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APTMA deplores lack of incentives for Karachi.

APTMA Deplores Lack of Incentives for Karachi

APTMA has pointed out that in the provinces of Sindh and Balochistan, industrialization is concentrated mainly in Karachi, Hyderabad, Nooriabad and Hub Industrial Estates and the textile mills, being the largest industry in the private sector, has been denied concessions under "General Package of Incentives" since all the industrial areas have been excluded and even for BMR from the purview of Rural Industrial Scheme.

For example, most of the textile mills were established in Karachi in 1953-54 and there is need for BMR to compete with the modern technology throughout the world and a textile mills has to pay 40% import duty for its BMR thus about 4 crores has to be paid as revenue on its imports as such, the existing textile mills of Karachi can not come at par with the units being set up under the Rural Industrial Scheme.

Because of law and order problem throughout the interior of Sindh, most of the textile mills and industries are being set up in Punjab. Only six textile mills were set up in Sindh whereas 150 textile mills were established in Punjab during the last three to four years.

Since concentration of population in the Sindh province is mainly in Karachi which has been neglected, for import duty concessions, there would be no further investment for industrialization to create more job opportunities in Karachi.

All industrial infrastructural facilities like electricity, water, telephone and transportation, are available for industrial growth in Karachi, therefore, it would be extremely beneficial for the entrepreneurs of Sindh province that benefits and incentives allowed under the Rural Industrial Scheme are also extended to Karachi Industrial Estate in the light of the fact that law and order situation in the interior of Sindh is not conducive and favourable for industrialization in the rural areas of the province. This will also create more job opportunities to the majority of population of Karachi.

This Association strongly appeals to the Government to allow the same General Package of Incentives under the Rural Industrial Scheme to all the existing industrial estates of Karachi, Hyderabad, Nooriabad and Hub, so that import duty concessions for BMR may be available for industrial growth for urban areas also and the aims of the Government for providing job opportunities and increased employment may be fulfilled for the uplift of the national economy.
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Title Annotation:Business Opinion; Karachi's textile mills and industries
Publication:Economic Review
Date:Jan 1, 1991
Previous Article:Knit wear industry.
Next Article:PBEA pleads for protecting ancillary industry.

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