- ‘It is the responsibility of the Ministry of Industries and Board of Investment to ensure that the concept of one window operation is implemented’
ISLAMABAD: Amid tall government claims of introducing investment-friendly environment in the country, at least five new investors at the Bin Qasim Special Economic Zone are still waiting for utility services.
The new industrial units, which are nearing completion and are set to start operations at the Bin Qasim Industrial Park (BQIP), have complained to the federal government that without the provision of utilities, their “investments would remain fruitless”.
A letter has been written to the Board of Investment (BOI) and the Ministry of Industries by the five companies that have invested Rs35 billion in BQIP and were facing unnecessary delays in operating their completed plants.
These five industrial units included Kia Lucky Motors (Pak) Ltd – one of the new entrant in the auto sector, Techno Auto Glass Ltd – the first company to manufacture glass and windscreens for automobiles, Hitech Alloy Wheels Ltd – the first allow wheel plant of the country, Horizon Steel (Pvt) Ltd – the manufacturer of strong steel bars used in construction of high rise buildings, and Barkat Frisian – a Dutch joint venture in processed food products where 50pc equity investment has been made by the Holland company.
Tecno Autoglass Ltd CEO Amir Allahwala, one of the signatories to the letter, stated that it was the responsibility of the Ministry of Industries and the Board of Investment to ensure that the concept of one window operation is implemented at the BQIP.
“Despite the government vying to woo investors across the world, those who have already invested more than Rs35 billion are feeling insecure about their financing, owing to the unprofessional attitude of various government departments,” Allahwala added.
It is pertinent to mention that in several meetings with the investors, Advisor to PM on Commerce Abdul Razak Dawood had acknowledged the issues faced by the industrial units at Bin Qasim SEZ and assured that their concerns would be resolved.
The National Industrial Parks (NIP) had also written a working paper to PM’s Task Force on Energy Reforms, Ministry for Power, National Transmission Distribution Company Limited and the Board of Investment, seeking urgent support in resolving these issues through K-Electric, Sui Southern Gas Pipeline Company and others.
NIP acknowledged that the government had still not been provided essential utilities, including electricity, gas and water, required to make the plants operational.
“As per Section 27 (i) of the SEZ Act 2012, it is the responsibility of the federal and provincial governments to ensure provision of electricity, gas and other utilities to the designated zero point of the SEZ, after which, as per section 27 (iii), it is the responsibility of the developer to supply utilities to the doorstep of the zone enterprises,” the working paper by NIP submitted to the power minister stated.
NIP also highlighted that it was facing severe pressure from investors at BQIP as the federal government had not met its obligation as per the SEZ Act.
