Ministry of Ports and Shipping admitted on Tuesday that Maritime Policy has failed to attract private investors and it has been decided to revise it. "In a bid to encourage private investors, the government would revise the Maritime Policy," said Secretary Ministry of Ports & Shipping while briefing the Senate panel. The Senate Standing Committee on Ports & Shipping met with Mohammad Ali Khan Saif in the chair here on Tuesday.
"The incentives given in the current Maritime Policy have not received a good response so far and the policy would be revised to encourage private sector investors," the secretary added. He further said the Ministry welcomed joint venture as well as private sector for operating ferry service, but it would not involve itself directly before conducting proper feasibility study to avoid loss and embarrassment in future. The Ministry welcomes the proposal of Oman for launching ferry service and said that the proposal would be considered thoroughly.
The committee was further informed that currently two land allotment cases of Port Qasim Authority (PQA) are being probed by the National Accountability Bureau (NAB). These include allotment of land to RM Properties (Pvt) limited and to Pakistan Textile City limited (PTCL).
Federal Minister for Ports and Shipping Mir Hasil Khan Bizenjo said that NAB took action on the information of Transparency International Pakistan which was not based on fact. He further complained that a NAB director directly wrote a letter to him while saying that corruption was being reported in his departments. The ministry officials said that PQA allotted 1,250 acres of land to Pakistan Textile City; however, despite passage of 11 years not a single plot was developed and sold for the purpose for which the land was allotted. The ministry has written a letter to Textile Ministry for giving back the land to PQA. Meanwhile, Prime Minister has directed for volunteer winding up of the Pakistan Textile City project.
They further said that on the instructions of government of Pakistan and approval by PQA Board, the land was allotted at a reduced rate of Rs 1 million per acre instead of prevailing rate of Rs 1.5 million plus 0.5 million per acre for fast track allotment.
The PQA has charged only for the area of 901.6 acres out of total area of 1,250 acres, excluding the area to be utilised for amenities, utilities and services. The development and maintenance of the services of entire 1,250 acres is the responsibility of PTCL.
The Prime Minister's Office issued instructions that Finance Division shall immediately take the lead for voluntary winding up of the company, after meeting all necessary prerequisites; simultaneously, all assets of the company shall be disposed of through an order of transfer to PQA, which originally leased the land to PTCL, since the terms of lease do not allow its further sale or transfer to a third party.
The PQA shall be responsible to settle all liabilities of the company out of its own resources, since it will have beneficial use of the land from now onwards. However, the committee raised questions if the company has failed in utilising the land after keeping it for 11 years, how PQA would take liabilities. The Ministry of Ports & Shipping further said the ministry had paid required amount to the Sindh government for the transfer of land in its favour; however it is yet to be transferred. Senator Taj Haider said the issue would be discussed with Board of Investment Sindh.
The committee was further informed that RM (Pvt) Ltd had applied for allocation of land and in response to PQA's letter, it submitted feasibility report along with 25 percent PDC Pay order of Rs 62,500,000, being down payment required for allotment under Land Allotment Policy 2005.
The case was presented in the 153rd PQA Board meeting and the Board directed for clarification of the following: whether this contemplated allotment falls under the Land Allotment Policies 2000 and 2005 or it is to be advertised/tendered; whether or not this land is available in the PQA master plan and what is the purpose of its utilisation.
Accordingly the case was forwarded to a legal advisor for seeking expert opinion on the board's direction, who advised that RML has expressed its interest in the development of a project in the vicinity of Gizri/Korangi Creek areas consisting of residential, commercial, marina, resort hotels and other mixed-use developments with a concept of marina lifestyle.
The PQA Land Allotment Policy is oriented towards industrial/commercial estate developments. However, outsourcing community planning, housing, facilities, amelioration schemes in Port Qasim by PQA are permissible under section 11 of the PQA Act, 1973.
Meanwhile, RML had requested to refund the deposited 25 percent PDC amount and accordingly the amount was refunded. The audit issued an OM against the allotment of 100 acres to RML but the same was withdrawn by knowing the facts that as of today no such allotment has been made. The IM department responded that no such allotment has been made till date.