Balochistan industrialists demand finished products industry

Say billions of dollars can be earned by making value-added goods from minerals

KARACHI:

Balochistan industrialists have urged both the provincial and federal governments to encourage the setting up of a local industry for value-added and finished products with useful incentives and a sustainable policy as the province is blessed with a number of natural resources such as minerals.

Balochistan bristles with large reserves and deposits of nickel, copper, iron, coal, chromite, magnesite, gold, lead, zinc, limestone, marble and others. The hidden treasure of Balochistan could be efficiently utilised with a useful and comprehensive policy that will generate jobs, promote investment and ensure sustainable economic growth. If Pakistan extracts these minerals, sells and exports them, it will not notch a good income. But if it sets up an industry locally and follows the shining economic model of Muhammad Lutfi, Indonesia's former minister for trade, it will be able to boost exports of natural resources by leaps and bounds, leading Balochistan industrialist Ismail Suttar said.

He pointed out that Lutfi formulated a policy to efficiently utilise raw nickel and make stainless steel to bolster exports and the economy of Indonesia just a few years ago.

Earlier, less stainless steel was produced by Indonesia from raw nickel. It used to export raw nickel worth $1.1 billion while the importing countries made stainless steel from nickel and fetched billions of dollars by selling it to other countries. There were only 20 stainless steel manufacturers in Indonesia at that time, when Lutfi held a meeting with them to expand their manufacturing capacity up to 20 times in a year. Initially, the manufacturers were reluctant but after a long discussion they agreed.

Factories were fully prepared for six to ten months and the Indonesian government banned exports of raw nickel and the same year, the country sold and exported stainless steel worth $9.5 billion for the first time in its history. The very next year, Indonesia exported stainless steel worth $23 billion.

"This is a single example. When it comes to Pakistan, it is also blessed with raw nickel but there is no manufacturer of stainless steel here. There are many examples of such kinds. The Balochistan government can easily take such initiatives while formulating a policy and providing a basic framework for pragmatic research," he elucidated.

An industry for value-added and finished products must be set up forthwith with a fully-fledged policy and framework. The government must give special incentives and assure industrialists that their finished products will be sold.

It is not a tall order to export value-added products up to $200 billion. If the industry is set up, it will generate a new epoch of employment and prosperity in the province and the country.

According to the data recently reported by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Balochistan, which covers 44% of land in Pakistan, is rich in matchless natural and significant resources-cum-deposits including almost 7 billion tonnes of copper, 273 million tonnes of iron, 217 million tonnes of coal, 500 million tonnes of chromite and 50 billion tonnes of magnesite. If only these natural resources are transformed into value-added products, they will help push up exports up to $13.13 billion.

The value-added products of all natural resources of Balochistan could change the financial landscape and the condition of the province and the country.

What's more, the coastal area of Balochistan is around 770 km long, comprising approximately 70% of the total coastal area of Pakistan. It may provide numerous opportunities to develop the blue economy of the country.

Setting up modern infrastructure for fishermen and fisheries, resorts for ecotourism, a beautiful coastline and promoting coastal tourism will raise the living standards of local communities and enhance seafood exports to a great extent.