PAKISTAN OBSERVER
21st November 1956
Karachi Industrial Confce Decisions ‘Momentous’
A Big Step Towards East Wing’s Progress, Says Sk. Mujib
BY A STAFF CORRESPONDENT
Addressing a Press conference here yesterday, East Pakistan Commerce, Labour and Industries Minister, Sheikh Mujibur Rahman described the decisions taken at the Karachi high-level Industries conference as “momentous” and a big step forward towards East Pakistan’s progress and development. The Minister, then, announced that the decisions reached at the conference in Karachi would come into force from January 1, 1957, after necessary legislations had been enacted. It has been also decided, the Minister disclosed, that another conference would soon be held at the ministerial level, of representatives of the two wings and the Centre to discuss the allocation of foreign exchange and foreign aid, between the two wings of the country. It is on the subject of foreign exchange that a number of questions were put to the Minister who parried most of them, on the ground that the subject could not be fully dealt with until the proposed conference is held. The Minister however disclosed that the East Pakistan Government would demand 50 percent share of Pakistan’s total earning of foreign exchange, after necessary allocation has been made for defence. “We want foreign exchange. Without it, taken Industries in our hand is valueless,” he added. The position was more or less the same with regard to foreign aid that comes into Pakistan. In the past, East Pakistan has not been getting more than 10 percent as her share of foreign aid the Minister told the Press conference.
THE LAST 9 YEARS
In the course of a prepared hand out which was read out at the Press conference, Sheikh Mujibur Rahman began by discussing at length the functions of the Provincial Government, under the Muslim League regime, with regard to trade and commerce “During the last nine years, the policy pursued by the previous government had created a situation in which the Commerce Department had become a cipher and its existence a complete misnomer.”
The Commerce Minster said, “The Provincial Government surrendered one by one the functions and responsibilities which should have appertained to them. The culminating point was the enactment of the Federal Control of Industies Act which invested the Central Government with all powers and functions in regard to 27 industries. This list of 27 industries included almost everything.” Even after the passage of the new constitution, the Minster said, the control of the Central Government continued and the provisions of the constitutions relating to industries had not yet been implemented. It was with a view to enabling the Provincial Government to discharge their responsibilities and functions effectively that the Central Government convened this high level conference to define powers and functions as provided in the constitutions as provided in the constitutions, the Minister said. The Commerce Minister, then, reviewed the results of the conference which was attended by a team from East Pakistan, led by himself. Among other things, the conference decided that Industries connected with Defence shall be confined in the making of Iron and Steel, ships and anti-biotics, sulpha drugs and anti-T.B. vaccines. Besides this and the manufacture of Arms and Ammunition and Explosive, fishing outside territorial waters and the Industrial units owned wholly or partially by the Federation or by a Corporation set up by the Federation, all other Industries shall be the responsibilities of the Provincial Governments, the Minister stated. “In regard to minerals excluding radioactive minerals and iron ores other than yellow and red oxides they shall come within the purview of the provincial Governments Coal mining is included in the provincial sphere. The regulation of mines and the development of all such minerals will also be under the control of the Provincial Government and with regard to licensing the Provincial Governments’ recommendations will be final within the bulk of ceilings allocated to the province. There will be a separate controller of Imports and Exports in this province. The Director General of Supply and Development, which will have a separate Director General for this wing, will now confine their activities to external procurement involving foreign exchange only. All the internal procurement shall be made by the provincial Government. A small industrial corporation will also be set up for which the Central Government have placed rupees ten lakhs at the disposal of the Provincial Government.”
The Minister said the PIDC would have an effective projection in this wing and the extent and the scope of its undertakings in this province should be widened in the light of the development project. The internal supply and distribution of coal, coke cement, iron and steel would under the new arrangement be entirely with the Provincial Government, he added.
The allocation of shipping space between East and West Pakistan should be made by a high-powered committee in which the provincial Governments should be represented into force from January 1, 1957, after the Minister said.
The Minister disclosed that a scheme would be introduced to register Pan dealers and only those registered with the Provincial Government would be allowed to export Pan. Sheikh Mujibur Rahman ended his statement by paying compliments to the Central Commerce and Industries Minister and his colleague from West Pakistan for understanding and sympathy they showed in assessing the needs and requirements of East Pakistan.