export-oriented city and nucleus of cottage industry of the country and 0.3 million workers are directly or indirectly engaged with this industry. Due to the non-availability of skilled and semi-skilled workers, they said the surgical industry was facing serious manufacturing problems and if the situation remained same, the industry would be collapsed.
To protect the industry from crumbling, they demanded of the provincial government to fulfil its responsibilities and take immediate steps for providing skilled and semi-skilled industrial force.
They also demanded of the governments to direct Technical Education and Vocational Training Authority (Tevta) to start interaction with the surgical industry for preparing certain training courses in accordance with the needs of the industry.
The Trade Development Authority of Pakistan (TDAP), they said, should also adopt a rational approach and arrange series of "Made in Pakistan" exhibition in foreign countries for introducing home-made products in foreign countries. They urged the Federal government to review its taxation system because the industrial sector was suffering adversely because of duties. The cost of imported raw material had been increased to manifold, resultantly the production cost had also been increased, they added.
They said that "No duty no drawback" system should be introduced immediately for the larger interest of the industrial sector and abolish rebate system. The government should take necessary step for the elimination of internal price competition and for this purpose, the policy of price fixation should be introduced for safeguarding the industry.
They pointed out that if government exempted the import material from certain duties, the exports of surgical instruments would surely be increased, besides it would be supportive in bringing it out from heavy clutches of problems.
At present, the surgical industry had become stagnate due to poor polices of the government, they said, and suggested that the surgical industry should be declared as "tax-free" industry for five years for bringing it out from stagnation, besides electricity should be provided to the industry on flat rates.