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Tuesday, May 21, 2024

FIEDMC: Reopening of industries important to avoid financial constraints

Chairman FIEDMC, Mian Kashif, regrets the consequences of the current lockdown on the local industrialists. “The Chinese are relocating their industries from China to Pakistan under CPEC and this would be helpful for the economy of the country but unfortunately, this process has slowed down due to coronavirus”

Chairman Faisalabad Industrial Estate Development and Management Company (FIEDMC) is in full support of the Prime Minister’s stance. He appreciates the prudent policies set by Imran Khan to handle the national coronavirus crisis.

Mian Kashif urged the government to devise a standard operating procedure (SOP) for factories. This way, clusters of essential industries can resume operations and avoid further financial crunches and unemployment.

He expressed these views while talking to a delegation of investors and traders today. The aforementioned delegation called on him to discuss the possibilities of reopening industries and markets across the country.

Read more: Chairman FIEDMC, Mian Kashif donates Rs. 10 million for COVID-19 relief fund

The FIEDMC Chairman believes, “Lifting the lockdown on industries is the need of the hour. Or else, more than 20 million industrial workers will lose their jobs. Besides, the complete lockdown is causing huge losses to traders, investors and industrialists”.

He said that the ongoing lockdown has led to income erosion and added cost in business for the industrialists. This is because the industrialists still have to pay salaries and arrange rations for workers and daily wage earners, without any profit influx.

Chairman FIEDMC’s insight on the situation

On the occasion, Mian Kashif highlighted how the SME sector is affected the most by the lockdown; therefore he urged the government to reschedule the sector’s debt. Furthermore, Mian explained, “Pakistan’s economy is projected to face a loss of up to 4.64% of gross domestic product (GDP). This loss is due to the disruptions in trade, both imports and exports, after the outbreak of COVID-19”.

Pakistan’s economy is projected to face a loss of up to 4.64% of gross domestic product (GDP)

In fact, experts assessment predicts financial loss to reach Rs 12 trillion in a limited lockdown scenario, Rs 1.96 trillion in a moderate and Rs 2.5 trillion in case of complete restrictions on movement. The FIEDMC head believes that these estimates symbolize a curfew-like situation.

Mian Kashif revealed how FIEDMC is also facing hurdles to accomplish necessary tasks. The completion of these tasks was important in order to create economic activities and to help the country boost its exports. In fact, a whopping amount of US$2 billion worth of export orders are now cancelled due to the viral outbreak.

FIEDMC has designated 1500 acres of land for the Chinese in Allama Iqbal Industrial City. Moreover, other countries were also ready to make investments that are now put to halt.

“This Special Economic Zone is not only important because the Chinese are ready to invest in our country; but also, because they will transfer their technology to us, increase our productivity and set up technical institutes”.

Mian Kashif expects the mega projects in FIEDMC to create 300,000 jobs for the people of Punjab in the next five years. They will also attract an investment of around Rs 400 billion in automobiles, value-added textiles, engineering, pharmaceuticals, food processing, chemicals and construction materials.

FIEDMC and its Industrial Cities

Faisalabad Industrial Estate Development and Management Company (FIEDMC) is a Public-Private Partnership (PPP) entity between the Punjab government and the Faisalabad business community. The Government of Punjab set up this entity in 2004 as a public listed company, established by the Government of Punjab. Jahangir Khan Tareen undertook this whole operation during his tenure as ‘Adviser to CM Punjab on Special Initiatives’.

Read more: FIEDMC is taking strict measures against coronavirus

Since FIEDMC’s inception, it has successfully constructed three industrial estates along Faisalabad motorway; namely: M-3 Industrial City, Value Addition City and the latest, Allama Iqbal Industrial City (AIIC).

Allama Iqbal Industrial City saw its groundbreaking at the hands of Prime Minister Imran Khan, on Friday 3rd January 2020. It expands over an area of 3200 acres and is the first prioritized CPEC special economic zone. The economic zone is strategically located opposite M-3 Industrial City and interconnected through flyover at Sahianwala Interchange, Motorway M-4, Faisalabad.