Govt to offer 5pc relief on industrial loans

Source: Published in Current Affairs on Thursday, October 22, 2015

PESHAWAR: The Khyber Pakhtunkhwa government on Wednesday decided that it would give five percent ‘concession’ as subsidy on mark-up on new bank loans for setting up industries in province to attract investors.

The decision was made during a meeting chaired by Chief Minister Pervez Khattak here at the CM Secretariat to discuss the drafts of new industrial policy and early investment policy.

The two policies are aimed at building prosperous Khyber Pakhtunkhwa through sustainable and balanced industrial development and thereby creating large employment opportunities and fiscal space for human and infrastructure development and to overcome problems of low investment, poor productivity and degrading physical and social infrastructure.

Special Assistance to the CM Mushtaq Ahmad Ghani, MNA Sajida Zulfiqar, provincial ministers for energy, chief secretary, additional chief secretary, secretaries of concerned departments, vice chairmen of Khyber Pakhtunkhwa Technical Education and Vocational Training Authority (TEVTA) and Board of Investment and Trade (BOIT), representatives of the chambers of commerce and industries and top management of KP Economic Zones Development and Management Company (EZDMC) and Special Economic Zones Authority participated in the meeting.

CM, officials discuss proposed industrial, investment policies

According to an official statement issued here, the chief minister said all companies interested in setting up oil refineries in southern districts of the province had been directed to contact the federal government for oil quota under the prescribed procedures before approaching the provincial government. He directed the relevant officials to make three major rebates and certain other incentives part of the provincial industrial policy.

“Major attractions for industrial investment should be rebate on mark-up rate, electricity tariff and industrial transportation charges,” he said.

Khattak said his government had waived off the condition of securing NOC for establishing all kinds of industries, including sugar mills and oil refineries, to facilitate investors.

Discussing the recommendations presented under the industrial and early investment policy, he stressed the need for arranging incentives first for a viable industrial growth and directed the concerned authorities to approach the major commercial banks and development finance institutions for obtaining at least 100 billion rupees financing for industrial investments. He said he was confident that only Bank of Khyber would be able to spare Rs30-Rs35 billion for loan disbursements.

The chief minister said as Khyber Pakhtunkhwa had a disadvantageous location, it would be rather impossible to achieve the goal of sustainable industrial growth without grant of attractive incentives for industrial investment.

He said the provincial government was authorised to utilise the locally produced electricity for industrial consumption at much cheaper rate.

Khattak asked the relevant officials to ensure early establishment of an industrial estate in Malakand division so that electricity generated by Malakand III and Pehur projects could be allocated for the proposed local industries.

The chief minister said funding for industrial incentives would be made in the next annual budget and that impediments to establishment of already planned four Special Economic Zones at Hattar, Rashakai, Jalozai and Ghazi would be removed.

He also asked the EZDMC to look into prospects of using liquid natural gas for industries and power generation.

The relevant officials told the meeting that under the government initiatives for economic revival of the province and creation of large scale employment opportunities through sustainable industrial growth, certain major targets had been achieved including the strengthening of TEVTA, establishment of BOIT, replacement of the role of Sarhad Development Authority by newly formed EZDMC and formulation of first draft of new industrial policy.

They said the strategy for industrial growth under the proposed policy envisaged development of industrial infrastructure, promotion of labor intensive industries, availability of funds and credits for industrial investment, skill development for both local and foreign job markets, development of specific sectors like gems, marble, granite, hydro power, cement, silica, building materials, phosphates, coal etc.

The officials said trade promotion, exploitation of CPEC potential and opportunities, development of dry ports and border trade terminals, development of renewable energy, establishment of special economic zones, improving environment compliance, revival of closed and sick industries and provision of logistic parks were also part of the proposed policy.

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