The Federal Board of Revenue has taken action on the request of Senator Saleem Mandviwalla for granting concessions to an industrial unit in Nowshera for revival of the industry engaged in manufacturing of pipes. Sources told Business Recorder here on Wednesday that the FBR has sought comments from the Regional Tax office (RTO) Peshawar on the request forwarded by former Finance Minister.
The FBR has asked the Chief Commissioner RTO Peshawar to submit the report to the Board immediately on the issues highlighted by Senator Mandviwalla. According to the letter of the Senator to the FBR, Nowshera Pipe Industries is the only manufacturers of Pipes used for reclamation of waterlogging and salinity affected agricultural lands ( a much needed work and support needed for the upliftment of agriculture sector of Pakistan) which has been going through a crucial phase of time due to unforeseen circumstances. The War on Terror, natural disasters and also because of sudden change in government polices. When the country was hit by the ruthless floods in the past year 2010 where Nowshera got extreme damages now they are requiring special attention since Prime Minister has visited physically and promised to help and provide assistance to the people who are in the hardship. I believe that this industry has got potential to turn out to be a benefit for the Agriculture Sector of Pakistan, Senator Mandviwalla stated.
The unit has never been under debt, no bank loans or taxes are outstanding against them which also highly appreciated fact, letter added. As per request of the company, the unit has been a victim of unforeseen circumstances, natural disasters and change of government policies have sent negative to genuine investors. The unit located in district Nowshera of the Khyber Pakhtunkhawa province was established to cater to the eradication of the country wide menace of water logging and salinity of valuable agricultural lands. It manufactures PVC corrugated drainage pipes of high quality of international standards. The unit was offered for sale and subsequently purchased by the investors from the Privatisation Commission by investing substantial amount of capital in 1994.
The present owners made further investments to upgrade the unit and manufacture pipes of international quality and reputation. The successful completion of the Mirpurkhas and Khushab projects were mainly due to the efforts of this unit as well. In fact this unit was the linchpin of the National Drainage Program announced by the government for a period of 20 years and it was in anticipation of this government policy that considerable investments were made in this unit. No loans or grants were ever obtained by this unit by present owners.
This unit suffered a great setback when Pakistan conducted nuclear tests in May 1998 and international funding stopped and sanctions were imposed on the country. The Donor agencies and the government stopped all the projects. After lifting of sanctions, the government created the National Drainage Authority/ Provincial Irrigation and Drainage Authorities under the National Drainage Program, it said. The floods witnessed by the country in the year 2010 has turned district Nowshera, where this unit is located into a calamity affected area in KP, requiring special attention. The people of the area are looking for help from government and International Donor Agencies. This unit is no exception. During a recent visit to the areas in KPK, the then Prime Minister promised help and assistance to the people and the industrial units of these areas but it remains unfulfilled.
It is presently the policy of the government and Donor Agencies to inject funds in the flood affected area both for the people as well as industrial units. This unit deserves immediate attention in this regard as it has suffered both due to natural calamity and the government policy, the unit added.