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Establishment of EPZ in Multan in doldrums

MUHAMMAD RIAZ

LAHORE: The establishment of an export processing zone in Multan is still a distant dream, nine years after the plan to do so was approved by the Economic Coordination Committee (ECC).

According to sources, the ECC, in its meeting held on March 20, 1991, had decided to bring southern Punjab at par with other developed areas of the country. And the way to achieve this goal was through establishing an export processing zone at Multan.

The project was hampered because of red-tapism and the non-cooperating attitude of the Punjab Industries Department, sources informed Business Recorder.

The federal government directed the Punjab government to make land available for the purpose. The business community of Multan took a keen interest in the setting up process and offered to develop the zone through their own resources. They even offered to pay the price of land.

The EPZ was to be set up by the Export Processing Zone Authority (EPZA) in collaboration with the Multan Chamber of Commerce and Industry (MCCI), which identified lands lying unutilised with the Punjab Industries Department as a suitable site.

The Industries Department had purchased 1,400 acres of land in 1962 for the establishment of the industrial estate, out of which 700 acres was earmarked for the purpose.

The MCCI and EPZA asked the department to provide only 200 acres of land out of the remaining 700 acres. The department demanded Rs 700,000 per acre, a price unacceptable to the MCCI. After lengthy discussions, the department reduced its demand price to Rs. 180,000 per acre but negotiations were not finalised, sources added.

The business community has urged the provincial government to charge a price on no-profit, no-loss basis, and preferably to provide it free of cost for the industrial development of the country.

Former chief minister Mian Shahbaz Sharif, after being convinced, had intervened and approved the provision of 200 acres for establishing the export processing zone in the Industrial Estate, Multan, on July 16, 1999. He also directed the department to accept the price of Rs. 50,000 per acre. Subsequently, the provincial government also issued directives to the Secretary Industries Department and a copy thereof was sent to the MCCI, sources added.

As a result the MCCI agreed to develop 200 acres of land for the export processing zone by spending about Rs. 100 million through their own resources.

Soon after the dismissal of Shahbaz Sharif government, the Industries Department demanded the total price in advance which was unacceptable to the MCCI. The MCCI also offered the provincial government to retain title of land till the completion of development works to be executed by the entrepreneurs through their own funding. But received no encouragement from the concerned department.

The director, industries, when asked to comment on the issue, said that the case was pending with the Board of Revenue, which has to give final approval. The department cannot hand over its land without the approval of the competent authority, he added.