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entrepreneurs facing tough time
Friday, November 20, 2009
By Mansoor Ahmad
Many important industry stakeholders briefed the media about problems being faced by them.
These included tyre manufacturers, poultry farmers, CNG dealers, and textile entrepreneurs all of them undergoing problems from the government side. The briefing highlighted the apathy of the government in resolving the real problems of the trade and industry.
The main problem faced by the motorcycle and car tyre manufacturers was rampant under-invoicing done in connivance with customs officials and unabated smuggling of car and truck tyres through the Afghan Transit Trade.
They said the industry has the capacity to produce 2.5 million tyres, but the local industry is operating much below its capacity by producing 1.6 million tyres and the local demand is 6.5 million tyres annually. They pointed out that importers pay a few taxes per tyre than the local industry because of very high under-invoicing.
They said instead of facilitating the industry to increase its capacities in view of the demand the government has turned a blind eye to the factors that are marginalising this industry.
Former chairman Pakistan Poultry Association Khalil Sattar was disturbed that chicken meat processing plants in the country are closing down as processed chicken meat products have been allowed to be imported from Malaysia at zero duty. He said this might fulfill the requirements of big hotels and multinational fast food chains.
However, he added this is depriving the poorer segments of the society that would have benefited in future from the competition between local meat processing plants.
He said Pakistan should in fact be the exporter of chicken meat products, particularly to the Muslim countries. This he added could only be achieved once the food processors are fully established in the country.
The CNG dealers successfully thwarted an attempt to cut their gas for two days a week from November 15. However, after talks with the CNG dealers, the MD Sui Northern Gas Pipelines has again said that the gas to CNG stations would be cut unless the petroleum ministry gives instructions to continue the supply.
The textile sector trade associations in Lahore have been demanding the government to ban export of yarn while the spinners are demanding control on cotton rates, otherwise yarn prices would continue to rise. They also expressed the fear that if they failed to lift cotton at higher rates then the commodity would be exported. Already 600,000 bales of cotton have been exported during the last 45 days.
Chairman of Competition Commission of Pakistan Khalid Mirza is disappointed with the failure of the government to get the CCP ordinance passed in the last National Assembly session.
He warned that if the ordinance was not validated it would give a free hand to the mafia, cartel and looters to fleece the poor people. He said the country badly needs to stick to the fair business practices to ensure a level playing field to all and for sustained growth. The supply of sugar remained erratic in the city. The chief minister Punjab has even started using the human resource in the education department to monitor the distribution of the sweetener in different areas. This might impact the education of the school children. The availability of sugar has improved a little.
mansoor.malhr@gmail.com
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ISSN 1563-9479 
