Engg industry for setting up material bank

ISLAMABAD (APP) - The engineering industry on Wednesday asked to establish a material banks for timely supply of engineering raw materials to industry.
In a meeting held here it observed that engineering industry was meeting its raw material needs mostly through imports and its competitiveness is greatly effected by prices, timely availability, quality and the inventory cost. The quality of finished products was also based on meeting the specifications of the customers, said a statement issued by Engineering Development Board. It said that the vulnerability of the industry to international price shocks and exchange rate was also highlighted in the meeting. The meeting was informed that import of steel related material was subjected to obtaining an NOC from the Pakistan Steel Mills to satisfy customs that these grades were not manufactured locally.
The industry offered to establish material banks in the private sector provided a regulatory and an enabling environment was extended by the government to the entrepreneurs to come forward, invest and do business on sustainable basis.
The material banks should be granted a status of Bonded Warehouse and sales allowed against duty concessions.
It was observed that oil and gas sector met its material needs from imports, which may be allowed for contract manufacturing from the local vendors. Incentives to A-grade material stockists were recommended in order to meet requirements of SMEs, who were constrained to buy sub- standards and out of specification material locally due to financial problems and lack of proper know-how.
Material testing facilities were urged in all the main industrial cities to overcome frequent material quality issues.
The meeting also urged the need to simplify the issuance of IORs and permission to import raw material, sub-components and components against duty concession under various concessionaire facilities to be linked to the sales tax registration approvals.