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Infrastructure Cess issue to be resolved to unlock Rs180bn tied up in court case for investment in city’s infrastructure

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KARACHI, Feb 18 (APP): Sindh Chief Minister Syed Murad Ali Shah chaired a follow-up meeting of the Business Facilitation Coordination Committee (BFCC) and took certain decisions, including the resolution of the longstanding issue of the Infrastructure Cess to unlock Rs 180 billion currently tied up in court for infrastructure development of the city and removal of soft encroachments or land grabbing from industrial areas.
The meeting was held at CM House and was attended by provincial ministers, Sharjeel Memon, Nasir Shah, Ziaul Lanjar, Mohammad Bux Mahar, Jam Ikram, Shahid Thahim, Chief Secretary Asif Hyder Shah, IG Police Ghulam Nabi Memon, Commissioner Karachi Hassan Naqvi and provincial secretaries.
The Businessmen community was represented by Aqeel Karim Dhedhi, Arif Habib, Zubair Motiwala, Saquib Magooon, Javed Balwani, Dr Zeelaf Munir, and others.
Minister Information Sharjeel Memon took up the issue of the Infrastructure Cess, against which the Business Community has filed a case in the court. The CM urged the business community to withdraw the Infrastructure Cess case from court.
The Chief Minister pointed out that Rs 180 billion is currently stuck in legal proceedings, and if the case is withdrawn, the funds can be allocated for infrastructure development.
The CM constituted a committee to resolve the Infrastructure Cess issue through dialogue.
The CM in consultation with the business community, decided to approach the federal government, seeking representation for the Sindh government and local business community on the Electric Board. This collaborative effort aims to resolve the longstanding issue of the Infrastructure Cess, to withdraw the case and unlock Rs 180 billion currently tied up in court – funds earmarked for critical infrastructure development.
At the outset of the meeting, I was told that seven subcommittees have been formed, with meetings already held for five of them, focusing on industrial and infrastructural issues..
The subcommittees that have conducted meetings so far include the Industrial Policy & Ease of Doing Business Committee, Infrastructure Sector Committee, Housing, Construction & Town Planning Sector Committee, Energy & Water, Sewerage Sector Committee, and the Encroachment/Land Grabbing Committee. The decisions taken in the meeting are being firmed up for necessary action.
The business community leaders told the chief minister to approach the federal government to take the necessary steps to reduce UFG (Unaccounted-for Gas) losses and gas leakages, which, if controlled, will lead to lower gas prices and benefit industries, according to the CM.
Industrialists raised concerns that the import of LNG (Liquefied Natural Gas) has caused higher financial losses, while local gas reserves are sufficient and should be utilised by minimising wastage. They also highlighted that electricity rates will not decrease unless more industries are established.
It was decided to write a letter to the federal government requesting representation in K-Electric. The meeting agreed that one representative from the federal government, one from the business chamber, and one from the Sindh government should be part of K-Electric’s decision-making body. This will resolve the outstanding issues of power outage, low voltage and repair and maintenance issues.
The business community expressed interest in working with the Sindh government on various coal projects such as coal to electricity, coal to gasification and provision of coal to industries for their boilers.
The Chief Minister directed Energy Minister Nasir Shah to finalise these projects in consultation with industrialists.
Energy Minister Nasir Shah said that he would hold a meeting with the interested business community to discuss the projects and their partnership.
Industrialists suggested that energy deals should not be made in foreign currency. The CM urged the business community leaders to prepare their proposals, and he would take it up with the federal government.
Discussing infrastructure issues in the industrial areas, the chief minister told the businessmen that he was convening a meeting on infrastructure development scheduled for February 26, where he would consult industrialists on improving infrastructure in industrial zones.
Addressing urban issues, the Chief Minister noted that many traffic signals in Karachi are non-functional and instructed the Karachi Mayor to ensure their repair. He also directed him to get the signals installed where they are required.
Additionally, a decision was made to remove illegal warehouses/godowns established in place of designated parking areas, with the Karachi Commissioner tasked with executing this directive.
Home Minister Ziaul Hassan Lanjar briefed the meeting on the decisions made by his subcommittee. He said that all encroachments in industrial areas will be removed. Soft encroachments, including illegal parking in industrial zones, will also be eliminated, he added.
Sindh Chief Minister Syed Murad Ali Shah directed the Commissioner Karachi to take immediate action on any complaints of land grabbing.
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