Directs industries dept to improve financial strength of SITE, SSIC

Sindh Chief Minister Syed Murad Ali Shah has directed the Industries Department to prepare a comprehensive business plan for the Sindh Industrial Trading Estate Limited (S.I.T.E) and the Sindh Small Industries Corporation (SSIC) to drive industrialization, boost economy and create employment opportunities. The SITE and Small industries should be self-sufficient organisations, but they are stuck up in financial crisis due to over employment, lack of planning and absence of business plan, he directed while presiding over a meeting of the industries department to review its issues and development schemes, at the CM House here Monday. The meeting was attended by Minister for Industries Jam Ikram Dharejo, Chief Secretary Asif Hyder Shah, Secretary to CM Raheem Shaikh, Secretary Industries Yasin Shar, MD SITE Ghazanfar Qadri and others. The CM was told that SITE LTD cannot disburse salaries and pensions due to excess employment. “There are 1,315 employees and 754 pensioners. The annual expenditure on account of salary, pension, service dues, including outstanding liabilities and miscellaneous per year comes to Rs.2.592 billion against a total revenue/recovery of Rs.2 billion per annum, showing a shortfall of Rs.592,957,861”. Infrastructure at Nooriabad and Kotri is in deteriorated condition, whereas funds under ADP 2024-25 amounting to Rs.846.892 million are insufficient to address the issues. To a question, Minister Industries Jam Ikram told the CM that the issue of Sui Gas at Industrial Estate Larkana would be resolved shortly. He added that SSGC, during a meeting with him, assured that a feasible plan for the supply of Sui Gas to Industrial Estate Larkana would be submitted within one week. The Minister Industries requested the CM to approve an Annual grant of Rs.800 million to resolve the salary and pension issues. He also requested for a one-time grant of Rs.500 for O&M expenditure The CM was also requested approval of Rs.2 billion for the rehabilitation of infrastructure at SITE Nooriabad (Phase-II) and Kotri. The CM was told that SSIC was facing huge financial constraints due to excessive employment from 2008 to 2014 and was even unable to disburse monthly salaries, pensions, and service dues. There are 656 employees and 268 pensioners on the payroll, while 33 ex-employees are still waiting for their service dues. It was disclosed that Small Industries has 321 excess employees, and their future may also be decided. The annual expenditures of SSIC are Rs 934.862 million, Rs.496.231 million for salaries, Rs.207.772 million for pension, and service dues Rs.230.859 million for service dues. To a question, Secretary Industries told the CM that the total recovery for 2023-24 was Rs.229.323 million against an expenditure of Rs 917.851 million, showing a deficit of Rs.534.862 million. The CM was requested that an annual grant of Rs.400 million for salaries and pensions may be approved. The minister said that the condition of the infrastructure at S.I.E Rohri and Northern Bypass Karachi was deteriorating and funds were required for their rehabilitation. It was also pointed out that the training centres at Karachi, Hyderabad, Nasarpur, Kashmor, Moen-jo-Daro, and Islamabad require major rehabilitation for their revival to create substantial revenue for the Corporation. Minister Industries Jam Ikram requested the chief minister to approve a bail-out package of Rs.600 million as a time grant to resolve the salary and pension dues. He also called for the enhancement of annual grant of Rs.400 million to Rs.600 million. The CM was told that Rs.1.2 billion is required for infrastructure development across various industrial areas, including SITE Korangi (Phase-2), North Karachi Association of Trade & Industry, FB Area Association of Trade & Industry, Landhi Association of Trade & Industry, and Korangi Association of Trade & Industry. The Chief Minister directed the Industries Department to submit a detailed development plan for various SITEs and small industrial estates, including a separate proposal for a bailout package so that necessary decisions could be taken. Meanwhile, the CM directed the chief secretary to initiate the restructuring of the SITE and Small Industries to ensure they operate on sound professional and financial footing.