Industrialists are asking for customized financing, infrastructure overhaul

KARACHI:

Leading industrialists have presented proposals to boost the national economy to the incoming government. Their recommendations include establishing a low-cost personalized financing system, developing an urban and coherent industrial policy, rehabilitating damaged road infrastructure and implementing a one-stop shop, among other initiatives.

Speaking to The Express Tribune about the expectations from the incoming elected government after the 2024 general polls, business leaders highlighted the need for a tailored low-cost financing scheme specifically for the construction of industrial units in the small and medium sector. They emphasized the importance of media as the backbone of any country.

Site Association of Industry (SAI) president Muhammad Kamran Arbi emphasized the importance of proper utilities for industrial operations. He called on the incoming government to address utility issues, including gas, electricity and water, with regionally competitive rates and improved services to support economic growth. Arbi proposed to create a mechanism for a single window operation to streamline interactions with more than 65 federal and provincial departments that affect industrialists, traders and investors throughout the year.

He also highlighted the promotion of e-commerce to save time and transport costs, facilitating business activity. He urged the government to ensure law and order in Karachi and immediately institute a civil and consistent industrial policy with the input of all stakeholders, especially industrialists, to address the challenges of the industry on top priority basis.

Another prominent industrialist, Salahuddin Qureshi, called for a complete overhaul of the road infrastructure in all industrial zones of Sindh, including Karachi and Hyderabad. Poor road conditions contribute to higher transport costs, affecting productivity. Qureshi suggested emulating successful models, such as the Bangladesh Planning Commission, for speedy problem solving. He urged the newly elected government to pursue similar initiatives to boost exports, control inflation, create jobs and ensure facilities for local industrialists and investors.

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Qureshi specifically demanded the provision of electricity and allotment of an Express Feeder for Sindh Small Scale Industries in Phase II on Tando Mohammad Khan Road. He also highlighted the importance of having an industrial plot spread over 300 acres of land allotted in 2007 to SITE Hyderabad. He asked the government to provide maximum facilities for local investors and industrialists by encouraging public-private partnerships in rural areas to eradicate poverty and create jobs.

Federal Association of Trade and Industries of Federal Area B (FBATI) President Syed Raza Hussain proposed a financing scheme of up to Rs 500 million through commercial banks, with a concessional interest rate of 5-6% over 20 years. This program aims to encourage small and medium entrepreneurs to build industrial units, focusing on the domestic and export market. Emphasis is placed on construction activities to accelerate economic activities in major cities, preventing the loss of valuable foreign exchange through machinery imports.

Hussain emphasized that the funding program will revive growth in allied sectors, create jobs and contribute additional revenue through taxes. He urged the government to introduce an easy labeling scheme for local brands and SMEs, boosting economic activities across the country and curbing imports of foreign brands that weigh on the current account and foreign exchange reserves.

Published in The Express Tribune, February 2^n.d2024.

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