ISLAMABAD:The Senate Standing Committee on Industries and Production was apprised on Tuesday that an amount of Rs. 60 billion was granted for National Small and Medium Enterprises (SMEs) Action Plan over a period of 3 years.
The Committee was informed that simplified Taxation Regime for SME’s had also been announced.
The Committee which met with Senator Syed Faisal Ali Subzwari in the Chair here at the Parliament House was also apprised that 0.25 percent of gross turnover where annual business turnover does not exceed Rs 100 million and 0.5 percent of gross turn over where annual business exceeds rupees 100 million but does not exceed rupees 250 million.
The Committee also discussed the future plans and programs of the Ministry and its attached departments.
The officials of the Ministry apprised the Committee members that 85 percent of the total mobile phones in the country were imported every year. 21 new companies have been authorized to start local manufacturing and assembling Vivo, Airlink, Inovi, telecom, OPPO and boosting the local industry of the mobile handsets for domestic market and exports. It was further informed that mobile handset industry giant Samsung is also poised to enter the local market. Samsung has shortlisted two companies for local manufacturing after obtaining the authorization certificate, the Committee was told.
The Secretary further apprised the Committee that R&D allowance of 3 percent was given to local manufacturers as an incentive for encouraging exports of mobile phones.
Senator Walid Iqbal termed this initiative as a success story at the part of the Ministry of Industries and Production.
The participants of the meeting also discussed in detail the Electric Vehicle Policy.
Senator Faisal Saleem Rehman raised the question of energy consumption of electric vehicles.
The Committee was informed that there was ample capacity in terms of energy.
The Chair sought a comprehensive report and a survey regarding the charging stations and energy consumption by the electric vehicles. He said that different divisions should work in collaboration and in a conducive environment for such developmental initiatives.
The Committee was further informed that the EV policy approved by the Cabinet was for four wheelers, HCV’s and 2 and 3 wheelers. 9 models of 2 and 3 wheelers have been approved for manufacturing.
The Committee was also briefed in detail on the Auto Development Policy.
It was apprised that Greenfield was being granted to twenty one new investors with 10 percent Custom Duty on non-localized parts and 25 percent Custom Duty on localized parts for five years. The expected investment under this policy was more than one billion dollar of which 504 million dollar have already been invested. The total capacity of the auto industry has been enhanced from 358,000 units in 20216)to 470,000 units in 2021, the Committee was told. The issue of “Own Money” exploitation in car sales was also raised by the attendees of the meeting. The officials of the Ministry debated that Own Money is primarily the issue of supply and demand benefiting the dealers only.
The Ministry’s officials informed that basic reform had been introduced in booking and registration process of the car sales and additional WHT of Rs. 50,000 on the engine capacity up to 1000 cc, Rs. 100,000 on up to 2000 cc and Rs. 200,000 on above 2000 cc had been imposed. This measure has been introduced as a deterrent to the practice of ‘Own Money’ industries and production in the field of Agriculture, they told.
To a question by Senator Fida Muhammad, the officials of the Ministry told that agriculture was the domain of Ministry of National Food Security and Research, however 90 percent parts of tractors are manufactured locally and the duty was decreased by 20 percent for two years for any Industry introducing new model of tractors.
A detailed discussion took place on the Utility Stores Corporation’s Financial Performance.
The officials of the Ministry apprised the Committee that there were total 4000 utility stores in the country and 900 franchises. The Ministry is making efforts to double this figure by 9000 through franchise system in the near future and there is significant increase in sale of USC from Rs 10 billion in 2019 to Rs 114 billion in 2021.
The Committee was briefed in detail by CEO of Pakistan Industrial Development Corporation (PIDC) and was also informed that 35 percent of fruit was consumed by animals, therefore a model project for Fruit Dehydration Unit (FDU) in Swat had been completed for utilization of surplus fruit by the SMEDA. The total cost of this project is Rs 59.9 million, the Committee was informed.
The meeting was attended by Senators Walid Iqbal, Fida Muhammad, Faisal Saleem Rehman, Muhammad Abdul Qadir, , Saifuallah Sarwar Khan Nyazee, Hidayat Ullah and Senator Imamuddin Shouqeen, senior officials from the Ministry and its attached departments.