Arrested development: Dilemma of Agro Export Processing Zone

Govt issues warning to cancel allotments; investors highlight deep-rooted issues plaguing AEPZ

KARACHI:

Karachi’s first agricultural export processing facility, the Agro Export Processing Zone (AEPZ), has remained non-operational ever since it was launched some 14-years ago.

Whereas, pertinent issues like bureaucratic hurdles, security concerns and lack of basic facilities have hindered local growers and exporters from kick-starting their own businesses.

The AEPZ was established near the Sabzi Mandi, Super Highway area, with the aim to increase the export of fruits, vegetables and flowers. According to Project Director Fazal Muhammad Junejo, in 2007 the Sindh government had allotted land under the AEPZ programme to 47 people including growers and exporters for setting up cold storages and processing plants in the same vein.

They had to establish their units within three years, however, 85 per cent of them have failed in making any construction on their plots despite the passage of almost one-and-half decade.

 “It is observed with grave concern that most of the allottees are reluctant to construct their units, which is utter violation of the Para-7 of terms and conditions of the allotment.

The goals of the project are severely affected, consequently the desired objectives could not be achieved”, stated a notice issued by the Project Director of the AEPZ. That being said, the notice also warned that the allotment of land will be warranted for cancellation within two months, should the units still fail to be set up by that time.

“The defaulting allottees are advised to start construction of their plots for specific purpose as per approved building plan from the relevant authority within two months.

 The allotment will be cancelled in case of failure”, the notice reiterated. Per project director Junejo, the decision for issuance of notices to the allottees was made at a meeting held on September 01 with Secretary, Agriculture Department in chair.

The traders and exporters of agriculture products have, however, complained that the plot holders face different problems and hurdles at the AEPZ.

 Speaking in the regard, Haji Shahjehan, a trader of agricultural products was of the opinion that the government should resolve the problems being faced by the plot holders instead of issuing notices.

 “My son is among those few plot holders who had constructed their units at the AEPZ. But he is unable to run his unit because of different issues like constant power outages,” he told.

Per Shahjehan, AEPZ plot investors face 12-hour load shedding of electricity every day. Similarly, he added, the area is still not developed. The road leading to the AEPZ from Super Highway is still in a dilapidated condition.

“Investors constantly find themselves at a security risk in the area due to poor law and order situation there. On top of which, AEPZ also faces shortage of water and other basic problems, so not many people feel confident about operating there despite investments,” he told.

 Addressing the claims, APEZ Project Director Junejo admitted that the project still faces some problems. He also acknowledged that the plot holders experience unnecessary delay in getting approval of maps from Sindh Building Control Authority for construction of their units.

 “Where we see these issues to exist, the APEZ management is helpless in addressing some of them, considering that they are beyond our scope,” he asserted while speaking to The Express Tribune.