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Tussle with NIP Board: Ministry halts work on 2 industrial parks(Nation (Pakistan) Via Acquire Media NewsEdge) The Federal Ministry of Industries and Production has halted work on two major projects of Naushero Feroze Industrial Park and Sargodha Industrial Park initiated by the National Industrial Parks Development & Management Company (NIP), as tug of war has triggered between the ministry and NIP board of directors. According to industry sources, top bureaucracy, after a gap of around two years, have once again started to interfere in the affairs of the National Industrial Parks Development & Management Company, endangering billions of rupees investment and sabotaging the achievements of new management which is struggling for industrialization since Sept 2012. Sources stated that the some newlyappointed top bosses of MOI&P are creating bureaucratic hurdles in the way of the NIP to borrow loan from banks and are not providing federal guarantees in this regard despite the fact that the new team turned the company into a profitable venture by retuning a loan of Rs. 2 billion to Albaraka Bank in very short span of just two years. They are also opposing the reappointment of the CEO by the board of directors, also the architect of the famous Sunder Industrial Estate of Lahore because he dug up fraudulent investments in Dawood Investment Bank during his last tenure. The bureaucracy is also become hurdle in the way of sending this scam to NAB or FIA. "By interference in board decisions and rejecting selection of the CEO by the board, the red tapism is in fact trying to damage all industrial projects initiated by the NIP." The NIP, after its inception in 2006, remained ineffective for a long period of almost 6 years due to continued interference from the minister as well as the secretary of Industries and Production Ministry at micro level decisions, however after the private sector participation in Sept 2012 by constituting new board of directors and appointing new CEO the company started to ensure effectiveness of public spending, efficiency in services and accountability. After the private participation in board of directors, the NIP, working on the principal of participation, transparency and efficiency, started to launch several industrial parks all over the country. And within two years the new team succeeded in bringing in huge investment of $150 million by Yamaha at Bin Qasim Industrial Park (BQIP) along with 30, 000 direct and indirect jobs. The same independent management started work on construction of 14 factories in Korangi Creek Industrial Park with 50 building plans in pipe lines too. The management also completed khairpur Special Economic Zone and brought in 4 world class factories there. The new management with active private participation has recently completed the approach road of Rachna Industrial Park while a Marble City in Risalpur was also completed where factory owners were ready to move in during this short period. The new team has also started construction work for Sargodha Industrial Park. While the last management dominated and influenced by the bureaucracy could not initiate work on a single factory in last 6 years, besides overestimating the construction costs. It is to be noted that NIP was born during the same period when the PIEDMC was established but as the Punjab government followed corporate rules and did not interfere the board decisions the PIEDMC is presently giving boost to self finance based new industrial estates. On the other hand, federal government's continued interference totally against the law of corporate governance in NIP as well as in many of the other companies has converted some very good organizations into non performing entities. |