ISLAMABAD: At least 23 out of 25 major cement manufacturing companies in Pakistan are defaulting on marking fees worth over Rs 5 billion owed to a government organization, opting instead to approach courts for stay orders.
This was revealed during a meeting of the Senate Standing Committee on Science and Technology on Thursday. Officials informed the committee that only two cement manufacturers are paying the marking fee to the Pakistan Standards and Quality Control Authority (PSQCA), an attached department of the Ministry of Science and Technology.
The cement companies have challenged the marking fee in court, depriving the government of billions of rupees. According to the SROs issued in this regard, cement manufacturers are obligated to pay a mandatory marking fee of 0.1% of the ex-factory price of their total production value. This fee is public money and cannot be avoided or reduced unless the SRO is amended or withdrawn.
Of the 25 companies, only two are in compliance and regularly pay the marking fee, while the rest are non-compliant. Ministry officials further informed the committee that eight cement companies (four with cases in the Sindh High Court and four in the Supreme Court) have filed lawsuits against the payment of the marking fee. The remaining 15 units have been issued regular notices by PSQCA, but compliance remains elusive.
Committee members expressed strong concerns over this non-compliance. Senator Kamil Ali Agha, Chairman of the Committee, highlighted that a visiting Saudi delegation had raised questions about the quality of cement produced in Pakistan, as there appears to be little oversight by the relevant authorities.
“No one knows what quality of cement is being produced by local manufacturers,” Senator Agha remarked. According to the members, apart from court cases, the inefficiency of the legal department of PSQCA, is also parently causing the noncompliance of SROs.
Regarding standards and quality assurance in the cement sector, the committee recommended that the Attorney General should handle the matter. Senator Agha emphasized that this is not merely a financial issue but also concerns the safety of construction materials. He called on the government to ensure the protection of cement quality.
The committee also discussed the implementation status of recommendations from its meeting on 25th September 2024. The Joint Secretary of the Ministry of Science and Technology informed the members that all funds for the Science Expo had been refunded to the respective firms and organizations. Furthermore, regarding the PSQCA’s submission of reports on cases where fines were imposed, the Chair expressed dissatisfaction with the department’s performance, suggesting that if the PSQCA remains inactive, it might as well be shut down. Senator Agha also raised concerns about the department’s expenses, including the remunerations of 31 inspectors, and suggested digitizing the entire system.
During the meeting, Senator Agha also urged the swift restructuring of STEDEC as IRADA and discussed the ongoing projects of the National Institute of Oceanography (NIO) and the Council for Works and Housing Research (CWHR). The Chair praised NIO’s achievements and encouraged further efforts, while also emphasizing the importance of maintaining employee rights during the restructuring process at CWHR.
The committee also addressed the issue of sea intrusion and erosion along Pakistan’s coastal belt, stressing the need for urgent solutions. NIO officials highlighted the ongoing construction of a retaining wall in the Sur Bunder area of Gwadar to protect against sea intrusion. Senator Agha underscored the critical role of oceanography, particularly in light of climate change and unchecked environmental degradation, and called for enhanced monitoring to mitigate the damaging effects of waste dumping in the sea.
Lastly, during a presentation on the National Science Technology Innovation Policy 2022, the Secretary of the Ministry of Science and Technology recommended a joint meeting with the Higher Education Commission (HEC) to address overlapping functions. The Chair emphasized that frequent shutdowns are a major reason for the failure of many departments, calling for a renewed focus on research, especially within private universities and among the younger generation.
