Government subsidies for effluent plants12 September 2004
Pakistan's Trade Policy for 2004-05 (ending June 05), which aims to achieve a $13.7 billion export target, provides incentives to the leather industry. It is designed to meet WTO challenges by reducing the cost of doing business as well as by enhancing the capacity of producers to compete on a sustainable basis in the international market. It is the first time that the Pakistan government will give a subsidy for setting up effluent plants. It will give opportunities to foreign manufacturers of effluent plants to exploit the Pakistan market. In-house effluent plants will be imported with a duty rate of 5%. For industrial estate effluent treatment plants, the Pakistan government will contribute up to 75% of the cost, provided the remaining 25% is shared by provincial and district governments and stakeholders. The incentive for effluent treatment plants would also prove beneficial for the leather industry. The present effluent treatment plant being constructed by the Pakistan Tanners Association for the Korangi leather clusters will help fulfill the conditions of the WTO.