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YEAR BOOK 2013-14

INDEX

2. Message from Minister for Industries & Production 3. Message from Secretary Industries & Production 4. Mission & Vision 5. Objectives Chapter-1 Introduction - Functions of Industries & Production Division - Organizational Setup - Organogram of the Ministry Chapter-2 Industry Overview - Fertilizer Sector - Cement Sector

Chapter-3 Public Sector Development Programme (PSDP) - Development Sector - CDWP Project - DDWP Project Chapter-4 Public Sector Corporations / Organizations - Pakistan Institute of Management (PIM) - Utility Stores Corporation (USC) - State Engineering Corporations (SEC) & its Units i. Heavy Electrical Complex (HEC) ii. Pakistan Machine Tool Factory (PMTF) iii. Pakistan Engineering Company (PECO) iv. ENAR Petrotech Services Limited (EPSL) - Engineering Development Board (EDB) - Pakistan Steel Mills (PSM) - Small & Medium Enterprise Development Authority (SMEDA) - Department of Explosives (DOE) - Heavy Mechanical Complex (HMC) - Pakistan Industrial & Technical Assistance Centre (PITAC) - National Productivity Organization (NPO) - National Fertilizer Corporation (NFC) - Export Processing Zones Authority (EPZA) - Pakistan Industrial Development Corporation (PIDC)

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MESSAGE FROM THE

MINISTER INDUSTRIES & PRODUCTION

The Ministry of Industries & Production has come up with its Year Book 2013-14 which

highlights the endeavors of the Ministry to facilitate, support and promote industrialization in the

country.

It is indeed a commendable effort. The dissemination of the accomplishments of the Ministry is

very essential so as to provide first-hand information about the programs undertaken by the Ministry

and to place people in a better position to benefit from these programs. This allows the stakeholders to

discuss and debate the policy of the Government resultantly enhancing the prospects of a positive and

constructive feedback. It will also help the Government to re-orient its policies according to the

demands of the stakeholders and to create an environment which would help in the promotion of

industrialization in the country.

I am sure that the Year Book 2013-14 would be a valuable addition to the library of readers

including civil servants, investors, researchers and other stakeholders.

Rais Murtaza Khan Jatoi Minister for Industries & Production

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MESSAGE FROM THE SECRETARY

INDUSTRIES & PRODUCTION

It gives me immense pleasure in illuminating the performance of the Ministry of

Industries & Production for the year 2013-2014, based on various activities conducted in

the Ministry as well as its supporting organizations.

The document highlights the policies framed either directly by this Ministry or

through its supporting organizations to promote industrialization in the country as well as

special emphasis given by the Ministry on various emerging sub-sectors. The achievements

made during the period under review would contribute towards creation of the enabling

environment for growth and promotion of social & economic well-being of the people and

Industrial development in particular with an objective to achieve efficient, sustainable and

equitable development.

I hope this document would prove to be a useful document for the improvement of

the industrial sector and that it would be a welcoming gesture for both readers and

researchers.

Raja Hassan Abbas Secretary

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MISSION

“ To play a leadership role in formulating and implementing a comprehensive strategy for

rapid industrialization of Pakistan which aims at maximizing job creation and enhancing

Pakistan’s international competitiveness”

VISION

“ To Achieve Efficient, Sustainable and Equitable Development”

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OBJECTIVES

Focus on not just industry, but more broadly on social and economic systems as a

whole.

Promote innovation and facilitate creation of knowledge base assets.

Identify industrial cluster groups and facilitate and incentivize their development

along with backward and forward linkages.

Promote movement along the value chain from lower value added activities

towards higher value added activities and provide support to Research and

Development and Product design as a catalyst.

Enhance global orientation to adapt and respond to the changing global

environment.

Improve the requisite economic foundation by focusing on the development of

human resource, technology acquisition, physical infrastructure and business

support services to increase productivity.

To ensure optimum capacity utilization and revival of sick units.

Encouraging expansion program for existing Industrial Sector.

Give top priority to knowledge based assets and provide sufficient resources to

investors so that they could get the pertinent information from one window for

effective decision making.

To ensure creation of an enabling environment to the entrepreneur / prospective

investor through a well defined, integrated and coordinated network of

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information system, supported and facilitated by the organizations under Ministry

of Industries.

It is the mission of the Ministry of Industries to create a conducive environment so

that interests & fears of the investors are taken care of. The associated

departments shall therefore be given line of action for their expected achievements,

while Ministry of Industries shall monitor their performance.

Ministry of Industries intends to balance the interest of the stakeholders through

its supportive organizations on regular basis.

The Ministry of Industries has also taken initiative to start cooperation at

provincial level so that the impediments faced at that level can also be resolved.

The Ministry is also determined to provide technical assistance and education

commensurate with the requirements of industry. If required establishing new

Centers or Institutes besides strengthening the existing Institutions or Centers to

impart required knowledge and skills to potential investors.

Chapter- I

INTRODUCTION

Ministry of Industries & Production (MOI&P)‟s aim is to facilitate Industrial growth in the country,

both in public and private sector. It plays a significant role in creating and enabling environment

for industrial growth in the country. Pakistan is endowed with all the essential requisites of

industrialization i.e. availability of raw materials, cheap labour, entrepreneurship and domestic

consumer market of around 190 million people. The Ministry has been mandated with the task

to achieve the Government objectives to forge ahead in all the Industrial sectors with the

required pace and motives. Industrialization is considered a major tool in the hands of any

Government for growth. With these objectives in view, MOI&P devised its strategy and moved

forward with all its resources.

During the period 2013-2014, the broad functions performed by the Ministry of Industries &

Production were: -

Initiatives to boost Industrialization in the country and the steps taken for promotion of

social and economical well-being of the people. Policy / Reforms formulation & implementation. Development of Industrial parks on the principle of Public Private Partnership. Technology and skill up-gradation for Industrial development. Provision of consumer goods at affordable prices through Utility Stores. International exposure to Engineering Industry in Pakistan. Facilitation of product diversification and capacity expansion. Operational performance of public Corporations/Units.

In order to implement the above-mentioned functions, strategies followed and the achievements

made during the year as well as the future plans of the Ministry are discussed in the subsequent

pages.

FUNCTIONS OF INDUSTRIES & PRODUCTION DIVISION

Under the Rule of Business Ministry of Industries & Production is assigned the following

functions: -

Industries Division

1. National Industrial Planning & Coordination.

2. Industrial Policy.

3. Employment of Foreign Personnel in commercial and industrial enterprises.

4. Federal agencies and institutions for: -

i. Promoting industrial productivity.

ii. Promoting of special studies in the industrial fields and

iii. Testing industrial products.

5. Administration of the Essential Commodities.

6. Import & Export of white oil.

7. Explosives (excluding the administration of Explosives Substances Act, 1908) and safely

measures under the Petroleum Act, 1934 and Rules made there under.

8. Prescription and review of criteria for assessment of spare parts and raw materials for

industries.

9. Administration on Law on Boilers.

10. Administrative, Financial, Operational, Personnel and Commercial matters of Pakistan

Garments Corporation.

11. Ghee Corporation of Pakistan Limited, and Pakistan Edible Oils Corporation Limited

(defunct).

12. National Fertilizer Corporation (NFC)

Production Division

1. Development of Industries (Federal Control) (Repeat) Ordinance, 1979. 2. Economic Reforms (Protection of Industries) Regulation, 1972 (Regulation No. 125 of

1972). 3. All matters relating to Stat Industrial Enterprises, especially, in basic and heavy

industries, namely: -

i. State Engineering Corporation (SEC) ii. State Cement Corporation, Lahore. iii. Pakistan Automobile Refining & Petrochemical Corporation, Karachi. iv. Federal Chemical & Ceramics Corporation, Karachi. v. Pakistan Steel Mills (PSM), Karachi. vi. Pakistan Industrial Development Corporation (PIDC), Karachi.

4. Any other industrial enterprises assigned to the Division.

ORGANIZATIONAL SETUP Ministry of Industries & Production consists of the following Wings: - 1. Finance, Admin & Regulation Wing (FAR)

Core Tasks:

1. Administration / Establishment matters of main Ministry.

2. Budgetary and financial matters of main Ministry and its Organizations.

4. Foreign and local trainings, workshops and seminars.

4. Litigation issues of the Ministry, attached departments, corporations and support

organizations.

5. Council and coordination work.

6. Spokesperson of the Ministry

7. Matters relating to MIS Centre.

8. Work relating to Assembly/ Senate Business.

9. Administration of Laws on Boilers

10. Administrative/ Operational matters of the following: -

a. Department of Explosives.

b. Utility Stores Corporation.

c. National Productivity Organization (NPO)

11. Keeping a watch, from the national angle, over general price trends and supply

position of essential commodities, price and distribution control over items to be

distributed by statutory orders between the provinces by using, inter alia, Utility

Stores Corporation.

2. Large Enterprises Development (LED)

Core Tasks:

1. Preparation & yearly review of Industrial Policy & its implementation.

2. Preparation & yearly review of industrial Sectors Policies & their Implementation.

3. Work relating to Administration and Establishment of following Organizations working

under LED Wing.

a. Pakistan Steel Mills (PSM)

b. Heavy Mechanical Complex (HMC)

c. State Engineering Corporations.

i. ENAR Petro-Tech.

ii. Pakistan Machine Tool Factory

iii. Heavy Electrical Complex.

iv. Pakistan Engineering Company (PECO)

d. National Fertilizer Corporation (NFC)

e. National Fertilizer Marketing Limited (NFML)

f. Pakistan Automobile Corporation, Karachi.

g. Sindh Engineering Ltd, Karachi.

h. Republic Motors Limited Company Lahore.

4. Ensuring preparation of yearly and quarterly plans for the above large-sized companies

attached to Mo IP;

5. Policy Evaluation and Monitoring like Chemicals, Pesticides, Cement, Mining Industry,

Ghee/Cooking Oil, Solvent Extraction, Poultry, Plastic, NEPRA, Leather Goods, Sports

Goods Surgical Instruments, Paper and Pulp & Hotels.

3. Medium Enterprises Development (MED)

Core Tasks:

1. Preparation & Yearly review of SME Policy.

2. Overseeing Implementation of SME Policy.

3. Creation of financial products for SMEs and ensuring its outreach

4. SME facilitation in creating backward and forward marketing

Linkages

5. Work relating to Administration and Establishment of following Organizations

working under MED Wing: -

a. Small & Medium Enterprises Development Authority (SMEDA)

b. Pakistan Industrial Development Corporation (PIDC) including its following

Companies: -

i. Pakistan Stone Development Company( PASDEC)

ii. Pakistan Gems & Jewellery Development Company (PGJ&DC)

iii. Pakistan Hunting & Supporting Arms Development Company (PHASDC)

iv. Furniture Pakistan

v. Aik Hunar Aik Nagar Project (AHAN)

c. Southern Punjab Embroidery Industry (SPEI)

d. Spun Yarn research & Development Company, Multan.

e. Khaddi Crafts Development Company, Multan.

f. Leather Crafts Development Company, Multan.

g. Juice producing and packaging lines for fresh fruits & vegetables.

h. Matters relating to AGRO Food Industry.

6. Ensuring preparation of quarterly and yearly plans for the above Medium sized

companies attached to MOIP.

4. Industrial Infrastructure Development Wing (IID)

Core Tasks:

1. Preparation and implementation of long-term (5 years) and short-term (six months

or more) industrial infrastructure development plans, with particular reference to

Pakistan China Economic Corridor.

2. Preparation and implementation of trucking policy with the aim to facilitate present

fragmented trucking system into a cohesive industry capable of dealing with

Pakistan-China Economic Corridor requirement.

3. Preparation, Implementation, monitoring and evolution of Development Projects

(Funded through PSDP, foreign or internally funded).

4. Work relating to Project Monitoring and Evaluation Cell


working under IID Wing: -

a. Export Processing Zone Authority (EPZA).

b. National Industrial Parks Development and Management Company (NIP).

6. Ensuring preparation of yearly and quarterly plans for the above Infrastructure

development companies attached to MOIP.

7. Engineering Development Board (EDB)

5. Investment Facilitation Wing (IF)

Core Tasks:

1. Protection and promotion of industries & economic enterprises through developing

incentive structures in the broad areas of: -

a. Fiscal Policy

b. Monetary Policy.

c. Trade Policy.

2. International Coordination except Pakistan -China Economic Corridor.

3. To ensure creation of an enabling environment to the entrepreneur / prospective.

4. Investment facilitation and inter-ministerial coordination for removing bottleneck in

the way of new and existing industrial investment project.

5. Investment Facilitation Centre (IFC)

6. Enforcement of energy and industrial standards.

7. Employment of foreign personnel in commercial and industrial enterprises.

8. Bilateral Investment Promotion and Protection Agreements;

9. Matters pertaining to Labour Laws and ILO.

10. Coordination with International Agencies i.e. UNDP, UNIDO, World Bank, IMF, Asian

Development Bank, Islamic Development Bank, etc.

11. Relevant input on specific issues / matters will be provided by the respective Wings /

Sections.

12. Matters pertaining to SAARC including SAPTA, SAFTA and FTAs. Necessary input

relating to tariff/custom duty under these Agreements will be provided by Deputy

Chief (Technical).

13. Identification of training & skills gaps of SMEs and Large-scale Industries.


working under IF Wing: -

a. Technology Up-gradation & Skills Development Company (TUSDEC)

b. Karachi Tools Dies & Mould Centre, Karachi (KTDMC)

c. Gujranwala Tools Dies & Moulds Company (GTDMC).

d. Ceramic Development & Training Complex, Gujranwala (CDTC).

e Pakistan Chemical & Energy Sector Skills Development Company (PCESSDC).

f. Pakistan Institute of Management (PIM), Karachi

g. Pakistan Industrial Technical Assistance Centre (PITAC)

15. Preparation of skills development plans in respect of the above Skills Development

Companies attached with MOIP.

Chapter- 2 INDUSTRIAL OVERVIEW

Increasing efficiency of the Industrial sector is a critical of Economic development. Industry‟s

role for the economy in post WTO era has become crucial not only to safeguard local industry,

but also to benefit from increased trade opportunities in the global market, subsequently

strengthening Pakistan‟s economic performance. The strength of Pakistan economy depends on

the dynamism of businesses that can respond to opportunities as they emerge, and that can

restructure and adapt to market demands. This, however, is only possible through favorable

policies developed through regular interaction with the private sector.

Ministry of industries and production entrusted with the task to provide the vision for industrial

development set on an ambitious course to play a leadership role in formulating and

implementing a comprehensive strategy for rapid industrialization of Pakistan which aims at

maximizing job creation and enhancing Pakistan‟s international competitiveness. Achievement

of goals as set out in the vision statement require pragmatic steps for policy formulation with

respect to industrialization, tariff rationalization, strengthening of engineering sector & its

integration with world markets. Training & enhancement professional education being a

prerequisite for developing a workforce that is equipped with skills for improving competitiveness

& productivity.

Following successful international models for rapid industrialization the Ministry embarked upon

developing a comprehensive industrial strategy during the year under review. This effort drew

upon the expertise and experience of industry, academia and public sector. The strategy lays

down direction for achieving a strong position with competing economies.

FERTILIZER SECTOR: The Government of Pakistan has established Fertilizer Review Committee (FRC) mechanism

which holds its meeting regularly in order to review the demand and supply of Urea in the

country. For Rabi 2014-15 shortage of Urea was ascertained by Production and accordingly

timely decision was taken to import 570, 000 tons of Urea as allowed by ECC Viz 385,000 tons

from open international market and 185,000 tons under SABIC facility. Moreover, through the

distribution network of National Fertilizer Marketing Limited (NFML), availability of Imported Urea

across the country has been ensured.

Annual Production & Demand of Urea & DAP for Year 2013-14

(Qty in Million Tons)

Description Annual Production

Annual Consumption

Gap

Urea Without Gas Curtailment

6.9 6.5 + 0.4 Surplus

Urea With Gas Curtailment

4.932 5.7 -1.068 Deficit

DAP 0.7 1.6 0.925 Deficit

Source: NFDC

Incentives for Fertilizer Industry

The Government has also provided various incentives under Fertilizer Policy, 2001 to

encourage the fertilizer production in the country including: -

1. Duty free import of Phosphate Rock and Machinery (not manufactured in the

country).

2. Provision of Feed Stock Gas at concessionary rates to Fertilizer Plants (in

comparison to the Price for Commercial usage) for buoying up Urea Production.

3. Subsidy of Fertilizers imports for difference between the landed cost and local sale

price.

PRICES OF UREA

Domestic Prices Average Fertilizer Market Prices in the Country as on December, 2014 compared with

November, 2014: -

(Rs/50 kg)

Product Nov, 2014 Dec, 2014 % Change

Urea Sona 1894 1933 2.1

Urea (Tara) 1858 1891 1.8

Di-Ammonium Phosphate (DAP) 3709 3807 2.6

Nitrogen Phosphorus (NP) 2632 2676 1.7

SSP (Granular) 1019 1022 0.3

Calcium Ammonium Nitrate (CAN) 1604 1613 0.6

Sulphate of Potash (SOP) 4900 4900 0.0

Source: Federal Bureau of Statistics / Records of National Fertilizer Development Centre

International Prices

The following spot FOB prices are as under:-

Sr. No Finished Fertilizer Prices During 2013 Trend Origin Oct, 2014 Nov, 2014

i. Prilled Urea Baltic 318 311 Declining

ii. Prilled Urea Arabian Gulf 330 321 -do-

iii. Prilled Urea China 290 292 Rising

Source: TCP, Karachi

CEMENT SECTOR:

Number of Units at present 24

(All units are in private sector)

Annual Installed capacity 44.64 (Million Tons)

Cement sector is not only catering to domestic needs but also exporting surplus cement to

different countries mainly to Afghanistan, India, Africa and the Middle East. Salient features of

Demand / Supply and Production Capacity are given below:-

Years Supply (Million Tons)

Production Capacity

Capacity Utilization

(%age)

Local Market

(Cement)

Export (Cement+Clicker)

Total Dispatches

2010-11 42.37 74.17% 22 9.43 31.43

2011-12 44.64 72.83% 23.95 8.57 32.51

2012-13 44.64 74.89% 25.06 8.37 33.43

2013-14 44.64 76.79% 26.15 8.14 34.28

Presently, Export of Cement is exempted from the Sales Tax (16%) and Federal Excise Duty

(FED). However, the domestic consumption is being charged Sales Tax (17%) and FED (Rs.

400 Mpt)

Chapter-3

ACHIEVEMENT OF DEVELOPMENT SECTION

Development Sector

Achievements of Development Section of IID Wing, Ministry of Industries & Production during the Year 2013-14 are as follows:-

An expenditure of Rs. 1055.199 Million has been incurred under PSDP 2013-14 in

implementation of development Projects of Ministry of Industries & Production against

allocation of Rs. 1879.778 million. (Detail is placed at Annexure-I).

Thirty Four (34) ongoing development projects were executed during the Financial Year

2013-14.

The Projects Agro Food Processing Facilities (AFP), Multan, Institutional Development in

MoI with respect to WTO, Strengthening of Planning, Monitoring & Evaluation Cell, in M/o

Industries & Production and Ceramics Development and Training Complex (CDTC),

Gujranwala were completed in 2013-14.

The development Projects executed during the year were geared to act as demonstration

effect to provide common training facilities, technological transfer and common

machinery pools. The basic thrust of the development projects was on technology driven

growth within a framework to encourage economy of scale, value addition and

diversification of products in order to make our products competitive in the international

markets.

Details of the Projects under Ministry of Industries & Production are approved and under

process with Ministry of Planning, Development & Reforms by the CDWP / DDWP during

the year 2013-14 are enclosed to be incorporated in Year Book.

In addition to the above the Following Projects were processed during 2013-14.

1. CDWP

Rs. In Million

Sr. No Name Of The Project Total Cost

Current status

1. Water Supply Scheme for Hub Industrial & Trading Estate Phase II (Extension)(Revised PC-I)

353.216 Approved

2. Sialkot Business & commerce Centre, Sialkot (Revised PC-I)

484.61 Approved

3. Revised PC-I “Red Chilies Processing center (RCPC), Kunnri, Sindh

244.700 Approved in CDWP meeting held on 17-07-2014

4. Up-gradation of Fan Development Institute, Gujrat

243.00 The cost of project was rationalized from Rs. 243 million to Rs.153 million in the Pre-

CDWP meeting in the M/o PD&R held on 29-08-2013. The project is under consideration in this Ministry

5. Value Addition In Industry/Cluster Development Approach With estimated Cost of Rs. 1000 Million

1000 PC-I is under preparation by the executing agencies.

6. Establishment of Gemstone Mining Processing, and Training Centers at Skardu (Gilgit-Baltistan) and Mingora (Khyber Pakhtunkhwa)

301.20 Forwarded to Ministry of Planning, development and Reforms on 27-03-2014 for consideration/ CDWP

7. NFC Institute of Engineering and Technology (Neushahro Feroze)

625 Approved by DWP on 21-12-2013

8. National Institute of Solar Energy 498.4 PC-I forwarded to PCRET and AEDB for comments / inputs which are still awaited.

9. Enhancement, Up-gradation and Strengthening Capacity of Existing Fan Development Industry (FDI), Gujrat

105.50 PC-I is under examination in the Ministry.

10. Acquisition of Land for Expansion of Karachi Export Processing Zone as (KEPZ Phase-III)

500 PC-I is under examination in the Ministry.

11. SAAC handicraft village-handicraft design, development & promotion centre.

51.67 Inputs on progress / issues with Implementing Agencies of SAARC Development as discussed in meeting held on May 20, 2014 are still awaited.

12. Establishment of Gems & Jewellery Training and Manufacturing Centre, Bahawalpur.

74.34 The PC-I will be discussed in the up-coming DDWP meeting

2. DDWP

Rs. In Million

Sr. No Name of the Project Total Cost

Current Status

1 Revival of Foundry Shop in PITAC Lahore

4.5 PC-I forwarded to EAD for Japanese Grant for the year 2015 on 15-06-2014

2 Enhancement of Training Capacity and Deliverability of Services

32.493 PC-I forwarded to EAD for availing Japanese Grant for the year 2015 on 15-06-2014

3 Energy Efficiency Project for Industrial Sector in Pakistan (Phase-I)

55.842 Deferred by Secretary on 15-07-2014

4 Industries Capacity Building on Occupational Safety and Health (CBOSH)


5 Establishment of Income Generating Enterprise for Production, Packing, Branding and Marketing of the Essential Oil through Public Private Partnership”


6 Productive Usage of Cotton Stalks (Briquetting) through Public Private Partnership


7 Peshawar Business Center 60.00 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.

8 SMEs Small Interventions Program

59.00 Considered in the DDWP meeting held on 01-04-2014. Deferred by DDWP.

9 Women Business Development Center Dera Ismail Khan


10 Women Business Development Center, Abbotabad


11 Establishment of Spinning CFC at Islampur Swat KP(Revised)

56.514 Deferred by Ministry

12 National Frame Work Energy Management System(Energy Managers/ Auditors & Mandatory Energy Audits based on ISO-50001(EnMs)


13 Indigenous Development of a Surface Coal Gasification unit for Producing of Coal Gas as an Alternate fuel for Industrial Application


14 Indigenous Development of a Mini Hydro Power Plant for off-grid use


15 Indigenization of Machinery for Marble & Granite Sector


16 Establishment of Mosaic, Handicraft and Inlay Center at Khairpur


17 Survey and Feasibility Study for Infrastructure Development for EPZ Gwadar)

14.00 Project will be discussed in the upcoming meeting of EPZA‟s DDWP

“Annex-I”

Rs. In Million Sr. No PSDP

Sr. No Name of the Project Capital

Cost

PSDP Rupee Allocation

Releases in FY 2013-14

1 478 Agro Food Processing (AFP), Multan

207.73 8.382 8.382

2 479 CFTC for Light Engineering Cluster, Mardan, Khyber Pakhtunkhwa

39.980 10.0000 10.0000

3 480 Establishment of Castor Oil Extraction Plant at Hub Uthal Distt, Lasbela

300.00 60.0000 0.0000

4 481 Establishment of Bostan Industrial Estate Phase-I

400.410 60.0000 40.0000

5 482 Establishment of CFC for Honey Processing & Packaging Common Facility Centre, Mingora, Swat

38.170 8.0000 8.000

6 483 Establishment of CFC for Silk Cluster at Mingora, Swat

57.530 20.0000 20.000

7 484 Establishment of Chromites Beneficiation Plant at Muslim Bagh District Killa Saifullah, Balochistan

104.345 57.3450 57.345

8 485 Establishment of Infrastructure in Quetta Industrial & Trading Estate (Phase-II)

174.250 50.0000 50.000

9 486 Establishment of Intake & Brine Disposal System / Civil work for Desalination Plant at (i) Gaddani, (ii) Jiwani, (iii) Pasni (Revised)

287.380 60.0000 60.000

10 487 Establishment of Spinning CFC at Islampur, Swat

29.697 8.0000 8.000

11 488 Foundry Services Centre, Lahore 179.400 46.3140 36.684

12 489 Institutional Development in MoI with respect to WTO

59.840 5.4110 2.935

13 490 Prime Minister Quality Award 36.990 3.0200 3.020

14 491 Provision of Infrastructure in Quetta Industrial State (Phase-IV)

126.930 66.9300 46.930

15 492 Red Chilies Processing Centre Kunnri, Sindh

221.885 23.0000 23.000

16 493 SME Sub contracting Exchange in Gujranwala

26.090 6.5410 6.540

17 494 SMEDA SME Facilitation Complex at PITAC, Lahore

57.200 52.200 0.000

18 495 Sports Industries Development Centre, Sialkot

435.637 27.7570 27.757

19 496 Strengthening of Planning, Monitoring & Evaluation Cell, in M/o Industries & Production, Islamabad.

53.231 11.6460 6.089

20 497 Up-gradation of NFC Institute of Engineering & Technology Facilities, Multan

100.000 70.0000 40.000

21 498 Water Supply Scheme for Hub Industrial Estate Phase-II (Extension)

247.360 50.0000 50.000

22 499 Establishment of Women Business Development Centre Mingora, Swat

35.010 6.0000 6.000

23 500 Women Business Development Centre, Karachi

58.840 10.0600 5.160

24 501 Women Business Development Centre Peshawar, Khyber Pakhtunkhwa

28.410 3.4280 3.428

25 502 Women Business Incubation Centre, Quetta

58.08 11.41 11.410

26 503 Development and Installation of Sun-Tracked Solar Collector for Heating Water and Generating Steam for Industrial Processing.

55.330 44.3300 34.330

27 881 Ceramics Development & Training Complex (CDTC), Gujranwala

361.640 5.984 5.984

28 882 Development of Marble & Granite Sector

2276.880 476.660 127.032

29 883 Development Projects of Pakistan Gems & Jewellery Development Company

1400.000 250.000 149.500

30 884 Establishment of Design Institute Specially for Energy Sector Plants at HMC, Taxila

665.380 201.770 135.260

31 885 Development Projects of Pakistan Gems & Jewellery Development Company, AJK

59.920 10.590 7.413

32 886 Establishment of Turbines and Power Plants Equipment Manufacturing Facilities at HMC, Taxila

21543.100 5.000 5.000

33 887 Hyderabad Engineering Support Centre (HESC), Hyderabad

223.490 60.000 24.000

34 888 Light Engineering Up-gradation Centre for SMEs in Balochistan (LEUC), Hub Lasbela

217.900 60.000 24.000

35 889 Peshawar Light Engineering Centre (PLEC), Peshawar

230.560 30.000 12.000

Total: - 30398.595 1879.778 1055.199

Chapter- 4

PUBLIC SECTOR CORPORATIONS / ORGANIZATIONS

1. PAKISTAN INSTITUTE OF MANAGEMENT (PIM)

Pakistan Institute of Management (PIM) was setup under PIDC in 1954, and in 1956, it was

made a national organization. In 1976, an independent Board of Governors was constituted.

PIM is not registered as a separate legal entity, and it works as an autonomous body under the

administrative control of the Ministry of Industries and Production (MoIP), Government of

Pakistan.

Head office is located in Clifton, Karachi with one Branch office in Gulberg, Lahore. Both the

buildings are owned by PIM and are purpose built. Presently, total number of employees is 109.

Annual budget for the year 2013-14 is Rs. 103.78 million with grant-in-aid of Rs. 34.00 million,

which means around 30% of expenditure is met from grant-in-aid and around 70% from PIM‟s

own sources of revenue.

PIM‟s MISSION

Progress through Better Management. PIM‟s CHARTER / VISION

PIM is to take a lead role in Management Training & Development in Pakistan on a no-profit-no-

loss basis.

PIM‟s CORE BUSINESS / ACTIVITIES

Management Training & Education, and

Management Consulting & Counseling.

ACHIEVEMENTS & INITIATIVES TAKEN, SINCE JUNE 2013 Training partnership was developed with Business Edge of IFC (World Bank Group) to target

SME sector and entrepreneurs as well. This venture helped PIM in getting our seven (7) faculty

members / trainers trained from BE/IFC, and also in getting good long term business from an

NGO working in the province of KPK, beside others.

Management Consulting is one of the core functions of PIM, but during last more than 10 years,

there was hardly any such work done by PIM faculty. During last one year, the same has been

revived, and by the grace of ALLAH, around 5 consulting assignments have either been

completed or being worked upon. The revenue earned from these consulting assignments (the

amount received so far and to be received before June 30, 2014) is around Rs. 4.50 million.

Besides earning, the exposure and learning experience to the faculty is priceless.

A national HRM conference, 1st time in the history of PIM, was held in February 2014 in Lahore,

and was attended by more than 200 professionals from the corporate sector. The expenditure

was met from the amount received through fees and sponsorships. A similar management

conference is planned in Karachi sometime in March 2015. These conferences, besides giving

other benefits to all, will help in image building of PIM.

PIM is mainly operating in Karachi and Lahore. Very few training programs are offered in

Islamabad in a hotel. Arrangements have been made with organizations in Quetta and

Peshawar to start offering our training programs in these two cities as well, so that PIM‟s

presence in all the 4 provinces is made. Similar arrangements are also under consideration for

Islamabad.

2. UTILITY STORES CORPORATION OF PAKISTAN (USC) Utility Store Corporation was established in July 1971, by taking over 20 retail outlets from the

Staff Welfare Organization. Passing through various stages of expansion and reorganization,

the Corporation at present is operating 5954 stores throughout the Country.

LEGAL STATUS The Corporation has been established under an Executive Order of the then President of

Islamic Republic of Pakistan. It has been registered as private limited company under

Companies Act, 1913, now called Companies Ordinance, 1984.

BASIC OBJECTIVES The basic objectives for which the Corporation has been established are as under: -

a. To protect the real income of the people by selling essential consumer items at prices

lower than those prevailing in the open market.

b. To act as a price moderator in the market and deterrent to profiteering, hoarding and

black marketing by the private sector.

c. Government‟s Relief Packages e.g. Ramzan Package.

d. Food security during crisis. (Provision of basic Food items to affectees during Natural

Calamities).

OPERATIONAL EFFICIENCY Operational performance of the Corporation during the last six years is tabulated hereunder: -

(Rs. In Billion)

Year Sales achieved Net Profit / Loss

2008-09 48.734 0.452

2009-10 52.932 0.708

2010-11 68.917 0.844

2011-12 68.281 0.775

2012-13 93.000 1.158

2013-14 95.000 1.001

EMPLOYMENT GENERATION The Corporation at present is one of the major job providers in the Country. At present, the

Corporation has employed more than 16,000 personals in different categories.

NO BURDEN ON GOVERNMENT EX-CHEQUERS The Corporation is not any burden on the Government Ex-Chequer. It is not getting any kind of

grant or subsidy for its operational expenses. All kinds of operational expenses which include

the cost of salaries, wages, cost of selling and distribution, rental of the buildings, cost of

electricity, payment of taxes etc. are being meet by the Corporation itself from the gross profit

margin of the sale proceeds. This is a great service to the Nation. Monthly salary bill of the

Corporation is more than 275 Million.

TAXES DEPOSITED IN THE NATIONAL EX-CHEQUER Despite selling the essential consumers items on the prices lower than the market, the

Corporation during the last six years has paid various taxes amounting to Rs.33.509 Billion in

the Government exchequer as per following details: -

Sr. No Year Amount

(Rs. In Billions)

a. 2008-09 4.149

b. 2009-10 4.534

c. 2010-11 6.412

d. 2011-12 5.294

e. 2012-13 5.318

f. 2013-14 7.802

Total: - 33.509

EXPANSION OF THE NETWORK During the period under reference, the Corporation has considerably expanded its network.

Number of Warehouses has been increased from 15 to 65 and stores from 560 to 5954. Today,

Utility Stores Corporation is one of the biggest Corporation of Ministry of Industries having its

network spread all the Country. The Corporation is operating 34% in the urban and 66% in rural

areas. The Corporation has also submitted a proposal for opening of 1000 new stores and 30

Warehouses throughout the country.

PROVISION OF ESSENTIAL COMMODITIES The Corporation has successfully discharged its obligatory functions of provision of essential

commodities at reduced prices. The prices of essential commodities being sold at USC outlets

are 5 to 10 percent less as compared to open market.

PENETRATION INTO RURAL AREAS The Corporation has successfully penetrated in the rural areas by opening of stores at Union

Council level. Present percentage / ratio of the coverage of the stores in Urban and rural areas

is that the Corporation is operating 34% in urban areas and 66% in rural areas.

RAMZAN RELIEF PACKAGE

a. During the last five years, the Corporation had successfully conducted Ramzan Relief Packages under which essential commodities, which include Atta, Ghee / Oil, Dal Channa, Baison, Black Tea, Milk and Spices were sold on subsidized rates. In addition,

the Corporation by narrowing its own margin reduced the prices of more than 1800 items by 5 to 10%.

b. The performance of the Corporation in terms of quality and service during Ramzan Relief Package 2013 was appreciated by the Government as well as public. The Corporation achieved the record sale of Rs.22 Billion during the Holy month of Ramzan 2013. The consumers through this Ramzan Relief Package availed much needed economic relief of more than Rs.2700 Million.

The Government approved Ramzan Relief Package-2014 for a relief of

2000 Million. Under this Ramzan-2014, sixteen essential commodities which include Atta,

Ghee/Oil, Dal Channa, Dal Mash Washed, Dal Moong Washed, Dal Masoor, Baison (Chakki),

Dates (Khajoor), Rice Basmati, Rice Sela, Broken Rice, White Gram, Squashes and Syrups

(Bottles), Black Tea, Milk (Tetra Pack) and Spices have been sold on subsidized rates. In

addition to this, the prices of more than 1500 food and non-food items have been reduced by

the Corporation by narrowing its own margins and through obtaining additional discounts from

vendors/suppliers. In addition to the Sales / provision of subsidized items to consumers through

USC own network, the Corporation also established more than 250 Stalls in the Sasta Bazars

organized by the Government of Punjab in all the Districts of Punjab. The Corporation has

achieved sale of Rs. 21/- Billion during the month of Ramzan-2014. Much needed relief has

been availed by the consumers.

Special Role of USC

i) Food security during crises.

ii) Intervention in market through sale of subsidized items.

iii) Government‟s Relief Package‟s e.g. Ramzan Package during natural calamities.

iv) Market intelligence.

Future Plan

In order to provide the essential consumer items to more segments of population at reduced

prices, the Corporation has planned to open 1000 more stores throughout the country. This will

not only provide the required economic relief to the middle and lower middle income people but

at the same time, it will create job opportunities for the un-employed youth.

3. STATE ENGINEERING CORPORATION (SEC)

State Engineering Corporation (SEC) is one of the leading Organizations in public sector under

Ministry of Industries & Production, Government of Pakistan. The corporation is looking after the

affairs of following units: -

Heavy Electrical Complex (HEC), Hattar Pakistan Machine Tool Factory (PMTF), Karachi Pakistan Engineering Company (PECO), Lahore ENAR Petrotech Services (ENAR), Karachi

SEC companies since establishment have developed a strong base for the design, engineering

and manufacturing of variety of light, medium and heavy engineering products and provide a

Project Management Consultancy services for oil & gas, Chemical, Petrochemical, Fertilizer as

well other process industries. Through continuous efforts, they have achieved optimum level of

deletion for various products which helped in import substitution of capital engineering goods

demand in the country.

SEC units are performing as per international standards (ISO 9000) with a total workforce of

1844 as on 30.06.2014 Numbers including regular, contract and daily wagers.

ROLE & FUNCTIONS

State Engineering companies have developed a sound engineering base for the manufacturing

of light, medium and heavy engineering goods and are consistently contributing towards

industrial development of the country. Through continuous efforts, they have achieved optimum

level of deletion for various products which paved the way to import substitution towards

meeting the demand of capital goods in the country. These units have been persistently playing

a pivotal role in its area of activity which encompasses the following:

Promotion of industrialization through indigenous manufacturing and development;

Establishing facilities to manufacture capital goods and heavy machinery not yet produced

locally;

Acquisition and development of medium to high technologies for manufacturing engineering

goods at competitive prices;

Optimization of local capabilities / facilities;

Emphasis on export of engineering goods;

Seeking product diversification for new markets;

Production of conventional defence armaments;

Fostering R&D culture

HR development in the professional fields out of which many have played pivotal role in local

industrial sector

Consultancy services in design & engineering towards development of Engineering

Procurement Construction (EPC) projects in Oil & Gas Sector, fertilizer and other process

industry.

UNITS PROFILE & PRODUCTS MIX

SEC units namely HEC, PMTF, PECO and ENAR were established in year 1998, 1974, 1968

and 1950 respectively. All the companies are ISO 9000 certified and manufacture a variety of

engineering goods and equipment conforming to international standards. The products and

services include power transformers, machine tools, die cast parts, transmission line and

communication towers, components & parts of automobiles, pumps and a host of special

equipment, components and spares for supply to local and foreign markets. Besides,

consultancy services in design & engineering towards development of Engineering Procurement

Construction (EPC) projects in Oil & Gas Sector, fertilizer and other process industry is also

provided.

Following are the units of State Engineering Corporations (SEC) which are working under the

administrative control of SEC.

i. HEAVY ELECTRICAL COMPLEX (HEC)

Heavy Electrical Complex (HEC), a nationally significant unit of State Engineering Corporation,

is located in Hattar Industrial Estate, District Haripur, KPK. It was set up at a cost of Rs. 1,158

million with the techno-financial assistance of the People‟s Republic of China. The company

possesses 61 acres of land out of which 43 acres are allocated to the factory whereas

remaining was earmarked for future developments.

HEC has trained manpower numbering 222 persons including 29 regular (engineers &

professionals) whereas remaining are daily wages mostly workers engaged through labour

contractor.

The Company holds ISO 9000 – 2001 Certification. Accordingly strict quality control is enforced

during all the stages of production using specified procedures and techniques based on latest

management practices.

The project was designed to manufacture 148 Nos. power transformers rating from 6.3 MVA to

40 MVA, 132/11.5KV to meet the exclusive requirements of WAPDA / NTDC (DISCOs) &

KESC. The company started commercial production during 1997.

ROLE AND FUNCTIONS

The company has been set up for meeting the country requirements of heavy electrical

equipment starting from manufacturing Power transformers at optimum cost to support the

national electrification programme and strive for import substitution. Although not in its original

scope, the mandate of the company has been extended to Rehabilitation / Refurbishment of

Power Transformers, which has resulted in saving large amount of foreign exchange annually

besides contributing towards reducing load shedding problems

ACHIEVEMENTS / PERFORMANCE

To-date HEC has manufactured 276 Nos new transformers valuing Rs. 7 Billion of different

ratings and supplied to WAPDA/KESC and various other customers. Moreover, HEC has also

repaired/rehabilitated 106 Nos. valuing Rs. 574 Million of Power/Auto transformers for WAPDA,

KESC, AJK Hydro Power Board, POF, Pakistan Railways and some other private sector

industries. The largest power transformer repaired at HEC so far was 250 MVA having voltage

rating of 15/220 KV and weighting 250 tons. HEC have also repaired 03 Nos. auto transformers

of ultra high voltage i.e. 500KV up-to 200 MVA for WAPDA for the first time in the country.

HEC has so far achieved import substitution to the tune of Rs. 7.5 billion (Around USDs 103

million) through manufacturing new transformers as well as repair of damaged transformers.

The repair work ranged upto 500 KV power transformers, at less than 25 % of the replacement

cost and 50 % of the lowest foreign bid. The products manufactured, besides regular ones,

include own designed transformers of rating 31.5/40 MVA, 132/11.5 KV and five transformers of

20/26 MVA, 132/6.6 KV. The business development strategy helped to enhance average

capacity utilization during 2004-2008 reaching 32.5 % against a very low level in previous years.

The company sales have touched Rs. 965 million in 2009-10 though fluctuating with the market

trends. HEC has been sustaining its operation totally at its own. Operating and Financial Results

of the company for previous years is tabulated below whereas financial result for the year 2013-

14 is under compilation: -

(Quantity in Nos and Value in Rs. Million)

Description 2008-09 2009-10 2010-11 2011-12 2012-13

New 30 28 23 14 17

Repair/Rehabilitated - - - 2 7

Total 30 28 23 16 24

Production Value 801 871 755 471 626

Sales 797 965 828 539 704

Pre-Tax Profit / (Loss)

(42) 32 (26) 9 (7)

Total Assets 1,433 1,774 1,714 1,378 1,715

Total Liabilities 236 552 527 188 536

Net Equity 1,197 1,221 1,187 1,190 1,179

The performance of the company during 2013-14 could not encouraging and remained much

below the targets. Major reason for this dismal picture is continuous delay in placement of

orders by DISCOs (due to their administrative problems) against tenders where HEC is lowest.

The financial position of HEC will significantly improve in year 2014 -15 as orders of 14 PTs

valuing Rs. 614.525 million are in production process .As per Budget plans for the year 2014-15,

HEC to manufacture/supply 22 new Power Transformers (PTs) for the value of Rs. 968 million

and repair another 4 PTs for the value of Rs. 32 million. With the realization of these set targets

HEC will achieve a sound financial position.

PRODUCT DIVERSIFICATION

HEC is in possession of Chinese Technology for manufacturing 7 types of 132/11 KV Power

Transformers from 6.3 to 40 MVA capacity. However, Power transformers of 5 types out of 7

types for which technology was acquired have been phased-out.

Accordingly HEC has to look-out for other technologies/products. In line with this thinking HEC

has succeeded in developing technology of a 31.5/40 MVA 132/11 KV Power Transformer

besides few others for the Cement Sector. Moreover, Design Modification of a 20/26 MVA

Power Transformer has been completed and offered to NTDC for inspection and testing. This

development would result in cost saving to the company as compared to earlier design.

The company is also in the process of developing an automatic communication system of Power

Transformers with the name of GTraMS (GSM Transformer Monitoring System) which would

transmit real-time transformer critical data to the specified mobile numbers. This would facilitate

preventive maintenance of the transformer and avoid any major loss to the transformer in case

of a developing fault. Moreover, the company would have a new source of revenue if DISCOs

are convinced to adapt this system.

FUTURE STRATEGY

HEC has earned good market recognition in the field of power transformer manufacturing and

re-habilitation. To further strengthen the company HEC has devised an action plan focusing on

following: -

Maximizing Market Share to secure orders worth Rs 1.3 billion Promoting revised design of module 20/26 MVA, 132/11.5 KV after prototype qualifies all

requisite test enabling HEC to minimize the weight as well as decrease the operational losses

Optimization in existing design of power transformers Diversification for manufacturing Higher Module Step Down Power Transformers (160 MVA

and 250 MVA) as well as Step Up Generator Transformers. Introducing GSM mobile based real time information dissemination system for monitoring

Grid stations.

ii. PAKISTAN MACHINE TOOL FACTORY (PMTF) DETAIL OF ACTIVITIES / ACHIEVEMENT / PROGRESS DURING YEAR 2013-14 DEVELOPMENT OF SPECIALIZED GEAR BOX FOR PMO

Project Management Org. Rawalpindi, one of the strategic organization has a specialized

requirement of development of Reduction Gear Boxes for their strategic nature of job.

Accordingly, PMTF took this development project in hand as national cause, and has

successfully developed these Gear Boxes. The order details are as under: -

Number of Gear Boxes 04 Nos.

Value of Contract Rs. 4.127 millions

The order is successfully executed, satisfactory inspected and accepted by the users. DEVELOPMENT OF MORTAR 60 MM (COMMANDO TYPE)

Through our in-house R&D efforts PMTF has developed Commando Type Mortar 60 MM. this is

light and easy to use. The service of this Mortar will support agencies to execute commando

actions with quick respond of the weapons. The sample of the Mortar is handed over to

inspectorate of Armaments (Inspection Authority for Pak Army) to carryout detailed inspection of

the developed weapons and also conducts its live firing tests. So that PMTF may include these

weapons in our regular production cycle. Since currently, we foresee the increasing requirement

of these weapons to the different agencies in local and for export.

DEVELOPMENT OF SPECIAL LOCO GEARS FOR PAKISTAN RAILWAYS

To meet Pakistan Railways requirement and to save Precious foreign exchange and minimize

its reliability on imports, Pakistan Railways has given task to PMTF for the development of

under noted gears: -

Helical Gear (33 teeth) Helical Gear (37 teeth) Helical Gear (42 teeth) Helical Gear (48 teeth) Helical Gear (84 teeth)

PMTF took this development job in hand as national cause to support Pak Railways and also to

foresee this requirement on regular basis has successfully developed these helical Gears and

has successfully executed their 1st development order with under noted details: -

Number of Gears Sets 12 sets

Value of Contract Rs. 4.655 millions

DETAIL OF TARGETS SET OUT EXTENT TO THEIR REALIZATION DURING YEAR 2013-14

During the year 2013-14, PMTF set out sales plan of Rs. 1.065 billions, with segment-wise

details as under: -

TOTAL TARGET SET FOR THE YEAR 2013-14

Sr. No PRODUCT SEGMENT SALE TARGET RS. (MILLIONS)

1. Transmission Products 528.493

2. Die Casting Products 179.973

3. Special (Defense) Products

190.720

4. Machine Tools 165.967

Total Target Value 1,065.153

Although, PMTF successfully procured the targeted orders for their execution, however, due to

hard financial crunch during the year, PMTF was not able to arrange for required fund to

manage input for production cycle. As such, PMTF was not able to complete its set targets. The

details of targets achieved in each segment are submitted below: -

TOTAL ORDERS EXECUTED FOR THE YEAR 2013-14

Sr. No PRODUCT SEGMENT ACTUAL SALE ACHIEVED

RS. (MILLIONS)



3. Special (Defense) Products 77.725


TOTAL ACTUAL SALE ACHIEVED

395.334

BALANCE ORDERS IN HANDS (AS ON JUNE 30, 2014)

Sr. No PRODUCT SEGMENT ACTUAL SALE ACHIEVED

RS. (MILLIONS)



3. Special (Defense) Products 27.695


TOTAL ACTUAL SALE ACHIVED

823.514

iii. PAKISTAN ENGINEERING COMPANY (PECO)

DETAIL OF ACTIVITIES DUING THE PRECEDING FINANCIAL YEAR

During the year 2012-13, besides regular operations, management of PECO used to actively

involve in various operational and administrative issues. List of major activities are as follows: -

a. Restoration of Sui Gas. b. Arrangements to import coal gasifier plant. c. Revival of galvanizing plant. d. To restore credit facility with the bank.

PROGRESS DURING THE YEAR

During the year 2012-13 management of PECO is working hard to improve the performance and

productivity of various business verticals. Some strategic decisions taken by the BoD and the

company‟s management are as under: -

a. To automate production facilities, reduce production cost, improve quality and up-

grade manufacturing technology of existing products.

b. Enhance product base through diversification and find new customers.

c. Become self sufficient in producing sufficient in-house energy for own consumption in

line with the directive of the government.

d. Revival of redundant plants such as rolling mill and electroplating plant.

e. Reduction in expenditure of the company by about 30 % by rationalization of extra

manpower and controlling the administrative expenditures.

PROGRAMME OF ACTIVITIES AND TARGETS SET OUT

Different activities and measures are devised to improve operational and financial performance

o PECO. These measures have been tabulated below along with the time lines for case of

comprehension.

MID TERM ACTIVITIES AND PROGRESS THEREOF (ONE YEAR)

TASK MEASURES ADOPTED

DATE OF COMPLETION

PROBLEMS CURRENT STATUS

Installation of induction furnace

These furnaces are required fir casting and preparation of billets for rolling mills

Expected to be completed by the end of FY 2013-14

Nil Preparation of technical specifications is in hand

Running of electroplating plant on commercial / JV basis

Pre feasibility study has already been carried out

Expected to be completed by the end of FY 2013-14

Nil A firm has already been localized to prepare / submit their proposal

Fabrication of TRLS, semi TLRS automobile carriers and oil tanker

Market survey and certification for manufacture of pressure vessel is being studied

At least one product would be completed before end of next FY.

Nil Feasibility study is in progress a firm has already been localized to prepare / submit their proposal

BMR of structure, pumps/ motors and foundry divisions

Modernization plan of all the divisions has been prepared

Partial completion by June 2014

PECO has currently financial crunch

Proposition under evaluation

LONG TERM ACTIVITIES AND PROGRESS THEREOF (THREE YEARS)

TASK MEASURES ADOPTED

DATE OF COMPLETION

PROBLEMS CURRENT STATUS

Long term energy solution

Installation of 2 MW coal based electricity plant

Expected to be completed within two years

Lack of funds

All the requisite tech information has been obtained

Joint ventures with private sector

EOI for various projects have already been called for

Expected time frame is 2-3 years

Nil Negotiations with various parties are in hand

Commercialization of facilities available in PECO

Facilities like foundry, galvanizing plant, rolling mill and electroplating plant be run for activities other than PECO

Step by step all these facilities are being restored and expected to be fully commercialized within next two years time

Lack of funds

Galvanizing plant has become operational and rolling mill is about to start within next two months time

PROJECTED STATISTICS FOR THE YEAR 2012-13 AND 2013-14

Projected and expected statistics for the year 2013-14 and 2012-13 are tabulated as under: -

PARTICULARS PROJECTED 2014

EXPECTED 2013

RUPEES

Sales – net 1,663,498 386,030

Cost of sales 1,512,298) (451,904)

Gross profit 150,570 (65,874)

Operating profit / (loss) 85,463 (114,555)

Profit / (loss) before taxation 55,888 (134,251)

iv. ENAR PETROTECH SERVICES LIMITED (EPSL)

ENAR Petrotech Services (Private) Limited (ENAR) was formed in 1972 and currently working

under the administrative control of State Engineering Corporation (SEC) - Ministry of Industries

& Production, Government of Pakistan.

ENAR is the only multi-discipline integrated ISO 9001-2008 certified design engineering

organization in Pakistan providing project management services during last four (04) decades

with the commitment to technical excellence and our high caliber personnel allow us to deliver a

best practice service in various phases of the oil & gas sector projects.

ENAR is an integrated engineering and consultancy company providing complete range of

service for execution of project in Oil /Gas processing, Storage, Petrochemical, Chemical and

Fertilizer sector. The ranges of service are detailed below:

Project Development /Planning

Basic / Process Engineering

Detailed Engineering

Project Management

Procurement Assistance

Construction Management and commissioning

Operation & Management

MAJOR ACTIVITIES / ACHIEVEMENTS Currently ENAR is working on following major oil gas projects.

OGDCL UCH –II Gas Field Project, recently, ENAR has successfully accomplished

engineering & procurement of all Long Lead items within targeted frame. Whereas currently

supervising the PC Contractor activities.

OGDCL Jhal Magsi Gas Field Project, Engineering & Procurement of almost all long lead

items has been completed. PC Contractor is being finalized and Construction activities will be

started by the end of September 2014.

PPL, Adhi NGL / LPG PLANT – III prepared FEED document & provided engineering

consultancy.

In addition, ENRA has also executed international client‟s project including Penspen, OMV, UEP

(formerly BP) related to design /detailing of Wellhead Development, FEEI) Packages & Site

investigation studies.

The programme of activities and targets set out for itself during the proceeding financial year

and extent to which they have realized:

(Rs. Million)

LAW / LEGAL INSTRUMENT UNDER WHICH THE ORGANIZATION IS CREATED

YEARS ANNUAL INCOME FOR LAST FIVE YEARS (PKR)

ANNUAL EXPENDITURE ON SALARIES / OPERATIONS FOR LAST FIVE YEARS

PPROFIT / LOSS DURING LAST 05 YEARS (BEFORE TAX)

SPECIFIC TARGETS ACHIEVED DURING LAST FIVE YEARS (BUDGETED TARGET)

Incorporated under Companies Act 1913 (Now the Companies Ordinance 1984)

2013 (226.48) (153.67) (4.49) (395)

2012 (225.69) (117.60) (39.06) (188.38)

2011 (160.80) (91.77) (29.93) (160)

2010 (141.56) (84.84) (18.18) (139.5)

2009 (129.50) (84.26) (10.91) (138.5)

4. ENGINEERING DEVELOPMENT BOARD (EDB)

ENGINEERING SECTOR

Engineering Development Board launched a comprehensive Industrial Research Program (IRP)

back in October ‟12 with the collaboration of Academia/Research Organizations and Higher

Education Commission (HEC) to promote R&D activities in the industry by engaging huge R&D

potential existing with Universities.

Under IRP, Industry entrepreneurs on individual or collective basis indicate their technical

problems/areas where research is required to EDB. The problem is shared with researchers/

scholars of various universities for designing /developing indigenous solution. The case is finally

allotted to the Research team on competitive basis. EDB extensively circulated the IRP program

among the industrial sector, chambers of commerce & Industry and industrial associations

across the country.

In response to IRP, Industry across the country ranging from electronics, electrical, HVAC,

castings/forgings, fabrications, chemicals, steel, renewable energy, etc. has started sharing

industrial technical problems, which are being discussed with concerned researchers of various

universities. In total 15 industrial research cases are under consideration of universities. Status

of some of research cases is as under: -

i) Technical Up-gradation of Mills - Steel Re-Rolling Mills‟ Association

Steel Re-rolling Industry requires technical assistance in the areas like designing of efficient gas

burners, shifting to alternate arrangements for energy requirements, redesigning of reheating

furnaces, automations etc. PIEAS and ATCOP has consented to undertake the research

project. Successful execution of the research project will impact the whole re-rolling industry,

enhance its efficiency and would affect substantial savings of energy besides improving the

environment.

ii) SUGAR INDUSTRY

M/S Noon Sugar Mills Ltd approached EDB for research support for conversion of Distillery

Plant effluents to value added products with zero discharge. They suggested that these effluents

may be converted into fuel or bio fertilizers. NUST consented to provide them the requisite

research support. Successful execution of the research project will enable Sugar Industry to

replicate the technologies among the sugar mills located in the country to convert their effluents

into energy and value added products.

iii) FAN INDUSTRY

M/S U.I. Industries, Gujarat has been provided research support through PIEAS. Extent of

support includes Development of DC fan, automation of ceiling fan testing, Implementation of

Lean Manufacturing, development of test benches etc. after successful implementation of the

prototype whole industry will benefit from this research initiative.

iv) SURGICAL & CUTLERY INDUSTRY

Surgical Instruments Industry Sialkot and cutlery Industry Wazirabad are the export based

industry where local skill is substantially facilitating to enjoy Made in Pakistan rapport in the

international market. To further facilitate its competitiveness in the international market, ATCOP,

PIAS and Air University are working on different aspects like material substitution, Process

improvement, etc.

DEVELOPMENT ACTIVITIES i) Development of Coal Gasifier based on local Coal

In view the severe difficulties faced by the industry on account of natural gas load management

and rising prices of coal in international market, EDB has taken an initiative to develop Coal

Gasifier based on local lignite coal for Syn gas to substitute natural gas. A workshop in this

regard was held in June 2013 with the collaboration of NUST where possible usages of local

coal were discussed to smooth out the energy crisis. The speakers highlighted usage of coal as

under: -

- Coal gasification (dry) to produce Syn Gas which can substitute natural gas

- Coal water slurry (CWS) to generate steam for electricity generation.

On EDB‟s initiative, a Fabrication Company at Lahore is right now working on development of

Gasifier which could be operated on locally available lignite coal. Around 70% fabrication of the

Gasifier has been completed along with the requisite R&D and the remaining assignment is

likely to be completed within next three months. Moreover, EDB is presently negotiating with the

provincial governments for setting up of electricity generations plants/systems by using CWS

technologies.

ii) Development & Installation of Sun-tracked Solar Collectors for Industrial Heating of

Water and Generating Steam for Industrial Processes

The Planning Commission has approved the above project at the cost of Rs. 55.33 million for

installation of 10 complete systems in 10 specific industries, each system comprising of 30-50

Sun tracked solar parabolic troughs in series for heating the water for industrial use. M/s.

Hardbone has been declared Technically/Financially qualified bidder.

The bidder will be required to install the complete systems in 10 specific industries, two

industries from each province and two from Islamabad. The beneficiaries could be Textile

spinning, processing & printing industries, leather processing industries, food processing

industries, sugar industries and chemical industries. The project would be completed in phases

within next two years. EDB has negotiated with Pakistan Institute of Engineering and Applied

Sciences, Nilore, Islamabad for providing research support throughout the execution of the

project.

1) MARKET DEVELOPMENT INITIATIVES

As part of engineering goods export promotion strategy to integrate ambitious and capable

engineering companies with the global supply chain, Engineering Development Board has so far

taken the following initiatives: -

i) Organizing Engineering Pavilion at 8th Edition of Expo Pakistan –September 26th to

29th 2013

Engineering Development Board (EDB) was invited by TDAP to organize Engineering Sector

Pavilion in “The 8th Edition of Expo Pakistan” organized from September 26th to 29th 2013, at

Expo Center, Karachi, based EDB‟s experience of organizing successful participation of

engineering industry in leading International Trade Fairs/ Exhibitions including Hannover Messe

Germany, Midest France, Euro mold Germany, Subconist Istanbul Turkey, Korean Machinery

Fair (KOMAF) etc.

EDB organized participation of 45 Engineering Companies belonging to different engineering

sub-sectors on 55 exhibition booths at Engineering Pavilion branded as “Engineering

Pakistan”. Engineering companies of Pakistan from various sub-sectors showcased a full

range of Pakistan‟s Engineering potential to the foreign and local buyers. Engineering Pavilion

was the largest group participation organized by EDB in Hall 6 of Expo Center. The prominent

engineering companies such as Qadbros, N.J. Industries, Orient Tractors, D.S. Motors, HMC,

PECO, HEC, PMTF, Hilbro Group, Fibre Craft Industries, PEL, Hero Motors, Sazgar

Engineering Works, Thal Engineering, Starco Fans, Adamjee Engineering and Exide Pakistan

Ltd etc participated in the event. Besides, key manufacturers of Auto Parts and Components,

Tractors, Motorcycles, Rickshaws, Surgical Instruments, Valves, Pumps, Pipes, Castings, Rims

and Dies & Moulds etc participated at engineering pavilion for projection of their products.

The delegations from foreign countries including India, Netherlands, Mauritius, Nigeria, Saudi

Arabia and UAE etc showed keen interest in Pakistani products. Several inquiries were

generated for the manufacturers of tractor parts & components, industrial valves, surgical

instruments, fiberglass boats etc.

ii) Capacity Building and International Linkages

EDB has developed linkages with various international organizations to provide Short Term

Expert services to local industry with the objective to improve production process, quality of

product, managerial capabilities, accounting system improvement etc. EDB has so far arranged

Dutch and German experts for 35 companies while cases of 6 companies are in pipeline. These

experts are providing professional and technical services in the areas of energy efficiency,

product and product quality improvement, productivity & process improvement, international

certification, international marketing, improvement in accounting system and improving product

design. For upgrading the Technical & Vocational Institutes, following four Institutes of TEVTA

have been enrolled under PUM‟s Vocational Education for Higher Categories and Levels

(VEHICLE) Programme: -

Woodworking service Centre-Rawalpindi

Wood working Service Centre-Gujrat

Cutlery and small tools Centre-Wazirabad

Light engineering Service Centre- Gujranwala

A formal Agreement between EDB/PUM/TEVTA is under preparation and these institutions shall

be enrolled for long term (3-5 years). A number of Experts will be visiting them to address

various issues including revision of syllabi for improving training and advisory services, training

of trainers etc which would ultimately help in revamping / up grading these institutes to match

with international Training Institutes.

iii) Engineering Goods and Services Exporters Directory 2013

In order to project Engineering Image of Pakistan, EDB has compiled and published a

Engineering Goods & Services Exporters Directory of Pakistan. The directory is having

complete profiles of 150 leading Exporters of Pakistan in various engineering sub sectors and is

being circulated to Pakistan‟s Foreign Missions, Foreign and local Chambers of Commerce,

Associations and EDB‟s International Support Partners in the potential markets.

iv) Agreement Between Centre for promotion of Imports from Developing Countries (CBI)- Dutch Company and EDB

Under the institutional arrangement agreed upon between EDB and BI , certain activities have

been initiated for i) BSO Development and ii) For enhancing export competitiveness of local

engineering industry.

First Training session on Process Control for the BSOs was conducted at Lahore by CBI which

was attended by EDBs representatives. Further in order to expose the BSOs to the EU market

access requirements etc, an EXPRO Seminar was organized by CBI at The Hague, which was

replicated in Lahore. The purpose of this exercise was to train the BSOs on various aspects of

Export Marketing and Management.

v) D-8 Summit and side line events

Pakistan hosted the D-8 Summit held on 19th to 22nd November, 2012 at Islamabad. A four day

exhibition and one day Business Forum were arranged as side line event.

Three major sectors were identified for exhibiting their products namely Halal Food, Engineering

Goods and Textiles. EDB organized the exhibition of engineering industry of Pakistan. Twenty

three companies participated from automobile, surgical, fan, electrical equipment, telecom

equipment, domestic appliances, valves and pumps and heavy mechanical and electrical

segments.

During the Business forum EDB also made presentation on Opportunities and Challenges in the

Engineering Sector of Pakistan. Both events provided excellent opportunities for networking with

the exhibitors and delegates of the D-8 member States.

As a follow-up of D-8 Summit, other activities have also been initiated and EDB has been

declared as the Resource Department for organizing a meeting on “Cooperation of

Engineering Sector among D-8 Members” during 2014. Preparations for the same are

underway.

Policy Development Group, New Auto Development Policy (ADP) 2014-2019 (Under preparation/approval) The Auto Industry Development Programme (AIDP) expired on 30th June 2012. Currently, new

Auto Development Policy (ADP) is under preparation/approval of the concerned authorities.

ADP has following policy objectives and strategic interventions to promote automotive sector of

Pakistan.

Objectives

• Facilitating horizontal and vertical growth of both automobiles and auto-parts manufacturing industry to attain higher volumes, more investment, better quality and latest technology

• Creating a balance between open trade and industrial growth with minimal risk to local industry and Pakistan‟s economy

• Enhancing government revenues both through stimulating growth in the auto sector and streamlining trading activities

• Ensuring consumer welfare through provision of quality, safety, choice and value for money

• Providing policy consistency and predictability for investors as well as midterm policy review mechanism to cater for emerging developments in the automotive sector.

Strategic Interventions To achieve above policy objectives, ADP proposes following Strategic Interventions:

• Lower entry threshold through New Investment Policy • Create enabling Tariff structure for development of the automotive sector • Rationalize automobiles import policy • Develop regulatory and enforcement mechanisms for Quality, Safety and Environmental

standards • Create R&D, Design and Testing Infrastructure • Develop Human Resource and Training Infrastructure • Technology Acquisition Support Scheme for Auto-Part Manufacturers (APMs) • Consumer Welfare • Transform SRO 693(1/2006) to CGO-11/2007 • Export Incentives for Auto Parts Makers • Truck Financing by Commercial Banks • Incentivize Fleet operations

A. TARIFF RATIONALIZATION EXERCISE

The main objectives of the tariff rationalization exercise are: -

Reducing cost of doing business by decreasing cost of inputs

Encouraging local Industry to invest in priority sectors.

Simplifying procedures for payment of Customs Duty, Sales Tax and Federal Excise

To counter the menace of under-invoicing, smuggling and mis-declaration

To encourage import substitution

CONSULTATIVE APPROACH

Consultative based approach was followed in Tariff Rationalization Exercise undertaken for the

Federal Budget 2013-14. The proposals received from the Industry, Trade Associations,

Chambers, FBR, MoI&P etc. were analyzed and firmed up by EDB for consideration by FBR.

STATISTICS

• 2000 proposals were received for budget exercise 2013-14. • 150 proposals were finalized and forwarded to FBR for consideration.

B. NOTIFICATIONS REGULATED BY EDB Following notifications are regulated by EDB.

• SRO 656(I)/2006 dated 22.06.2006 – Authorizes EDB to allow import of CKD under concessionary regime to OEMs.

• SRO 655(I)/2006 dated 22.06.2006 – Authorizes EDB to allow concessionary import of raw-materials, sub-components, components and sub-assemblies to vendors

• SRO 693(I)/2006 dated 22.06.2006 – Notifies list of locally manufactured parts / components as recommended by EDB

• SRO 565(I)/2006 dated 05.06.2006 – Authorizes EDB to determine IOR/Wastages of Inputs of other industrial products (Non Auto).

• SRO 575(I)/2006 dated 05.06.2006, SRO 727(I)/2011 dated 01.08.2011 and SRO 678(I)/2004 dated 07.08.2004 – Determine local manufacturing status of goods being imported under concessionary regime to protect local industry.

• SRO 827(I)/2001 dated 03.12.2001 – Binds government and public sector organizations to give price preference to local industry over imported goods. EDB to monitor implementation of SRO and resolve issues relating to determination of landed cost factor.

• SRO 450(I)/2001 Authorizes EDB to determine IOR/Wastages of inputs procured under DTRE.

Performance w.r.t various SROs / Notifications

No. of Cases Finalized

2012-2013

2013-2014

A. TBS-1 (4-Wheelers ) - SRO 656 & SRO 693 1 Certificates issued vehicle wise: 125 137 2 Lists verified issued vehicle wise: 125 137 3 Input Records verified vehicle wise: 121 125 B. TBS-II (2/3-Wheelers) - SRO 656 & SRO 693 1 Certificates issued vehicle wise: 183 180 2 Lists verified issued vehicle wise: 183 180 3 Input Records verified company wise 82 94 4 Assembling Facilities verified 5 10

C. Determination of IOR under SRO 565 1 Input Output Ratios under SRO 565 99 93 D. Determination of IOR under SRO 655 1 Input Output Ratios under SRO 655 164 166 2 Input Output Ratios under SRO 656 (Direct Materials) 6 6 3 Input Output Ratios under DTRE 18 15 E. Determination of local manufacturing status under SRO 575, SRO 727 & SRO 678 1 Determination of local manufacturing status of

imported goods 291 271

F. Finalization of cases under SRO 827 1 Determination of status of procurements and its

implementation as per procedure and laws of Government

10 15

C. ON-LINE QUOTA DEBITING SYSTEM FOR CLEARANCE OF AUTOMOTIVE PARTS

AND INPUTS THEREOF (SHIFTING OF ONE CUSTOMS SYSTEM OF PRAL TO WEBOC)

• Since its inception in 2008-2009 clearance of automotive parts and inputs thereof were being carried out through the one Customs Systems of PRAL.

• In Budget 2013-14, shifting of On-line Quota Debiting under SRO 655(I)/2006 & SRO 656(I)/2006 from One Customs System of PRAL to newly developed system i.e. WEBOC., for streamlining and effective monitoring of Tariff Based System (TBS) was initiated by FBR. EDB worked closely with FBR for effective implementation of WeBOC System and has also been providing inputs for its refinement.

• The new system is operational since 1st July, 2013. • EDB allocates quota of imported inputs to OEMs & Vendors, which is debited on-line

through WEBOC. • EDB can access this system for year round monitoring of TBS.

5. PAKISTAN STEEL MILLS (PSM) Pakistan Steel is the largest and only integrated Steel Plant of Pakistan, started production in

1985 after inauguration in 1973 (planning since 1968 and 1st five year plan 1955-60) with a

production capacity of 1.1 million tons per year (MTPY).

It was established with the techno-financial assistance of the Ex-Soviet Union at a cost of

around Rs. 24.7 Billion.

The technology adopted for steel making is through Blast Furnace and Basic Oxygen furnace

(BOF) route which is the most popular and advanced steel making technology adopted for about

65% of steel making in the world.

SALIENT FEATURES / ACTIVITIES

Completion Cost: Rs.24,700 million

Project location & Site: Pakistan Steel is located 40 KM South East of Karachi in close vicinity of Port Muhammad Bin Qasim. It is spread over an area of 19,087 acres (about 29 sq. miles).

Major Activity: Production & sales of prime quality iron & steel products.

Main Products: Coke, Pig Iron, Rolled & Cast Billets, Hot Rolled Sheets/Coils/Plates, Cold Rolled Sheets/Coils, Galvanized Sheets, Formed Section.

By-Products: Coal-tar, Ammonium Sulphate, Blast Furnace Granulated Slag

ORGANIZATIONAL SET UP / MANAGEMENT

Pakistan Steel Mill Corporation Limited was incorporated as a Private Limited Company under

Companies Ordinance 1984. The Steel Mill is wholly owned by the Government of Pakistan,

and functions under the administrative control of Ministry of Production & Industries. The

Corporation is governed by it‟s Memorandum & Articles of Association. Its affairs are managed

by a Board of Directors nominated by the Government. All administrative & financial powers for

managing the affairs of the corporation vest in the Board which may delegate the same from

time to time to the Chief Executive and other functionaries. The day to day business of the

Corporation is carried out by the Directors / Principal Executive Officers under the supervision of

the Chief Executive Officer.

PRODUCTION / SALES STATUS IN LAST TWO YEARS

P r o d u c t s Production („000‟ Tons) Sale (Rs. in Million)

2013 – 14 2012 -13 2013 – 14 2012 -13

Budget Actual Actual Budget Actual Actual

Production in terms of capacity utilization of Raw Steel

11% 6% 14% - - -

Raw Steel 113 57 145

C o k e 111 33 185 - 449 325

Molten Metal/Pig Iron 123 78 180 746 295 247

Rolled Billets - - - - 34 47

Cast Billets 4 1 1 2399 34 47

H.R. Coils/Plates 134 57 122 19997 4363 6995

C.R. Coils 23 3 13 4187 399 970

Galvanized Coils/ Sheets - - - - - 1

REASONS OF LOSSES FOR THE PERIOD 2012-13 & 2013-14

Pakistan Steel has eared profit up-to year 2007-08. However due to global recession and other

factors, the Corporation suffered losses during subsequent years. Major reasons of losses

during the period 2012-13 to 2013-14 were as follows: -

Low capacity utilization (i.e. not reaching breakeven point).

Decrease in sale.

Devaluation of Pak Rupees from Rs. 70 to Rs. 99

Due to financial crunch supply line of raw material could not be restored and the Corporation compelled to slow down the production which resulted continuous losses.

STEPS TAKEN TO CONTROL LOSSES

In order to arrest the down slide of the Corporation the Government has taken following steps

i) Reform in Management

The Board of Directors had been reconstituted and highly professional directors have been placed on the Board which includes Directors from Private Sector and from the Public Sector.

Best corporate practices are being adopted and the Chairman of the Board is elected by the Board of Directors. Powers of the CEO has been rationalized and the management is made accountable for performance.

Number of Board meetings has been increased. Sub-committees of the Board have been constituted for establishing objectivity and effectiveness of the Board.

Management Executive Committee headed by the CEO and comprising of heads of key functions is holding weekly meetings with proper agenda.

ii) Restructuring Plan

ECC of the cabinet approved the summary in its meeting held on 25th April 2014 as under:-

“The Economic Coordination committee of the cabinet considered the Summary, dated 23rd April

2014, submitted by the Privatization Division on “Restructuring Options of Pakistan Steel Mills”

and approved, in principle, the proposal contained in Para-8 (Option I) of the Summary. The

month wise cash flow would be worked out by Finance Division in consultation with all

concerned.”

PARA-8 (OPTION I) OF THE SUMMARY IS GIVEN BELOW

Quote Injection of cash by GOP in three (03) tranches, amounting to Rs. 18.5 billion, as

per details given below:

1st tranche of Rs. 12.5 billion be paid immediately upon approval of the plan by first

week of May 2014. Out of this, Rs. 3 billion will be paid to NBP for additional L/C

facility for raw material. As a result, PSM will achieve 30% capacity in the 4th

month after disbursement, i.e. by August 2014.

2nd tranche of Rs. 3 billion be released in mid Sept 2014. This tranche should only

be released if initial milestones are achieved. Out of this, Rs. 1 billion will be for

enhancement of LC facility. This will help PSM in achieving 60% capacity by Nov

2014.

3rd tranche of Rs. 3 billion be released in mid December 2014, after evaluating the

results of 2nd tranche. Out of this, Rs. 2 billion will be for enhancement of LC

facility. PSM will achieve 77% capacity and profit of Rs 230 million from January

2015 to June 2015

Unquote

PLAN ADVANTAGES

The proposed plan will ensure the following benefits (plan advantages): -

a. Cash salary payment on regular basis.

b. Non cash salary payment from Jan. 2015 onwards. That month onwards, no

further liability towards non-cash salary will be incurred (approx. Rs 4 billion).

c. Payment of all utility bills on regular basis.

d. Payment of Rs 6.5 billion to GoP exchequer on account of taxes.

e. Stock in hand/transit (Asset) on books of Rs 10 billion (L/C related)

f. Operational capacity around 77 % which results in a monthly profit of Rs 38

million.

BUSINESS AS USUAL

In case of Business as Usual (BAU), following cash payments will be required to be made: -

a. Total payment of Rs 7 billion relating to cash related salary (not gross salary). b. No payment against utility bills (approx. Rs 9.8 billion) c. No payment for non cash salary part (approx. 7 billion) d. There will be no operations since operational capacity is already at around 2-3% e. Restructuring plan of PSM was based on the following assumptions: f. The funds will be released in the first week of May 2014 and L/C will be opened for

the raw material immediately g. Raw Materials will be received in 2 months after the opening of letter of credit

(L/C). h. Funds amounting to Rs. 18.5 billion be released in time and L/C facility / support

amounting to Rs. 9 billion be given by GOP as per the cash requirement schedule. i. The payment of mark up amounting to Rs. 5 billion and principle outstanding

amounting to Rs. 36.5 billion of NBP, principal amounting to Rs. 4.3 billion relating to consortium of banks and outstanding payment to SSGC of principal amounting to Rs. 15 billion amount may be frozen at least for the period of 2 years and the principal repayment to the banks and SSGC may be rescheduled for 10 years. Moreover, the markup of NBP (Rs 5 billion) and surcharge of SSGC (Rs 6.5 billion) may be waived off.

BUSINESS AS USUAL VS FINANCIAL RESTRUCTURING PLAN (FRP)

Comparison is as following: -

No. Description Amount

a. Impact of Business As Usual (BAU)

Rs. 23.8 billion and continued accumulated loss of Rs. 2.3 billion to 2.4 billion per month at capacity of 3% to 5%.

b. Payment in financial restructuring plan

Rs. 18.5 billion

MILESTONES

Capacity utilization in the month of April 2014, to June 2014 will be 5% and in July 2014 it will be

extended to 20%. The Capacity utilization will be enhanced to 30% in August 2014. Thus

reaching to 70% level in December 2014 by enhancing @ 10% monthly, as under:

Month May June June July Aug Sept Oct Nov Dec

Jan15 to

Jun15 Total

Capacity 5% 5% 20% 30% 40% 50% 60% 70% 77%

Funds

disbursement Rs

in million 4,200 2,550 2,875 2,875 1,000 1,500 500 2,000 1,000 18,500

2014-15 2013-14

MONTHLY BREAK-UP OF DISBURSEMENT

EXECUTION OF FINANCIAL RESTRUCTURING PLAN (FRP)

1st disbursement details of Rs 4.2 billion

a. 1st disbursement of Rs. 4.2 billion was received on 21st May 2014 instead on 1st

week of May 2014 as per plan assumptions.

b. Rs. 1.5 billion inclusive of freight were utilized for import of raw materials against

letter of credit for 2 coal shipments (High & Low Volatile for 55,000 MTN each).

c. One ship of coal arrived on 3rd July 2014 and another ship of coal has arrived on

8th July 2014 which is being unloaded. Coke oven battery has started operation

from 11th July, 2014 after a laps of one year.

d. Inspite of delay in receipt of funds by two weeks and non-receipt of fund for iron

ore, efforts will be made to achieve 20% capacity utilization in the month of July

2014 as per FRP.

2nd disbursement details of Rs 2.55 billion

a. 2nd disbursement of Rs. 2.55 billion was received on 17th June 2014 instead of 1st

week of June 2014.

b. LC for one coal shipment of Rs. 590 million was opened on 25th June 2014.

c. LC for procurement of iron ore ship from M/s. Cargill has been opened on 9th July,

2014. These shipments will be made available in August 2014.

d. Besides that two tenders are floated for procurement of 20000 - 40000 MT iron ore

fine on FOR (DDP) basis, which will be opened on 09.07.2014 and 15.07.2014

respectively and expected to arrive during Aug 2014.

e. Similarly another tender of 50000 MT (+/- 10%) iron ore on C&F basis is floated

which will be opened on 24.07.2014 and cargo can arrive by mid Sept 2014

subject to availability of funds for opening LC.

3rd disbursement of Rs 2.875 billion

a. 3rd disbursement of Rs. 2.875 billion was received on 21st July 2014 instead of 1st

week of July 2014.

b. LC for one coal shipment of Rs. 590 million was opened on 21st July 2014.

c. Contract for procurement of iron ore ship from M/s. Cargill is in progress. LC will

be opened in 1st week of August 2014. These shipments will be made available in

September 2014.

CONCLUSION ON RESTRUCTURING PLAN If the disbursement is made timely by GOP and the liabilities of NBP and SSGC taken care by

GOP, the management of PSM is confident that the targets given by GOP will be achieved. The

management of PSM has taken following measures to ensure implementation of business plan

as per agreed targets.

TECHNICAL MEASURES

Production and related support facilities were visited and their conditions seen. Necessary plans

to prepare the plant/ facilities to meet promised targets by reducing down time and adding value

were prepared and system of monitoring work progress instituted as follows: -

Plant preparation / revamping schedule - short term

INDIGENIZATION PLAN

Pakistan Steel initiated a comprehensive indigenization Plan. The main objective of indigenization was to reduce the dependence on import and to increase the proportion of local raw material in its process and to make the production economically viable based on the following objectives:

To mobilize the local resources for shedding the partial dependency on the imported iron ore and the development of mining sector of the country.

To cut down cost of materials and to save foreign exchange

To promote the socio economic uplift of the remote mining areas of the country, especially Baluchistan.

Supplies of local raw material are being encouraged. Pakistan Steel is procuring expeditiously

local iron ore from the mine owners/authorized suppliers as per PPRA rules through contract as

short term policy. Pakistan Steel is also actively engaged to get the mining operation at its own,

on the three acquired iron ore leases in Baluchistan i.e. LUFTO, KULLIKOH and BELAR as per

our long term policy.

Pakistan Steel has successfully managed to substitute completely the import of manganese ore

and now 100% manganese ore requirement are being met through local sources (mostly from

Balochistan).

Consumption of local iron ore during the last two years, both through procurement and captive

mining is given below: -

Description

2012-2013 2013-2014 Total 2 Years

Qty (MT)

Amount (Rs)

Qty (MT)

Amount (Rs)

Qty (MT)

Amount (Rs)

Sandak Concentrate

7,912 77,235,312 - - 7,912 77,235,312

Local Iron Ore

9,344 55,189,680 48,307 329,461,188 57,651 384,650,868

Captive Mining

31,177 176,931,463 - - 31,177 176,931,463

Total: - 48,433 309,356,455 48,307 329,461,188 96,740 638,817,643

(iii) REVAMPING & EXPANSION

It is a 40 years old plant which needs revamping and most importantly „up-gradation‟ &

modernization to 03 million ton per year production to make it a really viable and profitable asset

of tremendous national value. Its infrastructure is huge and meant for 3 to 5 mtpy. (1 mtpy was

an initial step). Most of similar 25 or so plants installed by former Soviet Union have been

upgraded, we being the exception. Our neighbor Iran has upgraded similar Esphahan Plant to

3/3.5 mtpy and is poised to upgrade it to 5 million tons per year. They have invited the CEO

Pakistan Steel who is planning to take a delegation of senior engineers to see their plant for

improving our own might be with their help. Russia has offered credit for PSM expansion to

1.5/3.0 mtpy which Government should consider as a Golden opportunity as momentous for our

“industrial growth” as is “Economic corridor” for our national economic growth. Only through

growth of Engineering and Manufacturing (and steel being the base) will Pakistan achieve a

middle and higher economic status and “Steel mill” expansion will act as the catalyst.

Its extension to 1.5/ 3.0 million tons per year (mtpy) has been planned many times but various

interruption scuttled execution of this national project. Given below are the estimates of

expansion to 1.5 mtpy (exact cost will be determined either through competitive bidding or Govt-

to Govt agreement with Russia, China or any other interested country) in 2 to 4 years.

DUTY AND TAXES PAID

PAKISTAN STEEL is a major contributor to the national exchequer. It has paid an amount of

Rs.105.5 billion towards duties and taxes to the Government since 1984-85 to June, 2013. The

project has thus repaid more than the cost of the project which is Rs.24.70 billion. Further to

this an amount of Rs.1 billion is paid to the Government of Pakistan as dividend during

September, 2007.

SOCIAL OBLIGATIONS

Pakistan Steel has also making noteworthy contribution in the realm of social obligations. In this

regard Pakistan Steel is providing residential, medical, educational, and recreational and sports

facilities for its employees as well as to the people of adjoining areas. These facilities includes

125 Bed Pakistan Steel Hospital, Quaid-i-Azam Park, Cricket Stadium Park, Pakistan Steel

Cadet College, Sports Complex and construction of fly over at Quaidabad T-Junction which was

assigned to Pakistan Steel by the President of Pakistan.

DOWNSTREAM INDUSTRIAL ESTATE (DSIE)

Downstream Industrial Estate was created under the Notification of Government of Sindh in the

year 1984 on an area of 1420 acres. The objectives of creation of the Estate were to promote

industrial growth in the area. The process of these units is based on the products / by –products

of Pakistan Steel so as to facilitate the industries by providing the input raw material right at their

door step. The promotional efforts of Pakistan Steel succeeded and 44 downstream industries

have so far set up, or being set up in this Estate on an area of 490.78 acres. Remaining land

206.69 acres of DSIE will be allocated to the applicants in compliance with policy strictly on

merit basis when we start allocation of land for Sector-III.

6. SMALL & MEDIUM ENTERPRISES DEVELOPMENT AUHTORITY (SMEDA)

I. Business Development Services

SMEDA‟s Business Development Services assist SMEs to enhance their capacity to exploit

existing market opportunities and to facilitate investment decisions. Support extended to SMEs

by SMEDA during FY 2013-14 is as follows: -

i) Walk-in Facilitation 22,526 (including PMYBL applicants

ii) Prefeasibility Studies Developed 85 (customized for PMYBL) + 5 New and 7 updated pre-feasibilities

iii) Business Plans Developed 30

iv) Investment Facilitation Rs. 1.44 Billion

v) Training Programs conducted 137 programs with 4123 participants

vi) SMEDA Web Downloads of Information 157,462

II. Prime Minister‟s Youth Business Loan Scheme (PMYBL)

PM‟s Youth Business Loan Scheme was launched in December 2014 to provide access to

finance for new startups and business expansion. SMEDA was tasked with an advisory role in

implementation of PM‟s Youth business Loan scheme both in terms of developing information

tools resources and guiding and disseminating information to loan aspirants. A complete

mechanism and support infrastructure was also put in place regarding PM‟s Youth Business

Loans in order to ensure proper utilization and business development support for the loan

beneficiaries.

To provide information to loan aspirants, SMEDA developed 85 customized Business

Prefeasibility Studies. Along with this, Financial calculators (4) pertaining to loan repayment,

balance sheet, income statement, and cash flow statement, Business Plan Guidelines /

Template and Training Video Documentaries (7) on various aspects of business, and other

related information material, was also developed and made available on SMEDA web portal.

The information tools and resources are available in both English and Urdu languages.

Exclusive Helpdesks were also set-up by SMEDA at 25 locations in 16 cities for facilitation of

loan applicants. In addition, 03 new Helpdesks were established at Muzaffarabad, Chitral, and

Gilgit.

Around 12.39 million pre-feasibility studies and other tools and resources have been

downloaded from SMEDA web portal during FY 2013-14.

III. Enhancing Productivity & Competitiveness SMEDA, with the collaboration with GIZ (German International Cooperation), bfz and JICA has

been implementing energy management and audit programs across various sectors of the

economy. During the year 2013-14, over 29 energy management programs were conducted.

Application of EnMS leads to sustainable energy efficiency improvement in industry through

integration of energy issues in the overall management system of a company.

Dissemination workshop to share successful implementation of Energy Management System

(EnMS) in five foundries was also held.

In continuation of the efforts for the implementation of EnMS, Performance Contracting

mechanism has been introduced. Three new foundry units have been selected on performance

contracting basis for implementation of EnMS. The future cooperation between SMEDA and its

partners shall include application of renewable energy technologies in industry as well as

replication of EnMS implementation to other industrial sectors.

Energy Audit of 5 companies was conducted and 9 energy management training programs /

seminars were held. 2 Training of Trainers (TOT) for Energy Management Companies (ESCO)

and energy experts were also conducted.

In the area of green and cleaner production, 15 training programs and 2 training of training

sessions held. Under the initiative, Green Production / Clean Production audits were conducted

for 4 companies. Two, six month diploma programs for lean sigma certification were organized.

As part of the OEM Vendor Development Program, with JICA Production Management Expert,

13 companies were provided support.

20 Training Workshops/Seminars on Productivity & Quality improvement (with local experts)

organized.

IV. 5-Year SME Development Plan (2013-18)

In order to assist in Employment Generation and Value Addition to the National Income through

Development of the SME Sector, by helping Increase the Number, Scale and Competitiveness

of SMEs. SMEDA has developed 5 years SME Development Plan (2013-18) The Plan

envisages exponential growth of key emerging and conventional SME sectors, selected

primarily on the basis of their respective growth potential in terms of employment, contribution to

GDP and exports. The Goals and Outcomes of SMEDA in the identified areas of intervention

over the next 5 years are: -

Indicators 2013* 2018 Incremental Change

Employment 14.85 Million 25.00 Million 10 Million

GDP US $ 73.95 Billion US $ 193.50 Billion

US $ 120 Billion

No. of Enterprises

1.73 M 2.00 Million 0.27 Million

Exports US $ 18.21 B US $ 54.20 Billion

US $36 Billion

* The figures pertain to indicators in 13 sectors with large SME presence.

V SMEDA Internship Portal SMEDA Internship Portal is serving as a bridge between the demand and supply gap of human resources in the country for encouraging youth employability and entrepreneurship. It was launched on November 8, 2013 in Lahore, and was attended by important stakeholders from the business community, including representatives of Chambers of Commerce & Industry, public & private sector universities, and students. The objective of SMEDA‟s Internship Portal is to obtain demand requirements of the private businesses and public sector organizations, and make them available through an e-platform for employers and students. Once the demand from employers is placed at the Portal, the information is readily available to students, who may directly apply for a position of their choice, in any sector and region of Pakistan. This „No Cost e-platform” for Private and Public sector organizations provides an opportunity to access a large, diversified HR pool having the required skills, for strengthening their human capital. In order to operationalize the Portal, SMEDA has engaged Academia, Industry, SMEs, Chambers of Commerce and Industry, Trade Associations and Public Sector Organizations to generate internship opportunities across the country.

VI Economic Revitalization of KP and FATA (ERKF) Project; Multi-Donor Trust Fund ($20 million)

The Economic Revitalization of Khyber Pakhtunkhwa and FATA (ERKF) is a multi-donor funded project led by the World Bank that aims at revitalization of flood affected remote areas of KPK and FATA. The total cost of the project is US $20 Million. The Project is divided in three components, namely i) SME Development, ii) Investment Mobilization, and iii) Capacity Building to Foster Investment and Implement Reforms. The SME Development component is being implemented by SMEDA. The results of the project since the start of the project are as under: -

Status of Grants till June 30, 2014

Total approved grants cases

Total grants disbursed cases

1,253

907

Total approved amount

Total Disbursed amount

Rs. 1015.2 Million

Rs. 625.2 Million

Employment generated 1,737 Personnel

7. DEPARTMENT OF EXPLOSIVES The Department of Explosives has revised the Explosives Rules, 1940, Mineral Gas Safety

Rules, 1960 and Gas Cylinder Rules, 1940 has been replaced and new rules namely Mineral

and Industrial Gas Safety Rules, 2010, have also been framed. Department of Explosives has

contributed to the Government Exchequer through its functions like grant, renewal and

amendment of licenses under P.R 1937, Explosives Rules 2010, Carbide of Calcium Rules

1937, Mineral and Industry Gas safety Rules, 2010. The requisite information on the subject for

Fiscal Year 2013-14 is given as under: -

Performance of Department of Explosives during proceeding Financial Year

REVENUE TARGETS FOR THE PRECEDING FINANCIAL YEAR

Revenue Estimates During

2013-14

Revised Estimates 2013-14 Actual Revenue collected

during 2013-14

165,000,000 184,000,000 190,725,882

Sr. No Activities Islamabad Lahore Karachi Multan Peshawar Quetta Total

1. License Granted

31 238 35 241 58 11 614

2.

License Renewed

191 700 1689 734 270 225 3809

3. License Cancelled

- 44 26 - 11 6 87

4.

License Suspended

21 48 - 6 26 1 102

5. License Expired

14 88 29 - 36 14 181

6. Inspection Conducted

454 2197 483 40 60 11 3225

7. Vehicle Approval

437 2617 398 - 90 2048 5690

8. NOC/Permit 3 974 - 1 - - 978

9. Revenue Earned

42,551,562 57,241,547 29,822,803 24,385,501 21,164,621 15,559,848 190,725,882

10. Expenditure Incurred

13,793,279 6,305,134 6,342,005 4,403,817 3,125,056 2,889,816 36,859,107

8. HEAVY MECHANICAL COMPLEX (HMC)

Heavy Mechanical Complex (HMC), Taxila was established under 3rd. Five Years Plan, with the

technical and financial co-operation of government of People‟s Republic of China, to implement

government‟s industrial policy to shift emphasis from consumer goods to capital goods

manufacturing industry. HMC started its operations in 1971.

Later in 1977, Heavy Foundry & Forge (HFF) was established, also with the co-operation of

People‟s Republic of China, to produce heavy castings and forgings.

In 1990, Heavy Foundry & Forge was merged into Heavy Mechanical Complex.

PRODUCTION FACILITIES

The facilities in the company are unique and largest in the country, under one roof. The facilities

include design & engineering, foundry & forge works comprising of steel casting, cast iron &

non-ferrous castings, die & free forgings, heat treatment and pattern making shops, mechanical

works comprising of fabrication, machining, assembly, galvanizing facilities and non ferrous

fabrication facilities. HMC can undertake projects right from designing to manufacturing,

installation and commissioning of plants. The details of facilities are as follows;

MECHANICAL WORKS

Design & Engineering Machine & auxiliary shop;

(Area – 15,150 sq.m, No. of machines – 190, max. crane – 50 t) Fabrication Shop:

(Area – 21,842 sq.m, No. of machines – 198, max. crane – 100 t) Assembly Shop; (Included in machine shop) Galvanizing shop;

(Area – 1,036 sq.m, No. of equipment -11, max. crane – 5 t) Non-Ferrous fabrication shop:

(Area – 2,800 sq.m., No. of machines – 6, max. crane – 5 t) Heat Treatment shop:

(Area – 1,000 sq.m., No. of equipment – 26, max. crane – 5 t) Forge Shop:

(Area – 3,100 sq.m., No. of machines – 24, max. crane – 25 t) Surface Preparation & Painting: Quality Assurance: (Metrological & NDT)

Foundry & Forge Works

Technology Department Steel Foundry:

(Area – 20,040 sq.m., melting capacity – 60,000 t/yr., max. casting – 32 t, ingot – 50 t) Cast Iron & Non-Ferrous Foundry:

(Area – 10,236 sq.m., capacity – 5,000 t/yr., max. casting C.I – 28 t, N.F 1.5 t) Hydraulic Press Shop (3150 ton press):

(Area – 8,592 sq.m., capacity – 4,000 t/yr., max. forging – 35 t) Die & Free Forging Shop:

(Area – 8,740 sq.m., capacity – 2,500 t/yr., max. forging, free – 0.5 t, die 150 Kg) Machine Shop:

(Area – 6,120 sq.m., No. of machines – 31, max. crane – 32 t) Heat Treatment Shop:

(Included in casting & forging facility) Pattern Making Shop:

(Area – 4,572 sq.m., No. of machines – 11, max. crane – 3 t) Grinding Media Shop Quality Assurance:

(Mechanical, Chemical & quick analysis labs)

QUALITY ASSURANCE

HMC has in-house quality assurance facilities manned by highly qualified professionals. These

are as follows;

MATERIALS TESTING LABORATORY

It has facilities for Mechanical tests, Chemical analysis, Metallographic, Quick analysis,

Pyrometers & instrumentation.

NON-DESTRUCTIVE TESTING

It has facilities for Radiography – X-rays, Gamma rays (RT), Ultrasonic tests (UT), Magnetic

particle test (MT), Dye penetrate test (PT), Eddy current test – for coating thickness &

Spectroscopy.

METROLOGICAL LABORATORY

Instrument calibration, Profile projection, Optical dividing head, Surface finish measurement,

Gear run-out & back lash composite error check, Universal metre scope.

QUALITY CERTIFICATIONS

HMC has also the following international quality certifications;

ISO 9000: 2000 Certification

Certification for ASME stamps U, U2, S, PP & R for manufacture of pressure vessels,

boilers, pressure piping under ASME codes.

Lloyds of UK certification as manufacturer of 1st. class fusion welded pressure vessels.

PRODUCT RANGE & DEVELOPMENT

HMC has made significant contribution in local development of heavy engineering projects like

sugar plants, cement plants, oil and gas processing plants, equipment for petrochemical and

chemical plants, Over head travelling cranes, steam boilers, pressure vessels, heat exchangers,

road construction machinery, heavy castings and forgings. HMC has also developed several

products for defence sector. A detail of HMC efforts and contribution in development of local

engineering capabilities is as follows;

Original capabilities Present Capabilities

Sugar plants 1500 tcd capacity plant - Up-to 12000 tcd capacity plant (44 items) - Industrial alcohol plant

- Two Roller Mills 45”x90” & 52”x106” (New development)

- Falling Film Evaporators 4500 M2, 5000 M2 (New development).

Cement plants 600 tpd capacity wet process - 500-5000 tpd dry process (19 items) - White cement plan Industrial boilers 10 ton, low pressure (13 kg) - Water tube, up-to 100tons

Medium pressure - Fire tube Up-to 20 tons, - Heat recovery boilers

- High Pressure Boiler up to 140 Ton/Hr for Co. Generation (New development)

Road construction machines - Static road roller 10-12 ton static road roller - Vibratory road roller - Asphalt mixing plant - Stone crusher Cranes 32 & 75 ton overhead electric - Up-to 250 tons - Gantry cranes - Portal cranes

Truck Chassis (long members) Railway axles (wagon) - Wagon & loco axles Steel structures - Industrial steel structure - Steel bridges Power plants - Utility boiler parts (not included) - Turbine house equipment - Steel structure

- Radial gates - Hydel turbine Process plants (Not included) - Pressure vessels, columns - Heat exchangers, - Gas processing plants - Oil refinery equipment - Fertilizer plant equipment. - Chemical plant equipment.

Heavy castings - Heavy castings Heavy forgings - Heavy forgings

- Parts & components for defence products

MAJOR PROCESS PLANTS & EQUIPMENT SUPPLIED

HMC has supplied the following major equipment to-date;

Sugar Plants

34 complete plants

38 major expansion projects

Equipment & spares

Cement Plants

6 complete plants

Major equipment for 22 plants

Engineering & design services

Replacement equipment & spars

Oil & gas process plants

Dakhni gas processing field, complete facility

Pindori gas processing plant expansion project

Static equipment for Lasmo Bhit field project

Industrial boilers

About 200 boilers of capacity 1 ~ 80 tons

EOT & gantry cranes

About 300 cranes of lifting capacity up to 250 tons

MAJOR EQUIPMENT SUPPLIED FOR THERMAL POWER PLANTS

210 MW Bin Qasim TPS Units 3 & 4: (Deutche Babcock) Manufactured evaporators, super-heater & economizer coils, headers, heat

exchangers, pressure vessels, steel structure, stack, tanks.

210 MW Bin Qasim TPS Units 5 & 6: (Hitachi-Babcock) Manufactured evaporator, super-heater & economizer coils, headers, SH headers,

heat exchangers, pressure vessels, steel structure, tanks, buck stays.

320 MW Muzafargarh TPS Unit 4:(CMIC) Manufactured LP heaters, de-aerator tank, headers, cranes, pressure vessels,

steel structure, tanks, ducts, stack, cw pipes.

HUBCO TPS:(IHI) Manufactured plate & profile structure for power boilers.

AES Lalpir (Nichimen), Rouch (Rouch), Habib Ullah Energy (C+H Montage)

Steel structure, stack, ducts, hoppers, casing for heat recovery boilers.

MAJOR EQUIPMENT SUPPLIED FOR HYDROPOWER PLANTS

Gazi-Barotha HPP: (Voith) Manufactured spiral casing for hydro turbines (5x290 Mw), draft tube liners, pier

nose liners, pit liners, HP vessels. Supplied EOT cranes 70 & 6 tons, monorail crane 5 tons.

Tarbela HPP: Supplied draft tube gates, lifting beam, sill cleaning device. Supplied gantry crane 50 tons, semi-gantry crane 250 tons.

Warsak HPP: Manufactured draft tube gates, bulk head gates, trash rack, draft tube gates &

trash rack followers, head covers, bottom rings, wicket gates. EOT cranes 50 & 5 tons.

Malakand-III HPP: Designed, manufactured, installed & commissioned penstock (dia. 4 meters) – 1st.

time by any local company.

Kundal Shahi HPP: Complete rehabilitation of imported 1 MW power plant.

Others: Spillway gates (13x11 m), bulkhead gates (3x3 m) for Khanpur dam. Sluice, fixed wheel, head regulation gates for Abbasia Irrigation project. Small turbine runners up to 5 MW.

EXPORTS

Besides meeting local requirement of plant and machinery, HMC has exported 4 sugar plants,

one clinker grinding plant, over head travelling cranes, road construction machinery and host of

other items to friendly countries as follows; -

Indonesia Subang sugar mills (3000 tcd) Bangladesh

Natore sugar mills (1500 tcd)

Pabna sugar mills (1500 tcd)

SKS clinker grinding plant(1450 tpd)

E.O.T cranes for railways

Boilers

Sri Lanka Gates for irrigation system (Mahawali Development Project)

Kenya Asphalt mixing plant Ghana E.O.T. cranes for railways Sudan Evaporation station for sugar mill Saudi Arabia 4 tph heat recovery boiler Ethiopia Sugar mill (8000 tcd) Afghanistan Gates for irrigation system

FINANCIAL

Financial performance of the company for the last five years is tabulated below;

PERFORMANCE AT A GLANCE YEARS

2010 ~ 2014

Rs. in Million

Year Ending 30th. June

Sales Gross Profit/ (Loss)

Pre-Tax Profit/ (Loss)

Loans

Inventory Orders in hand

Long term

Short Term

2010 1983.40 202.13 1.08 428.10 150.00 842.00 1400.98

2011 2251.42 239.49 3.146 914.08 150.00 1033.51 2102.37

2012 2628.51 267.47 14.20 959.79 150.00 1139.26 2600.05

2013 2634.11 239.17 2.32 429.00 150.00 804.00 1799.65

2014 3001.03 303.38 40.4 429.00 150.00 762.28 886.27

PROFIT & LOSS

YEARS 2013 & 2014

Rs. in Million

Description Actual Jul-Jun

2013

Budget Jul-Jun

2014

Likely Actual Jul-Jun

2014

Variance over

Actual last year

Budget

Sales (mnf.)

2634.108

3115.021

3001.027

366.919

(113.994)

Cost of Sales

2394.935

2803.251

2697.649 302.714 (105.602)

Gross Profit/(Loss)

239.173

311.770

303.378 64.205 (8.392)

Operating Expenses

General & Admin. 195.335 205.292 201.710 6.375 (3.582) Selling & Distribution 30.687 41.424 42.810 12.123 1.386

Total Opr. Expenses

226.022

217,218

244.520 18.498 33,631

Operating Profit/(Loss)

13.151

65.054

58.858 45.707 (6.196)

Financial Expenses

(84.209)

(91.356)

(91.356) 7.147 -

Other/Interest income

73.499

73.080

72.890

(0.609) (0.190)

WPPF

(122) - -

122 -

Profit/(Loss) before Tax

2.319

46.778

40.392 38.073 (6.386)

Taxation

(25.489)

(31.150)

(30.010) 4.522

(1.140)

Profit/(Loss) after Tax (23.170)

15.628 10.382 33.551

(5.246)

Sales Breakup by Products 2010 to 2014

FUTURE DIRECTION OF THE COMPANY

Since its inspection in early seventies, HMC has excelled in many disciplines. HMC can rightly

be proud of its achievements made in local development of manufacturing technology for capital

goods especially in Heavy Engineering Sector like Sugar Mills, Boilers, Cranes, Heavy Castings

/ Forgings and such many other similar products.

In-line with its policy of indigenization of technology for the growth of local industry, HMC, in

addition to other areas, is specifically working on the following areas/ products.

NALTAR-III HYDROPOWER PROJECT

HMC has manufactured and supplied large number of equipment for hydropower plants for

various projects in the country. Now, Government in view of need and large potential of hydro-

electric power generation has entrusted HMC with turn-key execution of 16 MW, Naltar-III

hydropower project, as a model local project. Formalities for award of contract to HMC are being

completed by the concerned Authorities.

HIGH PRESSURE BOILERS FOR CO-GENERATION

There is large potential for power generation in sugar industry by replacing the existing low

pressure boilers with high pressure boilers. HMC has been regularly designing, manufacturing

and supplying bagasse fired boilers to sugar industry, according to their needs. Now, HMC has

completed the design of high pressure bagasse fired boiler of 67 bars / 140 Ton per hour High

Pressure Boiler for Co. Generation Project of JDW Group, however, deals with other buyers for

High Pressure Boiler are also being negotiated.

FALLING FILM EVAPORATORS

HMC has been meeting the entire requirements of the sugar industry for more than three

decades.

It has been keeping pace with the developments in sugar industry for performance improvement

to provide the industry with better equipment. Recently HMC has developed falling film

evaporators, which improve the performance with energy conservation. HMC has supplied

newly developed Falling Film Evaporator to Sugar Industry which is giving excellent

performance.

TWO ROLLER MILLS

For energy conservation & maximum juice extraction HMC worked on designing of Two Roller

Mills to replace conventional Three Roller Mills. In year 2012 HMC indigenously developed Two

Roller Mills to Sugar Mills in Punjab & Sind which are giving much better performance. These

three Roller Mills reduced crushing losses and improved overall Sugar Plant efficiency.

FUTURE PLANS FOR ENERGY SECTOR

HMC now, has to develop its capabilities as EPC Company, to make significant contributions in

energy sectors, keeping in view the domestic requirements on priority along with export potential

for engineering goods to increase the country‟s export.

On the initiative of Ministry of Industries & Production, HMC had prepared future plans for up-

gradation of its design and manufacturing capabilities and had submitted two PC-1s which have

been approved by CDWP and ECNEC. HMC after receiving the requisite allocations from PSDP

has commenced activities on these projects.

a. ESTABLISHMENT OF DESIGN INSTTUTE

HMC has prepared a PC-I for establishment of energy specific design institute. The project

costing Rs. 665 million will enable to develop local capabilities to design complete power plants

(Thermal, hydro & renewable), gas processing plants and other process plants in the country.

This project is at its advance stage.

b. UP-GRADATION OF FACILITIES

HMC has prepared a PC-I for up-gradation of its facilities (ESTABLISHMENT OF TURBINES &

POWER PLANTS EQIPMENT MANUFACTURING FACILITY). The PC-I is based on

manufacturing of equipment for power plants including turbines. The project will cost around

Rs.21.5 billion. It shall up-grade steel melting & refining, forgings, fabrication and CNC

machining facilities.

9. PAKISTAN INDUSTRIAL & TECHNICAL ASSISTANCE CENTRE (PITAC)

The Government of Pakistan established Pakistan Industrial Technical Assistance Centre

(PITAC) in 1962 with the merger of Industrial Research and Development Centre (IRDC) and

Industrial Productivity Centre (IPC) as an Autonomous body under the administrative control of

Ministry of Industries, Government of Pakistan and registered under the Societies Registration

Act 1860.

Since its inception PITAC has been rendering Technical Assistance to industry by way of

designing and manufacturing of Production Tooling Equipment, Prototyping, and rendering

Training Services to Engineers, Supervisors and Technicians from variety of industries

throughout the country.

Advisory Services in Metal Works, Steel Re-Rolling, Heat Treatment, Low Cost Automation and

Plastic Mold Making has also been an important function of PITAC.

The present report provides the salient features of performance of PITAC for the Year 2013 –

2014. PITAC has offered Short Term Intensive Training courses in Techno-managerial fields,

these courses are designed such that supply-side responses are perpetually in sync with the

demand side impulses from the industrial environment. The contents of the courses have been

carefully designed to meet the requirements of the Industry and have kept under review to being

them in conformity with the changing needs.

PITAC has continued to train unskilled workmen of SME‟s and small-scale workshops (cottage)

by the provision of Demand Driven Technical Courses resulting in better income and

employment opportunities.

In this way, PITAC has directly contributed towards Skill development for the SME‟s and light

engineering sector in accordance with the National Industrial Strategy devised by Ministry of

Industries and Production, Government of Pakistan.

It is hoped that the workmen acquainted with Technical Skills will be a strong backbone for the

industry of this country in the future.

SCOPE &FUNCTION

PITAC is Autonomous Organization under the administrative control of the Federal Ministry of

Industries and Production. Workshop facilities have been established in Lahore to provide

Training, Technological Back up Support and Advisory Services to the industry.

Since 1962, PITAC has been rendering Technical Assistance to industry by way of Designing

and Manufacturing of Production Tooling Equipment, Prototyping, Training of Engineers,

Supervisors and Technicians from a variety of industries throughout the country. Advisory

Services in Metal Works, Heat Treatment, Low Cost Automation, Programmable Logic

Controllers (PLCs) and Plastic Mold Making are important functions of PITAC.

Mission Statement

To upgrade, advice, disseminate, extend assistance and skill development in technical and

managerial fields to individuals and organizations throughout Pakistan.

OBJECTIVES

Following are the main objectives of PITAC: -

To Train and Upgrade the skills of Industrial Personnel in the Technical and Managerial

fields.

Disseminate modern technical knowhow among industrial personnel through Seminars,

Group Discussions, Workshops and Demonstrations.

Extend advisory services to industries;

To provide common facilities like Metal Working, Casting, Heat Treatment, Electroplating,

Surface Treatment, Designing and Manufacturing of machine elements and reverse

engineering

In conjunction with the training programmes the centre will produce modern manufacturing

techniques and production methods, while at the same time producing newly designed tools

and products (prototypes) which contribute to the advancement of Pakistan‟s Industrial

Development.

Organizational Structure of PITAC

The Operational Structure of PITAC is as follows:

Tier Name

1 Ministry of Industries and Production,

Government of Pakistan

2 Governing Body

3 Executive Committee

4 PITAC

Role of PITAC Governing Body and PITAC Executive Committee

The role of Governing Body is primarily Policymaking on Administrative, Financial and Technical

matters for which periodical meetings are held. The existing Governing body (GB) comprises of

following members: -

Sr. No Name, Designation and Address Role in GB

1 Additional Secretary Ministry of Industries and Production, Government of Pakistan, Islamabad

Chairman

2 Financial Advisor Ministry of Industries and Production, Government of Pakistan, Islamabad

Member

3 Director of Industries Government of Punjab, Lahore

Member

4 Director of Industries Member

Government of Sindh, Karachi

5 Director of Industries Government of Khyber Pakhtoon Khawa, Peshawar

Member

6 Director of Industries Government of Balochistan, Sirki Road, Quetta

Member

7 Mr. Wasim Khalid Chief Executive Officer, MECAS Engg. Ltd, Lahore

Member

8 Mr. Muhammad Shakeel Ch, Maqbool Industries, Lahore

Member

9 Mr. Abid Iqbal, Chief Executive Officer, PECS, Lahore

Member

10 Major (Retd) Arfeen Chief Executive Officer, Marriala Consultants, Lahore.

Member

11 Dr. Nadeem Ahmed Mufti Chairman Department of Industrial and Manufacturing Engineering, University of Engineering and Technology, Lahore

Member

12 General Manager, PITAC Member / Secretary

The Executive Committee of exercises the power of the Governing Body, except in matters of

major policy decisions and functions in between the meetings of the Governing Body. The

existing Executive Committee comprises of following members: -

Sr. No Designation Role in EC

01

General Manager

Pakistan Industrial Technical Assistance Centre,

Lahore

Chairman

02

Deputy Secretary (Admin)

Ministry of Industries and Production, Government of

Pakistan

Member

03

Deputy Financial Advisor,

Ministry of Industries and Production, Government of

Pakistan

Member

04 Representative of Federation of Pakistan

Chambers of Commerce and Industry Member

05 Representative of Lahore Chambers of Commerce

and Industry Member

06 Senior Manager (Operation & Works), PITAC, Lahore Member

Manpower

The Present Strength of Employees till June 2014 in various categories is 233, out of which 43

are officers, 66 employees in Non-technical cadre and 172 employees are in Technical Cadre.

The details are as under: -

Sanctioned Strength as on June, 2014

Sr No

Name of Post CADRE BPS No. of

Sanctioned Posts

IN Position

Vacant

OFFICERS

1 General Manager

Tech. Cum Administrative

20 1 0 1

2 Sr. Manager (O&W)


19 1 1 0

3 Sr. Manager PMD(Projects)


19 1 0 1

4 Sr. Manager (Marketing) Marketing

19 1 1 0

5 Sr. Manager (Training) Tech. Cum Administrative

19 1 1 0

6 Manager (P&A) Administrative 18 1 1 0

7 Manager (A/C‟s) Accounts 18 1 1 0

8 Manager (Coord) Administrative 18 1 1 0

9 Manager (Marketing) Marketing 18 1 1 0

10 Managers (Tech) Tech. Cum Administrative

18 12 3 9

11 Manager MIS MIS 18 1 0 1

12 Dy. Manager (Coordination) Administrative 17 1 1 0

13 Dy. Manager (Marketing) Marketing

17 1 1 0

14 Dy. Manager (P&A) Administrative 17 2 1 1

15 Dy. Manager (Accounts) Accounts

17 1 0 1

16 Dy. Manager (Audit) Accounts 17 1 1 0

17 Dy. Manager (Store) Tech 17 1 0 1

18 Dy. Manager (Cash) Accounts 17 1 1 0

19 Dy. Manager (Tech.) Tech. Cum Administrative

17 19 12 7

20 Dy. Manager MIS MIS 17 2 1 1

21 App. Engineer Tech. 17 4 0 4

22 Superintendent Non-Tech. 16 8 3 5

23 Network Administrator MIS 16 2 1 1

24 Foreman Tech. 16 13 5 8

25 Estimator Tech. 16 2 0 2

26 Designer Tech. 16 4 0 4

27 P.S to G.M Non-Tech. 17 1 0 1

28 Asstt. Store Officer Tech. 16 1 0 1

29 Superintendent Security Ex-Cadre 16 1 1 0

30 Training Coordinator Non. Tech. 16 2 1 1

31 I.T. Officer MIS 16 1 1 0

32 APS Non. Tech 16 3 3 0

33 Coordination Officer Administrative 16 5 0 5

TOTAL: - 98 43 55

ESTABLISHMENT (NON Tech.)

Sr No

Name of Post CADRE BPS Sanctioned Held Vacant

34 Steno typist Non-Tech 14 3 3 0

35 Assistant Non-Tech 14 22 17 5

36 Assistant Accounts Non-Tech 14 2 2 0

37 Assistant Security Supervisor Non-Tech 14 3 0 3

38 Senior Clerk Non-Tech 9 3 3 0

39 Junior Clerk Non-Tech 7 4 3 1

40 Telephone Operator Non-Tech 7 2 2 0

41 Typist Non-Tech 5 1 1 0

42 Driver Non-Tech 5 7 6 1

43 Dispatch Rider Non-Tech 5 1 0 1

44 Batman Non-Tech 1 1 0 1

45 Naib Qasid Non-Tech 2 11 6 5

46 Watchman Non-Tech 2 13 12 1

47 Gardener Non-Tech 2 4 4 0

48 Sweeper Non-Tech 2 7 7 0

TOTAL: - 84 66 18

ESTABLISHMENT (Tech)

Sr No

Name of Post CADRE BPS Sanctioned Held Vacant

49 Assistant Designer Tech. 15 2 1 1

50 Assistant Foreman Tech. 15 27 17 10

51 Store Keeper Tech. 13 4 3 1

52 Jr. Programmer MIS 14 3 0 3

53 Shop Technical Assistant Tech. 13 6 5 1

54 Draughtsman Tech. 13 5 2 3

55 App Draughtsman Tech. 11 1 0 1

56 Highly Skilled Tech. 13 45 36 9

57 Skilled I Tech. 11 45 29 16

58 Computer Hardware Technician Tech. 11 2 1 1

59 Skilled II Tech. 9 27 7

1 19

60 Semi Skilled Tech. 9 4 4 0

61 Assistant Store Keeper Tech. 9 1 0 1

TOTAL: - 172 124 48

Grand Total

Sr. No

Cat. San. Held Vacant

1 OFFICERS 98 43 55

2 ESTABLISHMENT (NON Tech.) 84 66 18

3 ESTABLISHMENT (Tech.) 172 124 48

Grand Total: - 354 233 121

Overview of Performance (2013 – 2014)

Opening of Regional Office Islamabad

Nowadays in view of increasing trend in the manufacturing industry related to automobile,

general engineering & plastic products, vending industry, SME‟s have to be provided with

Advanced Backup Support and Training Services, therefore, PITAC decided to expand the

purview of its activities geographically.

In line with the policy of the Ministry of Industries and also with the consent of PITAC‟s

Governing Body, PITAC‟s Management decided to open its Liaison office in Islamabad, so the

SME‟s and light engineering sector from that region can also be benefitted with the

Technological Back up Support, Advisory Services and Demand Driven Technical Courses from

PITAC in accordance with the National Industrial Policy by Ministry of Industries and Production,

Government of Pakistan.

This will ultimately enable us to increase the skilled work force required for accelerating the

process of industrialization and will enable small and medium enterprises to produce advanced

components which are currently being imported, hence saving precious foreign exchange. This

will not only develop the Human Resources but will also prove to be a successful venture for

import substitution, poverty alleviation and job creation.

It is also hoped that the workmen acquainted with technical skills will be a strong backbone for

the industry of this country in the future.

Regional office Islamabad will act as a bridge between light engineering sector of Islamabad

and Lahore Head Office, ensuring their access to a whole new horizon of Computer Integrated

Design and Machining Facilities and also ensure the training of the engineers, managers,

supervisors, technicians and workers to improve their capabilities and skills in modern

Advanced CAD/CAM Technologies for better productivity and performance.

Back up Support and Advisory Services PITAC has offered Technological Backup Support and Advisory Services to the Industry

specifically in the following areas: -

- Computer Integrated Plastic Mold Making

- Computer Aided Designing (CAD)

- Computer Aided Machining (CAM)

- Designing and Manufacturing of Production Tooling Equipment like Jigs , Fixtures, Dies,

Gauges etc

- Designing and Manufacturing of Plastic Injection Molds, Blow Molds, Compression Molds etc

- Precise Machining Techniques and Methods i.e. CNC Machining Centre, CNC Turning

Centre, CNC EDM Sinker, CNC EDM Wire cut, Small Hole Drill Machining, Jig Grinding, Jig

Boring, Precise Surface grinding etc

- Operation of Injection Molding Machines

- Advanced Inspection Techniques i.e. Co-ordinate Measuring Machine

- Programmable Logic Controllers

- Heat Treatment

- Foundry and Pattern making

- Preventive Maintenance and Calibration

- Super finishing Techniques i.e. Lapping , Honing, Precision Surface Grinding etc

SME‟s and Industry are being benefitted by PITAC through its Technological Back up Support &

Advisory Services in these fields. The various jobs done by PITAC are not from commercial

view point but to help develop local industry and to solve their manufacturing problems. Such

Jobs lead industry towards self-reliance, improvements in technical knowhow, saving production

equipment from break downs and to bring freedom from imports as far as possible. It has also

helped in development of SMEs.

Description No. of Jobs

Booked Delivered

July 2013 – June 2014 296 264

Human Resource Development Training Programs

The centre has continued to offer HRD Programs on various subjects of Management and

Technical Interest. The content of the courses have been carefully designed to meet the

requirements of the Industry and have kept under review to being them in conformity with the

changing needs. The HRD Programs consists of Regular Training Programs, Special Training

Programs and Seminars/Workshops/Symposiums. The regular training Programs are mainly in

the field of Mechanical Trade of 06 – 10 weeks duration whereas Special Training Programs can

be designed on request from various Organizations.

Regular Training Programs These programs are mainly in the field of Metal Working and cover the following subjects: -

Jigs and Fixture Design

Press Tool, Cutting Tool and Gauge Design

Injection Mold Design Basic / Advanced

AutoCAD (Civil / Electrical / Mechanical)

Piping Design

Air Conditioning and Refrigeration

Programmable Logic Controllers

CNC Machining Centre Operation and Programming

CNC Turning Centre Operation and Programming

CNC EDM Sinker / Wire cut Operation and Programming

3D CAD/CAM (DelCAM Power Shape / Power Mill)

3D CAD/CAM (Master CAM)

Advanced Measuring Techniques with Co-ordinate Measuring Machine (CMM)

Injection Molding Operation and Programming

Basic Welding

TIG / MIG Welding

Heat Treatment Techniques

Engineering Draughting

Inspection and Quality Control

Electrician

Welding and NDT Inspection NDT Level –I NDT Level –II Welding Inspection Level – I Welding Inspection Level – II

Instrumentation and Process Control System

MS Project / Primavera (P3)

Quantity Surveyor

Spoken English / IELTS

In Year 2013 - 2014, total 3064 Trainees get trained in the stated Training Programs.

The Trends in the recursive and admired training programs are shown below: -

Human Resource Development Seminars / Workshops / Symposiums During the Year 2013 – 2014, the following Human Resource Development Workshop /

Symposiums / Weekend courses were organized by PITAC independently or in Collaboration

with other Private / Public Sector Organizations.

Project Management – Weekend Program

This weekend program was to make people aware of the Project Management Life Cycle, its

Do‟s and Don‟ts while planning the Project, Project Execution, Monitoring and Risk Analysis in

accordance with the PMBOK 4th Edition.

The resource person Mr. Hasnain Javaid has extensive SCM, HR and project management

experience. This weekend program was especially designed for working professionals, Project

Managers, Planning Engineers etc.

Human Resource Management (HRM) – Weekend Program The purview of this Human resources management – Weekend Program involves several

functions i.e. Workforce planning, Induction, Orientation and On boarding, Skills management

,Training and development ,Personnel administration ,Compensation in wage or salary ,Time

management ,Travel management ,Payroll ,Employee benefits administration, Personnel cost

planning, Performance appraisal ,Labor relations etc.


experience. This weekend program was especially designed for working professionals, HR

Managers, Recruitment consultants etc.

Supply Chain Management (SCM) – Weekend Program

This weekend program was to make people aware of Supply chain business processes and

their integration. Supply chain management (SCM) is the management of a network of

interconnected businesses involved in the ultimate provision of product and service packages

required by end customers Supply chain management spans all movement and storage of raw

materials, work-in-process inventory, and finished goods from point of origin to point of

consumption (supply chain).It involves Customer service management ,Procurement ,Product

development and commercialization ,Manufacturing flow management/support ,Physical

distribution, Outsourcing/partnerships, Performance measurement ,Warehousing management

etc.


experience. This weekend program was especially designed for working professionals, SCM

Managers, SCM Trainees, and Students.

Computerized Accounting and Finance – Weekend Program This weekend program was to make people aware of Accounting Software (Peach Tree, Quick

book, MYOV Accounting Plus), Introduction to ERP System (Only Introduction), ERP Issues &

Process of ERP Implementation, E-Commerce & Conventional Sale/Purchase Process,

Financial Reporting and Financial Analysis, Excel Application for Budgeting & Forecasting,

Application for Corporate Finance/Financial Modeling, Capital Budgeting Techniques (NPV,

IRR, PBP, DPBP) etc

The resource person Mr. Rab Nawaz Lodhi has extensive experience on Quantitative,

Qualitative and Mixed Method Research and Analysis Techniques.

Health and Safety Officer – Weekend Program

This weekend program make people aware of Occupational Health and safety fundamentals,

Management systems, Hazards and risks at workplace, General requirements, Monitoring

Systems, Compensation for occupational injuries & diseases, General safety applications . This

program enable them to identify hazards, assess risks to health and safety, put appropriate

safety controls in place and provide advice about accident prevention and occupational health to

management and employees.

The resource person Mr. Muhammad Imran has extensive experience as HSE Professional.

The trainee‟s trend in our weekend training programs is as follows: -

PITAC‟s contribution in Punjab Skill Development Fund (PSDF) 1. Skill Development Programme (Skill for Job 2012 – 13)

Punjab Skill Development Fund (PSDF), Skill for Job 2012 – 13 Programme and PITAC aimed

to provide skills and vocational training opportunities to the poor and vulnerable populations of

the four poorest districts of Punjab (i.e. Bahawalnagar, Bahawalpur, Lodhran and Muzaffargarh)

for improving their ability to find work or progress in their current employment or develop an

enterprise. It also aims to up-skill those in low-skills-low-returns‟ jobs and enhance their earning

potential.

PITAC has signed a contract with PSDF on 30th July, 2012 to train 200 trainees in the following

fields: -

CNC Machine Operator

Machinist

Sr. No Training Course Duration (Months)

No. of Trainees

1. CNC Machine Operator - I 03 23

2. CNC Machine Operator – II 03 20

3. CNC Machine Operator – III

03 21

4. CNC Machine Operator - IV

03 24

5. Machinist - I 03 17

Skill for Job 2012- 13 project successfully got completed on 15th September 2013, in which total

163 trainees were trained from the four target districts.

2. Skill Development Programme (Skill for Job 2013 – 14)

Under Skill for Job 2013 – 14, PITAC has signed a contract with PSDF to train 342 trainees from

the target districts (i.e. Bahawalnagar, Bahawalpur, Lodhran, Muzaffargarh, Rahim Yar Khan,

Khanewal and Vehari) of Punjab:

During the first two batches of PSDF Training Programs, 170 Trainees were trained in following

fields: -

Sr. No Training Course Duration (Months) No. of

Trainees

1. CNC Machine Operator - I 06 15

2. Milling M/C Operator - I 03 14

3. Milling M/C Operator - II 03 11

4. Turner - I 03 14

5. Turner – II 03 16

6. PLC – I 03 25

7. PLC - II 03 25

8. Welding – I 03 25

9. Welding – II 03 25

The Third Batch of PSDF Training started on 05th June 2014, in which 82 trainees will be trained

in the listed fields: -

Sr. No Training Course Duration (Months) No. of

Trainees

1. CNC Machine Operator 06 15

2. Milling M/C Operator 03 11

3. Turner 03 11

4. PLC 03 21

5. Welding 03 25

Total Trainees: - 82

6. Machinist – II 03 15

7. Machinist – III 03 19

8. Machinist - IV 03 24

Total Trainees: - 163

3. Skill for Job 2014 – 15

Under Skill for Job 2014 – 15, PITAC has submitted the Expression of Interest (EoI) for the

conduction of Vocational courses. After the successful acceptance of EoI, PITAC has submitted

Request for Proposal (RFPs) for the below listed training programs. PITAC is anticipating

training 450 personnel from the target districts in the following fields, subjected to the successful

bidding and contract awarding by PSDF.

Present Issues & Problems

The main issues which lessen the anticipated impacts of PITAC are as follows: -

1. Energy Crisis in Pakistan

Pakistan is presently facing a serious energy crisis. Due to the consequent demand for energy,

worthwhile steps should be taken to install new facilities for generation of the required energy

sources. Now, the demand exceeds supply and hence “load-shedding” is a common

phenomenon through frequent power shutdowns. This shortage is badly affecting industry,

commerce and daily life of people.

So in order to meet the production deadlines & to continue our training activities both efficiently

& effectively, a power generator is inevitable.

2. Capacity Limitation

Capacity Limitation is a factor which confiscates the centre from supporting the SME‟s up to

their requirements. There are quite a number of jobs that have been declined, due to the

capacity limitation of the CNC Machining Centre.

Because there is only one CNC Machining Centre in the PITAC, it becomes a bottleneck as it is

being used both for manufacturing & training purposes.

Sr. No Course Name

Training Duration

(In Months) No. of

Batches / Yr

Max No. of Trainees /

Batch

Trainees

Total

A C E

1 Welder (Gas & Arc) 3 4 25 100

2 CNC Machine Operator 6 2 25 50

3 Milling Machine Operator

3 4 25 100

4 PLCs 3 4 25 100

5 Turner 3 4 25 100

Total: - 450

3. Rigid Procedural Requirements for Import of Tools & Consumables

With the passage of time, inventory levels of Cutting Tools & Consumables for CNC machines

are almost exhausted.

Non availability of consumables like Air Regulator Filter Elements, Mist Separator Elements,

Makino Spindle Lubricants, Line Filters, Exhaust Cleaners etc & Machine spares in local market

is the main factor which forces towards the lengthy procurement processes & causes

disturbance in both training & mold manufacturing.

Due to constraint on foreign exchange transactions & direct imports as per Pakistan

Procurement Regulatory Authority (PPRA) regulations, we have to involve tendering for higher

amounts, which usually get delayed because of rigorous procedural requirements.

Budgetary Deficit

Budgetary deficit is the other factor which constraints the development in the manufacturing &

training facilities of the centre.

The other matters like Up gradation & Modernization of PITAC Facilities, Acquisition of New

Software‟s & annual maintenance of old software‟s etc, are some of the matters which remains

unaddressed due to financial discrepancies.

Financial Position

Revenue Receipts

Year 2013 - 2014

Production Rs 2,200,637/-

Training Rs 18,756,722/-

Miscellaneous Rs 1,271,344/-

Gross Total: - Rs 22,228,703/-

Budget Allocation

Year 2013 - 14

Grant In Aid Rs 207,000,000/-

PITAC Own Receipt Rs 20,000,000/-

Total Budget: - Rs 227,000,000/-

10. NATIONAL PRODUCTIVITY ORGANIZATION (NPO)

OBJECTIVE OF TRAINING / ORGANIZATION

To inculcate the Productivity & Quality culture all over the Pakistan.

To Promote Resource Efficiency in all Economic Sectors of Pakistan.

Sr. No Fields of Trainings No of Trainee to be trained in four years

Any other activities (other than training) to be carried out by NPO

1 Lean Manufacturing (5S, Kaizen)

150 Consultancy service on

Lean

2 Diploma in Industrial Engineering

50 Consultancy service on Industrial Engineering

3 Energy Management (Diploma and awareness programs)

200 Consultancy service on Energy Management/

Energy Audit

4 Quality & Productivity 2000 Consultancy

5 Total Productive Maintenance 75 -

6 Fire Hazard Safety/First Aid, OHSAS

1100 -

7 Management 1000 Management System Audit

8 General Awareness Training Lean, TPM, Seven Wastes, Kaizen

1310 -

9 Soft Skill Trainings

Leadership

Motivational Skills

Entrepreneurship

Change Management

2100

Development of Demo Organization

10 Food Technology (Food Safety, Food Security, etc)

100 -

11 Corporate Trainings 600 -

12 Train the Trainers 130 -

13 Certifications /DPP/PMP/Six Sigma courses

80 -

14 Distance Learning 300 -

15 Environmental Protection 1000

16 E-Learning 700 -

17 IFC Training 320 -

18 E Learning Trainings on Energy Management

240 -

19 Shop Floor Training 225 -

International Training:

21 Trainings 350 Technical Expert Services / Consultancy

22 International Multicounty Programs

200 International Research Projects

23 International E-Learning 320

Programs through Video Conferencing

24 International Self e-Learning Program

3000

25 National Workshops 200

Donor Projects:

26 Training on Entrepreneurship 300 -

27 Exhibitions 5 Exhibitions

Total 16,350

MONTHLY PERFORMANCE REPORT JANUARY 2012 TO DECEMBER 2014 (NATIONAL LEVEL COURSES)

Years Total Training

Held

Trainees Participated

Objective Achievements

Jan –Dec

2014

110

1323

Realizing the importance of training for HRD and developing change agents to act as a catalyst in different sectors of the economy, NPO-Pakistan organized training courses on different topics like Project Management Professionals (PMP), Productivity Specialist, Six-sigma Green Belt, Logistic and Supply Chain, Human resource Development etc with the establishment of other regional offices on NPO during the last three years.

NPO role is to enhance the productivity & quality of the organizations, especially domestic micro small & medium enterprises (MSMEs), industrial and services sectors by restructuring and revitalizing enterprises and upgrading human resource skills. Our approach deals with the national dimensions of technical skills, soft skills and productivity enhancement and its relation to the global perspective, side by side

The participants showed keen & positive interest in learning the skills and hoped that such courses must be conducted in future.

Successfully conducted for awareness and capacity building of the participants

Since 2001, more than 20, 000 participants from different sectors of the economy benefited from these training programs

Total

110

1323

imparting training & skills for self employment.

Specialized trainings are being provided in 5S Kaizen management, Lean Manufacturing, Quality & Productivity Improvement through JIT & TPM Techniques, Productivity Enhancement through TQM tools, QMS ISO-9001:08, EMS ISO-14000, SA-8000, HACCP, GP, QCC, SPC, Reengineering, Benchmarking and many others.

PERFORMANCE REPORT JANUARY 2012 TO DECEMBER 2014 INTERNATIONAL RELATIONS

Years Total Training

Held

Trainees Participated

Objective Achievements

International Courses

Jan –Dec

2012

Jan –Dec 2013

Jan –Dec 2014

48

43

58

70

75

80

Basic principles of human centered productivity and its impact on competiveness and sustainability of organizations

Observe and share of best practice of SME‟s in recovering the supply chain and business activities, Identifying the essential elements of developing and strengthening business partnerships

Reducing energy consumption and improve energy performance of organizations, Understand the

Awareness and capacity building of the participants and organizations

build up strong relationships among SME owners/top managers in member economies and allow them to exchange their experiences in productivity improvement activities

promotion of green growth/economy and achieving

methodology and standards of ISO50001

Demonstrate the applicability of the Knowledge management frame work and innovation in the public and private sectors

sustainable development by adopting Green Productivity (GP) with

E-Learning Courses

Jan –Dec

2012

Jan –Dec 2013

Jan –Dec 2014

03

05

03

105

100

90

To review the key strategies of the export promotion & develop programs of governments in member countries & assess the extent to which these are supporting productivity improvement

To enable participants to understand the standards, requirements and application of the Information Security Management System (ISMS) based on the ISO 27000 Series.

To enhance participants understanding of the management of organic agrifood products in food supply chains

TES

Jan –Dec

2012

Jan –Dec 2013

Jan –Dec 2014

04 03 05

195

90

To be implemented

Kaizan Management

Organic Certification and Quality standards

S & Productivity Tools

Quality Management systems

Green & Black Belt; Six Sigma

Conduct awareness and capacity building of the participants and organizations

Multi Country

Jan –Dec 2012

Jan –Dec 2013

Jan –Dec 2014

01

03

01

14 International

08 Local

40 International

24 Local

16 International

08 Local

Understand the challenges and difficulties for the performance management in the public sector by sharing case studies

Discuss the issues and capacity development needs of agri-business and provide the platform for presenting and discussing the latest, scientific methodologies

Building horticultural values chains

Food safety Management systems ISO 22000

Solutions of effective us of performance management

Self Learning

Jan –Dec

2013

Jan –Dec 2014

04

08

300

500

To provide an understanding of innovation from a service sector perspective for enhancing productivity

To learn about and share the implementation strategies for successful application of innovation in the service sector

To promote innovation in the service sector by sharing stories

Understand the concept and implementation of the program

11. NATIONAL FERTILIZER CORPORATION (NFC)

The demand of Urea Fertilizer in the Country outstripped its supply as the Domestic Production

was not sufficient to meet the requirement of the farmers leading to its shortage, black

marketing and resultant hike in prices. In order to defuse the force majeure crisis, National

Fertilizer Corporation imported the Urea Fertilizer and distributed to farmers through its

distribution network of National Fertilizer Marketing Ltd. The comparative position of Sales &

Profit against the import and distribution of Urea Fertilizer during the year is as follows:

(Rs./Million)

2013-14 2010-11 2011-12 (Prov)

- Sale 41446.064 26806.925 27572.505

- Pre-tax Profit 4768.345 1364.028 1640.814

- Taxes & Duties paid 1445.498 451.798 550.999

12. Export Processing Zones Authority (EPZA)

Export Processing Zones Authority (EPZA) was established in 1980 by the Government of

Pakistan with the mandate to plan, develop, manage and operate Export Processing Zones in

Pakistan.

EPZA Mandate Export Processing zones Authority (EPZA ) was established by the Government of Pakistan

through ordinance IV of 1980 with the mandate to plan , develop and manage Export

Processing Zones in Pakistan . EPZA is an autonomous body working under the ministry of

industries.

EXPORT FROM EPZs during 2014 (July to December) is as under:

(Amount US$)

Name of Zones Export Performance

Karachi Export processing Zone 197.205

Saindak Export Processing Zone 47.306

Risalpur Export Processing Zone 0.487

Sialkot Export Processing Zone 0.177

Duddar Export Processing Zone 0.000

Tuwairqi Steel Mills Ltd EPZ 0.913

Gujranwala EPZ 0.013

Total: - 246.101

INITIATIVES AND ACHIEVEMENTS:

EPZA has taken following initiatives to promote export of the country along with the

achievements during preceding years.

EPZA PERFORMANCE:

The performance of EPZA for the year 2014 (July to December): (Amount US$)

Description 2011-12 2012-13 2013-14 2014-15

Units

Sanctioned

24 33 51 14

Export 485.269 475.325 266.286 (Jul-

Dec 2013)

246.101 (Jul-Dec 2014)

Presumptive

Tax

4.852 4.753 2.663 2.461

Envisaged

Capital

Investment

22.159 43.300 60.578 7.648

EPZ AT FAISALABAD

EPZA management is eager to establish EPZ in Faisalabad so that the business potential,

particularly of the textile sector of Faisalabad could be utilized to further increase exports.

Accordingly, after approval from EPZA Board in its meeting 101 meeting held on 10th

September, 2012, Chairman EPZA signed the Memorandum of Understanding (MOU) with

Faisalabad Industrial Estate Development and Management Company (FIEDMC) to establish

the FIEDMC - EPZ initially on an area of about 250 acres, located in M-3 Industrial City on

Motorway, which will be extended further upon colonization in a phased manner. FIEDMC will

develop the land with all infrastructure facilities for smooth industrial operations.

Respective Board of Directors of both the organizations have agreed in principle to enter into a

joint venture agreement with the ground breaking ceremony by the Prime Minister of Pakistan in

near future.

EPZ AT GWADAR

Government of Baluchistan has allotted 1000 acres land in Mouza Karwat Gwadar which is

approximately 45 km from Gwadar port. EPZA has erected boundary fence around 1000 acres

for protection of land from land grabbers. In addition to that EPZA hired the services of Messrs

Techno Consultant International for planning, designing and preparation of PC-I/PC-II for

development of EPZ at Gwadar.

Government of Pakistan had also constituted an advisory committee on development of

Gwadar. EPZA had also requested Ministry of Industries & Production (MOIP) for an allocation

of funds for development of Gwadar EPZ in the coming budget of FY-2014-15 and PC-I in this

regard has been submitted to Ministry of Industries & Production for approval.

EPZ at Sukkur:

EPZA is hereby getting efforts to establish an Export Processing Zone at Sukkur. However, 100

Acres in SITE area Sukkur has been earmarked for Export Processing Zones Sukkur. The

EPZA has signed MOU with the SITE for establishment of Sukkur EPZ. The process for

infrastructure development preparation of PC-II & PC-I is under process for onward submission

and approval of project cost from PSDP funding.

Expansion of KEPZ:

KEPZ being the first project was established on the area of 211 acres. Later after colonization of

Phase –I, management decided to develop phase- II on an area of 94 acres, where the

development Is complete. Now for further expansion of KEPZ is underway on an area of 105

acres of land which was recovered from land grabbers and now the construction of boundary

wall is in progress.

Security Environment:

EPZA has taken concrete steps to improve law and order situation around and within the zone.

Mehran Highway dualization is complete and open for transport. The project has reduced

access time and traveling has become secure and trouble free.

Provision of round the clock security

Keeping a vigilant eye on the volatile law and order situation, EPZA has made special

arrangements to provide round the clock security to the industries and their work force operating

in its premises. Number of well trained and fully equipped security guards, check posts and

surveillance vehicles have been significantly increased for patrolling purpose during any time of

day and night.

Export Processing Zones Authority's recent achievements and future plans clearly suggest that

Pakistan has a bright opportunity to improve its exports and foreign exchange reserves provided

the Government extends its all out support to this institution which is already playing a colossal

role in improving national economy.

Creation of Hospital and Utility Store

In order to provide maximum facilities to investors in Karachi Export Processing Zone (KEPZ),

EPZA is building a Hospital and a Utility Store to further improve the working conditions for

investors and their work force.

Key Figures All Pakistan

Total Number of Units 301 units (All Zones)

Total Capital Investment US $ 1.23 Billion

Total Cumulative Imports US $ 2.457 Billion

Total Exports US $ 5.258 Billion

Total Presumptive Tax (1%) paid from 2000 to

date and deposited by EPZA in the Govt

Exchequer

US $ 42.871 Million

Total Employment 40,000 (Approx)

Women Work Force 70%

Export Processing Zones in Pakistan:

1. Karachi Export Processing Zone

2. Tuwariqui Export Processing Zone

3. Sialkot Export Processing Zone

4. Gujranwala Export Processing Zone

5. Risalpur Export Processing Zone

6. Saindak Export Processing Zone

7. Duddar Export Processing Zone

Facilities giving by Export Processing Zones:

One window operation with simplified procedures

All facilities like electricity, gas and water are made available

Peaceful, secure and environmentally protected population free work area

Inter unit transfer of finished goods among exporting units allowed

Easy access to sea and air ports

Abundance of skilled and educated workforce

Sub-contracting without limit on variety and quantity is allowed outside the zones as well

as within zones

13. PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION (PIDC)

The role of PIDC is to develop non-traditional and unorganized sectors to contribute effectively

towards accelerated growth in export from Pakistan through private sector. PIDC through its

subsidiaries develops and expand technical/engineering /craftsmen skills in various disciplines

of socio-economic importance.

Pakistan Gems and Jewellery Development Company

Projects for Skills Development and Technical Up- Gradation:

a. Gems and Jewellery Training and Manufacturing Centre, Karachi

Gems & Jewellery Training & Manufacturing Centre Karachi provides knowledge and hands on

experience to the students in various traits of gems & jewellery, training them in the spheres of

diamond grading, gemstone identification, Gemstone Faceting, Gemstone carving, Patwa,

Soumak, casting, stone setting, bench work, Manual jewellery designing, computer aided

designing (Jewel CAD & Matrix), jewellery pattern making in wax, Cost Management and Time

Management. Following are the programs offered in GJTMC Karachi in the year 2013-14:

GJTMC - Karachi

Sr. No Program Targets

(2013-14) Achieved

1 Matrix 3 3

2 Gemstone Identification 2 2

3 Manual Jewellery Designing 1 1

4 Basic Jewellery Manufacturing 1 1

5 Gemstone Faceting 1 1

6 Gemstone Carving 1 1

7

BBSYDP Gateway Training Programs (Bead & Wire Jewellery making, Gemstone Cutting, Jewellery Designing, Gems Identification, Studded Jewellery Making)

5 5

TOTAL: - 14 14

b. Gems and Jewellery Training and Manufacturing Centre, Lahore

Gems and Jewellery Training and Manufacturing Centre (GJTMC), Lahore courses in four

streams, namely; Jewellery Designing, Jewellery Manufacturing, Gemology and Gemstone

processing. Following are the training programs offered at GJTMC Lahore in the year 2013-14: -

GJTMC - Lahore


(2013-14) Achieved

1 Gemology Trainings (Gemstone Identification / Colored Stone - Diamond Grading / Gemstone Mining / Gemstones Prospecting)

4 4

2 Lapidary Trainings (Gemstones Carving /Gemstones Faceting)

8 (4 each)

7

Manual Jewellery Designing Trainings 6 5

3 Computer Aided Jewellery Designing 5 4

4 Jewellery Manufacturing 6 5

TOTAL: - 29 25

c. Gems and Jewellery Training and Manufacturing Centre, Gilgit

The centre caters the need of training of the gems & jewellery sector of Northern Areas of

Pakistan, in Mining, Gemstone processing and identification. Trainings programs are being

conducted in the spheres of Gem Faceting, Gem Carving, Gem identification and Gemstone

Mining. Following are the training programs offered at GJTMC Gilgit in the year 2013-14: -

GJTMC - Gilgit


(2013-14) Achieved

1 Gemology Trainings (Gemstone Identification / Colored Stone - Diamond Grading / Gemstone Mining / Gemstones Prospecting)

8 7

2 Lapidary Trainings (Gemstones Carving /Gemstones Faceting) 6 6

3 Manual Jewellery Designing Trainings 8 5

4 Training Seminars 6 6

TOTAL: - 28 24

d. Gems and Jewellery Training and Manufacturing Centre, Peshawar

The project provides the facility for skills development in the spheres of Gem Identification,

Gemstone faceting, Gemstone carving, Manual Jewellery Designing, CAD/CAM and common

facility in gemstone processing, CAD/CAM and Gem identification/grading. Following are the

training programs offered at GJTMC Peshawar in the year 2013-14; -

GJTMC- Gilgit

GJTMC - Peshawar

Sr. No Program Targets (2013-14) Achieved


2 Wire Wrapping Jewellery Designing

03 03

3 CAD/CAM 02 02



TOTAL: - 16 16

e. Gems & Jewellery Training and Manufacturing Centre, Quetta

The center caters the need for Gems and Jewellery trade in Balochistan. Gems & Jewellery

training is being offered in Gemstone Identification, Gemstone Faceting, Gemstone Carving and

Manual Jewellery Designing. Following are the training programs offered at GJTMC Quetta in

the year 2013-14: -

GJTMC - Quetta

Sr. No Program Targets (2013-14) Achieved


2 Diamond Grading & Pricing 02 01



5 Manual Jewellery Designing 04 02

6 Natural Enhancement & Synthetic 01 01

7 Cabochon & Beads making 01 01

TOTAL: - 32 29

f. Gems and Jewellery Training and Manufacturing Centre, Sargodha

The centre is ready for operations and training programs in different spheres of gems and

jewellery will be offered to the local sector.

g. Gems and Jewellery Training and Manufacturing Centre, Muzaffarabad (AJK)

The centre has recently been made operational and training in the field of Gemstone Faceting is

being offered to the gems and jewellery sector of Muzaffarabad (AJK) and the surrounding

areas.

Gem Exchanges:

Gem Exchanges have been established by PGJDC at Peshawar and Quetta, primarily to

facilitate linkages between buyers and sellers of gemstones. It is an integrated approach of

providing all the services under one roof, reducing costs and increasing cooperation amongst

different stakeholders of the value chain.

Assaying/Hallmarking

Two Assaying and Hallmarking Centres have been established at Lahore and Karachi.

4. Furniture Pakistan

The main objective of Furniture Pakistan is to facilitate the furniture industry through provision of

access to latest furniture manufacturing technology and produce skilled labour. Following

activities have been completed since May 2013.

Construction work of three sites i.e. Common Facility Training & Manufacturing Centers

(CFTMC) Chiniot, Peshawar, & new site for Center of Excellence for Wooden Arts

(CEFWA) Sargodha has been completed.

State of the art machinery for CFTMCs has been procured and shifted to the centers for

operations.

Prepared-Prospectus, Curriculum, Training manual for „3 month Carpenter Course‟.

Have chalked out province wise plan & implementation matrix (2013-18) for development

of furniture sector in Pakistan.

Chalked out future strategy for self-reliance of Furniture Pakistan and its projects, in order

to lower the burden on government ex-chequer.

5. Pakistan Hunting & Sporting Arms Development Company

Export orders amounting to USD $ 1.3 million has been received by the Pakistani Arms

Companies through facilitation of PHSADC out of which a shipment of USD $ 19,400/- has been successfully matured.

The Company has provided technical support to the local SMEs for mass production till

product development as per international best practices to make them competitive in the international market.

Fresh Investment in the Sector PHSADC encourages newly market entrants who wish to start their business of hunting & sporting firearms and accessories. There are now over 66 units in Peshawar as compare to only 37 in 2008 who are manufacturing quality firearms using latest machineries and are heading towards international market.

6. Aik Hunar Aik Nagar (AHAN)

The concept of AHAN is designed to emulate the OVOP (One Village One Product) of Japan and

OTOP (One Tombon One Product) of Thailand programs which have been quite successful in

modernizing non-farm micro-and small-enterprises (MSEs) and thus improving employment

prospects of the poor. AHAN objective is to support poverty alleviation initiatives of GoP through

facilitating rural craft persons, artisans and poor producer groups in accessing enterprise

development services and cater for neglected sector of hand crafted products produced in rural and

semi urban areas.

Performance & Achievement

Newly 06 training projects are in progress in all over the Pakistan, specially focusing new

rural and suburban areas more than 30 districts and targeted more than 7,000 new

artisans and craft persons throughout the country, 67% of these beneficiaries are women.

6000 approx rural Artisans have been trained in new products development.

5000 new products have been developed in various categories i.e., Textile, Ceramics,

Silver, Wood, Leather products etc.

August 15-17, 2014, AHAN participated in UK-Pakistan Trade Festival at Manchester, UK

where a diverse range of handmade products from Pakistani crafts person were placed

including Textile, Ceramics, Wood and Leather Products.

Pakistani handmade products (primarily textiles) have been placed in display center at

PFDC, New Delhi, India. It has been very successful to market Pakistani handmade

products in Indian markets.

Linkages with various partners have been established and MoUs signed, such as;

Assessment & Strengthening Program, RSPN/USAID, Punjab Skill Development Fund,

Govt. of Punjab, Refugee Affected & Hosting Areas (RAHA) Programme UNDP-Govt. of

KPK, FATA Development Authority Govt. of KPK, Community Development Program Govt.

of Sindh, Trade Development Authority of Pakistan (TDAP), SAARC Chamber of

Commerce & Industries, Handicrafts Association of Pakistan (HAP) & Different Chamber of

Commerce & Industries

7. Southern Punjab Embroidery Industries (SPEI)

Southern Punjab Embroidery Industries was established as under Public-Private Partnership. Its

funding included public sector share of 26% and rest by private sector to promote hand & machine

embroidery as an industry to compete in the local as well as global market through skill

development.

Performance & Achievement

SPEI has accomplished the value addition work of about PKR. 14.22 Million during the period of

July to December, 2014.

YEAR BOOK 2013-14 INDEX 2. Message from Minister for ... › moip › userfiles1 › file › Year...

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Transcript of YEAR BOOK 2013-14 INDEX 2. Message from Minister for ... › moip › userfiles1 › file › Year...