ISLAMABAD: Investors at the Bin Qasim Industrial Park (BQIP), a specialised economic zone (SEZ), have complained to the federal government that attracting new investments would remain fruitless unless commitments made to existing investors are fulfilled.

In a letter addressed to the Board of Investment (BoI) and the Ministry of Industries and Production (MoIP), they said that none of the state functionaries were responding to redress the issues faced by them in setting up units in the industrial park.

“Five companies that have invested Rs35 billion in BQIP are facing delays in starting their completed plants because all utility services have not been provided to the SEZ,” the letter said.

The five units that have expressed concerns include Kia Lucky Motors (Pak) Ltd — one of the new entrants in the auto sector, Techno Auto Glass Ltd — the first company to manufacture glass and windscreens for auto mobiles, and Hitech Alloy Wheels Ltd — the first alloy wheel plant of the country. The other two companies are Horizon Steel (Pvt) Ltd — manufacturer of strong steel bars used in construction of high rise buildings, and Barkat Frisian — a Dutch joint venture in processed food products.

Meanwhile Aamir Allawala, the CEO of Tecno Autoglass Ltd and a signatory to the letter, said that it was the responsibility of MoIP and BoI to ensure that the concept of one-window operations was implemented at the BQIP.

“The worst part is that there is no sewerage line and no preparation for water treatment plant. Where should the waste water go when thousands of people start working here?” he asked.

The letter also referred to a working paper by National Industrial Parks (NIP) acknowledging that the government has still not been provided essential utilities including electricity, gas and water required to make the plants operational.

“As per Section 27(i) of the SEZ Act 2012, it is the responsibility of the federal and provincial government to ensure provision of electricity, gas and other utilities to the designated zero point of the SEZ, after which as per section 27 (iii) it is the responsibility of the developer to supply utilities to the doorstep of the zone enterprises,” the working paper by the NIP submitted to the Federal Minister for Power Omar Ayub Khan read.

The NIP also highlighted that it was facing severe pressure from investors at BQIP for not being able to provide utilities to them because the federal government has not met its obligation as per the SEZ Act.

The NIP has also forwarded the copy of its working paper to PM’s Task Force on Energy Reforms, National Transmission Distribution Company Limited and the BoI to urgently support it in resolving these issues through K-Electric, Sui Southern Gas Company and others.

Meanwhile, Adviser to the Prime Minister on Industries Abdul Razak Dawood also acknowledged the issues faced by the industrial units at Bin Qasim SEZ.

“Their concerns are genuine and I have seen the details. I will go to Bin Qasim next week,” the adviser said, adding that investors will be facilitated.

Published in Dawn, January 27th, 2019