Funding: Sindh plans to build textile city from its resources

KARACHI: The Sindh government has decided to build the Pakistan Textile City at Port Qasim from its own resources if the federal government abandons the project.

The decision was taken by Sindh Chief Minister Syed Murad Ali Shah while presiding over a meeting at the CM House.

The meeting was attended by Industries Minister Manzoor Wassan, Chief Secretary Siddique Memon, Industries Secretary Rahim Soomro and Principal Secretary Naveed Kamran Baloch.

Briefing the chief minister, Wassan said the Pakistan Textile City was a public-private joint venture company and the project was initiated in 2004 but actual development work commenced in 2007 with initial equity investment of Rs1.1 billion.

He said the Sindh government had contributed Rs127 million to the Karachi Water and Sewerage Board for laying dedicated water pipelines as per its commitment to sharing 50% of the cost with the federal government which contributed Rs199 million.

Wassan pointed out that the objective of the project was to boost export potential of value-added textile products and it would create around 80,000 direct jobs and another 80,000 indirect jobs.

Talking about Sindh’s stake in the company, the industries minister said the provincial government owned 16% shareholding in it.

Port Qasim Authority had issued a land allotment letter on August 27, 2006 for a 50-year lease at a cost of Rs1 million per acre.

However, due to heavy expenses the federal government decided to close the project for which a number of meetings had been held in Islamabad.

In the light of the decision, the Sindh chief minister directed the chief secretary to take up the matter with representatives of the federal government.

According to Shah, the province is ready to complete work on the project from its own resources as it has vast potential for employment and value addition.

He told the industries minister to coordinate with members of the Pakistan Textile City and undertake necessary work to start the project.

Published in The Express Tribune, October 18^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.