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i
YEAR BOOK 2013-14
INDEX
2. Message from Minister for Industries & Production 3. Message from Secretary Industries & Production 4. Mission & Vision 5. Objectives Chapter-1 Introduction - Functions of Industries & Production Division - Organizational Setup - Organogram of the Ministry Chapter-2 Industry Overview - Fertilizer Sector - Cement Sector
Chapter-3 Public Sector Development Programme (PSDP) - Development Sector - CDWP Project - DDWP Project Chapter-4 Public Sector Corporations / Organizations - Pakistan Institute of Management (PIM) - Utility Stores Corporation (USC) - State Engineering Corporations (SEC) & its Units i. Heavy Electrical Complex (HEC) ii. Pakistan Machine Tool Factory (PMTF) iii. Pakistan Engineering Company (PECO) iv. ENAR Petrotech Services Limited (EPSL) - Engineering Development Board (EDB) - Pakistan Steel Mills (PSM) - Small & Medium Enterprise Development Authority (SMEDA) - Department of Explosives (DOE) - Heavy Mechanical Complex (HMC) - Pakistan Industrial & Technical Assistance Centre (PITAC) - National Productivity Organization (NPO) - National Fertilizer Corporation (NFC) - Export Processing Zones Authority (EPZA) - Pakistan Industrial Development Corporation (PIDC)
ii
MESSAGE FROM THE
MINISTER INDUSTRIES & PRODUCTION
The Ministry of Industries & Production has come up with its Year Book 2013-14 which
highlights the endeavors of the Ministry to facilitate, support and promote industrialization in the
country.
It is indeed a commendable effort. The dissemination of the accomplishments of the Ministry is
very essential so as to provide first-hand information about the programs undertaken by the Ministry
and to place people in a better position to benefit from these programs. This allows the stakeholders to
discuss and debate the policy of the Government resultantly enhancing the prospects of a positive and
constructive feedback. It will also help the Government to re-orient its policies according to the
demands of the stakeholders and to create an environment which would help in the promotion of
industrialization in the country.
I am sure that the Year Book 2013-14 would be a valuable addition to the library of readers
including civil servants, investors, researchers and other stakeholders.
Rais Murtaza Khan Jatoi Minister for Industries & Production
iii
MESSAGE FROM THE SECRETARY
INDUSTRIES & PRODUCTION
It gives me immense pleasure in illuminating the performance of the Ministry of
Industries & Production for the year 2013-2014, based on various activities conducted in
the Ministry as well as its supporting organizations.
The document highlights the policies framed either directly by this Ministry or
through its supporting organizations to promote industrialization in the country as well as
special emphasis given by the Ministry on various emerging sub-sectors. The achievements
made during the period under review would contribute towards creation of the enabling
environment for growth and promotion of social & economic well-being of the people and
Industrial development in particular with an objective to achieve efficient, sustainable and
equitable development.
I hope this document would prove to be a useful document for the improvement of
the industrial sector and that it would be a welcoming gesture for both readers and
researchers.
Raja Hassan Abbas Secretary
iv
MISSION
“ To play a leadership role in formulating and implementing a comprehensive strategy for
rapid industrialization of Pakistan which aims at maximizing job creation and enhancing
Pakistan’s international competitiveness”
VISION
“ To Achieve Efficient, Sustainable and Equitable Development”
v
OBJECTIVES
Focus on not just industry, but more broadly on social and economic systems as a
whole.
Promote innovation and facilitate creation of knowledge base assets.
Identify industrial cluster groups and facilitate and incentivize their development
along with backward and forward linkages.
Promote movement along the value chain from lower value added activities
towards higher value added activities and provide support to Research and
Development and Product design as a catalyst.
Enhance global orientation to adapt and respond to the changing global
environment.
Improve the requisite economic foundation by focusing on the development of
human resource, technology acquisition, physical infrastructure and business
support services to increase productivity.
To ensure optimum capacity utilization and revival of sick units.
Encouraging expansion program for existing Industrial Sector.
Give top priority to knowledge based assets and provide sufficient resources to
investors so that they could get the pertinent information from one window for
effective decision making.
To ensure creation of an enabling environment to the entrepreneur / prospective
investor through a well defined, integrated and coordinated network of
vi
information system, supported and facilitated by the organizations under Ministry
of Industries.
It is the mission of the Ministry of Industries to create a conducive environment so
that interests & fears of the investors are taken care of. The associated
departments shall therefore be given line of action for their expected achievements,
while Ministry of Industries shall monitor their performance.
Ministry of Industries intends to balance the interest of the stakeholders through
its supportive organizations on regular basis.
The Ministry of Industries has also taken initiative to start cooperation at
provincial level so that the impediments faced at that level can also be resolved.
The Ministry is also determined to provide technical assistance and education
commensurate with the requirements of industry. If required establishing new
Centers or Institutes besides strengthening the existing Institutions or Centers to
impart required knowledge and skills to potential investors.
Chapter- I
INTRODUCTION
Ministry of Industries & Production (MOI&P)‟s aim is to facilitate Industrial growth in the country,
both in public and private sector. It plays a significant role in creating and enabling environment
for industrial growth in the country. Pakistan is endowed with all the essential requisites of
industrialization i.e. availability of raw materials, cheap labour, entrepreneurship and domestic
consumer market of around 190 million people. The Ministry has been mandated with the task
to achieve the Government objectives to forge ahead in all the Industrial sectors with the
required pace and motives. Industrialization is considered a major tool in the hands of any
Government for growth. With these objectives in view, MOI&P devised its strategy and moved
forward with all its resources.
During the period 2013-2014, the broad functions performed by the Ministry of Industries &
Production were: -
Initiatives to boost Industrialization in the country and the steps taken for promotion of
social and economical well-being of the people. Policy / Reforms formulation & implementation. Development of Industrial parks on the principle of Public Private Partnership. Technology and skill up-gradation for Industrial development. Provision of consumer goods at affordable prices through Utility Stores. International exposure to Engineering Industry in Pakistan. Facilitation of product diversification and capacity expansion. Operational performance of public Corporations/Units.
In order to implement the above-mentioned functions, strategies followed and the achievements
made during the year as well as the future plans of the Ministry are discussed in the subsequent
pages.
FUNCTIONS OF INDUSTRIES & PRODUCTION DIVISION
Under the Rule of Business Ministry of Industries & Production is assigned the following
functions: -
Industries Division
1. National Industrial Planning & Coordination.
2. Industrial Policy.
3. Employment of Foreign Personnel in commercial and industrial enterprises.
4. Federal agencies and institutions for: -
i. Promoting industrial productivity.
ii. Promoting of special studies in the industrial fields and
iii. Testing industrial products.
5. Administration of the Essential Commodities.
6. Import & Export of white oil.
7. Explosives (excluding the administration of Explosives Substances Act, 1908) and safely
measures under the Petroleum Act, 1934 and Rules made there under.
8. Prescription and review of criteria for assessment of spare parts and raw materials for
industries.
9. Administration on Law on Boilers.
10. Administrative, Financial, Operational, Personnel and Commercial matters of Pakistan
Garments Corporation.
11. Ghee Corporation of Pakistan Limited, and Pakistan Edible Oils Corporation Limited
(defunct).
12. National Fertilizer Corporation (NFC)
Production Division
1. Development of Industries (Federal Control) (Repeat) Ordinance, 1979. 2. Economic Reforms (Protection of Industries) Regulation, 1972 (Regulation No. 125 of
1972). 3. All matters relating to Stat Industrial Enterprises, especially, in basic and heavy
industries, namely: -
i. State Engineering Corporation (SEC) ii. State Cement Corporation, Lahore. iii. Pakistan Automobile Refining & Petrochemical Corporation, Karachi. iv. Federal Chemical & Ceramics Corporation, Karachi. v. Pakistan Steel Mills (PSM), Karachi. vi. Pakistan Industrial Development Corporation (PIDC), Karachi.
4. Any other industrial enterprises assigned to the Division.
ORGANIZATIONAL SETUP Ministry of Industries & Production consists of the following Wings: - 1. Finance, Admin & Regulation Wing (FAR)
Core Tasks:
1. Administration / Establishment matters of main Ministry.
2. Budgetary and financial matters of main Ministry and its Organizations.
4. Foreign and local trainings, workshops and seminars.
4. Litigation issues of the Ministry, attached departments, corporations and support
organizations.
5. Council and coordination work.
6. Spokesperson of the Ministry
7. Matters relating to MIS Centre.
8. Work relating to Assembly/ Senate Business.
9. Administration of Laws on Boilers
10. Administrative/ Operational matters of the following: -
a. Department of Explosives.
b. Utility Stores Corporation.
c. National Productivity Organization (NPO)
11. Keeping a watch, from the national angle, over general price trends and supply
position of essential commodities, price and distribution control over items to be
distributed by statutory orders between the provinces by using, inter alia, Utility
Stores Corporation.
2. Large Enterprises Development (LED)
Core Tasks:
1. Preparation & yearly review of Industrial Policy & its implementation.
2. Preparation & yearly review of industrial Sectors Policies & their Implementation.
3. Work relating to Administration and Establishment of following Organizations working
under LED Wing.
a. Pakistan Steel Mills (PSM)
b. Heavy Mechanical Complex (HMC)
c. State Engineering Corporations.
i. ENAR Petro-Tech.
ii. Pakistan Machine Tool Factory
iii. Heavy Electrical Complex.
iv. Pakistan Engineering Company (PECO)
d. National Fertilizer Corporation (NFC)
e. National Fertilizer Marketing Limited (NFML)
f. Pakistan Automobile Corporation, Karachi.
g. Sindh Engineering Ltd, Karachi.
h. Republic Motors Limited Company Lahore.
4. Ensuring preparation of yearly and quarterly plans for the above large-sized companies
attached to Mo IP;
5. Policy Evaluation and Monitoring like Chemicals, Pesticides, Cement, Mining Industry,
Ghee/Cooking Oil, Solvent Extraction, Poultry, Plastic, NEPRA, Leather Goods, Sports
Goods Surgical Instruments, Paper and Pulp & Hotels.
3. Medium Enterprises Development (MED)
Core Tasks:
1. Preparation & Yearly review of SME Policy.
2. Overseeing Implementation of SME Policy.
3. Creation of financial products for SMEs and ensuring its outreach
4. SME facilitation in creating backward and forward marketing
Linkages
5. Work relating to Administration and Establishment of following Organizations
working under MED Wing: -
a. Small & Medium Enterprises Development Authority (SMEDA)
b. Pakistan Industrial Development Corporation (PIDC) including its following
Companies: -
i. Pakistan Stone Development Company( PASDEC)
ii. Pakistan Gems & Jewellery Development Company (PGJ&DC)
iii. Pakistan Hunting & Supporting Arms Development Company (PHASDC)
iv. Furniture Pakistan
v. Aik Hunar Aik Nagar Project (AHAN)
c. Southern Punjab Embroidery Industry (SPEI)
d. Spun Yarn research & Development Company, Multan.
e. Khaddi Crafts Development Company, Multan.
f. Leather Crafts Development Company, Multan.
g. Juice producing and packaging lines for fresh fruits & vegetables.
h. Matters relating to AGRO Food Industry.
6. Ensuring preparation of quarterly and yearly plans for the above Medium sized
companies attached to MOIP.
4. Industrial Infrastructure Development Wing (IID)
Core Tasks:
1. Preparation and implementation of long-term (5 years) and short-term (six months
or more) industrial infrastructure development plans, with particular reference to
Pakistan China Economic Corridor.
2. Preparation and implementation of trucking policy with the aim to facilitate present
fragmented trucking system into a cohesive industry capable of dealing with
Pakistan-China Economic Corridor requirement.
3. Preparation, Implementation, monitoring and evolution of Development Projects
(Funded through PSDP, foreign or internally funded).
4. Work relating to Project Monitoring and Evaluation Cell
5. Work relating to Administration and Establishment of following Organizations
working under IID Wing: -
a. Export Processing Zone Authority (EPZA).
b. National Industrial Parks Development and Management Company (NIP).
6. Ensuring preparation of yearly and quarterly plans for the above Infrastructure
development companies attached to MOIP.
7. Engineering Development Board (EDB)
5. Investment Facilitation Wing (IF)
Core Tasks:
1. Protection and promotion of industries & economic enterprises through developing
incentive structures in the broad areas of: -
a. Fiscal Policy
b. Monetary Policy.
c. Trade Policy.
2. International Coordination except Pakistan -China Economic Corridor.
3. To ensure creation of an enabling environment to the entrepreneur / prospective.
4. Investment facilitation and inter-ministerial coordination for removing bottleneck in
the way of new and existing industrial investment project.
5. Investment Facilitation Centre (IFC)
6. Enforcement of energy and industrial standards.
7. Employment of foreign personnel in commercial and industrial enterprises.
8. Bilateral Investment Promotion and Protection Agreements;
9. Matters pertaining to Labour Laws and ILO.
10. Coordination with International Agencies i.e. UNDP, UNIDO, World Bank, IMF, Asian
Development Bank, Islamic Development Bank, etc.
11. Relevant input on specific issues / matters will be provided by the respective Wings /
Sections.
12. Matters pertaining to SAARC including SAPTA, SAFTA and FTAs. Necessary input
relating to tariff/custom duty under these Agreements will be provided by Deputy
Chief (Technical).
13. Identification of training & skills gaps of SMEs and Large-scale Industries.
14. Work relating to Administration and Establishment of following Organizations
working under IF Wing: -
a. Technology Up-gradation & Skills Development Company (TUSDEC)
b. Karachi Tools Dies & Mould Centre, Karachi (KTDMC)
c. Gujranwala Tools Dies & Moulds Company (GTDMC).
d. Ceramic Development & Training Complex, Gujranwala (CDTC).
e Pakistan Chemical & Energy Sector Skills Development Company (PCESSDC).
f. Pakistan Institute of Management (PIM), Karachi
g. Pakistan Industrial Technical Assistance Centre (PITAC)
15. Preparation of skills development plans in respect of the above Skills Development
Companies attached with MOIP.
Chapter- 2 INDUSTRIAL OVERVIEW
Increasing efficiency of the Industrial sector is a critical of Economic development. Industry‟s
role for the economy in post WTO era has become crucial not only to safeguard local industry,
but also to benefit from increased trade opportunities in the global market, subsequently
strengthening Pakistan‟s economic performance. The strength of Pakistan economy depends on
the dynamism of businesses that can respond to opportunities as they emerge, and that can
restructure and adapt to market demands. This, however, is only possible through favorable
policies developed through regular interaction with the private sector.
Ministry of industries and production entrusted with the task to provide the vision for industrial
development set on an ambitious course to play a leadership role in formulating and
implementing a comprehensive strategy for rapid industrialization of Pakistan which aims at
maximizing job creation and enhancing Pakistan‟s international competitiveness. Achievement
of goals as set out in the vision statement require pragmatic steps for policy formulation with
respect to industrialization, tariff rationalization, strengthening of engineering sector & its
integration with world markets. Training & enhancement professional education being a
prerequisite for developing a workforce that is equipped with skills for improving competitiveness
& productivity.
Following successful international models for rapid industrialization the Ministry embarked upon
developing a comprehensive industrial strategy during the year under review. This effort drew
upon the expertise and experience of industry, academia and public sector. The strategy lays
down direction for achieving a strong position with competing economies.
FERTILIZER SECTOR: The Government of Pakistan has established Fertilizer Review Committee (FRC) mechanism
which holds its meeting regularly in order to review the demand and supply of Urea in the
country. For Rabi 2014-15 shortage of Urea was ascertained by Production and accordingly
timely decision was taken to import 570, 000 tons of Urea as allowed by ECC Viz 385,000 tons
from open international market and 185,000 tons under SABIC facility. Moreover, through the
distribution network of National Fertilizer Marketing Limited (NFML), availability of Imported Urea
across the country has been ensured.
Annual Production & Demand of Urea & DAP for Year 2013-14
(Qty in Million Tons)
Description Annual Production
Annual Consumption
Gap
Urea Without Gas Curtailment
6.9 6.5 + 0.4 Surplus
Urea With Gas Curtailment
4.932 5.7 -1.068 Deficit
DAP 0.7 1.6 0.925 Deficit
Source: NFDC
Incentives for Fertilizer Industry
The Government has also provided various incentives under Fertilizer Policy, 2001 to
encourage the fertilizer production in the country including: -
1. Duty free import of Phosphate Rock and Machinery (not manufactured in the
country).
2. Provision of Feed Stock Gas at concessionary rates to Fertilizer Plants (in
comparison to the Price for Commercial usage) for buoying up Urea Production.
3. Subsidy of Fertilizers imports for difference between the landed cost and local sale
price.
PRICES OF UREA
Domestic Prices Average Fertilizer Market Prices in the Country as on December, 2014 compared with
November, 2014: -
(Rs/50 kg)
Product Nov, 2014 Dec, 2014 % Change
Urea Sona 1894 1933 2.1
Urea (Tara) 1858 1891 1.8
Di-Ammonium Phosphate (DAP) 3709 3807 2.6
Nitrogen Phosphorus (NP) 2632 2676 1.7
SSP (Granular) 1019 1022 0.3
Calcium Ammonium Nitrate (CAN) 1604 1613 0.6
Sulphate of Potash (SOP) 4900 4900 0.0
Source: Federal Bureau of Statistics / Records of National Fertilizer Development Centre
International Prices
The following spot FOB prices are as under:-
Sr. No Finished Fertilizer Prices During 2013 Trend Origin Oct, 2014 Nov, 2014
i. Prilled Urea Baltic 318 311 Declining
ii. Prilled Urea Arabian Gulf 330 321 -do-
iii. Prilled Urea China 290 292 Rising
Source: TCP, Karachi
CEMENT SECTOR:
Number of Units at present 24
(All units are in private sector)
Annual Installed capacity 44.64 (Million Tons)
Cement sector is not only catering to domestic needs but also exporting surplus cement to
different countries mainly to Afghanistan, India, Africa and the Middle East. Salient features of
Demand / Supply and Production Capacity are given below:-
Years Supply (Million Tons)
Production Capacity
Capacity Utilization
(%age)
Local Market
(Cement)
Export (Cement+Clicker)
Total Dispatches
2010-11 42.37 74.17% 22 9.43 31.43
2011-12 44.64 72.83% 23.95 8.57 32.51
2012-13 44.64 74.89% 25.06 8.37 33.43
2013-14 44.64 76.79% 26.15 8.14 34.28
Presently, Export of Cement is exempted from the Sales Tax (16%) and Federal Excise Duty
(FED). However, the domestic consumption is being charged Sales Tax (17%) and FED (Rs.
400 Mpt)
Chapter-3
ACHIEVEMENT OF DEVELOPMENT SECTION
Development Sector
Achievements of Development Section of IID Wing, Ministry of Industries & Production during the Year 2013-14 are as follows:-
An expenditure of Rs. 1055.199 Million has been incurred under PSDP 2013-14 in
implementation of development Projects of Ministry of Industries & Production against
allocation of Rs. 1879.778 million. (Detail is placed at Annexure-I).
Thirty Four (34) ongoing development projects were executed during the Financial Year
2013-14.
The Projects Agro Food Processing Facilities (AFP), Multan, Institutional Development in
MoI with respect to WTO, Strengthening of Planning, Monitoring & Evaluation Cell, in M/o
Industries & Production and Ceramics Development and Training Complex (CDTC),
Gujranwala were completed in 2013-14.
The development Projects executed during the year were geared to act as demonstration
effect to provide common training facilities, technological transfer and common
machinery pools. The basic thrust of the development projects was on technology driven
growth within a framework to encourage economy of scale, value addition and
diversification of products in order to make our products competitive in the international
markets.
Details of the Projects under Ministry of Industries & Production are approved and under
process with Ministry of Planning, Development & Reforms by the CDWP / DDWP during
the year 2013-14 are enclosed to be incorporated in Year Book.
In addition to the above the Following Projects were processed during 2013-14.
1. CDWP
Rs. In Million
Sr. No Name Of The Project Total Cost
Current status
1. Water Supply Scheme for Hub Industrial & Trading Estate Phase II (Extension)(Revised PC-I)
353.216 Approved
2. Sialkot Business & commerce Centre, Sialkot (Revised PC-I)
484.61 Approved
3. Revised PC-I “Red Chilies Processing center (RCPC), Kunnri, Sindh
244.700 Approved in CDWP meeting held on 17-07-2014
4. Up-gradation of Fan Development Institute, Gujrat
243.00 The cost of project was rationalized from Rs. 243 million to Rs.153 million in the Pre-
CDWP meeting in the M/o PD&R held on 29-08-2013. The project is under consideration in this Ministry
5. Value Addition In Industry/Cluster Development Approach With estimated Cost of Rs. 1000 Million
1000 PC-I is under preparation by the executing agencies.
6. Establishment of Gemstone Mining Processing, and Training Centers at Skardu (Gilgit-Baltistan) and Mingora (Khyber Pakhtunkhwa)
301.20 Forwarded to Ministry of Planning, development and Reforms on 27-03-2014 for consideration/ CDWP
7. NFC Institute of Engineering and Technology (Neushahro Feroze)
625 Approved by DWP on 21-12-2013
8. National Institute of Solar Energy 498.4 PC-I forwarded to PCRET and AEDB for comments / inputs which are still awaited.
9. Enhancement, Up-gradation and Strengthening Capacity of Existing Fan Development Industry (FDI), Gujrat
105.50 PC-I is under examination in the Ministry.
10. Acquisition of Land for Expansion of Karachi Export Processing Zone as (KEPZ Phase-III)
500 PC-I is under examination in the Ministry.
11. SAAC handicraft village-handicraft design, development & promotion centre.
51.67 Inputs on progress / issues with Implementing Agencies of SAARC Development as discussed in meeting held on May 20, 2014 are still awaited.
12. Establishment of Gems & Jewellery Training and Manufacturing Centre, Bahawalpur.
74.34 The PC-I will be discussed in the up-coming DDWP meeting
2. DDWP
Rs. In Million
Sr. No Name of the Project Total Cost
Current Status
1 Revival of Foundry Shop in PITAC Lahore
4.5 PC-I forwarded to EAD for Japanese Grant for the year 2015 on 15-06-2014
2 Enhancement of Training Capacity and Deliverability of Services
32.493 PC-I forwarded to EAD for availing Japanese Grant for the year 2015 on 15-06-2014
3 Energy Efficiency Project for Industrial Sector in Pakistan (Phase-I)
55.842 Deferred by Secretary on 15-07-2014
4 Industries Capacity Building on Occupational Safety and Health (CBOSH)
57.11 Deferred by Secretary on 15-07-2014
5 Establishment of Income Generating Enterprise for Production, Packing, Branding and Marketing of the Essential Oil through Public Private Partnership”
48.183 Deferred by Secretary on 15-07-2014
6 Productive Usage of Cotton Stalks (Briquetting) through Public Private Partnership
49.21 Deferred by Secretary on 15-07-2014
7 Peshawar Business Center 60.00 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
8 SMEs Small Interventions Program
59.00 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
9 Women Business Development Center Dera Ismail Khan
56.38 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
10 Women Business Development Center, Abbotabad
58.23 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
11 Establishment of Spinning CFC at Islampur Swat KP(Revised)
56.514 Deferred by Ministry
12 National Frame Work Energy Management System(Energy Managers/ Auditors & Mandatory Energy Audits based on ISO-50001(EnMs)
50.38 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
13 Indigenous Development of a Surface Coal Gasification unit for Producing of Coal Gas as an Alternate fuel for Industrial Application
59.70 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
14 Indigenous Development of a Mini Hydro Power Plant for off-grid use
59.50 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
15 Indigenization of Machinery for Marble & Granite Sector
59.74 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
16 Establishment of Mosaic, Handicraft and Inlay Center at Khairpur
50.208 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.
17 Survey and Feasibility Study for Infrastructure Development for EPZ Gwadar)
14.00 Project will be discussed in the upcoming meeting of EPZA‟s DDWP
“Annex-I”
Rs. In Million Sr. No PSDP
Sr. No Name of the Project Capital
Cost
PSDP Rupee Allocation
Releases in FY 2013-14
1 478 Agro Food Processing (AFP), Multan
207.73 8.382 8.382
2 479 CFTC for Light Engineering Cluster, Mardan, Khyber Pakhtunkhwa
39.980 10.0000 10.0000
3 480 Establishment of Castor Oil Extraction Plant at Hub Uthal Distt, Lasbela
300.00 60.0000 0.0000
4 481 Establishment of Bostan Industrial Estate Phase-I
400.410 60.0000 40.0000
5 482 Establishment of CFC for Honey Processing & Packaging Common Facility Centre, Mingora, Swat
38.170 8.0000 8.000
6 483 Establishment of CFC for Silk Cluster at Mingora, Swat
57.530 20.0000 20.000
7 484 Establishment of Chromites Beneficiation Plant at Muslim Bagh District Killa Saifullah, Balochistan
104.345 57.3450 57.345
8 485 Establishment of Infrastructure in Quetta Industrial & Trading Estate (Phase-II)
174.250 50.0000 50.000
9 486 Establishment of Intake & Brine Disposal System / Civil work for Desalination Plant at (i) Gaddani, (ii) Jiwani, (iii) Pasni (Revised)
287.380 60.0000 60.000
10 487 Establishment of Spinning CFC at Islampur, Swat
29.697 8.0000 8.000
11 488 Foundry Services Centre, Lahore 179.400 46.3140 36.684
12 489 Institutional Development in MoI with respect to WTO
59.840 5.4110 2.935
13 490 Prime Minister Quality Award 36.990 3.0200 3.020
14 491 Provision of Infrastructure in Quetta Industrial State (Phase-IV)
126.930 66.9300 46.930
15 492 Red Chilies Processing Centre Kunnri, Sindh
221.885 23.0000 23.000
16 493 SME Sub contracting Exchange in Gujranwala
26.090 6.5410 6.540
17 494 SMEDA SME Facilitation Complex at PITAC, Lahore
57.200 52.200 0.000
18 495 Sports Industries Development Centre, Sialkot
435.637 27.7570 27.757
19 496 Strengthening of Planning, Monitoring & Evaluation Cell, in M/o Industries & Production, Islamabad.
53.231 11.6460 6.089
20 497 Up-gradation of NFC Institute of Engineering & Technology Facilities, Multan
100.000 70.0000 40.000
21 498 Water Supply Scheme for Hub Industrial Estate Phase-II (Extension)
247.360 50.0000 50.000
22 499 Establishment of Women Business Development Centre Mingora, Swat
35.010 6.0000 6.000
23 500 Women Business Development Centre, Karachi
58.840 10.0600 5.160
24 501 Women Business Development Centre Peshawar, Khyber Pakhtunkhwa
28.410 3.4280 3.428
25 502 Women Business Incubation Centre, Quetta
58.08 11.41 11.410
26 503 Development and Installation of Sun-Tracked Solar Collector for Heating Water and Generating Steam for Industrial Processing.
55.330 44.3300 34.330
27 881 Ceramics Development & Training Complex (CDTC), Gujranwala
361.640 5.984 5.984
28 882 Development of Marble & Granite Sector
2276.880 476.660 127.032
29 883 Development Projects of Pakistan Gems & Jewellery Development Company
1400.000 250.000 149.500
30 884 Establishment of Design Institute Specially for Energy Sector Plants at HMC, Taxila
665.380 201.770 135.260
31 885 Development Projects of Pakistan Gems & Jewellery Development Company, AJK
59.920 10.590 7.413
32 886 Establishment of Turbines and Power Plants Equipment Manufacturing Facilities at HMC, Taxila
21543.100 5.000 5.000
33 887 Hyderabad Engineering Support Centre (HESC), Hyderabad
223.490 60.000 24.000
34 888 Light Engineering Up-gradation Centre for SMEs in Balochistan (LEUC), Hub Lasbela
217.900 60.000 24.000
35 889 Peshawar Light Engineering Centre (PLEC), Peshawar
230.560 30.000 12.000
Total: - 30398.595 1879.778 1055.199
Chapter- 4
PUBLIC SECTOR CORPORATIONS / ORGANIZATIONS
1. PAKISTAN INSTITUTE OF MANAGEMENT (PIM)
Pakistan Institute of Management (PIM) was setup under PIDC in 1954, and in 1956, it was
made a national organization. In 1976, an independent Board of Governors was constituted.
PIM is not registered as a separate legal entity, and it works as an autonomous body under the
administrative control of the Ministry of Industries and Production (MoIP), Government of
Pakistan.
Head office is located in Clifton, Karachi with one Branch office in Gulberg, Lahore. Both the
buildings are owned by PIM and are purpose built. Presently, total number of employees is 109.
Annual budget for the year 2013-14 is Rs. 103.78 million with grant-in-aid of Rs. 34.00 million,
which means around 30% of expenditure is met from grant-in-aid and around 70% from PIM‟s
own sources of revenue.
PIM‟s MISSION
Progress through Better Management. PIM‟s CHARTER / VISION
PIM is to take a lead role in Management Training & Development in Pakistan on a no-profit-no-
loss basis.
PIM‟s CORE BUSINESS / ACTIVITIES
Management Training & Education, and
Management Consulting & Counseling.
ACHIEVEMENTS & INITIATIVES TAKEN, SINCE JUNE 2013 Training partnership was developed with Business Edge of IFC (World Bank Group) to target
SME sector and entrepreneurs as well. This venture helped PIM in getting our seven (7) faculty
members / trainers trained from BE/IFC, and also in getting good long term business from an
NGO working in the province of KPK, beside others.
Management Consulting is one of the core functions of PIM, but during last more than 10 years,
there was hardly any such work done by PIM faculty. During last one year, the same has been
revived, and by the grace of ALLAH, around 5 consulting assignments have either been
completed or being worked upon. The revenue earned from these consulting assignments (the
amount received so far and to be received before June 30, 2014) is around Rs. 4.50 million.
Besides earning, the exposure and learning experience to the faculty is priceless.
A national HRM conference, 1st time in the history of PIM, was held in February 2014 in Lahore,
and was attended by more than 200 professionals from the corporate sector. The expenditure
was met from the amount received through fees and sponsorships. A similar management
conference is planned in Karachi sometime in March 2015. These conferences, besides giving
other benefits to all, will help in image building of PIM.
PIM is mainly operating in Karachi and Lahore. Very few training programs are offered in
Islamabad in a hotel. Arrangements have been made with organizations in Quetta and
Peshawar to start offering our training programs in these two cities as well, so that PIM‟s
presence in all the 4 provinces is made. Similar arrangements are also under consideration for
Islamabad.
2. UTILITY STORES CORPORATION OF PAKISTAN (USC) Utility Store Corporation was established in July 1971, by taking over 20 retail outlets from the
Staff Welfare Organization. Passing through various stages of expansion and reorganization,
the Corporation at present is operating 5954 stores throughout the Country.
LEGAL STATUS The Corporation has been established under an Executive Order of the then President of
Islamic Republic of Pakistan. It has been registered as private limited company under
Companies Act, 1913, now called Companies Ordinance, 1984.
BASIC OBJECTIVES The basic objectives for which the Corporation has been established are as under: -
a. To protect the real income of the people by selling essential consumer items at prices
lower than those prevailing in the open market.
b. To act as a price moderator in the market and deterrent to profiteering, hoarding and
black marketing by the private sector.
c. Government‟s Relief Packages e.g. Ramzan Package.
d. Food security during crisis. (Provision of basic Food items to affectees during Natural
Calamities).
OPERATIONAL EFFICIENCY Operational performance of the Corporation during the last six years is tabulated hereunder: -
(Rs. In Billion)
Year Sales achieved Net Profit / Loss
2008-09 48.734 0.452
2009-10 52.932 0.708
2010-11 68.917 0.844
2011-12 68.281 0.775
2012-13 93.000 1.158
2013-14 95.000 1.001
EMPLOYMENT GENERATION The Corporation at present is one of the major job providers in the Country. At present, the
Corporation has employed more than 16,000 personals in different categories.
NO BURDEN ON GOVERNMENT EX-CHEQUERS The Corporation is not any burden on the Government Ex-Chequer. It is not getting any kind of
grant or subsidy for its operational expenses. All kinds of operational expenses which include
the cost of salaries, wages, cost of selling and distribution, rental of the buildings, cost of
electricity, payment of taxes etc. are being meet by the Corporation itself from the gross profit
margin of the sale proceeds. This is a great service to the Nation. Monthly salary bill of the
Corporation is more than 275 Million.
TAXES DEPOSITED IN THE NATIONAL EX-CHEQUER Despite selling the essential consumers items on the prices lower than the market, the
Corporation during the last six years has paid various taxes amounting to Rs.33.509 Billion in
the Government exchequer as per following details: -
Sr. No Year Amount
(Rs. In Billions)
a. 2008-09 4.149
b. 2009-10 4.534
c. 2010-11 6.412
d. 2011-12 5.294
e. 2012-13 5.318
f. 2013-14 7.802
Total: - 33.509
EXPANSION OF THE NETWORK During the period under reference, the Corporation has considerably expanded its network.
Number of Warehouses has been increased from 15 to 65 and stores from 560 to 5954. Today,
Utility Stores Corporation is one of the biggest Corporation of Ministry of Industries having its
network spread all the Country. The Corporation is operating 34% in the urban and 66% in rural
areas. The Corporation has also submitted a proposal for opening of 1000 new stores and 30
Warehouses throughout the country.
PROVISION OF ESSENTIAL COMMODITIES The Corporation has successfully discharged its obligatory functions of provision of essential
commodities at reduced prices. The prices of essential commodities being sold at USC outlets
are 5 to 10 percent less as compared to open market.
PENETRATION INTO RURAL AREAS The Corporation has successfully penetrated in the rural areas by opening of stores at Union
Council level. Present percentage / ratio of the coverage of the stores in Urban and rural areas
is that the Corporation is operating 34% in urban areas and 66% in rural areas.
RAMZAN RELIEF PACKAGE
a. During the last five years, the Corporation had successfully conducted Ramzan Relief Packages under which essential commodities, which include Atta, Ghee / Oil, Dal Channa, Baison, Black Tea, Milk and Spices were sold on subsidized rates. In addition,
the Corporation by narrowing its own margin reduced the prices of more than 1800 items by 5 to 10%.
b. The performance of the Corporation in terms of quality and service during Ramzan Relief Package 2013 was appreciated by the Government as well as public. The Corporation achieved the record sale of Rs.22 Billion during the Holy month of Ramzan 2013. The consumers through this Ramzan Relief Package availed much needed economic relief of more than Rs.2700 Million.
The Government approved Ramzan Relief Package-2014 for a relief of
2000 Million. Under this Ramzan-2014, sixteen essential commodities which include Atta,
Ghee/Oil, Dal Channa, Dal Mash Washed, Dal Moong Washed, Dal Masoor, Baison (Chakki),
Dates (Khajoor), Rice Basmati, Rice Sela, Broken Rice, White Gram, Squashes and Syrups
(Bottles), Black Tea, Milk (Tetra Pack) and Spices have been sold on subsidized rates. In
addition to this, the prices of more than 1500 food and non-food items have been reduced by
the Corporation by narrowing its own margins and through obtaining additional discounts from
vendors/suppliers. In addition to the Sales / provision of subsidized items to consumers through
USC own network, the Corporation also established more than 250 Stalls in the Sasta Bazars
organized by the Government of Punjab in all the Districts of Punjab. The Corporation has
achieved sale of Rs. 21/- Billion during the month of Ramzan-2014. Much needed relief has
been availed by the consumers.
Special Role of USC
i) Food security during crises.
ii) Intervention in market through sale of subsidized items.
iii) Government‟s Relief Package‟s e.g. Ramzan Package during natural calamities.
iv) Market intelligence.
Future Plan
In order to provide the essential consumer items to more segments of population at reduced
prices, the Corporation has planned to open 1000 more stores throughout the country. This will
not only provide the required economic relief to the middle and lower middle income people but
at the same time, it will create job opportunities for the un-employed youth.
3. STATE ENGINEERING CORPORATION (SEC)
State Engineering Corporation (SEC) is one of the leading Organizations in public sector under
Ministry of Industries & Production, Government of Pakistan. The corporation is looking after the
affairs of following units: -
Heavy Electrical Complex (HEC), Hattar Pakistan Machine Tool Factory (PMTF), Karachi Pakistan Engineering Company (PECO), Lahore ENAR Petrotech Services (ENAR), Karachi
SEC companies since establishment have developed a strong base for the design, engineering
and manufacturing of variety of light, medium and heavy engineering products and provide a
Project Management Consultancy services for oil & gas, Chemical, Petrochemical, Fertilizer as
well other process industries. Through continuous efforts, they have achieved optimum level of
deletion for various products which helped in import substitution of capital engineering goods
demand in the country.
SEC units are performing as per international standards (ISO 9000) with a total workforce of
1844 as on 30.06.2014 Numbers including regular, contract and daily wagers.
ROLE & FUNCTIONS
State Engineering companies have developed a sound engineering base for the manufacturing
of light, medium and heavy engineering goods and are consistently contributing towards
industrial development of the country. Through continuous efforts, they have achieved optimum
level of deletion for various products which paved the way to import substitution towards
meeting the demand of capital goods in the country. These units have been persistently playing
a pivotal role in its area of activity which encompasses the following:
Promotion of industrialization through indigenous manufacturing and development;
Establishing facilities to manufacture capital goods and heavy machinery not yet produced
locally;
Acquisition and development of medium to high technologies for manufacturing engineering
goods at competitive prices;
Optimization of local capabilities / facilities;
Emphasis on export of engineering goods;
Seeking product diversification for new markets;
Production of conventional defence armaments;
Fostering R&D culture
HR development in the professional fields out of which many have played pivotal role in local
industrial sector
Consultancy services in design & engineering towards development of Engineering
Procurement Construction (EPC) projects in Oil & Gas Sector, fertilizer and other process
industry.
UNITS PROFILE & PRODUCTS MIX
SEC units namely HEC, PMTF, PECO and ENAR were established in year 1998, 1974, 1968
and 1950 respectively. All the companies are ISO 9000 certified and manufacture a variety of
engineering goods and equipment conforming to international standards. The products and
services include power transformers, machine tools, die cast parts, transmission line and
communication towers, components & parts of automobiles, pumps and a host of special
equipment, components and spares for supply to local and foreign markets. Besides,
consultancy services in design & engineering towards development of Engineering Procurement
Construction (EPC) projects in Oil & Gas Sector, fertilizer and other process industry is also
provided.
Following are the units of State Engineering Corporations (SEC) which are working under the
administrative control of SEC.
i. HEAVY ELECTRICAL COMPLEX (HEC)
Heavy Electrical Complex (HEC), a nationally significant unit of State Engineering Corporation,
is located in Hattar Industrial Estate, District Haripur, KPK. It was set up at a cost of Rs. 1,158
million with the techno-financial assistance of the People‟s Republic of China. The company
possesses 61 acres of land out of which 43 acres are allocated to the factory whereas
remaining was earmarked for future developments.
HEC has trained manpower numbering 222 persons including 29 regular (engineers &
professionals) whereas remaining are daily wages mostly workers engaged through labour
contractor.
The Company holds ISO 9000 – 2001 Certification. Accordingly strict quality control is enforced
during all the stages of production using specified procedures and techniques based on latest
management practices.
The project was designed to manufacture 148 Nos. power transformers rating from 6.3 MVA to
40 MVA, 132/11.5KV to meet the exclusive requirements of WAPDA / NTDC (DISCOs) &
KESC. The company started commercial production during 1997.
ROLE AND FUNCTIONS
The company has been set up for meeting the country requirements of heavy electrical
equipment starting from manufacturing Power transformers at optimum cost to support the
national electrification programme and strive for import substitution. Although not in its original
scope, the mandate of the company has been extended to Rehabilitation / Refurbishment of
Power Transformers, which has resulted in saving large amount of foreign exchange annually
besides contributing towards reducing load shedding problems
ACHIEVEMENTS / PERFORMANCE
To-date HEC has manufactured 276 Nos new transformers valuing Rs. 7 Billion of different
ratings and supplied to WAPDA/KESC and various other customers. Moreover, HEC has also
repaired/rehabilitated 106 Nos. valuing Rs. 574 Million of Power/Auto transformers for WAPDA,
KESC, AJK Hydro Power Board, POF, Pakistan Railways and some other private sector
industries. The largest power transformer repaired at HEC so far was 250 MVA having voltage
rating of 15/220 KV and weighting 250 tons. HEC have also repaired 03 Nos. auto transformers
of ultra high voltage i.e. 500KV up-to 200 MVA for WAPDA for the first time in the country.
HEC has so far achieved import substitution to the tune of Rs. 7.5 billion (Around USDs 103
million) through manufacturing new transformers as well as repair of damaged transformers.
The repair work ranged upto 500 KV power transformers, at less than 25 % of the replacement
cost and 50 % of the lowest foreign bid. The products manufactured, besides regular ones,
include own designed transformers of rating 31.5/40 MVA, 132/11.5 KV and five transformers of
20/26 MVA, 132/6.6 KV. The business development strategy helped to enhance average
capacity utilization during 2004-2008 reaching 32.5 % against a very low level in previous years.
The company sales have touched Rs. 965 million in 2009-10 though fluctuating with the market
trends. HEC has been sustaining its operation totally at its own. Operating and Financial Results
of the company for previous years is tabulated below whereas financial result for the year 2013-
14 is under compilation: -
(Quantity in Nos and Value in Rs. Million)
Description 2008-09 2009-10 2010-11 2011-12 2012-13
New 30 28 23 14 17
Repair/Rehabilitated - - - 2 7
Total 30 28 23 16 24
Production Value 801 871 755 471 626
Sales 797 965 828 539 704
Pre-Tax Profit / (Loss)
(42) 32 (26) 9 (7)
Total Assets 1,433 1,774 1,714 1,378 1,715
Total Liabilities 236 552 527 188 536
Net Equity 1,197 1,221 1,187 1,190 1,179
The performance of the company during 2013-14 could not encouraging and remained much
below the targets. Major reason for this dismal picture is continuous delay in placement of
orders by DISCOs (due to their administrative problems) against tenders where HEC is lowest.
The financial position of HEC will significantly improve in year 2014 -15 as orders of 14 PTs
valuing Rs. 614.525 million are in production process .As per Budget plans for the year 2014-15,
HEC to manufacture/supply 22 new Power Transformers (PTs) for the value of Rs. 968 million
and repair another 4 PTs for the value of Rs. 32 million. With the realization of these set targets
HEC will achieve a sound financial position.
PRODUCT DIVERSIFICATION
HEC is in possession of Chinese Technology for manufacturing 7 types of 132/11 KV Power
Transformers from 6.3 to 40 MVA capacity. However, Power transformers of 5 types out of 7
types for which technology was acquired have been phased-out.
Accordingly HEC has to look-out for other technologies/products. In line with this thinking HEC
has succeeded in developing technology of a 31.5/40 MVA 132/11 KV Power Transformer
besides few others for the Cement Sector. Moreover, Design Modification of a 20/26 MVA
Power Transformer has been completed and offered to NTDC for inspection and testing. This
development would result in cost saving to the company as compared to earlier design.
The company is also in the process of developing an automatic communication system of Power
Transformers with the name of GTraMS (GSM Transformer Monitoring System) which would
transmit real-time transformer critical data to the specified mobile numbers. This would facilitate
preventive maintenance of the transformer and avoid any major loss to the transformer in case
of a developing fault. Moreover, the company would have a new source of revenue if DISCOs
are convinced to adapt this system.
FUTURE STRATEGY
HEC has earned good market recognition in the field of power transformer manufacturing and
re-habilitation. To further strengthen the company HEC has devised an action plan focusing on
following: -
Maximizing Market Share to secure orders worth Rs 1.3 billion Promoting revised design of module 20/26 MVA, 132/11.5 KV after prototype qualifies all
requisite test enabling HEC to minimize the weight as well as decrease the operational losses
Optimization in existing design of power transformers Diversification for manufacturing Higher Module Step Down Power Transformers (160 MVA
and 250 MVA) as well as Step Up Generator Transformers. Introducing GSM mobile based real time information dissemination system for monitoring
Grid stations.
ii. PAKISTAN MACHINE TOOL FACTORY (PMTF) DETAIL OF ACTIVITIES / ACHIEVEMENT / PROGRESS DURING YEAR 2013-14 DEVELOPMENT OF SPECIALIZED GEAR BOX FOR PMO
Project Management Org. Rawalpindi, one of the strategic organization has a specialized
requirement of development of Reduction Gear Boxes for their strategic nature of job.
Accordingly, PMTF took this development project in hand as national cause, and has
successfully developed these Gear Boxes. The order details are as under: -
Number of Gear Boxes 04 Nos.
Value of Contract Rs. 4.127 millions
The order is successfully executed, satisfactory inspected and accepted by the users. DEVELOPMENT OF MORTAR 60 MM (COMMANDO TYPE)
Through our in-house R&D efforts PMTF has developed Commando Type Mortar 60 MM. this is
light and easy to use. The service of this Mortar will support agencies to execute commando
actions with quick respond of the weapons. The sample of the Mortar is handed over to
inspectorate of Armaments (Inspection Authority for Pak Army) to carryout detailed inspection of
the developed weapons and also conducts its live firing tests. So that PMTF may include these
weapons in our regular production cycle. Since currently, we foresee the increasing requirement
of these weapons to the different agencies in local and for export.
DEVELOPMENT OF SPECIAL LOCO GEARS FOR PAKISTAN RAILWAYS
To meet Pakistan Railways requirement and to save Precious foreign exchange and minimize
its reliability on imports, Pakistan Railways has given task to PMTF for the development of
under noted gears: -
Helical Gear (33 teeth) Helical Gear (37 teeth) Helical Gear (42 teeth) Helical Gear (48 teeth) Helical Gear (84 teeth)
PMTF took this development job in hand as national cause to support Pak Railways and also to
foresee this requirement on regular basis has successfully developed these helical Gears and
has successfully executed their 1st development order with under noted details: -
Number of Gears Sets 12 sets
Value of Contract Rs. 4.655 millions
DETAIL OF TARGETS SET OUT EXTENT TO THEIR REALIZATION DURING YEAR 2013-14
During the year 2013-14, PMTF set out sales plan of Rs. 1.065 billions, with segment-wise
details as under: -
TOTAL TARGET SET FOR THE YEAR 2013-14
Sr. No PRODUCT SEGMENT SALE TARGET RS. (MILLIONS)
1. Transmission Products 528.493
2. Die Casting Products 179.973
3. Special (Defense) Products
190.720
4. Machine Tools 165.967
Total Target Value 1,065.153
Although, PMTF successfully procured the targeted orders for their execution, however, due to
hard financial crunch during the year, PMTF was not able to arrange for required fund to
manage input for production cycle. As such, PMTF was not able to complete its set targets. The
details of targets achieved in each segment are submitted below: -
TOTAL ORDERS EXECUTED FOR THE YEAR 2013-14
Sr. No PRODUCT SEGMENT ACTUAL SALE ACHIEVED
RS. (MILLIONS)
1. Transmission Products 222.463
2. Die Casting Products 57.677
3. Special (Defense) Products 77.725
4. Machine Tools 37.769
TOTAL ACTUAL SALE ACHIEVED
395.334
BALANCE ORDERS IN HANDS (AS ON JUNE 30, 2014)
Sr. No PRODUCT SEGMENT ACTUAL SALE ACHIEVED
RS. (MILLIONS)
1. Transmission Products 596.860
2. Die Casting Products 57.644
3. Special (Defense) Products 27.695
4. Machine Tools 142.316
TOTAL ACTUAL SALE ACHIVED
823.514
iii. PAKISTAN ENGINEERING COMPANY (PECO)
DETAIL OF ACTIVITIES DUING THE PRECEDING FINANCIAL YEAR
During the year 2012-13, besides regular operations, management of PECO used to actively
involve in various operational and administrative issues. List of major activities are as follows: -
a. Restoration of Sui Gas. b. Arrangements to import coal gasifier plant. c. Revival of galvanizing plant. d. To restore credit facility with the bank.
PROGRESS DURING THE YEAR
During the year 2012-13 management of PECO is working hard to improve the performance and
productivity of various business verticals. Some strategic decisions taken by the BoD and the
company‟s management are as under: -
a. To automate production facilities, reduce production cost, improve quality and up-
grade manufacturing technology of existing products.
b. Enhance product base through diversification and find new customers.
c. Become self sufficient in producing sufficient in-house energy for own consumption in
line with the directive of the government.
d. Revival of redundant plants such as rolling mill and electroplating plant.
e. Reduction in expenditure of the company by about 30 % by rationalization of extra
manpower and controlling the administrative expenditures.
PROGRAMME OF ACTIVITIES AND TARGETS SET OUT
Different activities and measures are devised to improve operational and financial performance
o PECO. These measures have been tabulated below along with the time lines for case of
comprehension.
MID TERM ACTIVITIES AND PROGRESS THEREOF (ONE YEAR)
TASK MEASURES ADOPTED
DATE OF COMPLETION
PROBLEMS CURRENT STATUS
Installation of induction furnace
These furnaces are required fir casting and preparation of billets for rolling mills
Expected to be completed by the end of FY 2013-14
Nil Preparation of technical specifications is in hand
Running of electroplating plant on commercial / JV basis
Pre feasibility study has already been carried out
Expected to be completed by the end of FY 2013-14
Nil A firm has already been localized to prepare / submit their proposal
Fabrication of TRLS, semi TLRS automobile carriers and oil tanker
Market survey and certification for manufacture of pressure vessel is being studied
At least one product would be completed before end of next FY.
Nil Feasibility study is in progress a firm has already been localized to prepare / submit their proposal
BMR of structure, pumps/ motors and foundry divisions
Modernization plan of all the divisions has been prepared
Partial completion by June 2014
PECO has currently financial crunch
Proposition under evaluation
LONG TERM ACTIVITIES AND PROGRESS THEREOF (THREE YEARS)
TASK MEASURES ADOPTED
DATE OF COMPLETION
PROBLEMS CURRENT STATUS
Long term energy solution
Installation of 2 MW coal based electricity plant
Expected to be completed within two years
Lack of funds
All the requisite tech information has been obtained
Joint ventures with private sector
EOI for various projects have already been called for
Expected time frame is 2-3 years
Nil Negotiations with various parties are in hand
Commercialization of facilities available in PECO
Facilities like foundry, galvanizing plant, rolling mill and electroplating plant be run for activities other than PECO
Step by step all these facilities are being restored and expected to be fully commercialized within next two years time
Lack of funds
Galvanizing plant has become operational and rolling mill is about to start within next two months time
PROJECTED STATISTICS FOR THE YEAR 2012-13 AND 2013-14
Projected and expected statistics for the year 2013-14 and 2012-13 are tabulated as under: -
PARTICULARS PROJECTED 2014
EXPECTED 2013
RUPEES
Sales – net 1,663,498 386,030
Cost of sales 1,512,298) (451,904)
Gross profit 150,570 (65,874)
Operating profit / (loss) 85,463 (114,555)
Profit / (loss) before taxation 55,888 (134,251)
iv. ENAR PETROTECH SERVICES LIMITED (EPSL)
ENAR Petrotech Services (Private) Limited (ENAR) was formed in 1972 and currently working
under the administrative control of State Engineering Corporation (SEC) - Ministry of Industries
& Production, Government of Pakistan.
ENAR is the only multi-discipline integrated ISO 9001-2008 certified design engineering
organization in Pakistan providing project management services during last four (04) decades
with the commitment to technical excellence and our high caliber personnel allow us to deliver a
best practice service in various phases of the oil & gas sector projects.
ENAR is an integrated engineering and consultancy company providing complete range of
service for execution of project in Oil /Gas processing, Storage, Petrochemical, Chemical and
Fertilizer sector. The ranges of service are detailed below:
Project Development /Planning
Basic / Process Engineering
Detailed Engineering
Project Management
Procurement Assistance
Construction Management and commissioning
Operation & Management
MAJOR ACTIVITIES / ACHIEVEMENTS Currently ENAR is working on following major oil gas projects.
OGDCL UCH –II Gas Field Project, recently, ENAR has successfully accomplished
engineering & procurement of all Long Lead items within targeted frame. Whereas currently
supervising the PC Contractor activities.
OGDCL Jhal Magsi Gas Field Project, Engineering & Procurement of almost all long lead
items has been completed. PC Contractor is being finalized and Construction activities will be
started by the end of September 2014.
PPL, Adhi NGL / LPG PLANT – III prepared FEED document & provided engineering
consultancy.
In addition, ENRA has also executed international client‟s project including Penspen, OMV, UEP
(formerly BP) related to design /detailing of Wellhead Development, FEEI) Packages & Site
investigation studies.
The programme of activities and targets set out for itself during the proceeding financial year
and extent to which they have realized:
(Rs. Million)
LAW / LEGAL INSTRUMENT UNDER WHICH THE ORGANIZATION IS CREATED
YEARS ANNUAL INCOME FOR LAST FIVE YEARS (PKR)
ANNUAL EXPENDITURE ON SALARIES / OPERATIONS FOR LAST FIVE YEARS
PPROFIT / LOSS DURING LAST 05 YEARS (BEFORE TAX)
SPECIFIC TARGETS ACHIEVED DURING LAST FIVE YEARS (BUDGETED TARGET)
Incorporated under Companies Act 1913 (Now the Companies Ordinance 1984)
2013 (226.48) (153.67) (4.49) (395)
2012 (225.69) (117.60) (39.06) (188.38)
2011 (160.80) (91.77) (29.93) (160)
2010 (141.56) (84.84) (18.18) (139.5)
2009 (129.50) (84.26) (10.91) (138.5)
4. ENGINEERING DEVELOPMENT BOARD (EDB)
ENGINEERING SECTOR
Engineering Development Board launched a comprehensive Industrial Research Program (IRP)
back in October ‟12 with the collaboration of Academia/Research Organizations and Higher
Education Commission (HEC) to promote R&D activities in the industry by engaging huge R&D
potential existing with Universities.
Under IRP, Industry entrepreneurs on individual or collective basis indicate their technical
problems/areas where research is required to EDB. The problem is shared with researchers/
scholars of various universities for designing /developing indigenous solution. The case is finally
allotted to the Research team on competitive basis. EDB extensively circulated the IRP program
among the industrial sector, chambers of commerce & Industry and industrial associations
across the country.
In response to IRP, Industry across the country ranging from electronics, electrical, HVAC,
castings/forgings, fabrications, chemicals, steel, renewable energy, etc. has started sharing
industrial technical problems, which are being discussed with concerned researchers of various
universities. In total 15 industrial research cases are under consideration of universities. Status
of some of research cases is as under: -
i) Technical Up-gradation of Mills - Steel Re-Rolling Mills‟ Association
Steel Re-rolling Industry requires technical assistance in the areas like designing of efficient gas
burners, shifting to alternate arrangements for energy requirements, redesigning of reheating
furnaces, automations etc. PIEAS and ATCOP has consented to undertake the research
project. Successful execution of the research project will impact the whole re-rolling industry,
enhance its efficiency and would affect substantial savings of energy besides improving the
environment.
ii) SUGAR INDUSTRY
M/S Noon Sugar Mills Ltd approached EDB for research support for conversion of Distillery
Plant effluents to value added products with zero discharge. They suggested that these effluents
may be converted into fuel or bio fertilizers. NUST consented to provide them the requisite
research support. Successful execution of the research project will enable Sugar Industry to
replicate the technologies among the sugar mills located in the country to convert their effluents
into energy and value added products.
iii) FAN INDUSTRY
M/S U.I. Industries, Gujarat has been provided research support through PIEAS. Extent of
support includes Development of DC fan, automation of ceiling fan testing, Implementation of
Lean Manufacturing, development of test benches etc. after successful implementation of the
prototype whole industry will benefit from this research initiative.
iv) SURGICAL & CUTLERY INDUSTRY
Surgical Instruments Industry Sialkot and cutlery Industry Wazirabad are the export based
industry where local skill is substantially facilitating to enjoy Made in Pakistan rapport in the
international market. To further facilitate its competitiveness in the international market, ATCOP,
PIAS and Air University are working on different aspects like material substitution, Process
improvement, etc.
DEVELOPMENT ACTIVITIES i) Development of Coal Gasifier based on local Coal
In view the severe difficulties faced by the industry on account of natural gas load management
and rising prices of coal in international market, EDB has taken an initiative to develop Coal
Gasifier based on local lignite coal for Syn gas to substitute natural gas. A workshop in this
regard was held in June 2013 with the collaboration of NUST where possible usages of local
coal were discussed to smooth out the energy crisis. The speakers highlighted usage of coal as
under: -
- Coal gasification (dry) to produce Syn Gas which can substitute natural gas
- Coal water slurry (CWS) to generate steam for electricity generation.
On EDB‟s initiative, a Fabrication Company at Lahore is right now working on development of
Gasifier which could be operated on locally available lignite coal. Around 70% fabrication of the
Gasifier has been completed along with the requisite R&D and the remaining assignment is
likely to be completed within next three months. Moreover, EDB is presently negotiating with the
provincial governments for setting up of electricity generations plants/systems by using CWS
technologies.
ii) Development & Installation of Sun-tracked Solar Collectors for Industrial Heating of
Water and Generating Steam for Industrial Processes
The Planning Commission has approved the above project at the cost of Rs. 55.33 million for
installation of 10 complete systems in 10 specific industries, each system comprising of 30-50
Sun tracked solar parabolic troughs in series for heating the water for industrial use. M/s.
Hardbone has been declared Technically/Financially qualified bidder.
The bidder will be required to install the complete systems in 10 specific industries, two
industries from each province and two from Islamabad. The beneficiaries could be Textile
spinning, processing & printing industries, leather processing industries, food processing
industries, sugar industries and chemical industries. The project would be completed in phases
within next two years. EDB has negotiated with Pakistan Institute of Engineering and Applied
Sciences, Nilore, Islamabad for providing research support throughout the execution of the
project.
1) MARKET DEVELOPMENT INITIATIVES
As part of engineering goods export promotion strategy to integrate ambitious and capable
engineering companies with the global supply chain, Engineering Development Board has so far
taken the following initiatives: -
i) Organizing Engineering Pavilion at 8th Edition of Expo Pakistan –September 26th to
29th 2013
Engineering Development Board (EDB) was invited by TDAP to organize Engineering Sector
Pavilion in “The 8th Edition of Expo Pakistan” organized from September 26th to 29th 2013, at
Expo Center, Karachi, based EDB‟s experience of organizing successful participation of
engineering industry in leading International Trade Fairs/ Exhibitions including Hannover Messe
Germany, Midest France, Euro mold Germany, Subconist Istanbul Turkey, Korean Machinery
Fair (KOMAF) etc.
EDB organized participation of 45 Engineering Companies belonging to different engineering
sub-sectors on 55 exhibition booths at Engineering Pavilion branded as “Engineering
Pakistan”. Engineering companies of Pakistan from various sub-sectors showcased a full
range of Pakistan‟s Engineering potential to the foreign and local buyers. Engineering Pavilion
was the largest group participation organized by EDB in Hall 6 of Expo Center. The prominent
engineering companies such as Qadbros, N.J. Industries, Orient Tractors, D.S. Motors, HMC,
PECO, HEC, PMTF, Hilbro Group, Fibre Craft Industries, PEL, Hero Motors, Sazgar
Engineering Works, Thal Engineering, Starco Fans, Adamjee Engineering and Exide Pakistan
Ltd etc participated in the event. Besides, key manufacturers of Auto Parts and Components,
Tractors, Motorcycles, Rickshaws, Surgical Instruments, Valves, Pumps, Pipes, Castings, Rims
and Dies & Moulds etc participated at engineering pavilion for projection of their products.
The delegations from foreign countries including India, Netherlands, Mauritius, Nigeria, Saudi
Arabia and UAE etc showed keen interest in Pakistani products. Several inquiries were
generated for the manufacturers of tractor parts & components, industrial valves, surgical
instruments, fiberglass boats etc.
ii) Capacity Building and International Linkages
EDB has developed linkages with various international organizations to provide Short Term
Expert services to local industry with the objective to improve production process, quality of
product, managerial capabilities, accounting system improvement etc. EDB has so far arranged
Dutch and German experts for 35 companies while cases of 6 companies are in pipeline. These
experts are providing professional and technical services in the areas of energy efficiency,
product and product quality improvement, productivity & process improvement, international
certification, international marketing, improvement in accounting system and improving product
design. For upgrading the Technical & Vocational Institutes, following four Institutes of TEVTA
have been enrolled under PUM‟s Vocational Education for Higher Categories and Levels
(VEHICLE) Programme: -
Woodworking service Centre-Rawalpindi
Wood working Service Centre-Gujrat
Cutlery and small tools Centre-Wazirabad
Light engineering Service Centre- Gujranwala
A formal Agreement between EDB/PUM/TEVTA is under preparation and these institutions shall
be enrolled for long term (3-5 years). A number of Experts will be visiting them to address
various issues including revision of syllabi for improving training and advisory services, training
of trainers etc which would ultimately help in revamping / up grading these institutes to match
with international Training Institutes.
iii) Engineering Goods and Services Exporters Directory 2013
In order to project Engineering Image of Pakistan, EDB has compiled and published a
Engineering Goods & Services Exporters Directory of Pakistan. The directory is having
complete profiles of 150 leading Exporters of Pakistan in various engineering sub sectors and is
being circulated to Pakistan‟s Foreign Missions, Foreign and local Chambers of Commerce,
Associations and EDB‟s International Support Partners in the potential markets.
iv) Agreement Between Centre for promotion of Imports from Developing Countries (CBI)- Dutch Company and EDB
Under the institutional arrangement agreed upon between EDB and BI , certain activities have
been initiated for i) BSO Development and ii) For enhancing export competitiveness of local
engineering industry.
First Training session on Process Control for the BSOs was conducted at Lahore by CBI which
was attended by EDBs representatives. Further in order to expose the BSOs to the EU market
access requirements etc, an EXPRO Seminar was organized by CBI at The Hague, which was
replicated in Lahore. The purpose of this exercise was to train the BSOs on various aspects of
Export Marketing and Management.
v) D-8 Summit and side line events
Pakistan hosted the D-8 Summit held on 19th to 22nd November, 2012 at Islamabad. A four day
exhibition and one day Business Forum were arranged as side line event.
Three major sectors were identified for exhibiting their products namely Halal Food, Engineering
Goods and Textiles. EDB organized the exhibition of engineering industry of Pakistan. Twenty
three companies participated from automobile, surgical, fan, electrical equipment, telecom
equipment, domestic appliances, valves and pumps and heavy mechanical and electrical
segments.
During the Business forum EDB also made presentation on Opportunities and Challenges in the
Engineering Sector of Pakistan. Both events provided excellent opportunities for networking with
the exhibitors and delegates of the D-8 member States.
As a follow-up of D-8 Summit, other activities have also been initiated and EDB has been
declared as the Resource Department for organizing a meeting on “Cooperation of
Engineering Sector among D-8 Members” during 2014. Preparations for the same are
underway.
Policy Development Group, New Auto Development Policy (ADP) 2014-2019 (Under preparation/approval) The Auto Industry Development Programme (AIDP) expired on 30th June 2012. Currently, new
Auto Development Policy (ADP) is under preparation/approval of the concerned authorities.
ADP has following policy objectives and strategic interventions to promote automotive sector of
Pakistan.
Objectives
• Facilitating horizontal and vertical growth of both automobiles and auto-parts manufacturing industry to attain higher volumes, more investment, better quality and latest technology
• Creating a balance between open trade and industrial growth with minimal risk to local industry and Pakistan‟s economy
• Enhancing government revenues both through stimulating growth in the auto sector and streamlining trading activities
• Ensuring consumer welfare through provision of quality, safety, choice and value for money
• Providing policy consistency and predictability for investors as well as midterm policy review mechanism to cater for emerging developments in the automotive sector.
Strategic Interventions To achieve above policy objectives, ADP proposes following Strategic Interventions:
• Lower entry threshold through New Investment Policy • Create enabling Tariff structure for development of the automotive sector • Rationalize automobiles import policy • Develop regulatory and enforcement mechanisms for Quality, Safety and Environmental
standards • Create R&D, Design and Testing Infrastructure • Develop Human Resource and Training Infrastructure • Technology Acquisition Support Scheme for Auto-Part Manufacturers (APMs) • Consumer Welfare • Transform SRO 693(1/2006) to CGO-11/2007 • Export Incentives for Auto Parts Makers • Truck Financing by Commercial Banks • Incentivize Fleet operations
A. TARIFF RATIONALIZATION EXERCISE
The main objectives of the tariff rationalization exercise are: -
Reducing cost of doing business by decreasing cost of inputs
Encouraging local Industry to invest in priority sectors.
Simplifying procedures for payment of Customs Duty, Sales Tax and Federal Excise
To counter the menace of under-invoicing, smuggling and mis-declaration
To encourage import substitution
CONSULTATIVE APPROACH
Consultative based approach was followed in Tariff Rationalization Exercise undertaken for the
Federal Budget 2013-14. The proposals received from the Industry, Trade Associations,
Chambers, FBR, MoI&P etc. were analyzed and firmed up by EDB for consideration by FBR.
STATISTICS
• 2000 proposals were received for budget exercise 2013-14. • 150 proposals were finalized and forwarded to FBR for consideration.
B. NOTIFICATIONS REGULATED BY EDB Following notifications are regulated by EDB.
• SRO 656(I)/2006 dated 22.06.2006 – Authorizes EDB to allow import of CKD under concessionary regime to OEMs.
• SRO 655(I)/2006 dated 22.06.2006 – Authorizes EDB to allow concessionary import of raw-materials, sub-components, components and sub-assemblies to vendors
• SRO 693(I)/2006 dated 22.06.2006 – Notifies list of locally manufactured parts / components as recommended by EDB
• SRO 565(I)/2006 dated 05.06.2006 – Authorizes EDB to determine IOR/Wastages of Inputs of other industrial products (Non Auto).
• SRO 575(I)/2006 dated 05.06.2006, SRO 727(I)/2011 dated 01.08.2011 and SRO 678(I)/2004 dated 07.08.2004 – Determine local manufacturing status of goods being imported under concessionary regime to protect local industry.
• SRO 827(I)/2001 dated 03.12.2001 – Binds government and public sector organizations to give price preference to local industry over imported goods. EDB to monitor implementation of SRO and resolve issues relating to determination of landed cost factor.
• SRO 450(I)/2001 Authorizes EDB to determine IOR/Wastages of inputs procured under DTRE.
Performance w.r.t various SROs / Notifications
No. of Cases Finalized
2012-2013
2013-2014
A. TBS-1 (4-Wheelers ) - SRO 656 & SRO 693 1 Certificates issued vehicle wise: 125 137 2 Lists verified issued vehicle wise: 125 137 3 Input Records verified vehicle wise: 121 125 B. TBS-II (2/3-Wheelers) - SRO 656 & SRO 693 1 Certificates issued vehicle wise: 183 180 2 Lists verified issued vehicle wise: 183 180 3 Input Records verified company wise 82 94 4 Assembling Facilities verified 5 10
C. Determination of IOR under SRO 565 1 Input Output Ratios under SRO 565 99 93 D. Determination of IOR under SRO 655 1 Input Output Ratios under SRO 655 164 166 2 Input Output Ratios under SRO 656 (Direct Materials) 6 6 3 Input Output Ratios under DTRE 18 15 E. Determination of local manufacturing status under SRO 575, SRO 727 & SRO 678 1 Determination of local manufacturing status of
imported goods 291 271
F. Finalization of cases under SRO 827 1 Determination of status of procurements and its
implementation as per procedure and laws of Government
10 15
C. ON-LINE QUOTA DEBITING SYSTEM FOR CLEARANCE OF AUTOMOTIVE PARTS
AND INPUTS THEREOF (SHIFTING OF ONE CUSTOMS SYSTEM OF PRAL TO WEBOC)
• Since its inception in 2008-2009 clearance of automotive parts and inputs thereof were being carried out through the one Customs Systems of PRAL.
• In Budget 2013-14, shifting of On-line Quota Debiting under SRO 655(I)/2006 & SRO 656(I)/2006 from One Customs System of PRAL to newly developed system i.e. WEBOC., for streamlining and effective monitoring of Tariff Based System (TBS) was initiated by FBR. EDB worked closely with FBR for effective implementation of WeBOC System and has also been providing inputs for its refinement.
• The new system is operational since 1st July, 2013. • EDB allocates quota of imported inputs to OEMs & Vendors, which is debited on-line
through WEBOC. • EDB can access this system for year round monitoring of TBS.
5. PAKISTAN STEEL MILLS (PSM) Pakistan Steel is the largest and only integrated Steel Plant of Pakistan, started production in
1985 after inauguration in 1973 (planning since 1968 and 1st five year plan 1955-60) with a
production capacity of 1.1 million tons per year (MTPY).
It was established with the techno-financial assistance of the Ex-Soviet Union at a cost of
around Rs. 24.7 Billion.
The technology adopted for steel making is through Blast Furnace and Basic Oxygen furnace
(BOF) route which is the most popular and advanced steel making technology adopted for about
65% of steel making in the world.
SALIENT FEATURES / ACTIVITIES
Completion Cost: Rs.24,700 million
Project location & Site: Pakistan Steel is located 40 KM South East of Karachi in close vicinity of Port Muhammad Bin Qasim. It is spread over an area of 19,087 acres (about 29 sq. miles).
Major Activity: Production & sales of prime quality iron & steel products.
Main Products: Coke, Pig Iron, Rolled & Cast Billets, Hot Rolled Sheets/Coils/Plates, Cold Rolled Sheets/Coils, Galvanized Sheets, Formed Section.
By-Products: Coal-tar, Ammonium Sulphate, Blast Furnace Granulated Slag
ORGANIZATIONAL SET UP / MANAGEMENT
Pakistan Steel Mill Corporation Limited was incorporated as a Private Limited Company under
Companies Ordinance 1984. The Steel Mill is wholly owned by the Government of Pakistan,
and functions under the administrative control of Ministry of Production & Industries. The
Corporation is governed by it‟s Memorandum & Articles of Association. Its affairs are managed
by a Board of Directors nominated by the Government. All administrative & financial powers for
managing the affairs of the corporation vest in the Board which may delegate the same from
time to time to the Chief Executive and other functionaries. The day to day business of the
Corporation is carried out by the Directors / Principal Executive Officers under the supervision of
the Chief Executive Officer.
PRODUCTION / SALES STATUS IN LAST TWO YEARS
P r o d u c t s Production („000‟ Tons) Sale (Rs. in Million)
2013 – 14 2012 -13 2013 – 14 2012 -13
Budget Actual Actual Budget Actual Actual
Production in terms of capacity utilization of Raw Steel
11% 6% 14% - - -
Raw Steel 113 57 145
C o k e 111 33 185 - 449 325
Molten Metal/Pig Iron 123 78 180 746 295 247
Rolled Billets - - - - 34 47
Cast Billets 4 1 1 2399 34 47
H.R. Coils/Plates 134 57 122 19997 4363 6995
C.R. Coils 23 3 13 4187 399 970
Galvanized Coils/ Sheets - - - - - 1
REASONS OF LOSSES FOR THE PERIOD 2012-13 & 2013-14
Pakistan Steel has eared profit up-to year 2007-08. However due to global recession and other
factors, the Corporation suffered losses during subsequent years. Major reasons of losses
during the period 2012-13 to 2013-14 were as follows: -
Low capacity utilization (i.e. not reaching breakeven point).
Decrease in sale.
Devaluation of Pak Rupees from Rs. 70 to Rs. 99
Due to financial crunch supply line of raw material could not be restored and the Corporation compelled to slow down the production which resulted continuous losses.
STEPS TAKEN TO CONTROL LOSSES
In order to arrest the down slide of the Corporation the Government has taken following steps
i) Reform in Management
The Board of Directors had been reconstituted and highly professional directors have been placed on the Board which includes Directors from Private Sector and from the Public Sector.
Best corporate practices are being adopted and the Chairman of the Board is elected by the Board of Directors. Powers of the CEO has been rationalized and the management is made accountable for performance.
Number of Board meetings has been increased. Sub-committees of the Board have been constituted for establishing objectivity and effectiveness of the Board.
Management Executive Committee headed by the CEO and comprising of heads of key functions is holding weekly meetings with proper agenda.
ii) Restructuring Plan
ECC of the cabinet approved the summary in its meeting held on 25th April 2014 as under:-
“The Economic Coordination committee of the cabinet considered the Summary, dated 23rd April
2014, submitted by the Privatization Division on “Restructuring Options of Pakistan Steel Mills”
and approved, in principle, the proposal contained in Para-8 (Option I) of the Summary. The
month wise cash flow would be worked out by Finance Division in consultation with all
concerned.”
PARA-8 (OPTION I) OF THE SUMMARY IS GIVEN BELOW
Quote Injection of cash by GOP in three (03) tranches, amounting to Rs. 18.5 billion, as
per details given below:
1st tranche of Rs. 12.5 billion be paid immediately upon approval of the plan by first
week of May 2014. Out of this, Rs. 3 billion will be paid to NBP for additional L/C
facility for raw material. As a result, PSM will achieve 30% capacity in the 4th
month after disbursement, i.e. by August 2014.
2nd tranche of Rs. 3 billion be released in mid Sept 2014. This tranche should only
be released if initial milestones are achieved. Out of this, Rs. 1 billion will be for
enhancement of LC facility. This will help PSM in achieving 60% capacity by Nov
2014.
3rd tranche of Rs. 3 billion be released in mid December 2014, after evaluating the
results of 2nd tranche. Out of this, Rs. 2 billion will be for enhancement of LC
facility. PSM will achieve 77% capacity and profit of Rs 230 million from January
2015 to June 2015
Unquote
PLAN ADVANTAGES
The proposed plan will ensure the following benefits (plan advantages): -
a. Cash salary payment on regular basis.
b. Non cash salary payment from Jan. 2015 onwards. That month onwards, no
further liability towards non-cash salary will be incurred (approx. Rs 4 billion).
c. Payment of all utility bills on regular basis.
d. Payment of Rs 6.5 billion to GoP exchequer on account of taxes.
e. Stock in hand/transit (Asset) on books of Rs 10 billion (L/C related)
f. Operational capacity around 77 % which results in a monthly profit of Rs 38
million.
BUSINESS AS USUAL
In case of Business as Usual (BAU), following cash payments will be required to be made: -
a. Total payment of Rs 7 billion relating to cash related salary (not gross salary). b. No payment against utility bills (approx. Rs 9.8 billion) c. No payment for non cash salary part (approx. 7 billion) d. There will be no operations since operational capacity is already at around 2-3% e. Restructuring plan of PSM was based on the following assumptions: f. The funds will be released in the first week of May 2014 and L/C will be opened for
the raw material immediately g. Raw Materials will be received in 2 months after the opening of letter of credit
(L/C). h. Funds amounting to Rs. 18.5 billion be released in time and L/C facility / support
amounting to Rs. 9 billion be given by GOP as per the cash requirement schedule. i. The payment of mark up amounting to Rs. 5 billion and principle outstanding
amounting to Rs. 36.5 billion of NBP, principal amounting to Rs. 4.3 billion relating to consortium of banks and outstanding payment to SSGC of principal amounting to Rs. 15 billion amount may be frozen at least for the period of 2 years and the principal repayment to the banks and SSGC may be rescheduled for 10 years. Moreover, the markup of NBP (Rs 5 billion) and surcharge of SSGC (Rs 6.5 billion) may be waived off.
BUSINESS AS USUAL VS FINANCIAL RESTRUCTURING PLAN (FRP)
Comparison is as following: -
No. Description Amount
a. Impact of Business As Usual (BAU)
Rs. 23.8 billion and continued accumulated loss of Rs. 2.3 billion to 2.4 billion per month at capacity of 3% to 5%.
b. Payment in financial restructuring plan
Rs. 18.5 billion
MILESTONES
Capacity utilization in the month of April 2014, to June 2014 will be 5% and in July 2014 it will be
extended to 20%. The Capacity utilization will be enhanced to 30% in August 2014. Thus
reaching to 70% level in December 2014 by enhancing @ 10% monthly, as under:
Month May June June July Aug Sept Oct Nov Dec
Jan15 to
Jun15 Total
Capacity 5% 5% 20% 30% 40% 50% 60% 70% 77%
Funds
disbursement Rs
in million 4,200 2,550 2,875 2,875 1,000 1,500 500 2,000 1,000 18,500
2014-15 2013-14
MONTHLY BREAK-UP OF DISBURSEMENT
EXECUTION OF FINANCIAL RESTRUCTURING PLAN (FRP)
1st disbursement details of Rs 4.2 billion
a. 1st disbursement of Rs. 4.2 billion was received on 21st May 2014 instead on 1st
week of May 2014 as per plan assumptions.
b. Rs. 1.5 billion inclusive of freight were utilized for import of raw materials against
letter of credit for 2 coal shipments (High & Low Volatile for 55,000 MTN each).
c. One ship of coal arrived on 3rd July 2014 and another ship of coal has arrived on
8th July 2014 which is being unloaded. Coke oven battery has started operation
from 11th July, 2014 after a laps of one year.
d. Inspite of delay in receipt of funds by two weeks and non-receipt of fund for iron
ore, efforts will be made to achieve 20% capacity utilization in the month of July
2014 as per FRP.
2nd disbursement details of Rs 2.55 billion
a. 2nd disbursement of Rs. 2.55 billion was received on 17th June 2014 instead of 1st
week of June 2014.
b. LC for one coal shipment of Rs. 590 million was opened on 25th June 2014.
c. LC for procurement of iron ore ship from M/s. Cargill has been opened on 9th July,
2014. These shipments will be made available in August 2014.
d. Besides that two tenders are floated for procurement of 20000 - 40000 MT iron ore
fine on FOR (DDP) basis, which will be opened on 09.07.2014 and 15.07.2014
respectively and expected to arrive during Aug 2014.
e. Similarly another tender of 50000 MT (+/- 10%) iron ore on C&F basis is floated
which will be opened on 24.07.2014 and cargo can arrive by mid Sept 2014
subject to availability of funds for opening LC.
3rd disbursement of Rs 2.875 billion
a. 3rd disbursement of Rs. 2.875 billion was received on 21st July 2014 instead of 1st
week of July 2014.
b. LC for one coal shipment of Rs. 590 million was opened on 21st July 2014.
c. Contract for procurement of iron ore ship from M/s. Cargill is in progress. LC will
be opened in 1st week of August 2014. These shipments will be made available in
September 2014.
CONCLUSION ON RESTRUCTURING PLAN If the disbursement is made timely by GOP and the liabilities of NBP and SSGC taken care by
GOP, the management of PSM is confident that the targets given by GOP will be achieved. The
management of PSM has taken following measures to ensure implementation of business plan
as per agreed targets.
TECHNICAL MEASURES
Production and related support facilities were visited and their conditions seen. Necessary plans
to prepare the plant/ facilities to meet promised targets by reducing down time and adding value
were prepared and system of monitoring work progress instituted as follows: -
Plant preparation / revamping schedule - short term
INDIGENIZATION PLAN
Pakistan Steel initiated a comprehensive indigenization Plan. The main objective of indigenization was to reduce the dependence on import and to increase the proportion of local raw material in its process and to make the production economically viable based on the following objectives:
To mobilize the local resources for shedding the partial dependency on the imported iron ore and the development of mining sector of the country.
To cut down cost of materials and to save foreign exchange
To promote the socio economic uplift of the remote mining areas of the country, especially Baluchistan.
Supplies of local raw material are being encouraged. Pakistan Steel is procuring expeditiously
local iron ore from the mine owners/authorized suppliers as per PPRA rules through contract as
short term policy. Pakistan Steel is also actively engaged to get the mining operation at its own,
on the three acquired iron ore leases in Baluchistan i.e. LUFTO, KULLIKOH and BELAR as per
our long term policy.
Pakistan Steel has successfully managed to substitute completely the import of manganese ore
and now 100% manganese ore requirement are being met through local sources (mostly from
Balochistan).
Consumption of local iron ore during the last two years, both through procurement and captive
mining is given below: -
Description
2012-2013 2013-2014 Total 2 Years
Qty (MT)
Amount (Rs)
Qty (MT)
Amount (Rs)
Qty (MT)
Amount (Rs)
Sandak Concentrate
7,912 77,235,312 - - 7,912 77,235,312
Local Iron Ore
9,344 55,189,680 48,307 329,461,188 57,651 384,650,868
Captive Mining
31,177 176,931,463 - - 31,177 176,931,463
Total: - 48,433 309,356,455 48,307 329,461,188 96,740 638,817,643
(iii) REVAMPING & EXPANSION
It is a 40 years old plant which needs revamping and most importantly „up-gradation‟ &
modernization to 03 million ton per year production to make it a really viable and profitable asset
of tremendous national value. Its infrastructure is huge and meant for 3 to 5 mtpy. (1 mtpy was
an initial step). Most of similar 25 or so plants installed by former Soviet Union have been
upgraded, we being the exception. Our neighbor Iran has upgraded similar Esphahan Plant to
3/3.5 mtpy and is poised to upgrade it to 5 million tons per year. They have invited the CEO
Pakistan Steel who is planning to take a delegation of senior engineers to see their plant for
improving our own might be with their help. Russia has offered credit for PSM expansion to
1.5/3.0 mtpy which Government should consider as a Golden opportunity as momentous for our
“industrial growth” as is “Economic corridor” for our national economic growth. Only through
growth of Engineering and Manufacturing (and steel being the base) will Pakistan achieve a
middle and higher economic status and “Steel mill” expansion will act as the catalyst.
Its extension to 1.5/ 3.0 million tons per year (mtpy) has been planned many times but various
interruption scuttled execution of this national project. Given below are the estimates of
expansion to 1.5 mtpy (exact cost will be determined either through competitive bidding or Govt-
to Govt agreement with Russia, China or any other interested country) in 2 to 4 years.
DUTY AND TAXES PAID
PAKISTAN STEEL is a major contributor to the national exchequer. It has paid an amount of
Rs.105.5 billion towards duties and taxes to the Government since 1984-85 to June, 2013. The
project has thus repaid more than the cost of the project which is Rs.24.70 billion. Further to
this an amount of Rs.1 billion is paid to the Government of Pakistan as dividend during
September, 2007.
SOCIAL OBLIGATIONS
Pakistan Steel has also making noteworthy contribution in the realm of social obligations. In this
regard Pakistan Steel is providing residential, medical, educational, and recreational and sports
facilities for its employees as well as to the people of adjoining areas. These facilities includes
125 Bed Pakistan Steel Hospital, Quaid-i-Azam Park, Cricket Stadium Park, Pakistan Steel
Cadet College, Sports Complex and construction of fly over at Quaidabad T-Junction which was
assigned to Pakistan Steel by the President of Pakistan.
DOWNSTREAM INDUSTRIAL ESTATE (DSIE)
Downstream Industrial Estate was created under the Notification of Government of Sindh in the
year 1984 on an area of 1420 acres. The objectives of creation of the Estate were to promote
industrial growth in the area. The process of these units is based on the products / by –products
of Pakistan Steel so as to facilitate the industries by providing the input raw material right at their
door step. The promotional efforts of Pakistan Steel succeeded and 44 downstream industries
have so far set up, or being set up in this Estate on an area of 490.78 acres. Remaining land
206.69 acres of DSIE will be allocated to the applicants in compliance with policy strictly on
merit basis when we start allocation of land for Sector-III.
6. SMALL & MEDIUM ENTERPRISES DEVELOPMENT AUHTORITY (SMEDA)
I. Business Development Services
SMEDA‟s Business Development Services assist SMEs to enhance their capacity to exploit
existing market opportunities and to facilitate investment decisions. Support extended to SMEs
by SMEDA during FY 2013-14 is as follows: -
i) Walk-in Facilitation 22,526 (including PMYBL applicants
ii) Prefeasibility Studies Developed 85 (customized for PMYBL) + 5 New and 7 updated pre-feasibilities
iii) Business Plans Developed 30
iv) Investment Facilitation Rs. 1.44 Billion
v) Training Programs conducted 137 programs with 4123 participants
vi) SMEDA Web Downloads of Information 157,462
II. Prime Minister‟s Youth Business Loan Scheme (PMYBL)
PM‟s Youth Business Loan Scheme was launched in December 2014 to provide access to
finance for new startups and business expansion. SMEDA was tasked with an advisory role in
implementation of PM‟s Youth business Loan scheme both in terms of developing information
tools resources and guiding and disseminating information to loan aspirants. A complete
mechanism and support infrastructure was also put in place regarding PM‟s Youth Business
Loans in order to ensure proper utilization and business development support for the loan
beneficiaries.
To provide information to loan aspirants, SMEDA developed 85 customized Business
Prefeasibility Studies. Along with this, Financial calculators (4) pertaining to loan repayment,
balance sheet, income statement, and cash flow statement, Business Plan Guidelines /
Template and Training Video Documentaries (7) on various aspects of business, and other
related information material, was also developed and made available on SMEDA web portal.
The information tools and resources are available in both English and Urdu languages.
Exclusive Helpdesks were also set-up by SMEDA at 25 locations in 16 cities for facilitation of
loan applicants. In addition, 03 new Helpdesks were established at Muzaffarabad, Chitral, and
Gilgit.
Around 12.39 million pre-feasibility studies and other tools and resources have been
downloaded from SMEDA web portal during FY 2013-14.
III. Enhancing Productivity & Competitiveness SMEDA, with the collaboration with GIZ (German International Cooperation), bfz and JICA has
been implementing energy management and audit programs across various sectors of the
economy. During the year 2013-14, over 29 energy management programs were conducted.
Application of EnMS leads to sustainable energy efficiency improvement in industry through
integration of energy issues in the overall management system of a company.
Dissemination workshop to share successful implementation of Energy Management System
(EnMS) in five foundries was also held.
In continuation of the efforts for the implementation of EnMS, Performance Contracting
mechanism has been introduced. Three new foundry units have been selected on performance
contracting basis for implementation of EnMS. The future cooperation between SMEDA and its
partners shall include application of renewable energy technologies in industry as well as
replication of EnMS implementation to other industrial sectors.
Energy Audit of 5 companies was conducted and 9 energy management training programs /
seminars were held. 2 Training of Trainers (TOT) for Energy Management Companies (ESCO)
and energy experts were also conducted.
In the area of green and cleaner production, 15 training programs and 2 training of training
sessions held. Under the initiative, Green Production / Clean Production audits were conducted
for 4 companies. Two, six month diploma programs for lean sigma certification were organized.
As part of the OEM Vendor Development Program, with JICA Production Management Expert,
13 companies were provided support.
20 Training Workshops/Seminars on Productivity & Quality improvement (with local experts)
organized.
IV. 5-Year SME Development Plan (2013-18)
In order to assist in Employment Generation and Value Addition to the National Income through
Development of the SME Sector, by helping Increase the Number, Scale and Competitiveness
of SMEs. SMEDA has developed 5 years SME Development Plan (2013-18) The Plan
envisages exponential growth of key emerging and conventional SME sectors, selected
primarily on the basis of their respective growth potential in terms of employment, contribution to
GDP and exports. The Goals and Outcomes of SMEDA in the identified areas of intervention
over the next 5 years are: -
Indicators 2013* 2018 Incremental Change
Employment 14.85 Million 25.00 Million 10 Million
GDP US $ 73.95 Billion US $ 193.50 Billion
US $ 120 Billion
No. of Enterprises
1.73 M 2.00 Million 0.27 Million
Exports US $ 18.21 B US $ 54.20 Billion
US $36 Billion
* The figures pertain to indicators in 13 sectors with large SME presence.
V SMEDA Internship Portal SMEDA Internship Portal is serving as a bridge between the demand and supply gap of human resources in the country for encouraging youth employability and entrepreneurship. It was launched on November 8, 2013 in Lahore, and was attended by important stakeholders from the business community, including representatives of Chambers of Commerce & Industry, public & private sector universities, and students. The objective of SMEDA‟s Internship Portal is to obtain demand requirements of the private businesses and public sector organizations, and make them available through an e-platform for employers and students. Once the demand from employers is placed at the Portal, the information is readily available to students, who may directly apply for a position of their choice, in any sector and region of Pakistan. This „No Cost e-platform” for Private and Public sector organizations provides an opportunity to access a large, diversified HR pool having the required skills, for strengthening their human capital. In order to operationalize the Portal, SMEDA has engaged Academia, Industry, SMEs, Chambers of Commerce and Industry, Trade Associations and Public Sector Organizations to generate internship opportunities across the country.
VI Economic Revitalization of KP and FATA (ERKF) Project; Multi-Donor Trust Fund ($20 million)
The Economic Revitalization of Khyber Pakhtunkhwa and FATA (ERKF) is a multi-donor funded project led by the World Bank that aims at revitalization of flood affected remote areas of KPK and FATA. The total cost of the project is US $20 Million. The Project is divided in three components, namely i) SME Development, ii) Investment Mobilization, and iii) Capacity Building to Foster Investment and Implement Reforms. The SME Development component is being implemented by SMEDA. The results of the project since the start of the project are as under: -
Status of Grants till June 30, 2014
Total approved grants cases
Total grants disbursed cases
1,253
907
Total approved amount
Total Disbursed amount
Rs. 1015.2 Million
Rs. 625.2 Million
Employment generated 1,737 Personnel
7. DEPARTMENT OF EXPLOSIVES The Department of Explosives has revised the Explosives Rules, 1940, Mineral Gas Safety
Rules, 1960 and Gas Cylinder Rules, 1940 has been replaced and new rules namely Mineral
and Industrial Gas Safety Rules, 2010, have also been framed. Department of Explosives has
contributed to the Government Exchequer through its functions like grant, renewal and
amendment of licenses under P.R 1937, Explosives Rules 2010, Carbide of Calcium Rules
1937, Mineral and Industry Gas safety Rules, 2010. The requisite information on the subject for
Fiscal Year 2013-14 is given as under: -
Performance of Department of Explosives during proceeding Financial Year
REVENUE TARGETS FOR THE PRECEDING FINANCIAL YEAR
Revenue Estimates During
2013-14
Revised Estimates 2013-14 Actual Revenue collected
during 2013-14
165,000,000 184,000,000 190,725,882
Sr. No Activities Islamabad Lahore Karachi Multan Peshawar Quetta Total
1. License Granted
31 238 35 241 58 11 614
2.
License Renewed
191 700 1689 734 270 225 3809
3. License Cancelled
- 44 26 - 11 6 87
4.
License Suspended
21 48 - 6 26 1 102
5. License Expired
14 88 29 - 36 14 181
6. Inspection Conducted
454 2197 483 40 60 11 3225
7. Vehicle Approval
437 2617 398 - 90 2048 5690
8. NOC/Permit 3 974 - 1 - - 978
9. Revenue Earned
42,551,562 57,241,547 29,822,803 24,385,501 21,164,621 15,559,848 190,725,882
10. Expenditure Incurred
13,793,279 6,305,134 6,342,005 4,403,817 3,125,056 2,889,816 36,859,107
8. HEAVY MECHANICAL COMPLEX (HMC)
Heavy Mechanical Complex (HMC), Taxila was established under 3rd. Five Years Plan, with the
technical and financial co-operation of government of People‟s Republic of China, to implement
government‟s industrial policy to shift emphasis from consumer goods to capital goods
manufacturing industry. HMC started its operations in 1971.
Later in 1977, Heavy Foundry & Forge (HFF) was established, also with the co-operation of
People‟s Republic of China, to produce heavy castings and forgings.
In 1990, Heavy Foundry & Forge was merged into Heavy Mechanical Complex.
PRODUCTION FACILITIES
The facilities in the company are unique and largest in the country, under one roof. The facilities
include design & engineering, foundry & forge works comprising of steel casting, cast iron &
non-ferrous castings, die & free forgings, heat treatment and pattern making shops, mechanical
works comprising of fabrication, machining, assembly, galvanizing facilities and non ferrous
fabrication facilities. HMC can undertake projects right from designing to manufacturing,
installation and commissioning of plants. The details of facilities are as follows;
MECHANICAL WORKS
Design & Engineering Machine & auxiliary shop;
(Area – 15,150 sq.m, No. of machines – 190, max. crane – 50 t) Fabrication Shop:
(Area – 21,842 sq.m, No. of machines – 198, max. crane – 100 t) Assembly Shop; (Included in machine shop) Galvanizing shop;
(Area – 1,036 sq.m, No. of equipment -11, max. crane – 5 t) Non-Ferrous fabrication shop:
(Area – 2,800 sq.m., No. of machines – 6, max. crane – 5 t) Heat Treatment shop:
(Area – 1,000 sq.m., No. of equipment – 26, max. crane – 5 t) Forge Shop:
(Area – 3,100 sq.m., No. of machines – 24, max. crane – 25 t) Surface Preparation & Painting: Quality Assurance: (Metrological & NDT)
Foundry & Forge Works
Technology Department Steel Foundry:
(Area – 20,040 sq.m., melting capacity – 60,000 t/yr., max. casting – 32 t, ingot – 50 t) Cast Iron & Non-Ferrous Foundry:
(Area – 10,236 sq.m., capacity – 5,000 t/yr., max. casting C.I – 28 t, N.F 1.5 t) Hydraulic Press Shop (3150 ton press):
(Area – 8,592 sq.m., capacity – 4,000 t/yr., max. forging – 35 t) Die & Free Forging Shop:
(Area – 8,740 sq.m., capacity – 2,500 t/yr., max. forging, free – 0.5 t, die 150 Kg) Machine Shop:
(Area – 6,120 sq.m., No. of machines – 31, max. crane – 32 t) Heat Treatment Shop:
(Included in casting & forging facility) Pattern Making Shop:
(Area – 4,572 sq.m., No. of machines – 11, max. crane – 3 t) Grinding Media Shop Quality Assurance:
(Mechanical, Chemical & quick analysis labs)
QUALITY ASSURANCE
HMC has in-house quality assurance facilities manned by highly qualified professionals. These
are as follows;
MATERIALS TESTING LABORATORY
It has facilities for Mechanical tests, Chemical analysis, Metallographic, Quick analysis,
Pyrometers & instrumentation.
NON-DESTRUCTIVE TESTING
It has facilities for Radiography – X-rays, Gamma rays (RT), Ultrasonic tests (UT), Magnetic
particle test (MT), Dye penetrate test (PT), Eddy current test – for coating thickness &
Spectroscopy.
METROLOGICAL LABORATORY
Instrument calibration, Profile projection, Optical dividing head, Surface finish measurement,
Gear run-out & back lash composite error check, Universal metre scope.
QUALITY CERTIFICATIONS
HMC has also the following international quality certifications;
ISO 9000: 2000 Certification
Certification for ASME stamps U, U2, S, PP & R for manufacture of pressure vessels,
boilers, pressure piping under ASME codes.
Lloyds of UK certification as manufacturer of 1st. class fusion welded pressure vessels.
PRODUCT RANGE & DEVELOPMENT
HMC has made significant contribution in local development of heavy engineering projects like
sugar plants, cement plants, oil and gas processing plants, equipment for petrochemical and
chemical plants, Over head travelling cranes, steam boilers, pressure vessels, heat exchangers,
road construction machinery, heavy castings and forgings. HMC has also developed several
products for defence sector. A detail of HMC efforts and contribution in development of local
engineering capabilities is as follows;
Original capabilities Present Capabilities
Sugar plants 1500 tcd capacity plant - Up-to 12000 tcd capacity plant (44 items) - Industrial alcohol plant
- Two Roller Mills 45”x90” & 52”x106” (New development)
- Falling Film Evaporators 4500 M2, 5000 M2 (New development).
Cement plants 600 tpd capacity wet process - 500-5000 tpd dry process (19 items) - White cement plan Industrial boilers 10 ton, low pressure (13 kg) - Water tube, up-to 100tons
Medium pressure - Fire tube Up-to 20 tons, - Heat recovery boilers
- High Pressure Boiler up to 140 Ton/Hr for Co. Generation (New development)
Road construction machines - Static road roller 10-12 ton static road roller - Vibratory road roller - Asphalt mixing plant - Stone crusher Cranes 32 & 75 ton overhead electric - Up-to 250 tons - Gantry cranes - Portal cranes
Truck Chassis (long members) Railway axles (wagon) - Wagon & loco axles Steel structures - Industrial steel structure - Steel bridges Power plants - Utility boiler parts (not included) - Turbine house equipment - Steel structure
- Radial gates - Hydel turbine Process plants (Not included) - Pressure vessels, columns - Heat exchangers, - Gas processing plants - Oil refinery equipment - Fertilizer plant equipment. - Chemical plant equipment.
Heavy castings - Heavy castings Heavy forgings - Heavy forgings
- Parts & components for defence products
MAJOR PROCESS PLANTS & EQUIPMENT SUPPLIED
HMC has supplied the following major equipment to-date;
Sugar Plants
34 complete plants
38 major expansion projects
Equipment & spares
Cement Plants
6 complete plants
Major equipment for 22 plants
Engineering & design services
Replacement equipment & spars
Oil & gas process plants
Dakhni gas processing field, complete facility
Pindori gas processing plant expansion project
Static equipment for Lasmo Bhit field project
Industrial boilers
About 200 boilers of capacity 1 ~ 80 tons
EOT & gantry cranes
About 300 cranes of lifting capacity up to 250 tons
MAJOR EQUIPMENT SUPPLIED FOR THERMAL POWER PLANTS
210 MW Bin Qasim TPS Units 3 & 4: (Deutche Babcock) Manufactured evaporators, super-heater & economizer coils, headers, heat
exchangers, pressure vessels, steel structure, stack, tanks.
210 MW Bin Qasim TPS Units 5 & 6: (Hitachi-Babcock) Manufactured evaporator, super-heater & economizer coils, headers, SH headers,
heat exchangers, pressure vessels, steel structure, tanks, buck stays.
320 MW Muzafargarh TPS Unit 4:(CMIC) Manufactured LP heaters, de-aerator tank, headers, cranes, pressure vessels,
steel structure, tanks, ducts, stack, cw pipes.
HUBCO TPS:(IHI) Manufactured plate & profile structure for power boilers.
AES Lalpir (Nichimen), Rouch (Rouch), Habib Ullah Energy (C+H Montage)
Steel structure, stack, ducts, hoppers, casing for heat recovery boilers.
MAJOR EQUIPMENT SUPPLIED FOR HYDROPOWER PLANTS
Gazi-Barotha HPP: (Voith) Manufactured spiral casing for hydro turbines (5x290 Mw), draft tube liners, pier
nose liners, pit liners, HP vessels. Supplied EOT cranes 70 & 6 tons, monorail crane 5 tons.
Tarbela HPP: Supplied draft tube gates, lifting beam, sill cleaning device. Supplied gantry crane 50 tons, semi-gantry crane 250 tons.
Warsak HPP: Manufactured draft tube gates, bulk head gates, trash rack, draft tube gates &
trash rack followers, head covers, bottom rings, wicket gates. EOT cranes 50 & 5 tons.
Malakand-III HPP: Designed, manufactured, installed & commissioned penstock (dia. 4 meters) – 1st.
time by any local company.
Kundal Shahi HPP: Complete rehabilitation of imported 1 MW power plant.
Others: Spillway gates (13x11 m), bulkhead gates (3x3 m) for Khanpur dam. Sluice, fixed wheel, head regulation gates for Abbasia Irrigation project. Small turbine runners up to 5 MW.
EXPORTS
Besides meeting local requirement of plant and machinery, HMC has exported 4 sugar plants,
one clinker grinding plant, over head travelling cranes, road construction machinery and host of
other items to friendly countries as follows; -
Indonesia Subang sugar mills (3000 tcd) Bangladesh
Natore sugar mills (1500 tcd)
Pabna sugar mills (1500 tcd)
SKS clinker grinding plant(1450 tpd)
E.O.T cranes for railways
Boilers
Sri Lanka Gates for irrigation system (Mahawali Development Project)
Kenya Asphalt mixing plant Ghana E.O.T. cranes for railways Sudan Evaporation station for sugar mill Saudi Arabia 4 tph heat recovery boiler Ethiopia Sugar mill (8000 tcd) Afghanistan Gates for irrigation system
FINANCIAL
Financial performance of the company for the last five years is tabulated below;
PERFORMANCE AT A GLANCE YEARS
2010 ~ 2014
Rs. in Million
Year Ending 30th. June
Sales Gross Profit/ (Loss)
Pre-Tax Profit/ (Loss)
Loans
Inventory Orders in hand
Long term
Short Term
2010 1983.40 202.13 1.08 428.10 150.00 842.00 1400.98
2011 2251.42 239.49 3.146 914.08 150.00 1033.51 2102.37
2012 2628.51 267.47 14.20 959.79 150.00 1139.26 2600.05
2013 2634.11 239.17 2.32 429.00 150.00 804.00 1799.65
2014 3001.03 303.38 40.4 429.00 150.00 762.28 886.27
PROFIT & LOSS
YEARS 2013 & 2014
Rs. in Million
Description Actual Jul-Jun
2013
Budget Jul-Jun
2014
Likely Actual Jul-Jun
2014
Variance over
Actual last year
Budget
Sales (mnf.)
2634.108
3115.021
3001.027
366.919
(113.994)
Cost of Sales
2394.935
2803.251
2697.649 302.714 (105.602)
Gross Profit/(Loss)
239.173
311.770
303.378 64.205 (8.392)
Operating Expenses
General & Admin. 195.335 205.292 201.710 6.375 (3.582) Selling & Distribution 30.687 41.424 42.810 12.123 1.386
Total Opr. Expenses
226.022
217,218
244.520 18.498 33,631
Operating Profit/(Loss)
13.151
65.054
58.858 45.707 (6.196)
Financial Expenses
(84.209)
(91.356)
(91.356) 7.147 -
Other/Interest income
73.499
73.080
72.890
(0.609) (0.190)
WPPF
(122) - -
122 -
Profit/(Loss) before Tax
2.319
46.778
40.392 38.073 (6.386)
Taxation
(25.489)
(31.150)
(30.010) 4.522
(1.140)
Profit/(Loss) after Tax (23.170)
15.628 10.382 33.551
(5.246)
Sales Breakup by Products 2010 to 2014
FUTURE DIRECTION OF THE COMPANY
Since its inspection in early seventies, HMC has excelled in many disciplines. HMC can rightly
be proud of its achievements made in local development of manufacturing technology for capital
goods especially in Heavy Engineering Sector like Sugar Mills, Boilers, Cranes, Heavy Castings
/ Forgings and such many other similar products.
In-line with its policy of indigenization of technology for the growth of local industry, HMC, in
addition to other areas, is specifically working on the following areas/ products.
NALTAR-III HYDROPOWER PROJECT
HMC has manufactured and supplied large number of equipment for hydropower plants for
various projects in the country. Now, Government in view of need and large potential of hydro-
electric power generation has entrusted HMC with turn-key execution of 16 MW, Naltar-III
hydropower project, as a model local project. Formalities for award of contract to HMC are being
completed by the concerned Authorities.
HIGH PRESSURE BOILERS FOR CO-GENERATION
There is large potential for power generation in sugar industry by replacing the existing low
pressure boilers with high pressure boilers. HMC has been regularly designing, manufacturing
and supplying bagasse fired boilers to sugar industry, according to their needs. Now, HMC has
completed the design of high pressure bagasse fired boiler of 67 bars / 140 Ton per hour High
Pressure Boiler for Co. Generation Project of JDW Group, however, deals with other buyers for
High Pressure Boiler are also being negotiated.
FALLING FILM EVAPORATORS
HMC has been meeting the entire requirements of the sugar industry for more than three
decades.
It has been keeping pace with the developments in sugar industry for performance improvement
to provide the industry with better equipment. Recently HMC has developed falling film
evaporators, which improve the performance with energy conservation. HMC has supplied
newly developed Falling Film Evaporator to Sugar Industry which is giving excellent
performance.
TWO ROLLER MILLS
For energy conservation & maximum juice extraction HMC worked on designing of Two Roller
Mills to replace conventional Three Roller Mills. In year 2012 HMC indigenously developed Two
Roller Mills to Sugar Mills in Punjab & Sind which are giving much better performance. These
three Roller Mills reduced crushing losses and improved overall Sugar Plant efficiency.
FUTURE PLANS FOR ENERGY SECTOR
HMC now, has to develop its capabilities as EPC Company, to make significant contributions in
energy sectors, keeping in view the domestic requirements on priority along with export potential
for engineering goods to increase the country‟s export.
On the initiative of Ministry of Industries & Production, HMC had prepared future plans for up-
gradation of its design and manufacturing capabilities and had submitted two PC-1s which have
been approved by CDWP and ECNEC. HMC after receiving the requisite allocations from PSDP
has commenced activities on these projects.
a. ESTABLISHMENT OF DESIGN INSTTUTE
HMC has prepared a PC-I for establishment of energy specific design institute. The project
costing Rs. 665 million will enable to develop local capabilities to design complete power plants
(Thermal, hydro & renewable), gas processing plants and other process plants in the country.
This project is at its advance stage.
b. UP-GRADATION OF FACILITIES
HMC has prepared a PC-I for up-gradation of its facilities (ESTABLISHMENT OF TURBINES &
POWER PLANTS EQIPMENT MANUFACTURING FACILITY). The PC-I is based on
manufacturing of equipment for power plants including turbines. The project will cost around
Rs.21.5 billion. It shall up-grade steel melting & refining, forgings, fabrication and CNC
machining facilities.
9. PAKISTAN INDUSTRIAL & TECHNICAL ASSISTANCE CENTRE (PITAC)
The Government of Pakistan established Pakistan Industrial Technical Assistance Centre
(PITAC) in 1962 with the merger of Industrial Research and Development Centre (IRDC) and
Industrial Productivity Centre (IPC) as an Autonomous body under the administrative control of
Ministry of Industries, Government of Pakistan and registered under the Societies Registration
Act 1860.
Since its inception PITAC has been rendering Technical Assistance to industry by way of
designing and manufacturing of Production Tooling Equipment, Prototyping, and rendering
Training Services to Engineers, Supervisors and Technicians from variety of industries
throughout the country.
Advisory Services in Metal Works, Steel Re-Rolling, Heat Treatment, Low Cost Automation and
Plastic Mold Making has also been an important function of PITAC.
The present report provides the salient features of performance of PITAC for the Year 2013 –
2014. PITAC has offered Short Term Intensive Training courses in Techno-managerial fields,
these courses are designed such that supply-side responses are perpetually in sync with the
demand side impulses from the industrial environment. The contents of the courses have been
carefully designed to meet the requirements of the Industry and have kept under review to being
them in conformity with the changing needs.
PITAC has continued to train unskilled workmen of SME‟s and small-scale workshops (cottage)
by the provision of Demand Driven Technical Courses resulting in better income and
employment opportunities.
In this way, PITAC has directly contributed towards Skill development for the SME‟s and light
engineering sector in accordance with the National Industrial Strategy devised by Ministry of
Industries and Production, Government of Pakistan.
It is hoped that the workmen acquainted with Technical Skills will be a strong backbone for the
industry of this country in the future.
SCOPE &FUNCTION
PITAC is Autonomous Organization under the administrative control of the Federal Ministry of
Industries and Production. Workshop facilities have been established in Lahore to provide
Training, Technological Back up Support and Advisory Services to the industry.
Since 1962, PITAC has been rendering Technical Assistance to industry by way of Designing
and Manufacturing of Production Tooling Equipment, Prototyping, Training of Engineers,
Supervisors and Technicians from a variety of industries throughout the country. Advisory
Services in Metal Works, Heat Treatment, Low Cost Automation, Programmable Logic
Controllers (PLCs) and Plastic Mold Making are important functions of PITAC.
Mission Statement
To upgrade, advice, disseminate, extend assistance and skill development in technical and
managerial fields to individuals and organizations throughout Pakistan.
OBJECTIVES
Following are the main objectives of PITAC: -
To Train and Upgrade the skills of Industrial Personnel in the Technical and Managerial
fields.
Disseminate modern technical knowhow among industrial personnel through Seminars,
Group Discussions, Workshops and Demonstrations.
Extend advisory services to industries;
To provide common facilities like Metal Working, Casting, Heat Treatment, Electroplating,
Surface Treatment, Designing and Manufacturing of machine elements and reverse
engineering
In conjunction with the training programmes the centre will produce modern manufacturing
techniques and production methods, while at the same time producing newly designed tools
and products (prototypes) which contribute to the advancement of Pakistan‟s Industrial
Development.
Organizational Structure of PITAC
The Operational Structure of PITAC is as follows:
Tier Name
1 Ministry of Industries and Production,
Government of Pakistan
2 Governing Body
3 Executive Committee
4 PITAC
Role of PITAC Governing Body and PITAC Executive Committee
The role of Governing Body is primarily Policymaking on Administrative, Financial and Technical
matters for which periodical meetings are held. The existing Governing body (GB) comprises of
following members: -
Sr. No Name, Designation and Address Role in GB
1 Additional Secretary Ministry of Industries and Production, Government of Pakistan, Islamabad
Chairman
2 Financial Advisor Ministry of Industries and Production, Government of Pakistan, Islamabad
Member
3 Director of Industries Government of Punjab, Lahore
Member
4 Director of Industries Member
Government of Sindh, Karachi
5 Director of Industries Government of Khyber Pakhtoon Khawa, Peshawar
Member
6 Director of Industries Government of Balochistan, Sirki Road, Quetta
Member
7 Mr. Wasim Khalid Chief Executive Officer, MECAS Engg. Ltd, Lahore
Member
8 Mr. Muhammad Shakeel Ch, Maqbool Industries, Lahore
Member
9 Mr. Abid Iqbal, Chief Executive Officer, PECS, Lahore
Member
10 Major (Retd) Arfeen Chief Executive Officer, Marriala Consultants, Lahore.
Member
11 Dr. Nadeem Ahmed Mufti Chairman Department of Industrial and Manufacturing Engineering, University of Engineering and Technology, Lahore
Member
12 General Manager, PITAC Member / Secretary
The Executive Committee of exercises the power of the Governing Body, except in matters of
major policy decisions and functions in between the meetings of the Governing Body. The
existing Executive Committee comprises of following members: -
Sr. No Designation Role in EC
01
General Manager
Pakistan Industrial Technical Assistance Centre,
Lahore
Chairman
02
Deputy Secretary (Admin)
Ministry of Industries and Production, Government of
Pakistan
Member
03
Deputy Financial Advisor,
Ministry of Industries and Production, Government of
Pakistan
Member
04 Representative of Federation of Pakistan
Chambers of Commerce and Industry Member
05 Representative of Lahore Chambers of Commerce
and Industry Member
06 Senior Manager (Operation & Works), PITAC, Lahore Member
Manpower
The Present Strength of Employees till June 2014 in various categories is 233, out of which 43
are officers, 66 employees in Non-technical cadre and 172 employees are in Technical Cadre.
The details are as under: -
Sanctioned Strength as on June, 2014
Sr No
Name of Post CADRE BPS No. of
Sanctioned Posts
IN Position
Vacant
OFFICERS
1 General Manager
Tech. Cum Administrative
20 1 0 1
2 Sr. Manager (O&W)
Tech. Cum Administrative
19 1 1 0
3 Sr. Manager PMD(Projects)
Tech. Cum Administrative
19 1 0 1
4 Sr. Manager (Marketing) Marketing
19 1 1 0
5 Sr. Manager (Training) Tech. Cum Administrative
19 1 1 0
6 Manager (P&A) Administrative 18 1 1 0
7 Manager (A/C‟s) Accounts 18 1 1 0
8 Manager (Coord) Administrative 18 1 1 0
9 Manager (Marketing) Marketing 18 1 1 0
10 Managers (Tech) Tech. Cum Administrative
18 12 3 9
11 Manager MIS MIS 18 1 0 1
12 Dy. Manager (Coordination) Administrative 17 1 1 0
13 Dy. Manager (Marketing) Marketing
17 1 1 0
14 Dy. Manager (P&A) Administrative 17 2 1 1
15 Dy. Manager (Accounts) Accounts
17 1 0 1
16 Dy. Manager (Audit) Accounts 17 1 1 0
17 Dy. Manager (Store) Tech 17 1 0 1
18 Dy. Manager (Cash) Accounts 17 1 1 0
19 Dy. Manager (Tech.) Tech. Cum Administrative
17 19 12 7
20 Dy. Manager MIS MIS 17 2 1 1
21 App. Engineer Tech. 17 4 0 4
22 Superintendent Non-Tech. 16 8 3 5
23 Network Administrator MIS 16 2 1 1
24 Foreman Tech. 16 13 5 8
25 Estimator Tech. 16 2 0 2
26 Designer Tech. 16 4 0 4
27 P.S to G.M Non-Tech. 17 1 0 1
28 Asstt. Store Officer Tech. 16 1 0 1
29 Superintendent Security Ex-Cadre 16 1 1 0
30 Training Coordinator Non. Tech. 16 2 1 1
31 I.T. Officer MIS 16 1 1 0
32 APS Non. Tech 16 3 3 0
33 Coordination Officer Administrative 16 5 0 5
TOTAL: - 98 43 55
ESTABLISHMENT (NON Tech.)
Sr No
Name of Post CADRE BPS Sanctioned Held Vacant
34 Steno typist Non-Tech 14 3 3 0
35 Assistant Non-Tech 14 22 17 5
36 Assistant Accounts Non-Tech 14 2 2 0
37 Assistant Security Supervisor Non-Tech 14 3 0 3
38 Senior Clerk Non-Tech 9 3 3 0
39 Junior Clerk Non-Tech 7 4 3 1
40 Telephone Operator Non-Tech 7 2 2 0
41 Typist Non-Tech 5 1 1 0
42 Driver Non-Tech 5 7 6 1
43 Dispatch Rider Non-Tech 5 1 0 1
44 Batman Non-Tech 1 1 0 1
45 Naib Qasid Non-Tech 2 11 6 5
46 Watchman Non-Tech 2 13 12 1
47 Gardener Non-Tech 2 4 4 0
48 Sweeper Non-Tech 2 7 7 0
TOTAL: - 84 66 18
ESTABLISHMENT (Tech)
Sr No
Name of Post CADRE BPS Sanctioned Held Vacant
49 Assistant Designer Tech. 15 2 1 1
50 Assistant Foreman Tech. 15 27 17 10
51 Store Keeper Tech. 13 4 3 1
52 Jr. Programmer MIS 14 3 0 3
53 Shop Technical Assistant Tech. 13 6 5 1
54 Draughtsman Tech. 13 5 2 3
55 App Draughtsman Tech. 11 1 0 1
56 Highly Skilled Tech. 13 45 36 9
57 Skilled I Tech. 11 45 29 16
58 Computer Hardware Technician Tech. 11 2 1 1
59 Skilled II Tech. 9 27 7
1 19
60 Semi Skilled Tech. 9 4 4 0
61 Assistant Store Keeper Tech. 9 1 0 1
TOTAL: - 172 124 48
Grand Total
Sr. No
Cat. San. Held Vacant
1 OFFICERS 98 43 55
2 ESTABLISHMENT (NON Tech.) 84 66 18
3 ESTABLISHMENT (Tech.) 172 124 48
Grand Total: - 354 233 121
Overview of Performance (2013 – 2014)
Opening of Regional Office Islamabad
Nowadays in view of increasing trend in the manufacturing industry related to automobile,
general engineering & plastic products, vending industry, SME‟s have to be provided with
Advanced Backup Support and Training Services, therefore, PITAC decided to expand the
purview of its activities geographically.
In line with the policy of the Ministry of Industries and also with the consent of PITAC‟s
Governing Body, PITAC‟s Management decided to open its Liaison office in Islamabad, so the
SME‟s and light engineering sector from that region can also be benefitted with the
Technological Back up Support, Advisory Services and Demand Driven Technical Courses from
PITAC in accordance with the National Industrial Policy by Ministry of Industries and Production,
Government of Pakistan.
This will ultimately enable us to increase the skilled work force required for accelerating the
process of industrialization and will enable small and medium enterprises to produce advanced
components which are currently being imported, hence saving precious foreign exchange. This
will not only develop the Human Resources but will also prove to be a successful venture for
import substitution, poverty alleviation and job creation.
It is also hoped that the workmen acquainted with technical skills will be a strong backbone for
the industry of this country in the future.
Regional office Islamabad will act as a bridge between light engineering sector of Islamabad
and Lahore Head Office, ensuring their access to a whole new horizon of Computer Integrated
Design and Machining Facilities and also ensure the training of the engineers, managers,
supervisors, technicians and workers to improve their capabilities and skills in modern
Advanced CAD/CAM Technologies for better productivity and performance.
Back up Support and Advisory Services PITAC has offered Technological Backup Support and Advisory Services to the Industry
specifically in the following areas: -
- Computer Integrated Plastic Mold Making
- Computer Aided Designing (CAD)
- Computer Aided Machining (CAM)
- Designing and Manufacturing of Production Tooling Equipment like Jigs , Fixtures, Dies,
Gauges etc
- Designing and Manufacturing of Plastic Injection Molds, Blow Molds, Compression Molds etc
- Precise Machining Techniques and Methods i.e. CNC Machining Centre, CNC Turning
Centre, CNC EDM Sinker, CNC EDM Wire cut, Small Hole Drill Machining, Jig Grinding, Jig
Boring, Precise Surface grinding etc
- Operation of Injection Molding Machines
- Advanced Inspection Techniques i.e. Co-ordinate Measuring Machine
- Programmable Logic Controllers
- Heat Treatment
- Foundry and Pattern making
- Preventive Maintenance and Calibration
- Super finishing Techniques i.e. Lapping , Honing, Precision Surface Grinding etc
SME‟s and Industry are being benefitted by PITAC through its Technological Back up Support &
Advisory Services in these fields. The various jobs done by PITAC are not from commercial
view point but to help develop local industry and to solve their manufacturing problems. Such
Jobs lead industry towards self-reliance, improvements in technical knowhow, saving production
equipment from break downs and to bring freedom from imports as far as possible. It has also
helped in development of SMEs.
Description No. of Jobs
Booked Delivered
July 2013 – June 2014 296 264
Human Resource Development Training Programs
The centre has continued to offer HRD Programs on various subjects of Management and
Technical Interest. The content of the courses have been carefully designed to meet the
requirements of the Industry and have kept under review to being them in conformity with the
changing needs. The HRD Programs consists of Regular Training Programs, Special Training
Programs and Seminars/Workshops/Symposiums. The regular training Programs are mainly in
the field of Mechanical Trade of 06 – 10 weeks duration whereas Special Training Programs can
be designed on request from various Organizations.
Regular Training Programs These programs are mainly in the field of Metal Working and cover the following subjects: -
Jigs and Fixture Design
Press Tool, Cutting Tool and Gauge Design
Injection Mold Design Basic / Advanced
AutoCAD (Civil / Electrical / Mechanical)
Piping Design
Air Conditioning and Refrigeration
Programmable Logic Controllers
CNC Machining Centre Operation and Programming
CNC Turning Centre Operation and Programming
CNC EDM Sinker / Wire cut Operation and Programming
3D CAD/CAM (DelCAM Power Shape / Power Mill)
3D CAD/CAM (Master CAM)
Advanced Measuring Techniques with Co-ordinate Measuring Machine (CMM)
Injection Molding Operation and Programming
Basic Welding
TIG / MIG Welding
Heat Treatment Techniques
Engineering Draughting
Inspection and Quality Control
Electrician
Welding and NDT Inspection NDT Level –I NDT Level –II Welding Inspection Level – I Welding Inspection Level – II
Instrumentation and Process Control System
MS Project / Primavera (P3)
Quantity Surveyor
Spoken English / IELTS
In Year 2013 - 2014, total 3064 Trainees get trained in the stated Training Programs.
The Trends in the recursive and admired training programs are shown below: -
Human Resource Development Seminars / Workshops / Symposiums During the Year 2013 – 2014, the following Human Resource Development Workshop /
Symposiums / Weekend courses were organized by PITAC independently or in Collaboration
with other Private / Public Sector Organizations.
Project Management – Weekend Program
This weekend program was to make people aware of the Project Management Life Cycle, its
Do‟s and Don‟ts while planning the Project, Project Execution, Monitoring and Risk Analysis in
accordance with the PMBOK 4th Edition.
The resource person Mr. Hasnain Javaid has extensive SCM, HR and project management
experience. This weekend program was especially designed for working professionals, Project
Managers, Planning Engineers etc.
Human Resource Management (HRM) – Weekend Program The purview of this Human resources management – Weekend Program involves several
functions i.e. Workforce planning, Induction, Orientation and On boarding, Skills management
,Training and development ,Personnel administration ,Compensation in wage or salary ,Time
management ,Travel management ,Payroll ,Employee benefits administration, Personnel cost
planning, Performance appraisal ,Labor relations etc.
The resource person Mr. Hasnain Javaid has extensive SCM, HR and project management
experience. This weekend program was especially designed for working professionals, HR
Managers, Recruitment consultants etc.
Supply Chain Management (SCM) – Weekend Program
This weekend program was to make people aware of Supply chain business processes and
their integration. Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and service packages
required by end customers Supply chain management spans all movement and storage of raw
materials, work-in-process inventory, and finished goods from point of origin to point of
consumption (supply chain).It involves Customer service management ,Procurement ,Product
development and commercialization ,Manufacturing flow management/support ,Physical
distribution, Outsourcing/partnerships, Performance measurement ,Warehousing management
etc.
The resource person Mr. Hasnain Javaid has extensive SCM, HR and project management
experience. This weekend program was especially designed for working professionals, SCM
Managers, SCM Trainees, and Students.
Computerized Accounting and Finance – Weekend Program This weekend program was to make people aware of Accounting Software (Peach Tree, Quick
book, MYOV Accounting Plus), Introduction to ERP System (Only Introduction), ERP Issues &
Process of ERP Implementation, E-Commerce & Conventional Sale/Purchase Process,
Financial Reporting and Financial Analysis, Excel Application for Budgeting & Forecasting,
Application for Corporate Finance/Financial Modeling, Capital Budgeting Techniques (NPV,
IRR, PBP, DPBP) etc
The resource person Mr. Rab Nawaz Lodhi has extensive experience on Quantitative,
Qualitative and Mixed Method Research and Analysis Techniques.
Health and Safety Officer – Weekend Program
This weekend program make people aware of Occupational Health and safety fundamentals,
Management systems, Hazards and risks at workplace, General requirements, Monitoring
Systems, Compensation for occupational injuries & diseases, General safety applications . This
program enable them to identify hazards, assess risks to health and safety, put appropriate
safety controls in place and provide advice about accident prevention and occupational health to
management and employees.
The resource person Mr. Muhammad Imran has extensive experience as HSE Professional.
The trainee‟s trend in our weekend training programs is as follows: -
PITAC‟s contribution in Punjab Skill Development Fund (PSDF) 1. Skill Development Programme (Skill for Job 2012 – 13)
Punjab Skill Development Fund (PSDF), Skill for Job 2012 – 13 Programme and PITAC aimed
to provide skills and vocational training opportunities to the poor and vulnerable populations of
the four poorest districts of Punjab (i.e. Bahawalnagar, Bahawalpur, Lodhran and Muzaffargarh)
for improving their ability to find work or progress in their current employment or develop an
enterprise. It also aims to up-skill those in low-skills-low-returns‟ jobs and enhance their earning
potential.
PITAC has signed a contract with PSDF on 30th July, 2012 to train 200 trainees in the following
fields: -
CNC Machine Operator
Machinist
Sr. No Training Course Duration (Months)
No. of Trainees
1. CNC Machine Operator - I 03 23
2. CNC Machine Operator – II 03 20
3. CNC Machine Operator – III
03 21
4. CNC Machine Operator - IV
03 24
5. Machinist - I 03 17
Skill for Job 2012- 13 project successfully got completed on 15th September 2013, in which total
163 trainees were trained from the four target districts.
2. Skill Development Programme (Skill for Job 2013 – 14)
Under Skill for Job 2013 – 14, PITAC has signed a contract with PSDF to train 342 trainees from
the target districts (i.e. Bahawalnagar, Bahawalpur, Lodhran, Muzaffargarh, Rahim Yar Khan,
Khanewal and Vehari) of Punjab:
During the first two batches of PSDF Training Programs, 170 Trainees were trained in following
fields: -
Sr. No Training Course Duration (Months) No. of
Trainees
1. CNC Machine Operator - I 06 15
2. Milling M/C Operator - I 03 14
3. Milling M/C Operator - II 03 11
4. Turner - I 03 14
5. Turner – II 03 16
6. PLC – I 03 25
7. PLC - II 03 25
8. Welding – I 03 25
9. Welding – II 03 25
The Third Batch of PSDF Training started on 05th June 2014, in which 82 trainees will be trained
in the listed fields: -
Sr. No Training Course Duration (Months) No. of
Trainees
1. CNC Machine Operator 06 15
2. Milling M/C Operator 03 11
3. Turner 03 11
4. PLC 03 21
5. Welding 03 25
Total Trainees: - 82
6. Machinist – II 03 15
7. Machinist – III 03 19
8. Machinist - IV 03 24
Total Trainees: - 163
3. Skill for Job 2014 – 15
Under Skill for Job 2014 – 15, PITAC has submitted the Expression of Interest (EoI) for the
conduction of Vocational courses. After the successful acceptance of EoI, PITAC has submitted
Request for Proposal (RFPs) for the below listed training programs. PITAC is anticipating
training 450 personnel from the target districts in the following fields, subjected to the successful
bidding and contract awarding by PSDF.
Present Issues & Problems
The main issues which lessen the anticipated impacts of PITAC are as follows: -
1. Energy Crisis in Pakistan
Pakistan is presently facing a serious energy crisis. Due to the consequent demand for energy,
worthwhile steps should be taken to install new facilities for generation of the required energy
sources. Now, the demand exceeds supply and hence “load-shedding” is a common
phenomenon through frequent power shutdowns. This shortage is badly affecting industry,
commerce and daily life of people.
So in order to meet the production deadlines & to continue our training activities both efficiently
& effectively, a power generator is inevitable.
2. Capacity Limitation
Capacity Limitation is a factor which confiscates the centre from supporting the SME‟s up to
their requirements. There are quite a number of jobs that have been declined, due to the
capacity limitation of the CNC Machining Centre.
Because there is only one CNC Machining Centre in the PITAC, it becomes a bottleneck as it is
being used both for manufacturing & training purposes.
Sr. No Course Name
Training Duration
(In Months) No. of
Batches / Yr
Max No. of Trainees /
Batch
Trainees
Total
A C E
1 Welder (Gas & Arc) 3 4 25 100
2 CNC Machine Operator 6 2 25 50
3 Milling Machine Operator
3 4 25 100
4 PLCs 3 4 25 100
5 Turner 3 4 25 100
Total: - 450
3. Rigid Procedural Requirements for Import of Tools & Consumables
With the passage of time, inventory levels of Cutting Tools & Consumables for CNC machines
are almost exhausted.
Non availability of consumables like Air Regulator Filter Elements, Mist Separator Elements,
Makino Spindle Lubricants, Line Filters, Exhaust Cleaners etc & Machine spares in local market
is the main factor which forces towards the lengthy procurement processes & causes
disturbance in both training & mold manufacturing.
Due to constraint on foreign exchange transactions & direct imports as per Pakistan
Procurement Regulatory Authority (PPRA) regulations, we have to involve tendering for higher
amounts, which usually get delayed because of rigorous procedural requirements.
Budgetary Deficit
Budgetary deficit is the other factor which constraints the development in the manufacturing &
training facilities of the centre.
The other matters like Up gradation & Modernization of PITAC Facilities, Acquisition of New
Software‟s & annual maintenance of old software‟s etc, are some of the matters which remains
unaddressed due to financial discrepancies.
Financial Position
Revenue Receipts
Year 2013 - 2014
Production Rs 2,200,637/-
Training Rs 18,756,722/-
Miscellaneous Rs 1,271,344/-
Gross Total: - Rs 22,228,703/-
Budget Allocation
Year 2013 - 14
Grant In Aid Rs 207,000,000/-
PITAC Own Receipt Rs 20,000,000/-
Total Budget: - Rs 227,000,000/-
10. NATIONAL PRODUCTIVITY ORGANIZATION (NPO)
OBJECTIVE OF TRAINING / ORGANIZATION
To inculcate the Productivity & Quality culture all over the Pakistan.
To Promote Resource Efficiency in all Economic Sectors of Pakistan.
Sr. No Fields of Trainings No of Trainee to be trained in four years
Any other activities (other than training) to be carried out by NPO
1 Lean Manufacturing (5S, Kaizen)
150 Consultancy service on
Lean
2 Diploma in Industrial Engineering
50 Consultancy service on Industrial Engineering
3 Energy Management (Diploma and awareness programs)
200 Consultancy service on Energy Management/
Energy Audit
4 Quality & Productivity 2000 Consultancy
5 Total Productive Maintenance 75 -
6 Fire Hazard Safety/First Aid, OHSAS
1100 -
7 Management 1000 Management System Audit
8 General Awareness Training Lean, TPM, Seven Wastes, Kaizen
1310 -
9 Soft Skill Trainings
Leadership
Motivational Skills
Entrepreneurship
Change Management
2100
Development of Demo Organization
10 Food Technology (Food Safety, Food Security, etc)
100 -
11 Corporate Trainings 600 -
12 Train the Trainers 130 -
13 Certifications /DPP/PMP/Six Sigma courses
80 -
14 Distance Learning 300 -
15 Environmental Protection 1000
16 E-Learning 700 -
17 IFC Training 320 -
18 E Learning Trainings on Energy Management
240 -
19 Shop Floor Training 225 -
International Training:
21 Trainings 350 Technical Expert Services / Consultancy
22 International Multicounty Programs
200 International Research Projects
23 International E-Learning 320
Programs through Video Conferencing
24 International Self e-Learning Program
3000
25 National Workshops 200
Donor Projects:
26 Training on Entrepreneurship 300 -
27 Exhibitions 5 Exhibitions
Total 16,350
MONTHLY PERFORMANCE REPORT JANUARY 2012 TO DECEMBER 2014 (NATIONAL LEVEL COURSES)
Years Total Training
Held
Trainees Participated
Objective Achievements
Jan –Dec
2014
110
1323
Realizing the importance of training for HRD and developing change agents to act as a catalyst in different sectors of the economy, NPO-Pakistan organized training courses on different topics like Project Management Professionals (PMP), Productivity Specialist, Six-sigma Green Belt, Logistic and Supply Chain, Human resource Development etc with the establishment of other regional offices on NPO during the last three years.
NPO role is to enhance the productivity & quality of the organizations, especially domestic micro small & medium enterprises (MSMEs), industrial and services sectors by restructuring and revitalizing enterprises and upgrading human resource skills. Our approach deals with the national dimensions of technical skills, soft skills and productivity enhancement and its relation to the global perspective, side by side
The participants showed keen & positive interest in learning the skills and hoped that such courses must be conducted in future.
Successfully conducted for awareness and capacity building of the participants
Since 2001, more than 20, 000 participants from different sectors of the economy benefited from these training programs
Total
110
1323
imparting training & skills for self employment.
Specialized trainings are being provided in 5S Kaizen management, Lean Manufacturing, Quality & Productivity Improvement through JIT & TPM Techniques, Productivity Enhancement through TQM tools, QMS ISO-9001:08, EMS ISO-14000, SA-8000, HACCP, GP, QCC, SPC, Reengineering, Benchmarking and many others.
PERFORMANCE REPORT JANUARY 2012 TO DECEMBER 2014 INTERNATIONAL RELATIONS
Years Total Training
Held
Trainees Participated
Objective Achievements
International Courses
Jan –Dec
2012
Jan –Dec 2013
Jan –Dec 2014
48
43
58
70
75
80
Basic principles of human centered productivity and its impact on competiveness and sustainability of organizations
Observe and share of best practice of SME‟s in recovering the supply chain and business activities, Identifying the essential elements of developing and strengthening business partnerships
Reducing energy consumption and improve energy performance of organizations, Understand the
Awareness and capacity building of the participants and organizations
build up strong relationships among SME owners/top managers in member economies and allow them to exchange their experiences in productivity improvement activities
promotion of green growth/economy and achieving
methodology and standards of ISO50001
Demonstrate the applicability of the Knowledge management frame work and innovation in the public and private sectors
sustainable development by adopting Green Productivity (GP) with
E-Learning Courses
Jan –Dec
2012
Jan –Dec 2013
Jan –Dec 2014
03
05
03
105
100
90
To review the key strategies of the export promotion & develop programs of governments in member countries & assess the extent to which these are supporting productivity improvement
To enable participants to understand the standards, requirements and application of the Information Security Management System (ISMS) based on the ISO 27000 Series.
To enhance participants understanding of the management of organic agrifood products in food supply chains
TES
Jan –Dec
2012
Jan –Dec 2013
Jan –Dec 2014
04 03 05
195
90
To be implemented
Kaizan Management
Organic Certification and Quality standards
S & Productivity Tools
Quality Management systems
Green & Black Belt; Six Sigma
Conduct awareness and capacity building of the participants and organizations
Multi Country
Jan –Dec 2012
Jan –Dec 2013
Jan –Dec 2014
01
03
01
14 International
08 Local
40 International
24 Local
16 International
08 Local
Understand the challenges and difficulties for the performance management in the public sector by sharing case studies
Discuss the issues and capacity development needs of agri-business and provide the platform for presenting and discussing the latest, scientific methodologies
Building horticultural values chains
Food safety Management systems ISO 22000
Solutions of effective us of performance management
Self Learning
Jan –Dec
2013
Jan –Dec 2014
04
08
300
500
To provide an understanding of innovation from a service sector perspective for enhancing productivity
To learn about and share the implementation strategies for successful application of innovation in the service sector
To promote innovation in the service sector by sharing stories
Understand the concept and implementation of the program
11. NATIONAL FERTILIZER CORPORATION (NFC)
The demand of Urea Fertilizer in the Country outstripped its supply as the Domestic Production
was not sufficient to meet the requirement of the farmers leading to its shortage, black
marketing and resultant hike in prices. In order to defuse the force majeure crisis, National
Fertilizer Corporation imported the Urea Fertilizer and distributed to farmers through its
distribution network of National Fertilizer Marketing Ltd. The comparative position of Sales &
Profit against the import and distribution of Urea Fertilizer during the year is as follows:
(Rs./Million)
2013-14 2010-11 2011-12 (Prov)
- Sale 41446.064 26806.925 27572.505
- Pre-tax Profit 4768.345 1364.028 1640.814
- Taxes & Duties paid 1445.498 451.798 550.999
12. Export Processing Zones Authority (EPZA)
Export Processing Zones Authority (EPZA) was established in 1980 by the Government of
Pakistan with the mandate to plan, develop, manage and operate Export Processing Zones in
Pakistan.
EPZA Mandate Export Processing zones Authority (EPZA ) was established by the Government of Pakistan
through ordinance IV of 1980 with the mandate to plan , develop and manage Export
Processing Zones in Pakistan . EPZA is an autonomous body working under the ministry of
industries.
EXPORT FROM EPZs during 2014 (July to December) is as under:
(Amount US$)
Name of Zones Export Performance
Karachi Export processing Zone 197.205
Saindak Export Processing Zone 47.306
Risalpur Export Processing Zone 0.487
Sialkot Export Processing Zone 0.177
Duddar Export Processing Zone 0.000
Tuwairqi Steel Mills Ltd EPZ 0.913
Gujranwala EPZ 0.013
Total: - 246.101
INITIATIVES AND ACHIEVEMENTS:
EPZA has taken following initiatives to promote export of the country along with the
achievements during preceding years.
EPZA PERFORMANCE:
The performance of EPZA for the year 2014 (July to December): (Amount US$)
Description 2011-12 2012-13 2013-14 2014-15
Units
Sanctioned
24 33 51 14
Export 485.269 475.325 266.286 (Jul-
Dec 2013)
246.101 (Jul-Dec 2014)
Presumptive
Tax
4.852 4.753 2.663 2.461
Envisaged
Capital
Investment
22.159 43.300 60.578 7.648
EPZ AT FAISALABAD
EPZA management is eager to establish EPZ in Faisalabad so that the business potential,
particularly of the textile sector of Faisalabad could be utilized to further increase exports.
Accordingly, after approval from EPZA Board in its meeting 101 meeting held on 10th
September, 2012, Chairman EPZA signed the Memorandum of Understanding (MOU) with
Faisalabad Industrial Estate Development and Management Company (FIEDMC) to establish
the FIEDMC - EPZ initially on an area of about 250 acres, located in M-3 Industrial City on
Motorway, which will be extended further upon colonization in a phased manner. FIEDMC will
develop the land with all infrastructure facilities for smooth industrial operations.
Respective Board of Directors of both the organizations have agreed in principle to enter into a
joint venture agreement with the ground breaking ceremony by the Prime Minister of Pakistan in
near future.
EPZ AT GWADAR
Government of Baluchistan has allotted 1000 acres land in Mouza Karwat Gwadar which is
approximately 45 km from Gwadar port. EPZA has erected boundary fence around 1000 acres
for protection of land from land grabbers. In addition to that EPZA hired the services of Messrs
Techno Consultant International for planning, designing and preparation of PC-I/PC-II for
development of EPZ at Gwadar.
Government of Pakistan had also constituted an advisory committee on development of
Gwadar. EPZA had also requested Ministry of Industries & Production (MOIP) for an allocation
of funds for development of Gwadar EPZ in the coming budget of FY-2014-15 and PC-I in this
regard has been submitted to Ministry of Industries & Production for approval.
EPZ at Sukkur:
EPZA is hereby getting efforts to establish an Export Processing Zone at Sukkur. However, 100
Acres in SITE area Sukkur has been earmarked for Export Processing Zones Sukkur. The
EPZA has signed MOU with the SITE for establishment of Sukkur EPZ. The process for
infrastructure development preparation of PC-II & PC-I is under process for onward submission
and approval of project cost from PSDP funding.
Expansion of KEPZ:
KEPZ being the first project was established on the area of 211 acres. Later after colonization of
Phase –I, management decided to develop phase- II on an area of 94 acres, where the
development Is complete. Now for further expansion of KEPZ is underway on an area of 105
acres of land which was recovered from land grabbers and now the construction of boundary
wall is in progress.
Security Environment:
EPZA has taken concrete steps to improve law and order situation around and within the zone.
Mehran Highway dualization is complete and open for transport. The project has reduced
access time and traveling has become secure and trouble free.
Provision of round the clock security
Keeping a vigilant eye on the volatile law and order situation, EPZA has made special
arrangements to provide round the clock security to the industries and their work force operating
in its premises. Number of well trained and fully equipped security guards, check posts and
surveillance vehicles have been significantly increased for patrolling purpose during any time of
day and night.
Export Processing Zones Authority's recent achievements and future plans clearly suggest that
Pakistan has a bright opportunity to improve its exports and foreign exchange reserves provided
the Government extends its all out support to this institution which is already playing a colossal
role in improving national economy.
Creation of Hospital and Utility Store
In order to provide maximum facilities to investors in Karachi Export Processing Zone (KEPZ),
EPZA is building a Hospital and a Utility Store to further improve the working conditions for
investors and their work force.
Key Figures All Pakistan
Total Number of Units 301 units (All Zones)
Total Capital Investment US $ 1.23 Billion
Total Cumulative Imports US $ 2.457 Billion
Total Exports US $ 5.258 Billion
Total Presumptive Tax (1%) paid from 2000 to
date and deposited by EPZA in the Govt
Exchequer
US $ 42.871 Million
Total Employment 40,000 (Approx)
Women Work Force 70%
Export Processing Zones in Pakistan:
1. Karachi Export Processing Zone
2. Tuwariqui Export Processing Zone
3. Sialkot Export Processing Zone
4. Gujranwala Export Processing Zone
5. Risalpur Export Processing Zone
6. Saindak Export Processing Zone
7. Duddar Export Processing Zone
Facilities giving by Export Processing Zones:
One window operation with simplified procedures
All facilities like electricity, gas and water are made available
Peaceful, secure and environmentally protected population free work area
Inter unit transfer of finished goods among exporting units allowed
Easy access to sea and air ports
Abundance of skilled and educated workforce
Sub-contracting without limit on variety and quantity is allowed outside the zones as well
as within zones
13. PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION (PIDC)
The role of PIDC is to develop non-traditional and unorganized sectors to contribute effectively
towards accelerated growth in export from Pakistan through private sector. PIDC through its
subsidiaries develops and expand technical/engineering /craftsmen skills in various disciplines
of socio-economic importance.
Pakistan Gems and Jewellery Development Company
Projects for Skills Development and Technical Up- Gradation:
a. Gems and Jewellery Training and Manufacturing Centre, Karachi
Gems & Jewellery Training & Manufacturing Centre Karachi provides knowledge and hands on
experience to the students in various traits of gems & jewellery, training them in the spheres of
diamond grading, gemstone identification, Gemstone Faceting, Gemstone carving, Patwa,
Soumak, casting, stone setting, bench work, Manual jewellery designing, computer aided
designing (Jewel CAD & Matrix), jewellery pattern making in wax, Cost Management and Time
Management. Following are the programs offered in GJTMC Karachi in the year 2013-14:
GJTMC - Karachi
Sr. No Program Targets
(2013-14) Achieved
1 Matrix 3 3
2 Gemstone Identification 2 2
3 Manual Jewellery Designing 1 1
4 Basic Jewellery Manufacturing 1 1
5 Gemstone Faceting 1 1
6 Gemstone Carving 1 1
7
BBSYDP Gateway Training Programs (Bead & Wire Jewellery making, Gemstone Cutting, Jewellery Designing, Gems Identification, Studded Jewellery Making)
5 5
TOTAL: - 14 14
b. Gems and Jewellery Training and Manufacturing Centre, Lahore
Gems and Jewellery Training and Manufacturing Centre (GJTMC), Lahore courses in four
streams, namely; Jewellery Designing, Jewellery Manufacturing, Gemology and Gemstone
processing. Following are the training programs offered at GJTMC Lahore in the year 2013-14: -
GJTMC - Lahore
Sr. No Program Targets
(2013-14) Achieved
1 Gemology Trainings (Gemstone Identification / Colored Stone - Diamond Grading / Gemstone Mining / Gemstones Prospecting)
4 4
2 Lapidary Trainings (Gemstones Carving /Gemstones Faceting)
8 (4 each)
7
Manual Jewellery Designing Trainings 6 5
3 Computer Aided Jewellery Designing 5 4
4 Jewellery Manufacturing 6 5
TOTAL: - 29 25
c. Gems and Jewellery Training and Manufacturing Centre, Gilgit
The centre caters the need of training of the gems & jewellery sector of Northern Areas of
Pakistan, in Mining, Gemstone processing and identification. Trainings programs are being
conducted in the spheres of Gem Faceting, Gem Carving, Gem identification and Gemstone
Mining. Following are the training programs offered at GJTMC Gilgit in the year 2013-14: -
GJTMC - Gilgit
Sr. No Program Targets
(2013-14) Achieved
1 Gemology Trainings (Gemstone Identification / Colored Stone - Diamond Grading / Gemstone Mining / Gemstones Prospecting)
8 7
2 Lapidary Trainings (Gemstones Carving /Gemstones Faceting) 6 6
3 Manual Jewellery Designing Trainings 8 5
4 Training Seminars 6 6
TOTAL: - 28 24
d. Gems and Jewellery Training and Manufacturing Centre, Peshawar
The project provides the facility for skills development in the spheres of Gem Identification,
Gemstone faceting, Gemstone carving, Manual Jewellery Designing, CAD/CAM and common
facility in gemstone processing, CAD/CAM and Gem identification/grading. Following are the
training programs offered at GJTMC Peshawar in the year 2013-14; -
GJTMC- Gilgit
GJTMC - Peshawar
Sr. No Program Targets (2013-14) Achieved
1 Gemstone Identification 03 03
2 Wire Wrapping Jewellery Designing
03 03
3 CAD/CAM 02 02
4 Gemstone Carving 04 04
5 Gemstone Faceting 04 04
TOTAL: - 16 16
e. Gems & Jewellery Training and Manufacturing Centre, Quetta
The center caters the need for Gems and Jewellery trade in Balochistan. Gems & Jewellery
training is being offered in Gemstone Identification, Gemstone Faceting, Gemstone Carving and
Manual Jewellery Designing. Following are the training programs offered at GJTMC Quetta in
the year 2013-14: -
GJTMC - Quetta
Sr. No Program Targets (2013-14) Achieved
1 Gemstone Identification 14 14
2 Diamond Grading & Pricing 02 01
3 Gemstone Carving 05 05
4 Gemstone Faceting 05 05
5 Manual Jewellery Designing 04 02
6 Natural Enhancement & Synthetic 01 01
7 Cabochon & Beads making 01 01
TOTAL: - 32 29
f. Gems and Jewellery Training and Manufacturing Centre, Sargodha
The centre is ready for operations and training programs in different spheres of gems and
jewellery will be offered to the local sector.
g. Gems and Jewellery Training and Manufacturing Centre, Muzaffarabad (AJK)
The centre has recently been made operational and training in the field of Gemstone Faceting is
being offered to the gems and jewellery sector of Muzaffarabad (AJK) and the surrounding
areas.
Gem Exchanges:
Gem Exchanges have been established by PGJDC at Peshawar and Quetta, primarily to
facilitate linkages between buyers and sellers of gemstones. It is an integrated approach of
providing all the services under one roof, reducing costs and increasing cooperation amongst
different stakeholders of the value chain.
Assaying/Hallmarking
Two Assaying and Hallmarking Centres have been established at Lahore and Karachi.
4. Furniture Pakistan
The main objective of Furniture Pakistan is to facilitate the furniture industry through provision of
access to latest furniture manufacturing technology and produce skilled labour. Following
activities have been completed since May 2013.
Construction work of three sites i.e. Common Facility Training & Manufacturing Centers
(CFTMC) Chiniot, Peshawar, & new site for Center of Excellence for Wooden Arts
(CEFWA) Sargodha has been completed.
State of the art machinery for CFTMCs has been procured and shifted to the centers for
operations.
Prepared-Prospectus, Curriculum, Training manual for „3 month Carpenter Course‟.
Have chalked out province wise plan & implementation matrix (2013-18) for development
of furniture sector in Pakistan.
Chalked out future strategy for self-reliance of Furniture Pakistan and its projects, in order
to lower the burden on government ex-chequer.
5. Pakistan Hunting & Sporting Arms Development Company
Export orders amounting to USD $ 1.3 million has been received by the Pakistani Arms
Companies through facilitation of PHSADC out of which a shipment of USD $ 19,400/- has been successfully matured.
The Company has provided technical support to the local SMEs for mass production till
product development as per international best practices to make them competitive in the international market.
Fresh Investment in the Sector PHSADC encourages newly market entrants who wish to start their business of hunting & sporting firearms and accessories. There are now over 66 units in Peshawar as compare to only 37 in 2008 who are manufacturing quality firearms using latest machineries and are heading towards international market.
6. Aik Hunar Aik Nagar (AHAN)
The concept of AHAN is designed to emulate the OVOP (One Village One Product) of Japan and
OTOP (One Tombon One Product) of Thailand programs which have been quite successful in
modernizing non-farm micro-and small-enterprises (MSEs) and thus improving employment
prospects of the poor. AHAN objective is to support poverty alleviation initiatives of GoP through
facilitating rural craft persons, artisans and poor producer groups in accessing enterprise
development services and cater for neglected sector of hand crafted products produced in rural and
semi urban areas.
Performance & Achievement
Newly 06 training projects are in progress in all over the Pakistan, specially focusing new
rural and suburban areas more than 30 districts and targeted more than 7,000 new
artisans and craft persons throughout the country, 67% of these beneficiaries are women.
6000 approx rural Artisans have been trained in new products development.
5000 new products have been developed in various categories i.e., Textile, Ceramics,
Silver, Wood, Leather products etc.
August 15-17, 2014, AHAN participated in UK-Pakistan Trade Festival at Manchester, UK
where a diverse range of handmade products from Pakistani crafts person were placed
including Textile, Ceramics, Wood and Leather Products.
Pakistani handmade products (primarily textiles) have been placed in display center at
PFDC, New Delhi, India. It has been very successful to market Pakistani handmade
products in Indian markets.
Linkages with various partners have been established and MoUs signed, such as;
Assessment & Strengthening Program, RSPN/USAID, Punjab Skill Development Fund,
Govt. of Punjab, Refugee Affected & Hosting Areas (RAHA) Programme UNDP-Govt. of
KPK, FATA Development Authority Govt. of KPK, Community Development Program Govt.
of Sindh, Trade Development Authority of Pakistan (TDAP), SAARC Chamber of
Commerce & Industries, Handicrafts Association of Pakistan (HAP) & Different Chamber of
Commerce & Industries
7. Southern Punjab Embroidery Industries (SPEI)
Southern Punjab Embroidery Industries was established as under Public-Private Partnership. Its
funding included public sector share of 26% and rest by private sector to promote hand & machine
embroidery as an industry to compete in the local as well as global market through skill
development.
Performance & Achievement
SPEI has accomplished the value addition work of about PKR. 14.22 Million during the period of
July to December, 2014.