South Punjab Forest Company (SPFC) will play an instrumental role in the overall development of commercial forestry on modern scientific lines and purely on marketable basis.
This was disclosed by Tahir Rasheed Chief Executive Officer SPFC while addressing a function in Faisalabad Chamber of Commerce and Industry (FCCI).
He said that at least 50 public sector companies are working in Punjab including newly created SPFC. He told another two forest companies have also been proposed for central & north Punjab which would work for the development of commercial forestry to support wood, sports goods & furniture industries on sustained basis.
Regarding SPFC, Tahir Rasheed told that this company has been allotted 134995 acres of land in the districts of Bahawalpur, DG Khan, Rajanpur, Rahim Yar Khan, Muzaffar Garh and Bhawalnagar. "This company will develop forests on this land with the help of private sector", he said.
Underlining the benefits of the commercial forestry, he told that it will play a major role in controlling environment pollution in addition to reorganising wood industry and saving preciously foreign exchange.
He said that the SPFC is engaged in the preparation of feasibilities of different Business Plans and hoped that this work will be completed within next three weeks paving way for the transparent leasing of land initially for 15 years.
This lease will be extendable for another 15 years, he added. Tahir Rasheed said that Pakistan is a blessed country with nine different ecological zones and four different seasons which provide our private sector to grow all types of trees for commercial purposes. Quoting the world's standards for the reservation of land for sustained forests, he said that at least 25% area should be covered by forests. He said that in Pakistan the total forest area is 4.5 percent and out of it the forests are available on only 1.9 percent area.
He said that the deforestation in Pakistan has been 2.1 percent and if this trend continued, we will loss our entire green houses deemed necessary for the survival of biodiversity. He said that in America the private sector has developed forests on 870 Million hectors of land with an investment of 480 Billion Dollars. Out of it, the 20 Billion Dollars have been invested by different institutions due to the profitability of this sector.
Regarding the plans of SPFC, he told that after the completion of TORs, the lease agreements will be inked in the month of May. He further told that a period of 7 to 8 months will be given for land levelling and provision of water. He said that at present 3 different business plans are under consideration. These will be on sharing basis, lease basis and a mixed blend of these two types.
He said that the investors will be allowed to cultivate 11 different species of trees, however no invasive varieties will be allowed for the purpose of cultivation. Responding to a question asked by President FCCI Muhammad Saeed Sheikh, the CEO, SPFC said that the land will be leased out initially for 15 years which will be extendable for another period of 15 years on the same terms and conditions.
However, after 30 years of lease, new rates will be negotiated. He clarified that this allocated land will not be allowed to be used for any other purpose including agriculture; however the lessee could grow bamboo on it.