Govt to reduce financing cost for investors

PM Gilani says government will assist long-term investors by providing incentives and reducing financing cost.

KARACHI: Prime Minister Yousaf Raza Gilani has said the government will assist long-term investors by providing incentives and reducing the financing cost.

Addressing the inaugural ceremony of Fauji Akbar Portia Marine Terminals (FAP) on Tuesday, Gilani said “we will continue to support all possible investments in the ports and shipping industry.”

FAP, a consortium of three companies, is the first automated and dedicated grain and fertiliser terminal in the country, built at the Port Qasim with an investment of Rs10 billion ($135 million).

Gilani said the government wants to help the private sector through creation of investor-friendly environment. “Our government stands committed to the growth and prosperity of the country through creation of an investor-friendly environment,” he said.

Being one of the busiest ports in the country, Port Qasim’s current contribution to the economic activities is quite significant, he added.

This state-of-the-art terminal will help reduce costs, increase speed of loading and unloading and prevent wastage. It will also ensure that the commodities related to agriculture are handled according to the highest international standards.

“The world-class facilities such as this terminal will further contribute to the gross domestic product and help Pakistan achieve its goals in becoming a strategic hub for regional trade,” he said.

Ports are vital to the economic development as efficient ports and terminals lower the cost of imports, bring revenue through exports, increase foreign exchange reserves and enhance tax collection through greater transparency.

With the help of these measures, he said, the government will reduce food inflation, which is hurting poor people the most.

Following the examples of various developing countries, he said, the government is seeking new avenues to facilitate and encourage foreign investment through provision of incentives and business-friendly policies in the port and shipping sector.

The nation has passed through a very turbulent period during and after the floods. The unprecedented floods have left the country with a huge challenge in terms of rehabilitation and reconstruction.

On account of inadequate storage facilities, he said the country has experienced shortage of some commodities. “If we are confronted with such a situation again, we can prevent these shortages and wastages as the strategic storage for precious commodities like wheat will now be possible because of FAP silos,” he said.

Published in The Express Tribune, October 27^th, 2010.