Presidentís Address on inauguration of Sundar Industrial Estate
Governor Punjab General Khalid Maqbool, Chief Minister Punjab Pervaiz Elahi,
Federal Minister for Industries Jahangir Tareen, Chairman Industrial Estate Mr.
Mannu, CEO Estate Sadiq Chohan, distinguished guests, ladies and gentlemen,
It is indeed a pleasure to be here at the inauguration of Sundar Industrial Estate.
I am glad that this plan would take our economic strategies to the public. In that
direction it is a proper step. Secondly, I am glad because this is a plan through
which there would be a revolutionary coordination or cooperation between public
and private sector. I remember when we planned of setting up an industrial
estate, people had doubts but this is an example which should be emulated in
other provinces of Pakistan. This is a step forward. The task of public sector is to
facilitation and policy making. Let the private sector come up and perform like
they have today.
I was watching the aerial view and it looked very organized, the roads, drainage
system, the electricity system and an ideal environment. I would like to
appreciate Mr. Mannu that he presented the potential of private sector to the
nation in a beautiful manner. This is an ideal reflection of cooperation between
public and private sector. I am extremely pleased to be here and that the industry
would be set up within the time frame of two years.
I am also glad that in this Estate there is an affluent treatment plant with solid
base management system. So it means that it is an environment friendly
industrial park with modern facilities. If anyone comes from abroad and sees this
they should know that we know how to organize and manage ourselves and we
understand international standards or criteria and that is what will attract foreign
investment and FDI.
So therefore, the electricity system is underground.
Ladies and gentlemen, for any plan or activity there is three tier approaches. First
of all understand the environment and if there are any defects rectify or remove
them. In this case, we have to create an investors friendly environment. The
important considerations are:
?? All economic sectors are open for FDI in Pakistan
?? 100% foreign equity is allowed in Pakistan
?? Equal treatment to international and foreign investment
?? Remittances of royalty, technical and franchise fees, capital, profit, a
dividend is allowed
?? Foreign investment is fully protected
?? 0-5% custom duty on import of machinery
?? No sales tax on import of machinery
?? No withholding tax on import of machinery
Through this an investorís friendly environment is created through which we can
attract foreign and local investment. We have facilitated the local industry to set
up industry and earn profit.
The second tier is that the strategy should be clear. There should be cheap
labour; qualified manpower so that the industry runs excellently. We have seen
that there were defects in previous strategies in Pakistan; we were limited to
textile and agriculture. This would not the way forward. Textile is only 6% trade in
the world. 61% trade is in heavy industry. We are bogged down in 6%. If we have
to increase our export, it canít if weíre limited to textile. So we planned the first
strategy that we have to move toward setting up new industries. We have to
concentrate on SMEs so there is distribution of wealth to the middle-class. These
SMEs are essential and I am happy that there are small plots so that small
industry can also participate. So that is another part of the strategy.
The third tier is the sense of direction. We should manufacture spare parts and
export. Be it electronic or machinery. The spare part would be cheaper yet of
quality. We should be the producers; the world should see investment
opportunity for industry.
If cars are manufactured in US, Japan or Europe, their parts should be
manufactured in Pakistan and they should import them because we can produce
better quality parts at cheaper costs.
Then I would like to comment on agro-based industry. We have the potential in
agro-based industry, live stock, and dairy. We are the fifth largest producer of
milk products and I am glad that the biggest plant of Nestleí is being set up in
Kabirwala. We should enhance this. Our country is giving 1/10th of the milk that
cow abroad in developed country produce. And we can increase the long-term
production to 3-4 times increase within 2-3 years if we improve our strategy.
There should be cheese, yogurt, butter exported from Pakistan to the world.
Similarly, we have live stock in Balochistan and in Punjab Cholistan are live stock
centers. This should be improved. We have to optimize this potential for the
poverty elimination and our exports would increase. I would like to inform that the
current dollar account of our exports we should be surplus in it and that can be
when our income increase and that is through three sources: export, FDI and
Our current account rather dollar account should be surplus and it can be in
surplus only when we have more revenue. Remittances have increased from
$900 Million to $4.2 Billion and we will cross $5 Billion. FDI has increased from
$300-$400 Million to $3.4 Billion and it should also cross $5 Billion. This is the
way of progressing. Last thing is export which should increase by leaps &
bounds. We are left far behind. All the South Eastern tigers were at Pakistanís
level in 1960s. Their export has been raised up to $400 Billion and we have a
rise from $8 Million to $18 Million. Why there is such huge difference? Because
our strategy is wrong, we have to correct this strategy. We have to reach at $100
Billion and it is achievable. We have the potential. The growth rate is 78%
currently and we will maintain it. A country can not develop until and unless
revenue generation is not good. I can say proudly that revenue was Rs. 300
Billion and now our target is Rs. 835 Billion and it will be Rs. 900 Billion by the
end of this year and we will achieve the target of Rs. 1 Trillion next year. But this
is not enough; we have to expand the tax base. We will not increase the tax but
will expand the tax base. I want Rs. 2 Trillion. You people tell me the plan to
achieve it; I am not satisfied with this increment of Rs. 100 or 200 Billion. I will
appeal the whole nation, all traders and everybody involved in economy to pay
tax whatever it is so that money may come in circulation. I want to tell you people
that where we spent the money we got from this increased tax base. You should
not pay tax if it has not been utilized. Our PSDP has been Rs. 80-90 Billion in
past for whole decade of 1988-99, it just crossed once the figure of Rs. 100
Billion and this year PSDP allocation is Rs. 415 Billion. So if the tax revenue has
been increased then it has been spent on developmental projects. So this is the
way, taxes should be reduced and base should be broadened, it will increase
revenue and resultantly the development will increase. I seek your help for
implementing this strategy for the sake of Pakistan. Every one should pay tax.
Gas and electricity are very necessary for development. We have many long
term and mid term plans for increasing the production of electricity and we are
doing it from every source other than oil, from CNG, LPG, Gas, Water, Nuclear,
Coal and alternate source i.e. wind. We are doing all this. Whatever the
investment can be done in these areas is welcomed. This investment in energy
sector is important. We need gas for it. I want to say that the resources we have
explored in Frontier will be used not only to provide gas to five districts of NWFP
but also all the area between Nowshera and Islamabad. As it will come down
stream so it will cost less.
Besides, we also want to buy gas from Iran. The agreement has been finalized
and we will buy this gas. But as 250MW electricity is needed here, we must give
them the gas. In the whole world domestic gas is on LPG and we are finishing
our resources by distributing it to domestic users, we should give it to industry
even if it means economizing on the domestic side, we must give gas to the
industry, otherwise industry would not be established. Therefore the policy and
strategy should be changed; priority goes to industry, electricity production. So
please devise the strategy and projects like this is very much serving the
purpose, by utilizing gas and then producing electricity is a good plan. So please
let us understand the strategy correctly and then implement it vigorously.
Our country is the hub of this whole region. We should know that we need
investment friendly environment, qualified cheap manpower. Government has
devised a complete plan and is being implemented. Nine best universities from
the developed world will come to Pakistan; we are having deal with them. They
have agreed to come here. We will come up to their standard; we will bring their
faculty, curriculum, Vice Chancellor etc. So they will award their own degree,
studentsí wont need to go abroad. We will be able to attract investment with the
best quality cheap manpower.
Secondly we have emphasized technical side, we have established National
Vocational Technical Commission and technology parks will be made in these
nine universities which will produce technicians of very high quality for your
industry and those will be exactly in accordance with the requirements of your
industry. Therefore we are trying to create a synergy between the industry,
production of technicians, and production of engineers. It will benefit
industrialists. If you will provide all these facilities here then the investors will get
profitability here in Pakistan.
At the moment, demand has increased in Pakistan while supply has left behind
creating a gap between two. Being a hub we can export to half of the world, if we
l establish industry here. We will provide these facilities with good infrastructure,
which is being developed i.e. rails, roads and ports. This is not a dream but a
reality and we should have faith in this reality. I have faith in this nation. This will
rise because we have the potential. We do not need any oneís assistance, we
have to wake up, work and make use of our capabilities. We have the best minds
in the world, we should be proud of it. But we have not optimized it. So if we will
organize and optimize ourselves that is the way forward. We can take this nation
to new height because we have all the potential and we have all the resources.
We will generate more resources.
Industrialists have many responsibilities. Firstly, you are installing modern units
which are environment friendly. This is a good thing. You should come up to the
standards of the world. You must comply with all safety regulations. Our
productivity index is low. We should be more efficient, more hardworking;
productivity from the same unit, from the same people should be much more.
Poverty has reduced lot but still it is there. Every third man was poor, 34% were
below poverty line which is now 25%. It is terrible, it is shameful. On the one
hand you are creating job opportunities, we are thankful for it; seven lac job
opportunities are being created till 2011. It will alleviate poverty and resultantly
extremism and terrorism. On the other hand providing facilities, look after their
welfare, Labourís welfare. If you earn money, share it with labour. If you will care
for poor, you will progress more. So share your profit with your workforce.
must develop labour standard with all facilities of labour colonies so that they
may get all facilities of life and live a comfortable life. We owe this to the labour.
You are establishing industrial areas in agricultural areas. Sialkot is a rice
growing area. One of the concepts of motorway was to bring industry out of city
to the areas where agriculture is affective. Secondly, land should be cheap. Both
these things are available on interchanges between Lahore and Rawalpindi. If
gas and electricity facilities are made available then industry will be benefited
without affecting agriculture. When we will shift industry there, population will be
shifted there. Free land is vanishing rapidly. Population will be shifted to the area
where space is available.
I am happy to be here for a project which needs to be emulated by the whole of
We Pakistan. A project which should be seen by the world to come and see what we
have done here, to invest here because Pakistan will provide all facilities.
I wish you success and prosperity and through your success, welfare of the
labour, labour also rises, labour becomes better and there is more employment
and there is more prosperity.
Thank you, ladies and gentlemen.