LAHORE:Provincial Minister for Industries and Commerce Mian Aslam Iqbal said on Monday that master plan for Lahore was at final stage that would also identify the commercial and industrial areas.
He was talking to business community here at Lahore Chamber of Commerce & Industry (LCCI) where the LCCI President Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq also spoke on the occasion.
The minister said that land in Muzaffargarh had been identified for the establishment of industrial zone. A business-friendly environment was top priority of government and all possible measures were being taken in this regard, he said and asserted that government and private sector must be on same page to keep the wheel of trade and industry moving.
On the LCCI’s demand, he said, Lahore Chamber would be given representation in the trade and industry related departments. He said that 1450 new factories had been set up in small industrial estates in the last three and a half years. He said that a meeting between LCCI office-bearers and the CEO of RUDA (Ravi Urban Development Authority) would also be arranged.
While appreciating the LCCI endeavors for the flood affectees, Mian Aslam Iqbal said that flash floods caused huge destruction everywhere and ‘we have to work together to help and rehabilitate the flood victims.’
LCCI President Mian Nauman Kabir informed the provincial minister that Lahore Chamber had created Flood Relief Fund with initial amount of Rs 10 million and was appealing to business people to contribute more into it. Furthermore, a relief camp had also been set up outside LCCI building so that general public may also donate money, food items and essential things of daily use for the help of flood-affected people.
He said that there was a dire need for establishment of Export Processing Zones (EPZs) and Special Economic Zones (SEZs) in Lahore as the two major Industrial Estates in Lahore had almost reached their full capacity.
Mian Nauman Kabir said that LCCI should be given representation in the boards of various organizations/authorities which were related to or associated with Department of Industries e.g. PIEDMC (Punjab Industrial Estates Development & Management Company), FIEDMC (Faisalabad Industrial Estates Development & Management Company), PSIC (Punjab Small Industries Corporation), TEVTA (Technical Educational & Vocational Training Authority), PVTC (Punjab Vocational Training Council), PSDA (Punjab Skills Development Authority) and CPC (Consumer Protection Council) etc.
LCCI Senior Vice President Mian Rehman Aziz Chan underlined the issue of Chapter 84, 85 and urged the minister to play his role to get this issue resolved at the earliest.
Vice President Haris Ateeq said that this issue was hampering smooth running of businesses therefore it should be resolved at the earliest.
He said that SMEs only got six percent of private sector financing and around 65 percent of the SMEs were based in Punjab. “We also expect the Punjab Government to take special measures for facilitating the access to credit for SMEs at affordable rates without collateral. To improve the access to technology for SMEs, the relevant government bodies under the Industries Department should extend maximum support to the engineering and food sectors,” he maintained.
The LCCI President said that the cost of land for the business community in the industrial estates had reached to exorbitantly high levels. There was need for a simple lease policy through which the land in the existing/new industrial estates could be provided at reasonable rates on long term lease, particularly for the SMEs. “We would like you to play a strong role in this regard,” he added.
He said that high rate of conversion fee (20 percent of DC value) for land use charged by LDA for existing units was an impediment to industrialization in the province and should be abolished.
Mian Nauman Kabir added that LCCI had been constantly raising the issue of the imposition of Punjab Infrastructure Development Cess (PIDC) and ‘we were told by the former provincial finance minister that provincial government was assessing the impact of this cess on the businesses and would take a decision in this regard.’ He said that the imposition of this cess at the rate of 0.9 percent on dry ports in Punjab had prompted many businesses based in Lahore and other parts of Punjab to get their consignments cleared from Karachi. The collection of this Cess was Rs. 5 billion in 2021-22.
He said that this Cess had resulted in tremendous loss of business volume at dry ports in Punjab, shifting of tax revenue to Karachi and furthermore hampered the businesses of clearing agents and transport companies that provided sizeable employment. He demanded removal of this cess to ease out the business community and revive economic activities at the dry ports in Punjab.