The Ministry of Industries is striving to ensure special incentives for two new units M/s Novatex Limited and M/s Astro Limited with a view to declaring them pioneer industry, well-informed official in the ministry told Business Recorder. The sources said the Economic Co-ordination Committee (ECC) of the Cabinet in its meeting on July 1, 2010 while considering a summary submitted by the Ministry of Industries approved criteria for grant of pioneer industry status.
The incentives under the scheme are at par with existing incentives available to Special Economic Zones (SEZs) which include corporate income tax holiday for five years, duty-free import of capital goods and government commitment to provide infrastructure and utilities on priority to pioneer industry through concerned agencies/offices.
As per the approved criteria/guidelines, the incentives under the pioneer industry in Pakistan are available to projects with Rs 500 million upfront investments excluding the cost of land. The scheme is aimed at introducing high technology in Pakistan with primary focus on import substitution and foreign exchange savings/earnings. In pursuance of the ECC decision, a technical committee has been constituted for evaluation of cases in the light of approved criteria/guidelines.
Biaxially Oriented Polyethylene Teraphthalate (BOPET) is a polyester film made from stretched polyethylene teraphthalate and is used for its high tensile strengthen, chemical and dimensional stability, transparency, reflectivity, gas and aroma barrier properties and electrical insulation. Present consumption level is estimated between 14000 to 17000 tons per annum and its domestic demand is being met from imports by large scale consumers. It is used in packing, manufacturing and solar panels, LED/LCD televisions and monitor displays, etc. Small scale consumers are using other imported substitutes and are expected to switch to BOPET after local product becomes available. Expected local demand will increase after start of local production, which is estimated at 31000 tons per annum.
M/s Novatex Limited, Karachi submitted an application to the Ministry of Industries for declaration of their BOPET film project as pioneer industry on September 20, 2010. The technical committee in its meeting held on March 29, 2012, constituted a sub-committee under the chairmanship of Joint Secretary (Admin) Ministry of Industries to visit and check physically the projects of M/s Novatex and M/s Astro Plastic and to submit its report.
The sub committee submitted its report after visiting both sites ie M/s Novatex (Pvt) Limited and M/s Astro Plastic (Pvt) Limited and recommended declaration of both the projects as pioneer industry. Technical committee in its meeting on May 21, 2012 supported the recommendations of the sub committee for grant of pioneer industry status with benefits to both the units owning to similar technology, conformity with laid down criteria and identical expected date of completion.
Ministry of Industries has ascertained the present status of both units as July 5, 2012. Novatex unit has commenced its production from, July 2, 2012. However, Astro Plastic unit has also been completed and is presently under testing by German engineers. The production is expected very soon. A couple of years ago, Ministry of Industries had got approval of special incentives for a project of Trans Polymers Limited (TPL), which did not materialise.