TRADE & INDUSTRY,


The story of development

Federal B. Area in Karachi has one of the most important and productive industrial estates in the country. It ranks among the top few as a foreign exchange earner and it is the biggest hub of small and medium sized units in the province.

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It was established in the 60s and now accommodates over two thousand industrial units, almost 90% of which are export oriented, earning huge amounts of foreign exchange for the country, besides being a source of revenue for the federal and provincial exchequers and providing jobs to thousands of skilled and unskilled workers, a large section of which constitutes women folk of the area.

The industrialists of this area could earn much more foreign exchange, provide succor to more than thousands families and make a far bigger contribution to the country’s GNP and government revenue, but for the most of problems that the area was beset with till 2008.
The government had done only little more than providing the land to the industrialists of this area. There were only the minimal infrastructure facilities in the area. Power supply was insufficient and irregular; water was wholly inadequate to the extent that most of the units had to rely on private water tankers for their needs. Roads were either not there at all or were in a dilapidated condition. The drainage system was overloaded and choked. Garbage and industrial waste was piling up in open places and on roadsides. And last but not the least; encroachments were eating up all the open spaces, not sparing even roads and footpaths in many parts of the blocks.

At last, the WTO conditionalities became fully operative since 1st January 2005 and it had become a threat for the existence of this export oriented industrial area. Only then, the government could realize the grave situation and decided that infrastructure facilities would be provided to this sector of trade and industry to help transform it to fit into WTO regime for the survival of country’s exports.
At first, the City District Government, Karachi had taken up sewerage & water supply development schemes. Both the systems had outlived their designed life and were not at all capable of serving the area with its increasing demands.
So, the entire old and unserviceable sewerage and water supply lines had been replaced with adequate and quality pipes and both the works were completed at a sanctioned cost of Rs. 175.434 millions for sewerage and Rs. 78.293 millions for water supply system.
The President of Pakistan then came to our rescue. In a meeting with industrialists of Karachi at Governor House on July 13, 2005, he directed formulation of infrastructure development companies in industrial areas of Karachi. Purpose was to rehabilitate and upgrade the then existing infrastructure and identify the projects for future needs. He announced Rs. One billion from Federal Government while an equal amount was to be contributed by the provincial government as matching grant.
Under the program, Korangi, Landhi, North Karachi and Federal B. Area industrial estates had set up their companies and FITE Development & Management Company was that of Federal B. Industrial Area.

As such each industrial estate was to get Rs. 250 million from Federal Government and another Rs. 250 million from the Provincial Government out of the declared funds to meet the environmental compliance under the WTO regime.
Government of Sindh had released its share of Rs. 250 million on February 27, 2008 and immediately after that, the development company of the Association took start on the job. It had not only completed the entire jobs most successfully and well before time but got it graciously inaugurated by the Minister for Industries & Commerce in a befitting ceremony on March 2, 2010.

We have constructed roads and storm water drains, and arranged street lightening in the Area. It took almost a year time to complete against utilization of entire grant of Rs. 250 million. We proudly elaborate as follows:
Improvement and upgradation of infrastructure facilities helping to meet the WTO requirements and conditionalities:

•   Road works average
     40’ wide completed

5.27 Kilo meters
•   Storm water drains completed1.96 Kilo meters
•   Walk ways completed10.00 Kilo meters

Capital Cost Comparison
Description of Works                  Approved PC-1 Cost Actual Expenditure
1. Roads Rs. 207.96 (M) Rs. 181.96 (M)
2. Storm water drainage & Walk ways 38.449 (M) 54.327 (M)
3. External Electrification/ Street lights 9.812 (M) 12.729 (M)
4.Consultancy services 5.23 (M) 4.874 (M)
5.Operational cost Nil 7.561 (M)
Rs. 261.451 (M) Rs. 261.451 (M)

It will be a great injustice if we overlook to mention here about the extraordinary patronage and unstinted support we received from our worthy Minister for Industries & Commerce, Government of Sindh and Chairman, Sindh Industrial Infrastructure Development Board, Mr. M. A. Rauf Siddiqui; without which we could not have achieved so much and so successfully. No doubt, he proved to be a beacon of light for us in performing all this.

Since the partial funding from Sindh Government has been utilized fully, we are now looking up to Federal Government for release of her share of Rs. 250 million. As soon as it receives, we’ll be able to undertake further development schemes.

Just to perpetuate the memory of olden days, we are reproducing some pictures depicting the condition of the area once it your own judgment.