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Engro Asahi plant inaugurated Musharraf names 4 areas for

self-reliant economy

WIRASAT HUSSNAIN

KARACHI: Chief Executive Gen. Pervez Musharraf on Wednesday identified four areas for developing a self-reliant national economy: increase in revenue collection, reduction in non-development expenditure, providing opportunities and incentives for direct foreign investment, and encouraging local producers to increase exports.

He was addressing a select audience comprising diplomats, foreign investors, federal ministers, industrialists and high-ups of the civil and military bureaucracy at the inauguration ceremony of PVC plant of Engro-Asahi Polymer and Chemicals Ltd. in the Port Qasim area, District Malir.

He called upon the foreign investors to invest in Pakistan in oil and gas exploration. "Exploration and enhanced production hold great potential for the growth of downstream petrochemical industry and projects like Engro Asahi," he added.

He said the government would encourage the setting up of such projects since they would promote technology transfer, industrial infrastructure development and job creation.

Gen. Musharraf said: "We will support private sector's efforts to work with the government to develop commerce and industry. In this regard, we will assist Engro Asahi in its efforts to support the development of engineering, chemical, housing and agricultural sectors."

He said the Ministry of Industries is preparing a long-term plan for development of chemicals industry by examining the whole value chain from raw material to finished products.

He said the government was creating investor-friendly atmosphere and would ensure stability and continuity of the investment policy. The government would take measures that succeeding governments stick to this investment policies.

He said he was conscious of the necessity of foreign investment in Pakistan and would take measures to give credibility to its policies and commitments to invite foreign investment.

The Chief Executive said to meet the numerous challenges Pakistan was faced with , the primary area of focus was revival of the economy. To bring about this revival, public and private sectors would have to work together and bring about urgently needed changes or be prepared to lose the race and suffer the consequences, he said.

Gen. Musharraf said: "We must strive to promote exports and reduce imports so that the trade deficit is narrowed down to a manageable levels."

He said Engro-Asahi was an example of excellent relations between Japan and Pakistan. "We hope that the commitment shown by Asahi Glass and Mitsubishi in investing in Pakistan will encourage other Japanese companies to invest also, and that Japan will continue to be our largest business partner."

He said Japan was an excellent example for Pakistan to follow. They became a major industrial power by sheer hard work, by effective policy making and implementation, and most importantly by bringing changes in their organisational structure and basic thought process. "These are some of the things that we must also apply to reconstruct Pakistan's economy."

Minrou Kubota, Ambassador of Japan, said despite compulsions Japan had been supporting Pakistan in strengthening its economy. He said: "Although we (Japan) have been facing a few difficulties lately due to the situation influenced by Pakistan's security compulsions, Japan's goodwill to support the economic and social development in Pakistan does not change at all."

"I trust Pakistan will emerge as a country of strong base of economy and industry," he added.

He said Japan, being a good friend of Pakistan was willing to help accelerate economic growth by extending all kinds of economic and technical assistance. "I hope that under the strong leadership, Pakistan could provide good atmosphere for active trade and new investments between our two partners."

Zafar A. Khan, president, Engro Chemical Pakistan Ltd., said in his brief remarks that industrial and investment policies of the government needed consistency. He asked Gen. Musharraf to focus on policies which may create confidence in the industrial and investment policies of the government.

Asad Umer, President, Engro Asahi Polymer & Chemicals Ltd. that the total cost of the plant was three billion rupees. Its installed capacity was 100,000 tonnes per year. It would meet the local requirement of 70,000 tonnes per annum and export the rest.

"It is expected that export will exceed 20 million dollars in our first year of operation," Umer said.

Engro Asahi is a joint venture set up by Engro Chemical, Asahi Glass and Mitsubishi.

Others who spoke on the occasion included Shinya Ishizu, president of Asahi Glass Company, and Yasuo Sone, CEO, Chemical Group, Mitsubishi Corporation. They expressed the hope that their partnership with Engro will encourage other investors to explore business possibilities in Pakistan.