MoC plans to establish four regional ROZs in FATA, AJ&K, NWFP and Balochistan

[Naveed Yaseen]

By Sajid Chaudhry

ISLAMABAD: Ministry of Commerce (MoC) has plans to establish four regional Reconstruction Opportunity Zones (ROZs) in FATA, AJ&K, NWFP and Balochistan, according to the working paper presented before the Planning Commission on Thursday.

MoC has proposed to the Planning and Development Division setting up of a Programme Management Unit (PMU) with initial investment of Rs 80.605 million in the ministry for two-year period to develop a conceptual and institutional framework and steer ROZs authority process forward. In Pakistan, ROZs will be established in NWFP, FATA, Earthquake affected areas of Azad Jammu and Kashmir and parts of Balochistan for goods, including textile and garments, produced in the Zones, which would qualify for duty free import in to United States.

The PMU would be reporting to the Secretary Ministry of Commerce and would also be interalia responsible for organizing and managing consultation with stakeholders i.e. FATA, NWFP, AJ&K and Balochistan; developing incentive package for investors as well as system or enforcement procedure to guard unlawful transshipment of articles from ROZs, the paper added.

PMU would be coordinating with donor agencies in identifying projects for ROZs. The ROZs initiative would provide duty free treatment to a number of products, including textile and garments exported from designated areas of Pakistan to USA. It would provide Pakistan with an opportunity to enhance its exports to USA and stimulate economic growth in the under developed areas of NWFP, Balochistan, AJ&K and FATA. The proposed PMU would be mandated to implement the ROZs programme in a transparent and sustained manner so as to reap the maximum benefits from the initiatives.

The Planning Commission in its Technical Appraisal has held that the proposed PMU will out source various short term studies to consultants as a cost of Rs 30 million. The cost of getting studies done will be Rs 50.6 million, consisting of 18 posts including one MP-1 scale officers, two MP-II officers and other staff along with four cars and other office equipments visits. It has also been proposed that an independent office has been proposed to be rented for two years at market price rate of Rs 100 per sqft against official rate of Rs 20-Rs 30 psft. Planning Commission has raised question about the PMU and argued that why can not the existing PMU of MOC outsource the studies and save Rs 50.6 million.

Planning Commission has further identified that investment division and Board of Investment has framed a policy for setting up of Special Economic Zones (EPZA), the sponsor may consult said policy and frame work policy package for ROZs accordingly. It has further pointed out that the sponsor has indicated setting up of a new ROZs Authority in future. In the presence of Export Processing Zones Authority, the sponsor may justify creation of new authority to deal with similar matters. Moreover, Board of Investment is also in the process of establishing Board of approvals to deal with SEZs. It would be more appropriate if the services of EPZA; BOI may be utilized for setting up of ROZs.

Planning Commission has also questioned the constitution of Steering Committee and stated that the ministry may constitute a Steering Committee comprising representatives from ministries of industries and production, textile, investment, FBR, Planning Commission, FATA, Balochistan, NWFP and AJ&K not below the level of Joint Secretary or grade 20 officer which may deal with matters pertaining to ROZs instead of creating Programme Mnagement Unit.

http://www.dailytimes.com.pk/default.asp...2009_pg5_7