Parliamentary panel has been informed on Tuesday that the Export Processing Zone (EPZ) in Sindh is fully operational as compared to Punjab where most of industries in EPZ are closed due to electricity shortage. Dr M Khawar Jameel, Chairman Export Processing Zones Authority (EPZA) disclosed that 205 companies out of 230 in EPZs Karachi were operational and 25 were in litigation against the authority.
He further revealed that the authority had purchased additional 200 acres of land from Sindh Government for extension of EPZ. Around 125 acres of land has been secured and possession of 75 acres is awaited. Most of the industries located in EPZs at Sialkot and Faisalabad are shut over non-availability of electricity. In Sialkot, two industrial units were operative on their own generators, chairman EPZA disclosed. In Sukkur, he said 100 acres land had been acquired for the site of EPZ.
Audit report 2010-11 states that Karachi Export Processing Zone (KEPZ) projects' review revealed that construction of 19 projects has not been started despite approval during 2006-07. As a result of construction lapse, 19 investors who wanted to start work in time with investment of $27.781 million could not move ahead. In addition, EPZA did not impose the non-construction penalty as per agreement, which caused a loss of $2.286 million to the government.
The report further indicates loose internal control and lack of proper monitoring and supervision of the projects to ensure compliance with the terms and condition of the license agreement signed by the investors. Syed Khurshid Shah chaired the meeting of PAC. Member Committee Sheikh Rashid alleged that the industries set up in EPZs were involved in importing raw material by under invoicing and exporting with over invoicing. Chairman EPZA rejected the allegations.