Staff Report

LAHORE: The federal government has announced to launch a public-private project worth Rs 816.125 million for up-gradation and promotion of rural embroidery products.

The project ‘Southern Punjab Embroidery Project’ will run by a company, which will be incorporated in a month’s time while the project will be fully functional in the financial year 2009-10.

Federal Secretary Industries and Production, Shahab Khawaja said 10 field units would be established in southern Punjab along with a head quarter in Multan to achieve this objective.

This setup will add value to approximately two million metres of fabric through hand and machine embroidery per month. The project aims to provide approximately 4000 direct employment opportunities to women and men, besides building capacity of training artisans in machine and hand embroidery, he added.

He explained 26 percent of the total project cost would be borne by Pakistan Industrial Development Corporation (PIDC), whereas 74 percent of the cost would be shared by the private sector. A public limited company would be established to run this project having its board of directors, he said.

The government nominated PIDC on recommendation of the Federal Ministry of Industries and Production as it signed an agreement. The agreement will lead to the establishment of a joint venture company in the first phase.

Both the parties shall take all necessary steps for the incorporation of a private limited company under the Companies Ordinance, 1984. The costs of incorporating the Joint Company shall be borne equally by both the parties. The Southern Punjab Embroidery Industries (SPEI) project shall have the authorised capital of Rs 900 million and initial paid up capital shall be Rs 5 million.

As per description in the PC-1, the BOD of the joint company shall consist of members from the public and private sector in the ratio of 1/3 and 2/3 respectively. Chief executive will be from private sector having project’s entire management and operating powers.

Members from the public sector shall be nominated by PIDC on the recommendation of Ministry of Industries and Production. SPEI will also form trust that will act to support in the benefits of company worker and employees as well as the local artisans.