Federal Government want to retire loan by selling Sindh’s land – Murad Ali Shah vows to save Pakistan Textile City Company from winding up
Karachi, February 23, 2018 (PPI-OT): Sindh Chief Minister Syed Murad Ali Shah has said that under a pre-planned conspiracy Pakistan Textile City Company (PTC) at Port Qasim has been destroyed so that its industry could be shifted to somewhere else in the country, but “we would not allow this for the interest of the province, the country.”
This he said while meeting with a delegation of National Assembly Standing Committee on Commerce and Textile led by its Chairman Mohammad Siraj Khan. The Chairman NA Standing Committee and its members, Shazia Marri and others told the chief minister that they [standing committee] have recommended revival of Pakistan Textile City (PTC) on January 4, 2018 and again today they held a meeting here at FTC and reiterated their earlier stance of revival of the city.
Chief Minister Syed Murad Ali Shah after detailed discussion categorically decided that the winding up of Textile City was not in the interest of the country and the province. “The Sindh government will support revival of the city so that employment opportunities for 80,000 workers can be created,” he said.
Murad Ali Shah said that the land of Textile city measuring 1250-acre belongs to Sindh government. The federal government formed a company which borrowed over Rs1 billion from National bank of Pakistan and drained out with ill planning. The provincial government owns 16 percent share in the city.
The federal government took a simple and unrealistic decision of liquidating the company and then sell out its land to retire the loans. “How would you sell the land which does belong to you [fed govt], he questioned and went on saying the provincial government would not allow this broad day light robbery on the land of Sindh government. “We are ready to revive the city and pay the liability as per our share but rest of the liability would have to be borne by the federal government,” he said clearly.
The chief minister directed the Chief Secretary Sindh to write a letter to Barrister Zafrullah Khan, the Chairman Winding Up Committee for apprising the decision of the provincial government. He also directed the chief Secretary/Senior member Board of Revenue to write a letter to Port Qasim Authority and take up the issues of illegally allotment Sindh government land to different parties and leasing it out to Pakistan Textile City. “The land does not belong to you so how you are leasing it out to other parties,” he questioned.
Murad Ali Shah also said that the Sindh government would extend its full financial support to Textile City in case of proposed change in the financial and capital structure of the company. It was also told to the nominee Director on the Board of Textile City as well as Chief Executive Officer (CEO) of the company to communicate the stance of Sindh government to the Board of Director of the Company in their next board meeting.
The standing committee chairman and members said that they would direct Chairman PQA to sit with Chief Secretary/SMBR and Secretary Land Utilization Board of Revenue, Sindh to resolve the dispute of land. It may be noted that the Project of Pakistan Textile Company Limited, Karachi was initiated in 2004 but the actual development work started in 2007 with initial equity of Rs1.10 billion. However, at that time it was felt that equity is not sufﬁcient as compared to the size of the project. Later on company offered 100 percent shares which were not subscribed by the majority of the shareholders.
At the beginning, the company was faced with non-availability of requisite infrastructure such as water supply, gas, electricity, sewerage etc. the Company utilized Rs2.4 billion which were subsequently blocked by the NBP. The Pakistan Textile Company Limited was provided land by Sindh government area measuring 1250 acres in shape of share of the Sindh Government and this share also included the returns from the company. The company has objectives as follows:
To provide the Textile sector an exclusive infrastructure to enhance productivity, quality, cost effectiveness and compliance in the post WTO era.
To create synergistic environment to encourage vertical integration and achieve economies of scale.
To attract local and foreign direct investment in the Textile Industry.
To boost export potential of value added textile products and
To create 80,000 jobs.
However, the company spent Rs458.80 million on levelling and grading of land and Rs. 471.00 million for construction of 3.2 k.m. and 48” MS, pipeline, which now requires additional Rs1.5 billion for competition. The company has accrued liability of Rs. 2.4 billion. With the view to this factual position, the Prime Minister has approved the winding up the company after due process and directed to constitute a committee consisting of the following to furnish its recommendation for further appropriate steps.
For more information, contact:
Chief Minister House, Sindh
Tel: +92-21-99202019 (Ext: 336)