FPCCI expresses concern over delay in Tannery Zone working

The Federation of Pakistan Chambers of Commerce & Industry’s (FPCCI) Standing Committee on SMEs chairman Iqbal Sony has said the long delay in proper working of the Sialkot Tannery Zone (STZ) has halted billions of rupees’ new investment and a vast opportunity of jobs creation, besides hitting the growth of leather exports from Pakistan, as the project is pending for a long time.

Iqbal Sony, in a statement issued here today, appealed the government, especially the Punjab Small Industries Corporation (PSIC), to conduct a thorough forensic audit of the STZ, which has not been completed for the last 13 years despite spending billions of rupees funds on it.

He said that with a view to help grow the businesses in post-corona economic strategy, the government will have to take solid measures to strengthen the industry in true spirit, especially the SMEs, saving the livelihood of millions of workers associated with the small industries.

The small and medium enterprises are backbone of the economy and their role was crucial for economic development.

In perspective of the COVID-19 the cash-strapped Small and Medium Industry needs special attention of the government, as it represents more than 90 percent of around 3.2 million business enterprises in Pakistan, contributing 40 percent to the GDP, employing more than 80 percent of non-agricultural workforce, and generating 25 percent of export earnings.

Iqbal Sony said that the historic project of the STZ in view of revolutionizing the export industry of Pakistan was realized in 2004 and purchase of land was started in 2009. He said that the practical work began in 2013 but despite the lapse of almost 13 years the project is not finalized yet.

He said that the project could increase the worldwide demand for Pakistani leather products and Pakistan’s leather garments if it starts working properly.

The FPCCI’s body chairman said that the project, funded by the federal and provincial governments, United Nations Industrial Development Organization (UNIDO) and the Global Environment Facility (GEF), is being delayed intentionally, due to mismanagement and unprofessional conduct of present administration of the STZ.

He said no election was conducted for the last 13 years hence the same chairman and the directors have been controlling the zone for the last so many years. He said that land grabbers and property mafia have entered this industrial zone and minting money through sale and purchase of the plots. This mafia, which has no history of manufacturing, having zero experience of industry, has been cancelling the allotments of the genuine manufacturers quietly while those who are not real leather producers have been allotted industrial plot in acres.

The FPCCI’s Standing Committee chairman demanded the government to direct concerned departments to hold a detailed the audit of the zone, making investigations of the performance of the chairman and all directors, who are holding the office for a long time and getting perks and privileges of millions of rupees since then. “We also request the government to check the income tax returns of those plot holders, who have more than two kanals of land, beside verifying their leather industry related equipment and machinery on the site.