Lh Wty i gO . (ozs M3 YVYi ty d 13. / ? ; DEVELOPMENT PLANS FOR se WYOA Ss PAKISTAN?” ~ : ™ 4 if vs Se oe 5 f j ~ =<} i / ry yu 7 » ihe ee § $ j Tae i prs A a if i! Sane : é 1‘ oe ~~ 3 ‘ (S 4 Seda a eee eee) As Explained by Pakistan’s Prime Minister and Minister for Industries at the First Session of Pakistan’s Council of Industries. AMS Lick sag ea eT EMBASSY OF PAKISTAN Washington, D. C. October, 1949 \ digenous and foreign capital for the purpose of increasing the standard of living of our people through the development of industries. In order to stimulate such flowand to give a lead to people here and abroad, Government have decided to forma Statutory Corporation and to charge it with responsibility for the development of certain specified industries which are of vital importance to the economy of Pakistan and to the well-being of its people. In order to work out the constitution, duties, power and responsibilities of this Corporation, its relation to Government and the Legislature, and to estimate the. amount of Government capital to be provided initially and to determine the powers of the Corporation in regardto the raising of money from the public, Government appointed a Committee. The Committee has submitted an interim report and 1 am glad to tell you that action has already been taken on one of the recom- mendations of the Committee. The Ministry of Education and Indus- tries is now engaged in the task of implementing the Jute Mills Proj- ect which, as you are aware, will cost 70 million rupees. Government expect to place orders for the equipment required to run the three jute mills very shortly. The next project which Government have on their list is the Paper Mill Project which is estimated to cost between 50 and 60 million rupees. Government expect to be able to place orders for equipment and machinery before the close of this financial year. Arrangements for acquisitionof land, provisionof power and facilities for transport are some of the matters which will engage the immediate attention of the Corporation when set up, Government have under their immediate consideration this most important matter. They hope to be able to announce their decision on it in the next few weeks. Gentlemen, I have dealt with two or three matters of moment and that only to call your attention to certain aspects of them. Iam sure that the advice which the Council will tender to Government on the various question raised will help Government to come to right A decisions which will be to the advantage of the country at large. I have every confidence that with your help and the co-operation of the people, Government will be able to achieve the objects they have in view within the period of the plan. ra To 8) 1S oaeneaT fs EY i ade a ee ag ey. 2 : 4 i 3s ’ vid ee ee rs ae ‘ 7 p> ‘pen ; . 2 Asie oy Fer ae i. nate pe yee & eles <3 Ne 7 ‘4 ' P i" rs eee 2 5 fer vt # ene nick OA, RE RRR aa ae TT Se t » nee Pe tees te ws fend * fi 4 orig ® hee * id Tv pa + F if ; | = \ ¢ i , ‘ . " a a Ly ' : aes ‘ 4 fc * “a ne yO : A ¥ 6 W . ; hed : - A ore ' ] 4 yp Py SPEECH BY THE MINISTER OF INDUSTRIES The following are excerpts from the speech made by the Minister of Industries: Intimately connected with the’ fixation of targets are questions of availability of manpower. Inthe paper circulated to you, anaccount has been given of the facilities now existing and those to be created in the near future. Apartfrom establishing a Polytechnic at Karachi, there is general agreement that two other similar institutions should be established--onein West Punjab and the other in Eastern Pakistan. Government have alsohad under examinationthe questionof the improvements to be effected in the courses of studies now obtaining at University level in various regions. One of the handicaps from which Universities are now suffering is the lack of trained technical personnel with an aptitude for teaching. Steps are being taken by the Universities to remove this handicap and we hope that ere long our institutions will be properly manned by experienced teachers. Apart fromthe facilities available in Pakistan, Government pro- pose to take advantage of the facilities offered to them in many for- eign lands. I am very glad to be able to tell you that wherever I went in my recent tour of Europe, including the United Kingdom, I was given the most earnest assurances that our young men would be wel- come in their institutions and that all the necessary facilities would be provided to them when there. I have come back more convinced than ever that Pakistan should not depute its graduates to work as under-graduates in foreign Universities. Our graduates should be sent abroad either for post-graduate work or research or for prac- tical training in industrialunits or business houses. The Prime Min- ister has already referred to the determination of the Government of Pakistan to see that no financial difficulties will come in the way of training the personnel required for Industry in the next five years period. You will be glad to hear that only two days ago a Committee which I appointed as Minister in charge of Education has reported and recommended the creation of a Scholarship Fund of just over 20 million rupees for the training of young Pakistanis abroad. It has proposed that arrangements should be made for deputing a thousand scholars inthe next five years to man our Industries, Educational Institutions and Government Departments. I hope that Government will be able to take a decision on this report very shortly. Development of Power Resources There is one other matter to which you no doubt expect me to refer here andthat is the power resources of Pakistan. You have be- fore you two working papers on this subject--a Fuel Budget and a Budget for Power Resources. The first deals with the requirements and resources of coal and oil and the second mainly about our re- sources of hydel power. So far coal is concerned, we await the re- portof our Consultants which is expected any day now. Our long term programme of development of coal resources will be chalked out on receipt of this report. As regards oil, exploration and development work is progressing and I hope that now that our policy in regard to development of our mineral oil resources has been announced in the shape of the Petroleum Rules, the interests concerned will go ahead with their schemes to our mutual advantage. peat Now as regards our hydel power resources. The question of developing these has, as you are aware, been actively pursued from the very beginning. The first useful appreciation of the problem was presented to us by Sir Henry Howard in accordance with whose ad- vice we created the Central Engineering Authority. It is responsi- bility of this Authority, under the Developmentof Industries (Federal Control) Act 1949, to initiate, scrutinise, co-ordinate and press for- ward schemes forthe control, regulation and utilisation of water and power resources ofthe country. In this task it is helped by a combine of Consultants of repute. The Central Engineering Authority and our Consultants are now engaged in preparing project reports for var- ious schemes. This is apart from their giving advice and assistance in developing schemes which have already been initiated, like the Rasul Project Scheme and the Malakand Extension. We have one major development scheme on the Eastern Pakistan side. The multi-purpose project contemplated in the Karnafuli basin will generate some 40,000 Kilowatts of power and will be, for various reasons, linked up with a fair-sized steam station in Chittagong. The hydel project and the 10,000 Kilowatts power station may take some time to complete. As an interim measure, therefore, Government are proposing to instal a plant with a capacity of 4,500 Kilowatts in Chittagong. On this side of Pakistan some developments have already taken place. Orders have been placed for generating sets with a capacity of 20,000 Kilowatts and the Warsak Project is now on the anvil. This projectshould giveus 125,000 Kilowatts of power. Besides this, there is the Mianwali Project in West Punjab which will generate 21,000 Kilowatts in Stage No. 1 and rise to 70,000 Kilowatts of power in its final stage. There are also afew other schemes which are now being investigated, such as the Ghazi Scheme and the Darband Scheme. All these schemes, including those for Karachi City, where we hope to be able to provide a regular supply of 30,000 Kilowatts be- fore the end of 1951, will be integrated into one over-all plan. I must here call attention to a change that has recently taken place inthe attitude of Government in this matter. Originally Govern- ment approached this problem fromthe point of view of requirements of power for domestic, agriculturalor industrial purposes. The angle of approach now is somewhat different. On my recent tour abroad, I noted how industries follow the provision of electric power. Once the motive power is made available, we may safely depend on our people taking full advantage of it in establishing industries --big and small. I shall now turn to capital requirements of the country. You have already heard from the Prime Minister that our requirements have been estimated in the next five years at 3 billion rupees in so far as industrial development of the country is concerned. Believing as we do in the rapid and orderly development of our resources, we have of necessity to ensure that the flow of capital to the extent requiredis provided for. We are not unaware of certainfactors which have impeded such flow, especially in so far as local investors are concerned. There is, however, no doubt that even when all that is necessary in this regard is done there will still be need for assist- ance from abroad. It is within the common knowledge of all that de- velopment in other countries took place not with the help of local 7 t.. capital but mainly on account of the investors from abroad. There is no better example that I can cite than that of the United States of America itself or of the various major Republics of South America. In the Commonwealth countries also, Canada provides the most at- tractive field for investment of American capital. There is no reason why Pakistan should not take advantage of such capital as may be offered for investment in our country. We have; therefore, after full consideration decided to welcome such capital and to provide the nec- essary guarantees of a reasonable character. I hope that when the handicaps from which investors abroad suffer, which are not within our control, are removed, there will be greater flow of capital into Pakistan. Pakistan Industries Promotion Corporation Ihave heard it asked by some foreigners that if Pakistan is really so sure about the economics of certainindustrial projects why it is that her people or her Government, do not promote these proj- ects and demonstrate to the world by deeds. This is not an unfair question. We have, as you have heard already, decided to establish an “Industries Promotion Corporation” which will be responsible for the development of certain specified industries. Government will sponsor these projects and invest their moneys. They have every reason to think that once they take the first step,investors will follow their lead and will come forward in large numbers and seek to re- place Government capital in these industries. The Industries which Government are sponsoring have already been listedin the working paper circulatedto you under item 8 of the Agenda. For the present Government contemplate such projects as Jute Mills, Paper, Fertilizer, Steel, Rubber Tyres & Tubes, Heavy Chemicals, Heavy Engineering and Shipbuilding which may require a capital roughly of 350million rupees. In sofar as Jute Mills are con- cerned, Government have already decided to establish three such mills with a total loomage of 3,000. This is only the first instalment and I hope that by the end of 1954-"55 we wouldhave developed another three mills with another 3,000 looms in accordance with the target fixed by the first Industries Conference. In the case of Paper Project, you are aware that Government invited Consulting Firms from Canada and Sweden to advise them in this matter. Both these Consultants have reported. Their reports are under the active consideration of Governmentand Government expect that when the Special Officer, whose appointment has been sanctioned, takes charge in the very near future, it will be possible to expedite all arrangements connected with the fruition of this project. Govern- ment hope to be able to place orders for the necessary machinery by the end of this year. The third project which Government are sponsoring is the Fer- tilizer Project in connection with which a Mission is now in Pakistan, consisting of representatives of two well-known chemical concerns -- Messrs. Power Gas Corporation of U. K. and the Chemical Construction Company of U. S. A. Government are provisionally of the view that a factory with a capacity of 100,000tons of ammonium sulphate should be established in West Punjab to meet the growing requirements of fertilizer in the country. I am glad to be able to tell you in this connection that an offer of a well-known Belgian firm--Union Chimique ae Belge--to assist in giving us their appreciation of the situation has also been received and accepted by Government. It is expected that the Belgian Experts will shortly be around Pakistan--one of them has already contactedthe Ministry inKarachi--and will giveus the bene- fit of their advice. The other two projects to which I would like refer here are: Rubber Tyre and Tube Project and Steel Project. Government have accepted the offer of Messrs. Dayton Rubber Company of U.S. A. to carry out a survey of conditions in Pakistan and to give a blue print for a factory with the capacity of 600 tyres and six hundred tubes a day. As regards the Steel Project, Government have asked Pakistan High Commissioner in London to contact the consultants there whose offer has already been received and considered by Government. It is expected that arrangements will shortly be finalised for a survey of Pakistan in connection with the Steel Project. I should not forget to mention here the survey that has already been carried out of our coal resources by Messrs. Powell Dufferin Technical Services Ltd., of U: K. whose report, I understand, is on the way. We expect to be able to make the best use of our coal re- sources with the help of technical advice which our friends abroad have offered to us. . In order to complete the picture of the surveys carried out or contemplated I must mention the invitation that we extended to an ex- pert from the Bureau of Reclamation of the Department of Interior of the: U. S. A. Government, an invitation which has been accepted, to survey our river basins and to advise us on the need and desirability of setting up Regional Authorities of the TVA type in Pakistan. We hope to be able to have this expert amongst us in the very near future. On the geological side also, we have recruited senior men; some of them are well-known figures both here and abroad. Minerals, as you know, are the skeleton of industry and I have little doubt that as our knowledge of our resources grows so will our capacity to use them for the benefit of one and all. There are many other items on which I would like to speak to you, such as financial assistance to industry, tariff protection and transport. I refrain from doing so not only because I have already circulated to you working papers on these, but mainly because I have called this conference not so much to tell you our views but to listen to your views and your suggestions and, in the light of these, to de- termine our course of action. Cottage Industries There is, however, one matter which does not arise directly but which is of such vital importance to the economy of Pakistan that I feel justified in referring to it here and that is Cottage Industries. West Punjab has,for decades now, been the home of such Industries. Their importance cannot be.over-estimated, whether it be from the point of view of the wealth they produce, the numbers they employ or the contentment and the happiness which they spread throughout the land. Responsibility for the promotion of these industries, as you know, is not directly that of the Centre except in areas which are under its control. But the Centre is vitally interested in these bo ae Industries notonly because of their importance for the reasons already given, but also as a means of absorbing the hundreds of thousands of refugee-artisans who have migrated to Pakistan. Ina recent report published by the Department of Supply and Development, a scheme has been worked out for the rehabilitation of some of the refugees concentrated in Karachi. This will cost Government under 300,000 rupees in the form of outright grants and 1,800,000 rupees as loans and advances. Under the scheme will be established 34 Industrial Co-operatives which will help to absorb 2,000 families of refugee- artisans in as many as l17 different types of Cottage Industries. I shouldalso refer toa scheme being drawn up under the orders ' of my Hon’ble colleague, Mr. J. N. Mandal, for the amelioration of the Scheduled Castes, especially of Eastern Pakistan, from out of the grant of 1,000,000 rupees made by the Central Government over the last two years. I must not omit to mention the contribution which the Quaid-i- Azam Relief Fund has made for the rehabilitation of the refugee ar- tisans of Karachi. A sum of 500,000 rupees has been placed at the disposal of aSub-Committee of whichI am the Chairman. I haveonly, a few days ago, approved the scheme submitted to me for the estab- lishment of a model colony to accommodate fifty refugee families at a total cost of 350,000 rupees. Here will be provided all up-to-date amenities such as a shopping circle, a recreation centre, and work sheds apart from modest but neat tenements. Iam mentioning these because the Centre is vitally interested in the development--on an orderly basis--of Cottage Industries. The interests of cottage workers will not, I can assure one and all, be sacrificed, because the Centre is directly responsible for the devel- opment of large scale industries. In other countries of the world, the cottage units workin the closest co-operation with bigger units. There is no reason why development of the two should not go hand in hand in Pakistan. Finally, I would like to invite from you a frank expression of your views in ail matters of moment arising out of the agenda. As I said at an earlier stage, we are met here to learn a little more than we do of.one another’s pointof view and to see how each can help the other to attain the common object which we all have and that is, in the words of our Statement of Industrial Policy of April 1948 “an improvement in the standard of living of the people, brought about by harnessing, to the maximum extent possible, the forces and the treasures of nature, in the service of the people.” From the account that I have given, you will, I hope, agree with me that we have tried our best to live up to the exhortationof the late Quaid-i-Azam when he said that the foundationof the state having been laid “It is now for you to build and build as quickly and as well as you can.” meal pe a Be TiS aey oe s— om a VNR: wae ed Ls © ithe i a : ‘ 4s o. é ‘ ’ ' 1 ~ 5 : - * ; ~ t ; 2. ‘y " ts . Fy r * J } ‘ 7 | ae é ° po. . » 4 ; > 7 | a \