‘Sindh to launch project even if Centre backs out’

The Sindh government would go ahead with the Pakistan Textile City project if the centre decided to scrap it, Sindh Chief Minister Syed Murad Ali Shah announced on Monday.

The decision was taken by the CM while presiding over a meeting held at his official residence. The meeting was attended by Minister Industries Manzoor Wassan, Sindh chief secretary Siddique Memon, secretary industries Rahim Soomro, principal secretary Naveed Kamran Baloch and others.

Briefing Murad about the project, the industries minister stated that the Pakistan Textile City Ltd (PTCL), supposed to be built at Port Qasim, was a public-private joint venture. Initiated in 2004, the development work at the site of the project, however, began in 2007 with initial equity of Rs1.1 billion.

Wassan said the Sindh government contributed Rs127 million to the Karachi Water and Sewerage Board (KWSB) for dedicated water pipelines to the project in accordance with its commitment to share 50 percent of the PTCL’s cost with the federal government, which only contributed only Rs199 million.

The minister industries added that the objective of the project was to boost export potential of value added textile products, and create around 80,000 direct jobs and another 80,000 indirect employment opportunities.

Informing the chief minister regarding the shares in the company, Wassan stated that the Sindh government owned 16 percent shares. He added that the Port Qaim Authority issued an allotment letter on August 27, 2006 sanctioning a 50-year lease at the cost of Rs1 million to be paid annually.

Secretary industries, Rahim Soomro, stated that the company availed a loan of Rs2.4 billion which was subsequently blocked by the bank. The federal government decided to wind up the project for which a number of meetings had been held in Islamabad, he said.

The CM directed the chief secretary to speak to the federal government regarding the project, and observed that the Sindh government was ready to launch the project from its own resources.

Murad said the project was important and has a vast potential to generate employment and revenue generate from value addition tax.

The CM further directed the industries minister to coordinate with the concerned officials of the textile city and make necessary arrangement to begin work on the project.