Home »Budgets » Provincial » Industries, commerce & mineral sectors: 39.39 percent rise proposed in budget allocation

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  • Jun 14th, 2016
  • Comments Off on Industries, commerce & mineral sectors: 39.39 percent rise proposed in budget allocation
The Punjab government, in its annual budget for the year 2016-17, has proposed an increase of 39.39 percent making an allocation of Rs 18,559.166 million for the development of industries, commerce and mineral sectors against Rs 13,314.316 million of 2015-16.

Industries, Commerce and Investment sector is one of the main pillars of Punjab Growth Strategy that envisages promotions of industry, commerce and investment for technological up-gradation, employment generation in industrial & services sector. Moreover, it focuses on attracting private sector investment as well as increasing exports. The department has also focused on facilitating the skill sector for meeting the requirement of industrial sector. During the year 2015-16, Rs 7, 330 million were allocated to this sector which included: Rs 2, 000 million for Chief Minister's Self-employment scheme, Rs 1000 million for PIEDMC/FIEDMC and Rs 1000 million to Punjab Skill Development Project (PSDP).

For the financial year 2016-17, an amount of Rs 12,587 million have been allocated to Industries, Commerce & Investment Sector which also includes an allocation of Rs 3,000 million for Chief Minister's Self Employment Scheme, Rs 2,100 million for Punjab Industrial Estate Development and Management Company/ Faisalabad Industrial Development and Management Company, Rs 615 million for Punjab Skill Development Project-PIU, Rs 900 million for Punjab Skill Development Fund (PSDF), Rs 3000 million for Technical Education and Vocational Training Authority and Rs 2000 million for Punjab Vocational Training Council.

Major Targets for 2016-17 include: Chief Minister's Self Employment Scheme (CMSES) for disbursement of loans on revolving basis to mitigate the youth unemployment in Punjab, Training of 550,000 individuals through Skill Development Programmes / projects of PSDF, TEVTA and PVTC, Establishment of Quaid-e-Azam Apparel Park, Provision of missing facilities in Small Industrial Estates (SIE) in order to enhance colonisation with a special focus on promotion of garment sector, Attracting foreign direct investment (FDI) through PBIT comprehensive scheme under World Bank's J&C Programme and Establishment of Strategic Policy Unit for enhancing the latent capacity of the department and attracting investment in Punjab.

The government plans to support Industries, Commerce & Investment department in a policy environment that helps in promoting industrial development, trade and investment in the province. The Government aims to achieve this by focusing objectives which included: promoting trade and investment and working for the private sector development. Create an enabling and facilitative business environment. Reduce the cost of doing business thereby opening avenues of business creation and improving living standards for all by fostering economic growth, technological competitiveness and sustainable development. Similarly, the government has attached special priority to mines and mineral development. The government is responsible for providing state for mineral resource wealth mapping, its development and exploration. Punjab is lavishly blessed with mineral wealth that needs to be exploited systematically.

According to the budget documents, 20 minerals are being excavated out of 35 known. Punjab has almost one billion tons of coal and 900 million tons of iron ore reserves. Under the dynamic leadership of Chief Minister Punjab, Mines & Minerals Department is leaving no stone unturned to promote and facilitate Mines & Minerals Exploration in Punjab to attract local and foreign investment, thereby ensuring a positive thrust in the provincial GDP.

During the FY 2015-16, funds amounting to Rs 1.832 billion were allocated to Mines & Minerals Department including an allocation of Rs 1.5 billion for Punjab Mineral Company (PMC). The PMC is presently working on exploration and resource estimation of Iron Ore and associated metallic minerals in Chiniot Rajoa under its Phase-1 project. It is also working on phase-II project for exploration and resource estimation of Iron Ore and other Minerals in District Chiniot, Faisalabad and other areas of Punjab. This will hopefully result in establishment of steel mill in Punjab. M&M Department is also facilitating Chinese Company in development of Coal Fire Power Plants at Mines Mouth with indigenous coal under China-Pak Economic Corridor initiative.

The schemes completed/major initiatives during FY 2015-16 are as follows: 'Undertaking the first ever power project of 330 MW mine mouth model based on indigenous coal', 'First ever complete exploration, drilling and estimation of Copper & Iron Resources in Chiniot / Rajoa with local funding', 'Feasibility of first ever steel mill in Punjab based on indigenous raw material', 'Commencement of second Phase of exploration of metallic minerals', 'Up-gradation of mines rescue and safety stations'.

For the FY 2016-17, an amount of Rs 1.893 billion has been allocated to M&M Sector including Rs 1.5 billion for Punjab Mineral Company (PMC). Targets and major initiative fixed for 2016-17 include: Completion of Feasibility Study of Chiniot and Rajoa, Completion and operationalization of scheme titled 'Mines Rescue & Safety Area, Sub Station, Ara Basharat, Commencement of project for defining & mapping of mineral resources corridors in Punjab, and Imparting of trainings under Skills Development Project of M&M Department (Chief Minster's Skills Development Initiative).

Copyright Business Recorder, 2016


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