Pakistan to focus on engineering sector for import substitution!

on 09/07/2020

Abdul Razak Dawood, the Advisor to the Prime Minister has said that pursue the policy of ‘Make in Pakistan’ diligently is the need of the hour, and moving towards industrialization is a must for substituting the imports and enhancing our exports.
Meeting with a joint delegation of Chambers of Commerce and Industry at Ministry of Commerce Dawood said the government was focusing the engineering industry for boosting exports.
The moot was attended by the representatives of Islamabad, Rawalpindi, Lahore, Gujranwala, Faisalabad, Gujrat, Multan, and Mirpur chambers.
Dawood believed tariffs needed to be rationalized to achieve the objectives of ‘Make in Pakistan’ saying that due to COVID-19 situation and to address its impact on the economy, some of the sectors have not been considered for the tariff rationalization, while some important sectors have been given benefits.
He reiterated that the anomalies arising out of the budget have been addressed to a large extent while others will be resolved in consultation with the stakeholders.
Talking about the government’s plans, the Advisor told the delegation that the Government is following a three-year plan, gradually removing duties and tariffs, particularly on raw materials for the industry.
He added that the Government will put a special focus on engineering sector to boost the exports, including power sector equipment, the auto industry (auto parts, Two-wheelers, Three wheelers, and tractors), home appliances, mobile phones, sanitary ceramics ware, utensils & cutlery, and pumps & motors.
Mr. Dawood assured that the Government has taken important policy decisions in this regard and the engineering sector exports would considerably improve in the Fiscal Year 2020-21.
Discussing different opportunities for the production of value-added products and their export, the Advisor underlined the importance of investing in certifications and laboratories, particularly for exploiting the potential in the food processing sector.
The Advisor also informed that the Ministry is resolving issues of the exporters on priority particularly for the export of Personal Protective Equipment.
He reassured that export of all items, i.e. hand sanitizer, disposable gowns and gloves, face shields, biohazard bags, goggles and shoe covers made from various classes of materials, including woven and non-woven chlorinated polyethylene (CPE), Polypropylene (PP), spun bond and melt blown except N-95 masks, surgical masks, and Tyvek suits.
He reaffirmed that the Ministry is cognizant of the problems which are being discussed at the appropriate forums with the relevant stakeholders for early resolution

Lock Down – Who will benefit from the recently-announced tax amnesty for the construction sector?

on 09/07/2020

It is hard to forget, even for a few moments, that we are living in unprecedented times. From journalists to politicians, to your uncle passing idle lock down hours by forwarding unverified ‘news’ on Whats App, there is no shortage of people reminding us of the present moment’s uncertainty. Not that we need the reminders. With Covid-19 forcefully bringing routine life to a standstill and countries around the world reeling from the economic impact of government-imposed lock downs and business closures, it is clear for anyone to see that we are experiencing history in the making.

Governments in developed countries have tried to step up, announcing various protection schemes to help businesses and people adversely affected by the crisis. But the problem is more acute in countries such as Pakistan, where governments do not have the fiscal space to launch wide-ranging social protection programs. Nonetheless, in an effort to offer some relief, the government of Pakistan has decided on incentivizing construction activity to offset the negative impact of Covid-19 on the economy.

The incentive package was introduced by the President of Pakistan by promulgating the Tax Laws (Amendment) Ordinance 2020 on April 17, 2020. What is novel about this package is that it grants amnesty in exchange for investing money in construction, thus using the money to create employment and generate economic activity. However, one need not have undeclared wealth to benefit from the package. The fixed low rate of tax incentivizes anyone with capital to engage in construction activity.

Former US President Ronald Reagan had once quipped, “the government is the problem… if [the economy] moves, tax it. If it keeps moving, regulate it…” Apparently realizing the same, the government of Pakistan has designed the construction package as an amnesty scheme to spur the private sector into construction by almost eliminating taxation, minimizing regulation and reducing the role of the government. The government hopes that the package will have the intended effect on the value chain and employment.

ENGINEERING REVIEW

Govt Urged To Opt For Renewable Energy Sources Instead Of Coal

on 09/07/2020

Speaking at a press conference at the Karachi Press Club, Mohammad Ali Shah, chairman of the Pakistan Fisherfolk Forum (PFF), said: “The government should stop power generation through dirty fuels such as coal. It would be wiser to invest in the development of renewable and alternate energy resources such as the sun and solar panels, the wind and wind mills, garbage and waste power plants, etc.”

Mr Shah was of the view that various researches by environmentalists and climate change experts indicate that coal power generation has a negative impact on lives. It also proves destructive for the environment and ecology of areas where they have coal power plants. He demanded of the federal government to initiate environment-friendly projects under the Alternative Renewable Energy Policy of 2019. “In the forthcoming budget 2020-21 the government should not allocate any funds for power general through fossil fuels. Instead, the government should allocate funds for renewable energy generation,” he said.

“There have been a large number of people displaced due to the development of coal mines and power generation units, but they have not been provided proper compensation for the lands and houses they lost. The grazing areas for livestock have been destroyed, too,” he said, adding that the government must pay proper compensation to the villagers and allocate land for grazing of animals.

“Currently, the government is installing coal-fired power plants in various parts of the country, including Tharparkar district and in the coastal districts of Karachi along with Hub and Gawadar, all of which pose a great danger to the ecology and the health of human beings living in the coastal areas of Sindh and Balochistan. Experts also indicate that these coal power plants would destroy the fishing sector, which happens to provide livelihood to millions of fishermen living along the coastal areas.

‘The plants emit an estimated 1,400kg of mercury per year of which one-fifth would be deposited into land ecosystems’

“Still, the main affected people will be in Tharparkar where the government has initiated a number of projects of coal mining and power generation. A total of nine power plants with a total capacity of 3.7 gigawatts are proposed in Thar, which would constitute as one of the largest air pollutant, mercury and carbon dioxide (CO2) emissions hot spots in South Asia,” Mr Shah added.

Poisonous emissions

It was explained that researchers say that the poisonous emissions from coal power plants and mines pose a great danger to the health of hundreds of thousands of people living near these power plants in Thar. “The plants emit an estimated 1,400kg of mercury per year of which one-fifth would be deposited into land ecosystems in the region,” said Shah. “And most of the deposits go to cropland, increasing the mercury concentrations in crops. The levels of mercury are potentially dangerous in an area with 100,000 inhabitants,” he said.

More research and statistics shared by Shah read: “The other health impacts due to coal mining and power generation include 40,000 asthma emergency room visits, 19,906 new cases of asthma in children, 32,000 premature births, 20 million days of work absence [sick leave] and 57,000 years lived with disability related to chronic obstructive pulmonary disease, diabetes and stroke.”

Besides, it was also shared, that “coal mining and coal power plants create water shortage as these activities would destroy underground aquifers. In the coming years, coal mining in Tharparkar would require 4,000 billion gallons of water for the generation of 10 gigawatts of power. Hence 8,500 billion gallons of water would be consumed. This would create an acute shortage of water in Tharparkar, which is a desert, and which is already facing droughts.”

Saeed Baloch, PFF’s general secretary, and Shujauddin Qureshi of the Pakistan Institute of Labour Education and Research were also present at the press conference.

ENGINEERING REVIEW

Pakistan Has Become Self-Sufficient For The Making Of Ventilators

on 09/07/2020

Prime Minister Imran Khan has inaugurated the project of the local manufacturing of ventilators, including portable ones. The project has been run by National Radio and Telecommunication Corporation (NRTC) in Haripur. It has been approved by the FDA/CE after examining the reliability of the ventilators. Whereas the making of ventilators is also economical and user friendly in terms of usage and safety.

            This milestone achievement in the advancement technology proves the overflowing talent of the country. It shows that there is only a need for such initiatives that are the government’s support.

            Brig. Toufique Ahmed, Managing Director of NRTC introduced other sectors of NRTC and informed him about the services which are working in diverse areas including communication equipment, e-policing, electro-medical equipment, and hardware and software.

            Prime Minister Khan has praised the team of NRTC and instructed to continue the innovations for advanced technology. He also announced the government is giving serious attention towards the health sector and making a viable policy for the improvement of this ignored sector.

ENGINEERING REVIEW

Cement Sales Has Remarkably Increased In The Month Of June

on 09/07/2020

The sales of cement were continuously decreasing for the last three months. The month of June has given a boom in it and increased 19pc in the comparison of the same month of the last year.

            The report was released by the All Pakistan Cement Manufacturers Association (APCMA), the rise in the sales of domestic has been noted which is 3.835 m tones to 3.206m tones in the same period of the last year.

            The report also published the statistics of export of cement sales that have jumped 124pc which is a big achievement in the industrial sector. The betterment also provided a hope that the new fiscal would achieve another milestone.

           Whereas, there is a difference in the performance cement according to their zones, as the north is taken lead in domestic sales and the south moving ahead in exports. However, the reason for the decline in the Northern region is the protective policies of New Delhi, on the other side, Afghanistan is facing a decline in its constructive and both things giving its impact on the export of cement.

ENGINEERING REVIEW