KARACHI: The Balochistan government is working on a plan to incentivise the sick industrial units for their revival in order to promote industrialisation in the province for GDP growth and job creation.
“The plan is part of the new government’s policy to promote industrialisation as it is the key for job creation and wealth generation,” Rajab Rind, programme manager in the province’s industry department, told Media.
He said that the provincial government would offer incentives and exemptions in the budget to revive the sick industrial units.
He said that Balochistan had a very limited industrial base, which was mostly concentrated in the Hub district neighbouring Karachi, as well as in Gadani and some industries in Quetta.
“The government is keen to promote industrialisation by encouraging more industries to set up in the province. However, before it, the sick units have been targeted to be revived as these units have the infrastructure and all the required equipment,” Rajab said.
“These sick units only need a policy-level push from the government to reopen and start working for production,” he added.
The provincial government would work in coordination with the federal government to revive the sick industrial units, he said, adding that relaxation would be given in the provincial taxes and levies. However, he said most issues were related to the federal government, especially energy and financing costs, because industries were worried about these two factors the most as they pushed their production costs.
Gulzar Faiz, a business leader in the Hub Industrial Area, urged the government to pay special attention to the rehabilitation of sick industrial units so as to boost economic activities and reduce unemployment in the province. He said that the provincial government’s plan was encouraging and needed to be implemented in letter and spirit to improve the provincial economy.
He said that special relief should be provided to traders and investors for the promotion of investment and industrial development.
“The rehabilitation of ailing industries would create vast employment opportunities, besides significantly increasing exports and government revenue,” he said, adding that huge capital was required to set up new units, which usually took at least three to four years to start production, whereas rehabilitation of a sick industrial unit required small investment and it could be quickly incorporated into the mainstream of the national economy.
Gulzar sought special tax rebates as well as interest-free loans for investors and traders on easy terms so that the sick industries could stand on their own feet and move Pakistan on the right path of economic development. He said that many industries had been forced to close down due to the global recession, high financing costs and local energy crisis, with production activities declining by 10% in the industrial sector over the last many years.
He said job creation wasn’t possible without developing industries and rehabilitation of ailing units. He said the government would have to take special measures to revive the economy through industrialisation. –INP
