Senate panel demands economic liberty for HIT

ISLAMABAD: The Senate Standing Committee on Defence Production has strongly recommended that the allocation of budget to defence production industries should come directly to Ministry of Defence Production from the Finance Division instead of routing through the Ministry of Defence and bureaucratic delays should be removed.
Senate Standing Committee on Defence Production in its meeting on Thursday appreciated the achievements and products of Heavy Industries Taxila (HIT) and has recommended that the budget disbursement process to HIT may be made smoother and quicker to achieve more viability and fast pace of work.
Chairman of the Committee Lt. General (R) Abdul Qayyum during the meeting observed that the Committee will push for this proposal on its own but HIT also needed to take the matter up regularly.
The Committee was given a detailed, comprehensive briefing by Brig. Nauman about the ongoing and completed projects by HIT, the budget allocation to HIT, capacity enhancement for commercial inland sales and exports and future vision of the Heavy Industries.
Chairman Committee while terming Al-Khalid Tank pride of the nation praised the proposal of bringing an upgraded and progressive model Al-Khalid-2 in the industry to compete with constantly developing weaponry. The Committee was told that the HIT has a capacity of 50 tanks per year but they are making 18 tanks on average due to budgetary constraints.
The Committee was told that HIT is not entitled to commercial activity on its own. It can only carry out commercial activities from the surplus capacity after fulfilling all kinds of defence needs of the Armed Forces. Brig. Nauman further called for a draft amendment in the ordinance.
The Committee also agreed to a proposal for exemption from government audit and PPRA rules and provision of taking up commercial activities to make the industry financially profitable. The Committee recommended that the HIT could adopt a proposal on the same lines as Pakistan Ordnance Factories. The Committee lauded the efforts of HIT and observed that defence production establishments in Pakistan have made tremendous contribution not only by equipping our Armed Forces but also by undertaking commercial sales. “Equipping our Armed Forces with tanks, and state-of-the-art ammunitions not only means colossal savings but also promotes self-reliance,” Chairman Committee Senator Lt. Gen. (R) Abdul Qayyum observed.
The Committee advised the HIT management to do capacity building of their vendors, ensure coordination inter and intra defence production institutions and create a reserve pool of skilled work forces to meet sporadic demands.