CM Sindh vows to resist winding up of Pakistan Textile City Company
KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Friday strongly vowed to resist the shifting of the Pakistan Textile City Company (PTC) at Port Qasim, which he said was being destroyed under a under a pre-planned conspiracy so it can be shifted somewhere else in the country.
The chief minister said this during a meeting with a delegation of National Assembly Standing Committee on Commerce and Textile led by Muhammad Siraj Khan. The standing committee informed him that the revival PTC was recommended during their meeting on January 4 and earlier on Friday as well.
After a detailed discussion, the chief minister decided that the winding up of PTC was not in the interest of the country or the province, and the Sindh government will support its revival so that employment opportunities for 80,000 workers can be created.
He said that the land of PTC measuring 1250 acres belongs to Sindh government, and the provincial government owns 16 percent share in the city. The federal government had formed a company which borrowed and drained over Rs1 billion from National Bank of Pakistan due to ill-planning.
He said the federal government took the unrealistic decision of liquidating the company and then sell out the land to retire the loans. He questioned how the federal government could sell land which does not belong to it, and went on saying that the provincial government would not allow this broad day light robbery
He categorically said that the Sindh government is ready to revive the PTC, and pay the liability as per their share, but the rest would have to be borne by the federal government.
The chief minister directed the Chief Secretary Sindh to write a letter to Barrister Zafarullah Khan, Chairman Winding-Up Committee and apprise the decision of the provincial government. He also directed to write to Port Qasim Authority and take up the issue of illegal allotment of Sindh government land to different parties and leasing it to PTC.
CM Sindh also said that the provincial government would extend full financial support to PTC in case of proposed change in the financial and capital structure of the company.
It may be noted that the Pakistan Textile Company Limited was initiated in 2004 but the development work started in 2007 with initial equity of Rs1.10 billion. However, the equity was not deemed sufficient due to the size of the project, and the company offered 100 percent share which were not subscribed by the majority shareholders.
The company initially faced non-availability of requisite infrastructure and subsequently utilised Rs2.4 billion which were blocked by the NBP. The company was provided land by Sindh government area as share of the provincial government which included the returns from the company.
However, the company spent Rs458.80 million on leveling and grading land and Rs471 million for construction of 3.2 kilometre pipeline, which now requires additional Rs1.5 billion for completion. The company has accrued liability of Rs. 2.4 billion.
Therefore, the prime minister has approved the winding up the company after due process and directed to constitute a committee to provide recommendations for further action