- $10 bn worth of minerals & marbles can be exported, says FPCCI chief
Despite the approval of the ban on raw minerals and marble by the Senate Standing Committee on Commerce, FPCCI President Atif Ikram Sheikh is vehemently opposed to the move. He went on to say that this goes against the goals of the Special Investment Facilitation Council (SIFC), which has declared mining and minerals to be one of its five priority areas.
If a supportive and incentive-based policy is put in place for the industry, Atif Ikram Sheikh stated unequivocally that Pakistan may easily achieve $10 billion in mineral and marble exports. If the Senate Standing Committee on Commerce wanted to keep businesses from being unhappy with government policies and direction, they would have consulted them before proposing the restriction in question.
The difficulties encountered by the minerals and mining sector were listed by Atif Ikram Sheikh as follows: inconsistency in industrial policy, a depreciating Pakistani rupee, difficulties obtaining funding from commercial banks, and levies and taxes on imported machinery. His demands were for the swift rescinding of the purported law and for the government to enter into agreements with private banks to offer subsidized loans for mineral and mining projects.
Relevantly, FPCCI’s Karachi Head Office recently hosted an emergency press conference to discuss the sudden restrictions and discouragement of raw mineral and marble exports. This industry employs hundreds of thousands of people, both skilled and semi-skilled, including many from rural areas where alternative employment opportunities are limited.
The government should provide a framework for the establishment of value-adding manufacturing facilities with a deadline of 2 – 3 years, according to Saquib Fayyaz Magoon, SVP FPCCI. This is because it is extremely unlikely that the shift to this model can be accomplished quickly. Furthermore, the mining and minerals industry ought to be recognized as an industry to make it easier for federal and provincial budgets and policymaking to provide incentives and policy interventions.
Despite the challenging circumstances, mineral exporters are still managing to ship products worth $1.5 – 2.0 billion, according to Saquib Fayyaz Magoon. There is no good reason to adopt laws that limit the country’s exports at this time; doing so will only make the country’s balance of payment and current account deficit worse.
The VP of FPCCI, Zaki Aijaz, suggested that the organization formally notify SIFC of the devastating news that has befallen the minerals and mining industry as a whole and that all relevant parties convene for a round table discussion.
Former President of the Islamabad Chambers of Commerce and Industry (ICCI), Shakeel Munir, stated that the business community is shocked by the proposed ban because the organization was receiving support from SIFC initiatives and was preparing to attract foreign direct investment (FDI), joint ventures (JVs), and industrial collaborations to Pakistan’s minerals and mines sector.
This industry is already struggling due to our insufficient infrastructure and the region’s most expensive electricity, as pointed out by Bilal Khan, VP of the Pakistan Mines and Minerals Association. It is also unjust that the industry is not eligible for the exemptions and advantages listed in the fifth and sixth schedules.