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ANNUAL REPORTS OF ACTIVITIES - 2004-05                              
During the period under review the Chamber has been active under the dynamic, experienced and far-sighted leadership of its President Mr. Saleem H. Mandviwala and as many as seven meetings of the Executive Committee were held till August, 2005. the over all performance of the chamber can be gauged and ascertained by going through the President's review and the report of activities of the Chamber.

The major issues that came under consideration of the President and the Executive Committee were of both macro and micro economic nature that are being confronted by the Business Community at Lasbela District. The Chamber's main contention has been that all policies at macro and micro level should be framed that should contribute to the acceleration of investment, revival of sick industries, facilitation of industrial production, improvement of infrastructure facilities, Law and Order situation and socioeconomic conditions of the people.
During the period under review the Chamber also worked to improve the liaison with CBR and other federal and provential government departments, LIEDA, City and district governments, etc. aimed at improving the working conditions for the commercial and industrial activities in Lasbela district

Following is a brief of the activities of the Chamber

SUPPLY OF NATURAL GAS, WINDER AND UTHAL

The Chamber has been pursuing the matter of supply of NAtural gas to Winder and Uthal since quiet a long time, as it is necessary for industrial investment in these areas. The matter was discussed with the Prime minister Mr. Shawkut Aziz, during his visit to Hub in January, 2005, who agreed in Principal to arrange supply upto at-least Winder in the 1st faze. Later on during the meeting with the Governer of Balochistan, Mr. Owais Ahmed ghani in august 2005 this matter was discussed by the Chamber's delegation. The governer informed about the interest of Prime minister to implement this project with an estimated cost of Rs. 552,000,000. he also showed interest to take up the matter with the prime minister and other relevant departments for its expeditious implementations.
 

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UNCONDITIONAL SUPPLY OF GAS FOR CAPTIVE POWER GENERATION.

In order to provide an incentive for the promotion of industrial investment in Lasbela District and to facilitate the existing industrial units in the region, the Chamber proposed to the minister of state for petroleum and natural resources, government of Pakistan to withdraw the conditions of providing evidence for exports and to get recommendations from the Export Promotion Bureau for supply of Natural Gas to the industries for Captive Power Generation.
The withdrawal of above condition would not only reduce the production cost of the existing industries, but also the local and foriegn investors would be attracted to make investment to cater to the requirements of upcoming Free Port of Gawader.
During the meeting of the Chamber's delegation with Governer of Balochistan, the matter was again discussed and matter of shortage of gas was also come under discussion.
The Governer proposed the Chamber to take-up the matter through representations for getting the supply from the proposed procurement of Gas from Iran and Turkmanistan order to make up the shortage.

LINKING OF KARACHI NORTHERN BYPASS TO HUB BRIDGE

On the proposal of the President Mr. Saleem H. Mandviwalla, the National Highway Authority agreed to extend the Karachi Northern Bypass from its interchange at Lucky to Hub Bridge and started the work on this project. After completion of this road, the distance between Karachi and Hub will reduce by about 3.5 km`thus facilitating the industrialists and workers visiting Hub and other areas of Lasbela district on daily basis.
 

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ENSURING TO KEEP THE RCD HIGHWAY OPEN UNDER ANY CIRCUMSTANCES

It has been a routine practice in Hub that during strikes the protestors blocked the RCD highway thus cutting not only the Lasbela District from the whole country, but also the Southern part of the Province of Balochistan, including Gawader, Khuzdar, Quetta etc. Due to this closure the commercial and industrial activities of the region become standstill and virtually the whole area become hostage of few unruly persons, as the local administration has been unable to control the situation.

The same ugly event happened during the strike calls on 31st March, and 2nd April, 2005. This state of affairs was brought to the notice of the President and Prime Minister of Pakistan, Governer and Chief Minister of Balochistan showing the Chamber's apprehension that this would not be conducive to further economic growth in the region.

In order to control this situation it was suggested that either FC be deployed or take some other strict measures, to ensure that the RCD highway from the Hub river bridge onwards, would remain open throughout the year under any circumstances.
However after this communication, the situation is under control of the local government and the commercial and industrial activities in the region are going on peacefully.

CONCERN OVER FATAL ACCIDENTS ON KARACHI NORTHERN BY PASS

In order to avoid the fatal accidents which took place in a series on Karachi Northern Bypass, the Chamber's Delegation led by its Senior Vice President Dr. Mohammad Aslam and comprising the DSP Traffic Zone-IV, Karachi and Mr. Tariq Mughal and Mr. Muhammad Yousuf Barakzai, Project Director(LEP & KNBP), NHA at NHA Complex, Karachi. It was decided in the meeting that the Karachi Northern Bypass be declared as one way for traffic going to Hub and the RCD Highway for the traffic coming from Hub to Karachi, in order to avoid fatal road accidents on these Highways. It was also decided that the NHA would improve the condition of RCD Highway and would provide Road signs and road furniture etc. to further facilitate the traffic.

REGULAR AND ADEQUATE SUPPLY OF WATER FROM LASBELA CANAL

During the meeting of Chamber's Delegation in August, 2005 with the Governer, Balochistan, the President of the Chamber referred to the news item published in the press on 26th August, 2005 that the water level in the Hub Dam has receded to 305 RL (Reservoir Level). The dead reservoir storage level is 276 RL at which the water supply from the Dam will stop. He proposed that the RL for the supply of Karachi should be fixed at 300, so that the supply to Lasbela may not be stopped as the consumption of Lasbela is very little as compared to that of Karachi and also there is no other source of water supply for this region.

The Honourable Governer proposed to get actual status of the supply from Hub Dam form the Irrigation Department and to advise the Irrigation Department to ensure the monitoring system to get due share of water from Hub Dam. He expected that this would improve the situation.

During last year, the Irrigation Department, Government of Balochistan, closed the Lasbela Canal for silt clearance and periodical maintenance. It was firt closed from 7 - 22 Feburary and then from 21 March to 4 April, 2005. Keeping in view the importance of un-interrupted water supply for industrial operations, the Chamber took up the matter with the Irrigation Department and suggested to consult the Chamber and other consumers before finalizing the shut down schedule.
The Executive Engineer of the Irrigation Department, however, contacted the Chamber personally and assured to resume the supply as soon as possible. Consequently the water supply was resumed well before the end of closure period thus minimizing the difficulties of water consumers.
 

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INCREASE IN WATER CHARGES BY LIEDA

The proposal of LIEDA to increase the water rates by Rs. 10/- per 1000 gallons for industrial consumers located inside and outside HITE, Hub, was considered in the meeting of the Executive Committee of the Chamber held on 4th March, 2005, who gave its consent on the condition that LIEDA would set up an effluent water treatment plant at HITE, carry out the repair and improvement of fresh water distribution system with setting up of filter plant to provide filtered water and 50% of the increased amount that is Rs. 5/- per 1000 gallons to be deposited in a seperate bank account for making expenses towards developement projects of Hub and other areas in Lasbela district. The bank account may be operated jointly by the President and MD LIEDA.

The LIEDA Board of Directors in its meeting held on 28th Feburary, 2005, decided that the increase in water rates would be shared 50% each by LIEDA and LCCI (Lasbela Chamber of Commerce and Industry) for the purpose of welfare of general public under the management of lasbela Development Committee.

In pursuance of the above, the bank account ha sbeen opened which is being jointly operated by the LCCI President and MD, LIEDA for the purpose of funding the welfare project after approval of the Lasbela Development Committee.

LAND EXTENTION FOR LIEDA

Keeping in view the interest of local and foreign investors due to the enhanced importance of Lesbela District with the construction of Karachi Nothern Bypass and Coastal Highway, the Chamber's delegation during a meeting with the Governor of Baluchistan in January 2005 proposed the land expansion programme for the develpoment of Industrial Estates through LIEDA. The Lieda has started working on the land extension programme for further industrailization in the region.

EXTENSION OF CELLULAR PHONE NETWORK TO WINDER AND UTHAL

Keeping in view the importance of cellular communication system for smooth industrial and commercial operations, particularly for those localities where PTCL network does not work properly, the Chamber suggested the Mobilink GSM, Ufone, and Instafone to extend their cellular networkto Winder and Uthal and onwards to other areas in Lasbela District.
M/s. Mobilink GSM responded and assured the Chamber that they have included this area in their planning of expansion. Cnsequently they have now extended their network upto Gaddani and onward they are going ahead according to their schedule. During the meeting with him on 26th August, 2005, the Governor of Baluchistan informed that the mobile phone companies will extend their network at least on the main highways of Baluchistan within two years.
 

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LAYING OF RAILWAY TRACK FROM KARACHI TO HUB

Considering the importance of Lasbela District due to its being the Gateway to the Free port of Gawader, the Chamber's proposal to the Ministry of Railways for laying a railway track from karachi to Hub and starting a passenger and goods train to facilitate the industries to reduce the cost of transportation of their workers and goods, thus reducing their cost of production.
The Railway Authorities took up this proposal very seriously and advised the Chamber to contact the railway approved consultants to prepare the feasibility study of the project. The Chamber contacted as many as eight such consultants and ultimately M/s. Pakistan Railways Advisory and Consultancy Services (Pvt) limited, Islamabad sent their proposal for preparing teh feasibility study.
The President put up the proposal in the meeting of the Board of Directors od LIEDA held on 11April 2005, for consideration, where it was proposed that the cost of Rs. 3.00 million for preparing the feasibility should be borne by the Government of Baluchistan. The Chamber approached the Government of Baluchistan throught the Industries and Commerce Department, who gave a good response and now the PC-II of this proposal prepared by the Chamber under consultation of the Railway Consultants, is under active consideration of the Government for release of the Funds. The Governor and the Chief Sectretary of Baluchistan are also taking interest in this project. After getting this approval the survey for preparing Feasibility study would be started.

EXTENSION OF ELECTRICITY LOAD FOR HUB AND WINDER-CHAMBER DELEGATION'S MEETING WITH M.D. KESC AT KARACHI
A delegation of the Chamber led by its President, Mr. Saleem H. Mandviwalla and comprising the MD, LIEDA, Col (R) Bashir Ahmed Nadim and concerned officers of LIEDA, visited the office of the Managing Director of KESC, Brig. Tariq Mahmood Khan Saddozai, at Karachi on 12th Feburary, 2005 to discuss the matter of enhancement of electricity supply load to Winder and Hub industrial areas of Lasbela District and the revision of electricity tariff for LIEDA which purchases the electricity from KESC in bulk for onward distribution to its consumers.
Brig. Tariq Mahmood Khan Saddozai welcomed the delegation of LCCI, which visited the KESC for the first time. He assured the delegation of KESC's support and help to solve the problem.
Mr, Saleem H. Mandviwalla, President, showed his confidence that the problems of the Electric supply to Industrial areas of Lasbela District would be resolved through the support and co-operation of KESC.

Col(R) Bashir Ahmed Nadim, presented the issues one by one and Brig. Saddozai MD, KESC after consulting with his team, decided that the electricity supply load will be enhanced by 5 mega watt for Winder Industrial Estate, as requested by LIEDA from the KESC transformer already installed at Winder and by 4 mega watt for Hub Industrial Estate. The necessary transformer and other equipments will be installed by KESC from its own resources. He also decided to take up the matter of revision of tariff from C-2 to B-3/B-4 for Winder with NEPRA for which the KESC has already recommended. He advised LIEDA to present the proposal for granting subsidy.
 

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LEVY OF PROFESSIONAL LICENSE FEE ON FACTORIES

The Tehsil Municipal Administration, Hub vide their Notification No. 4336-47/TMA/TN dated 23rd November, 2002, levied Rs. 10,000/- as Professional License Fee on Factories operating in the jurisdiction of Hub Tehsil and awarded Contract for collection of the this tax to M/s. Muhab Ullah Zahri. The Contractor issued notices to the Factories for collection of this fee with effect from the issue of the notification. However, the Chamber intervened and negotiated with the TMA who cooperated the Chmaber to resolve the issue. After negotiations it was decided that the TMA would withdraw the Professional License Fee provided the factories pay at-least Rs. 10,000/- being the fee for one year only, to the Lasbela Development Comittee for payment to TMA for its development and welfare projects.
Consequently, the Chamber requested the members to deposit the above amount with the Lasbela Development Committee. The members responded very well and majority of them deposited this amount as requested. The TMA then as per their commitment withdrew the notification with effect from the date of its issue vide Notification No. 358-59/TMA/2005 dated 4th June, 2005.

DRAFT AMENDMENTS IN LIEDA ORDINANCE 1984

The Chamber suggested the amendments in relevant Sections of the LIEDA 1984 (Balochistan Ordinance No. IX of 1984) have been proposed to achieve the objective of the Government and Private Sector Partnerships. The amendments in the Ordinance have been proposed to provide the following:-

1. To create a sort of Public / Private Partnership to ensure better management existing and upcoming Industrial Estates in Lasbela District.

2. To ensure that the decision taken by the Board Of Director of LIEDA may be taken after due consideration keeping in view all the legal and practical aspects and once the decision are taken the same to be implemented promptly and smoothly.

3. To authorize the Board of Directors of LIEDA and other officer and staff; and

4. To constitute the Board of Directors of LIEDA having atleast four(4) Directors from Lasbela Chamber and 2 from the Government, out of which 4 Directors necessary to make a quorum for the meeting of the Board of Directors of LIEDA.
In order to consider the proposal amendments in LIEDA Ordinance, the LIEDA Board of Directors constituted a committee under the Governership of Secretary, Law, Government of Balochistan, which would give its recommendations after due considerations. The matter was also taken up during the meeting with the Governer of Balochistan, who also took interest in the proposed creation of Private/Public Partnership through the amendments in LIEDA Ordinance 1984.
 

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PROPOSAL FOR APPLICATION OF SECTION 23-A OF CUSTOMS ACT, 1969

In order to check the under-invoicing in imports, a system under Section 25(A) of Customs Act, 1969 has been introduced for bidding of under-invoiced consignments. However this system is not working properly thus defeating the very purpose of this section. In order to get the desired results, the bidding system should be improved to make it more transparent and effective.

VALUATION OF TINPLATES

The attention of the Collector of Customs (Appraisement), Customs House, Karachi was invited towards the problems of manufacturers of tinplates and allied items due to under-invoicing in the import of this item. It was suggested to make assessment on the basis of prevailing prices of this item. The evidence of current prevailing prices were also sent to the Collector.

PROPOSED STRUCTURE OF RTO BY THE CBR AT QUETTA

The Additional Collector of Sales Tax invited the commens from the Chamber regarding the proposed establishment of Regional Tax Office at Quetta diminishing the role of Customs & sales Tax Collectorate at Hub to minimum.
After getting the opinion of the members, the Chamber gave its comment that the present set up of the Customs & Sales Tax Collectorate under the supervision of Additional Collector at Hub, would be most convenient for the business community of Lasbela District. On the recommendation of the Chamber, the Establishment of Sales Tax Collectorate remained intact.

MEETING WITH THE MEMBER (SALES TAX) CENTRAL BOARD OF REVENUE

As a part of the pre-budget consultation process with the business community, the Member Sales Tax, CBR Mr. Shahid Ahmed visited the Chamber on 12th February 2005 and had a meeting with the members of the Chamber. In ths meeting Senior officers from Sales Tax Department were also present
While welcoming the honorable guest the President Mr. Saleem H. Mandviwalla invited the attention of the Member Sales Tax towards the following issues,

1. Representation of Lasbela Chamber on Alternate Dispute Resolution Mechanism and reduction of processing time for dispute cases.

2. Speedy processing of refund of sales tax cases filled by the exporters remains a problem.

3. Simplifying the Audit System by giving oppurtunity to the registered persons for personal hearing before issuance of show cause notice.

The Member (Sales Tax), CBR Mr. Shahid Ahmed announced on this occasion that all pending cases of sales tax refund filed with the colectorate of Sales Tax at Hub would be settled by the end of February 2005, As per his announcement the Collectorate of sales tax at Hub settled almost all the refund cases worth about Rs. 9.0 billion withing time limit, which is an achievement both on the part of the Lasbela Chamber and Collectorate of sales tax at Hub. It is due to the cooperation and coordination between the CHamber and the Collectorate.
Mr. Shahid Ahmed also announced that the Show Cases Notices would be issued to the persons only after giving the opportunity of personal hearing through hearing notice. He also invited the Chamber to nominate its representative on the dispute resolution Committee of CBR. The Chamber nominated of its representatives on the Alternate Dispute Resolution Committee of CBR which were accordingly notified by the CBR.
 

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MEETING WITH MEMBER (CUSTOMS), CENTRAL BOARD OF REVENUE

As a part of the pre-budget consultation with business community the Member (Customs) CBR Mr. Mohammad Ramzan Bhatti, visited he Chamber on 9th April 2005 and had a meeting with the members of the Chamber. In this meeting Senior officer from Customs Department were also present. While welcoming the honorable guest the Preseident Mr. Saleem H. Mandviwalla invited the attention of the Memer (Customs) CBR towards the following issues,

1. Ensuring proper cascading in duty structure in imported inputs in order to strengthen the competitiveness of domestic industries and to avoid giving unfair advantage to fireign suppliers.

2. Strict adherence to GATT code of valuation embodied in Section 25 of Customs Act, 1969, to ensure speedy customs clearance by avoiding valuation problems etc. and to eliminate the problem of under-invoicing etc.

3. The procedure under Section 25-A of Customs Act, 1969 should be simplified and be made transparent to avoid under-invoicing, which disrupts the market of locally manufactured goods

Mr. Mohammad Ramzan Bhatti in his address gave the briefing regarding the CARE system being implemented for clearance of goods which would reduce the complaints against the working of the Customs and also would reduce the complaints against the working of the Customs and also would reduce the valuation disputes. He assured the proper cascading while revising the duty structure. He also informed that the exporters might also get relief in the utility rates and the permission to import raw material on zero-rated duty and taxes.

MEETING WITH THE MINISTER OF INDUSTRIES AND COMMERCE, BALOCHISTAN AND MD, LIEDA

On the invitation of the Chamber the Minister for Industry and Commerce Balochistan Mr. Abdul Ghafoor Lehri and the MD LIEDA Col: Bashir Ahmed Nadim visited the Chamber on 7th January 2005 at a dinner. The high government official and elected representitive of Lasbela District, members of the Chamber, officers and Staff of LIEDA and a large number of journalists attened the meeting.

While welcoming the guests the President invited the attention of the Minister towards the supply of Natural Gas to Winder and Uthal, water supply, Captive Electricity Generation for Lasbela District etc.

The Minister for Industry and Commerce, Mr. Abdul Ghafoor Lehri, assured the Chamber of his cooperation and announced that the government, in biew of the importance of Lasbela District due to the development of Gawader port, will assist the Sick Industry in lasbela District for the rivival by way of giving them facilities for payment of their dues.

The MD, LIEDA, supporting the Minister's point of view, offered the industrialist one window operation facility to the investor intending to make an investment in the region. He made known LIEDA's plans to install a water treatment plant and captive power generation etc. which would ensure the reduction of the cost of industrial production in the region.
 

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MEETING WITH THE MINISTER, GOVERNMENT OF BALOCHISTAN

On the invitation of the Minister of Labour, Government of Balochistan, Moulana Faiz Mohammed, a delegation of teh Chamber led by Mr. Siddiq Rafi of M/s. Otsuka Pakistan Limited, Hub comprising Maj.(r) Shakeel of M/s. Avitronics, Mr. Rauf of M/s. Gatron Industries and Mr. Nasir Husssain of M/s. Habib ADM, Hub, met with the minister.

While welcoming the delegation, the Minister for Labour Moulana Faiz Mohammad informed about a complaint that the industries did not accomodate the local people in their employment under contract labour.

Mr. Shaukat Rafi the leader of the delegation explained that the contract system of labour employment has been reorganized under IRO 2002 and therefore it cannot be termed as illegal. However, if there are cases of irregularities in that system the same can be rectified in accordance with the labour laws. He also informed that must of the unskilled labour have been hired locally.

He promised that the Chamber will co-operate with the department to take action against the specific cases of irregularities or violations of labour laws, if pointed out. He said that so far no such case has been reported to the labour department nor any case has been filed in the Labour Court.
Maj(R) Shakeel pointed out that the Labour Department is performing very well in improving the employment conditions in the district, but the outside political pressure is worsening the situation. Therefore, the Government should do something to improve the law and order situation.

The Minister for Labour Moulana Faiz Mohammad summarizing up the decision advised the delegation to accomodate the local people in their employment as much as possible. He assured his support and co-operation in restoring the law and order situation in the District conducive to the improvement of working conditions for industries and for further investment.
 

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MEETING WITH THE DIRECTOR LABOUR, GOVERNMENT OF BALOCHISTAN

On the invitation of Mr. Abdul Wahid Baloch, Director Labour Welfare, Government of Balochistan, Col(R) Sarfraz Ahmed Khan, Chairman Labour Sub-Committee of the Chamber had a meeting on 22nd May, 2005 at Hub. Mr. Wahid Buksh Baloch, Deputy Director Labour Welfare, Government of Balochistan was also present.

The Director (Labour) asked about the facilities which are being given by the industries to the Contract Labour at par with the regular labour, as the Contract labour has been recognized in the Industrial Rekations Ordinance 2001.

the Col(R) Sarfraz A. Khan informed that many industries are giving facilities in accordance with the law. However, for the sake of guidance, the Labour department may write to the Chamber about what should be done by the industries for contract labour with legal provisional enabling the Chamber to provide guidance to members.

The Director also agreed to continue to circulate Cheques under Education Cess to the Schools through the registered industries and not directly to school to ensure the reciept of the same in the schools concerned.

FILING OF CASES UNDER MINIMUM WAGES ACT, BALOCHISTAN BY MINES & INDUSTRIAL TRADE UN ION FEDERATION AGAINST MORE THAN 100 COMPANIES

A good number of our member organizations have reported to the Chamber that they have recieved notices from the Joint Director Labour Welfare, Cum Authority under payment of wages act. Balochistan, for filing written-statement in cases/claims filed by Mr. Mehrban Shah General Secreary Pak. Mines & Industrial Trade Union Federation u/s. 6(b) of the employees' cost of living (relief) act, 1973.

The chamber took up the matter with the secretary (labour & manpower), Government of Balochistan that Mr. Mehrban Shah is neither an employee of any of the Organization/Company nor he has claimed to be a worker of any of the Union (C.B.A.) of the Organization/Companies, yet he has lodged a claim of Rs. 36,525/- against every company before the Joint Director Labour, who have issued notices to all employers' to submit their written-statement on specified date(s) without considering that under employees cost of living (relief) act, 1973 under which only aggrieved employee / worker and / or a person authorized by an aggrieved worker can apply to the said Authority for his withheld or delayed cost of living allowance.
The Chamber also requested the Secretary (labour and manpower), Balochistan that in view of the above facts, an inquiry into the matter may be conducted and also to advise the concerned Joint Director Labour / Payment & Wages Authority to review the cases filed by Mr. Mehrban Shah before him in the light of section 6 of Employees' Cost of living (relief) act. 1973 and dismiss the same as being invalid and irrelevant because the applicant has no employment relationship with any of the Companies.

The chamber also arranged the identical reply from the individual companies after legal consultations. Mr. Siddique Rafi of M/s. Otsuka Pakistan Limited and Mr. abbas of m/s. Pakistan Formica Limited sincerely cooperated the Chamber to take up this matter appropriately.

TAKING OVER THE MANAGEMENT 50-BED GOVERNMENT HOSPITAL AT HITE, HUB

The Governer of Balochistan during the meeting with the Chamber's Delegation at Hub on 8th January, 2005, gracefully selected the Lasbela Chamber to take over the management of newly constructed 50-Bed Government Hospital at HITE, Hub. The Hospital was constructed by the Workers Welfare Board, Blochistan.

The Executive Committee of the Chamber in its meeting hald on 4th March, 2005 unanimously decided to take over the administration of the Hospital.

The Secretary (Labour), Government of Balochistan, visited Hub on 9th March, 2005 and had a meeting with the Chamber's President, Mr. Saleem H<. Mandviwalla to discuss the matter of handing over the Hospital to the Chamber and offered to sign a Memorandum of Understanding with the Chamber in this connection.

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