Putting industrialisation on the front burner

LAHORE: Large cities in most developed economies generate economic activities worth 60-80 percent of their country’s GDP, ironically our two top metropolises, Karachi and Lahore, hardly account for 40 percent of the same.

The investors select well-managed cities for commercial and industrial activities because the developed infrastructure facilitates them in establishing industries outside the city and commute the workers through the integrated transport network available in that city.

This way the workers and the investors enjoy the modern city life while they go to work in the suburbs of that city.

Unfortunately the urban planning in Pakistan has remained below global standards.

Moreover the governments paid no attention to the development of industrial estate around the cities. It was due to the flawed urban planning that many industrial areas established four or five decades back have been encroached by slums and residential colonies.

In some cases the government itself encouraged investors to establish industries in the suburbs of big cities. Now these industries are in the midst of residential colonies facing the resistance from the residents who want the government to relocate them. This is easier said than done as people have invested millions and in some cases billions in establishing their manufacturing businesses.

The government has offered 5-year tax waiver for all Greenfield projects that will be established in Pakistan but a cursory look reveals industrial land is not available anymore around the big cities.

Lahore for instance has emerged as the most developed city with a top-class road infrastructure that connects all main centers of the city through a ring road. Then there is a metro bus service that runs through the center of the city from Ravi River to Gajju Matta neighbourhood, which is at the junction of an industrial hub. There is not land available for industrialisation purposes.

The Orange Train project that is almost complete would make industrialisation around Lahore even more attractive.

The metro bus project has reduced the commuting time of over 125,000 workers to and from work by almost three hours.

As a result the industrial estate along Hudiara drain has been fully colonised. But there is no space available in that estate.

The Orange Train would have a larger capacity to take the workers to the exit points in Lahore from where they could be picked up by shuttles of their industries. But we would need many more industries to benefit fully from this facility.

There are many industries that have been established on Ferozepur road leading to Kasur city. These industries, though established with the permission of the government were once declared illegal by the Lahore Development Authority (LDA), but were rescued through intervention of previous government.

This issue came up when the jurisdiction of the authority was substantially increased. The LDA found many industries operating in the midst of residences (which were constructed decades later).

The lack of planning can be judged by the fact that there are over 50,000 small and large industrial units in Lahore established outside recognised industrial areas.

In contrast the industrial plots in Quaid-e-Azam Industrial estate are only 400 and the Sundar Industrial Estate only 800.

The turmoil created after extension of LDA jurisdiction forced the Lahore businessmen to interact with the government functionaries to sort out the problems of existing industries in nonindustrial areas and find suitable land for further industrialisation.

They benefitted from the Global Positioning System (GPS).

It was found that new industrial zones could be established along Multan Road and Kasur-Lahore Road. Over 66,000 acres of barren nonagricultural and unpopulated land are available there.

After three years of hard work and interaction with Punjab government departments both sides agreed on the proposal. It was decided that the 66,000 acres earmarked for industrialisation would not be utilised for any other purpose.

The regularization of existing industries was also agreed. A summary was moved to the then Chief Minister Punjab who approved it on May 12, 2017 for immediate implementation. However, before the implementation could take place the government changed.

Now the bureaucracy is playing its tricks and asking private sector to start the process afresh.

The entire process would take another three years and by that time new elections would be in the offing.

Following chief minister’s approval the summary was signed and sealed by the then chief secretary, chairman planning and development (currently chairman FBR), secretary industries, and director general LDA. The process should be started immediately to accelerate industrialisation.