Sindh government not to oppose PSM privatisation

KARACHI: The government of Sindh has no objection over the privatisation of the Pakistan Steel Mills, as the provincial government was not in a position to take over the mill, Muhammad Ali Malkani, Sindh Industries Minister said on Tuesday.
The minister was addressing the value-added textile sector representatives and media at Pakistan Hosiery Manufacturers Association (PHMA) House.
Malkani said the Sindh government did not have enough resources to take over the PSM. “If labour is handled carefully, we have no objection over privatisation,” he added.
He said industry in Pakistan in general and Sindh in particular was facing difficult times. Replying to a query, he said the EOBI was with the Sindh government in books only and it was still part of the federal government.
In preparation of the provincial Budget 2016-17, suggestions of the industrialists would be incorporated and a meeting would be called in January next year for that purpose, he said, adding that Sindh specific taxes would either be reduced or removed. “We will cut those taxes, which are implemented only in Sindh and not imposed by other provinces,” he said. “A level playing field with other provinces will be given to you.”
Sindh government was developing infrastructure of the industrial areas and was carrying development works worth Rs500 million in SITE industrial area.
Replying to a query, he said that the option of having more than one power distributor in the city was a sound suggestion, but it was difficult as infrastructure was developed by K-Electric and there might be some commitments.
Jawed Bilwani, leader of the value-added textile sector, said out of the total exports of Pakistan more than 50 percent were contributed from Karachi in value. Sector wise data shows that the textile sector contributed more than 50 percent exports, and inside the textile sector, the value-added sector had a share of above 80 percent. He also said that the minimum wages of the sector were above the government-both provincial and federal- prescribed levels.
He said a large number of industries were shifted from Sindh to other provinces, as gas connections for news industrial units have been unavailable for the past 8-10 years.
He suggested raising the number of power distribution companies in order to break the monopoly of the single power distributor in Karachi and other cities of the province. “The power supply issue will come to an end if there are 8 to 10 distribution companies in Karachi,” he said.
Bilwani suggested a five-year tax holiday for new companies in Sindh.
He said 10 percent regulatory duty was imposed over import of yarn from India, which was their raw material. “Nowhere in the world, there is import duty on raw material,” he said. Spinners were getting their own policies approved by the government. However, value-added sector was creating more jobs with a value-addition of 85 percent against spinners’ value-addition of 56 percent only.
He also proposed for the completion of the circular railway system, as it was too difficult for the workers of factories to reach their destinations hanging on the buses.
Junaid Makda, chairman SITE Association, warned of Pakistan losing GSP Plus status if it did not rectify 27 conventions of the European Union, as Pakistan had not rectified any convention yet. “Sri Lanka lost its status in 2010,” he said. “Our market seems to be slipping from the hands.”
Abdul Rasheed Fodderwala, chairman PHMA (South Zone), said there were several taxes on industries along with a large list of audit companies, which was actually harassment of the industrialists. He suggested a single audit once in five years. He said Karachi’s industry were still facing energy, gas, and water crisis.