Brief History Of Bahawalpur

History:

History of Bahawalpur according to the Abbassi Historians. The city was founded in 1748 by Nawab Muhammad Bahawal Khan Abbasi I, whose descendants ruled the area until it joined Pakistan in 1947. The Bahawalpur (princely state) was one of the largest states of British India, more than 451 kilometres long, and was ruled by Nawab Sir Sadiq Muhammad Khan Abbasi V Bahadur,[2] who decided to join Pakistan at the time of independence in 1947.

The Royal House of Bahawalpur is said to be of Arabic origin citation needed] and claim descent from Abbas, progenitor of the Abbasid Caliphs of Baghdad and Cairo. citation needed] Sultan Ahmad II, son of Shah Muzammil of Egypt left that country and arrived in Sind with a large following of Arabs ca. 1370.[citation needed] He married a daughter of Raja Rai Dhorang Sahta, receiving a third of the country as a dowry. Amir Fathu'llah Khan Abbasi, is the recognized ancestor of the dynasty.[citation needed] He conquered the Bhangar territory from Raja Dallu, of Alor and Bahmanabad, renaming it Qahir Bela. Amir Muhammad Chani Khan Abbasi entered the imperial service and gained appointment as a Panchhazari in 1583. At his death, the leadership of the tribe was contested between two branches of the family, the Daudputras and the Kalhoras. Amir Bahadur Khan Abbasi abandoned Tarai and settled near Bhakkar, founding the town of Shikarpur in 1690. Daud Khan, the first of his family to rule Bahawalpur, originated from Sind where he had opposed the Afghan Governor of that province and was forced to flee.[citation needed] The Nawab entered into Treaty relations with the HEIC, 22 February 1833. The state acceded to the Dominion of Pakistan on 7 October 1947 and was merged into the province of West Pakistan on 14 October 1955.Daud farooq is one the great personalities of the city.

Economy:

Bahawalpur has only one railway bridge, the Adamwahan (Empress) Bridge, over the Sutlej River, and also has rail links with Peshawar, the capital of North-West Frontier Province and Karachi, the capital of Sindh (which is 899 km from Bahawalpur), making it an important rail centre. The surrounding area is mostly agricultural, which allows agricultural exports to many parts of the world. There is also a large market town for mangoes, dates, wheat, sugarcane, and cotton that bring in continuous demand all year round. In addition, it has soap making and cotton spinning factories, as well as enterprises producing silk and cotton textiles, carpets, and pottery. Bahwalpur has also sugar mill near a drive of 40 mins.Punjab is Pakistan's most fertile province, rich in both agriculture and ancient history. It's also one of the more stable of the country's regions. The prosperous and hospitable town of Bahawalpur is a gentle introduction to the area. From here you can journey into Cholistan - a sandy wasteland dotted with nomadic communities and wind-swept forts - or the Lal Suhanra National Park, an important wildlife reserve. Further north is Harappa which is, after Moenjodaro, the second most important site of the Indus Valley civilisation. Bahawalpur is the most southerly town in the Punjab. There are daily flights from Islamabad about 555 km (344mi) away. Most of the major destinations in the Punjab can be reached by bus, mini bus, and train.

A recent report on the agro-economy of Bahawalpur and a number of its districts, which includes an agro-economic survey, investment climate review and economic growth diagnostic provides a comprehensive overview of the local agrarian economy, its interface with the national economy and the main drivers and constraints to growth. The report Agro-Economic Survey & Investment Climate Diagnostic: Bahawalpur, Bahwalnagar & Rahim Yar Khan by Middlebrook et al. also provides a comprehensive assessment of the major policy and institutional challenges to future economic development. At the moment Bahawalpur Economy is ruled by Chaudhry Family.

Industrial Potential of Bahawalpur:

Keeping in view the availability of raw-material, skilled labour, industrial units, local / national / international demand, future industrial potential of district Bahawalpur is discussed hereunder:-It would, however, be kept in mind that though the above mentioned factors facilitate the success of any industrial unit, yet the entire success depends upon the investors / entrepreneurs and the capabilities of the personnel having the managerial control. Therefore, it is advisable that detailed feasibility of industrial project must be carried out before making final decision for investment.

AGRICULTURE:

Main crops and fruit of the district are cotton, wheat, sugarcane, Rape/Mustard Seeds, dates, mangoes and citrus. The average annual production of cotton over the period 1998-2001 was 1003 thousand bales and of remaining crops/fruit i.e. Wheat, Sugarcane, Rape/Mustard Seed, Dates, Mangoes and Citrus was 666, 435, 20, 2.26, 96 and 274 thousand M. Tons respectively .At present, five textile spinning mills, one sugar mills, 22 flour mills, a number of cotton ginning/pressing factories and oil expelling units are already operating in the district. In view of the above, there seems little scope for more flour mills and another sugar mill due to limited production of wheat and sugarcane. However, there exists wide scope for cotton based industries i.e. textile spinning, weaving, processing/printing. More solvent oil extraction plants can be established as besides cotton seed, cotton oil cake and Rape/Mustard seeds can also be used as raw material.Besides, fruit juice, pickles, squashes and dates processing / packing units possess good prospects. In addition, Dates based vinegar unit can also be established.

LIVESTOCK:

As per Livestock Census 1996, the population of cattle, buffaloes, sheep and goats was 288, 464, 158 and 714 thousand heads respectively. The annual availability of hides and skins is estimated at 95500 pieces. As regards poultry, there are 316 broiler and 17 layer poultry farms having rearing capacity of 1826 and 150 thousand birds ( Chapter - 3, Section 3.3 ).There is already three Feed Mills operating in the district, which leaves little scope for additional unit. However, a leather products unit and a hatchery/breeding poultry farm can be established. Besides, estimated production of wool i.e. about 158 M. Tons annually reflect good potential for wool processing and weaving unit.

FORESTS:

District Bahawalpur possess vast forest potential. An area of about 15 thousand acres is under forest (Chapter - 3, Section 3.2). Therefore, there exists good prospects for wood seasoning / processing units and modern furniture units.

INDUSTRY:

In view of developing textile industry, oil expelling and solvent extraction plants in the district, there seems bright scope for paper cones unit and sizing units.

DEMAND BASED INDUSTRY:

There seems good prospects for consumer products manufacturing industries i.e. shoemaking, biscuits and confectionery, hosiery and knitting unit, readymade garments, aluminium utensils, melamine tableware, etc

LIST OF IDENTIFIED PROJECTS:

In view of discussion given in section 6.1 to 6.5, the following industrial projects have been identified for investment in district Gujrat.
-Aluminium Utensils
-Biscuits and Confectionery
-Dates Processing / Packing
-Furniture
-Fruit Juice, Pickles and squashes
-Hosiery and Knitting Unit
-Hatchery / Breeding Poultry Farm
-Leather Products
-Melamine Tableware
-Paper Cones
-Readymade Garments
-Sizing Unit
-Shoe Making
-Solvent Oil Extraction
-Textiles (Spinning, Weaving and Processing)
-Vinegar from Dates
-Wood Seasoning / Processing
-Wool Processing and Spinning

Man Power of Bahawalpur:

TOTAL POPULATION OF THE DISTRICT

According to 1998 Population and Housing Census, total population of Bahawalpur district is 2433 thousands persons out of which 1279 thousands are males and 1154 thousands are females. Density of population in the district is 98 persons per square Kilometre. Percentage break-up of the Rural and Urban population is 72.7 and 27.3 respectively.
Tehsil-wise distribution of Urban and Rural population is given in Table-1

TEHSIL-WISE DISTRIBUTION OF URBAN & RURAL POPULATION:

MAN-POWER AVAILABILITY:

The total available labour force (i.e. population 15 years and above, working and looking for work) as per District Census Report of Bahawalpur 1998 in the district is 547 thousand persons. As regards availability of skilled labour, there are 13 technical / commercial / vocational institutions (10 for men and 3 for women) imparting training in various trades e.g. mechanical, electrical, auto-engineering, welding, wood working and commerce. Vocational institutions for women impart training in hand/machine embroidery, stitching and knitting. In all about 2000 technicians/artisans/workers are trained every year. Details are given in table .

COMMERCIAL AND VOCATIONAL/TECHNICAL INSTITUTIONS:

FOR MEN

TRADITIONAL CRAFTS:

Making of delicate and decorated earthenware is one of the traditional crafts of the district. These earthenwares display the skill of the artisans who are concentrated in the Tehsil of Ahmedpur East. Decorated lampshades and flower-vases are also made from camel skin in some parts of the district. Hand embroidery work on shirts is yet another speciality of the area. Other crafts include basket making, cotton and woollen durries, patch work, etc. The families engaged in the profession are spread all over the district.

Bahalwalpur InfraStructue:
Road-Links:

The district has metalled road-length of 1,419 Kilometres. The district is linked with Lodhran, Bahawalnagar Vehari and Rahimyar Khan Districts through metalled road.

Rail-Links:

The main Peshawar-Karachi railway line passes through Bahawalpur District. The district is linked with Rahim Yar Khan, Hasilpur and Lodhran through railway network.

GENERAL QUALITY AND AVAILABILITY OF SUB-SOIL WATER:

The sub soil water in the district is suitable for industrial purposes.

EFFLUENT DISPOSAL FACILITIES:

Since most of the industrial activity consists of cotton ginning and oil mills, no serious effluent disposal problems exist at present. However, if some effluent generating industries are established in the district then effluent can be discharged into sem-nullah / river with permission from Irrigation and Power Department, Government of the Punjab.

POWER SUPPLY:

There are 11 grid stations in the district (ranging in capacity from 66 KV to 220 KV).

AL GAS AVAILABILITY:

Natural gas is available in Ahmedpur East, Uch-Sharif, Khanqah-Sharif and Bahawalpur City.

TELEPHONE FACILITIES:

There are 32 telephone exchanges operating in the district (ranging in capacity from 50 lines to 6574 lines). Cellular phone services are available in the district.

SOCIAL INFRA-STRUCTURAL FACILITIES:

Social infra-structural facilities (Public Sector) available in the district (public sector) are given in Table n Tehsil se basis.

There is also Islamia University, and Quaid-e-Azam Medical College in the District.

INDUSTRIAL ESTATE:

The Punjab Small Industries Corporation has established an Industrial Estate at Bahawalpur. A total number of 203 plots varying in sizes are available in the Estate. The latest position as regards size and number of plots already allotted and those available for allotment is shown in Table.

INDUSTRIAL POLICY:

Foreign investors are permitted to hold 100% of the equity of industrial projects without any permission of the Government. No prior Government sanction is required for establishment of an industry outside Ex-Municipal Territorial Limit of Town Committee / Municipal Corporation irrespective of its cost and size except the following:-
a. Arms & Ammunition.
b. Security Printing Currency & Mint.
c. High Explosives.
d. Radio Active Substances.
e. Alcoholic Beverages or Liquors.
f. Cotton Ginning Industry.
g. Flour Mills.

INCENTIVES:

According to the latest investment policy of the Government, major existing tariff and fiscal incentives for manufacturing sector are as follows.

INDIRECT TAXES:

FISCAL:
Normal Tax Rate:

Personal Income Tax Rates:

Depreciation Allowance (Schedule-III):

a) Depreciation Allowance (DA) on Plant & Machinery @ 10% on written down value
b) DA @ 5% is available on office building & 10% on factory building
c) The rate of initial allowance under section 23 shall be 50%.
d) The rate of amortization of pre-commencement expenditure under section 25 shall be 20%.

Initial Depreciation Allowance:

Under the provision of sub-section (5) of section 23 of the New Ordinance, Initial Depreciation Allowance at the rate of 5% is permissible on an gible depreciable assetaced into service in Pakistan for the first time in a tax year. For the purpose of such allowance igible depreciable assetans plant and machinery excluding the following: -
a) Any road transport vehicle unless the vehicle is plying for hire.
b) Any furniture, including fittings.
c) Any plant or machinery that is acquired second hand.

d) Any plant or machinery in relation to which a deduction has been allowed under another section of this Ordinance for the entire cost of the assets in the tax year in which the asset is required.
It should be noted that the classes of allowances by way of st Year Allowance (FYA)vestment Allowance (RA)d ustrial Building Allowance (IBA) were introduced through the Finance Act, 1998, at varying rate ranging from 20% to 80% have now been withdrawn under the New Ordinanc.

Fiscal Incentives for Capital Market:

Transfer of Technology:

a) There is no restriction on payment of royalty and / or technical service fees for the manufacturing sector. However, such agreements shall be registered with the State Bank of Pakistan.
b) The payments of royalties and technical service fees to foreign companies will be taxed at 15%. However, reduced rates under the treaties with different countries remain applicable..
c) The payment of franchise, royalty or technical fee in case of non-manufacturing sectors is allowed subject to following conditions :--

- In case of foreign investment in non-manufacturing sectors including food sector, the initial / lump sump fee should not exceed US$ 100,000 irrespective of number of outlets under one franchise.

- A maximum 5% of net sales (excluding 15% Sales Tax) in the food sector may be allowed as franchised fee only for these items which are core items of the franchised and are the specialities of the trade name. The payment of such fees be allowed on monthly basis. No item will be eligible for twice payment of royalty / franchised fee, e.g. soft drinks, etc

- Percentage / amount of fees etc. for other non-manufacturing projects is also be upto the maximum of 5% of net sales (excluding 15% Sales Tax).

- Initial period for which such fees may be allowed to projects in non-manufacturing sectors should not exceed five years. Subsequent extension in time period may be considered provided these projects also make investment in alive upstream projects.

The agreements conforming to above guidelines will be sent by the sponsors to State Bank of Pakistan for its information. However, any relaxation or deviation from the guidelines, will require prior approval of the CabinetCommittee On Investment.

INDUSTRIAL FINANCING FACILITIES:

Following Financial Institutions in the country are providing various types of fixed investment industrial financing in the foreign and local currency to the industrial sector for establishment of new industrial units as well as for Expansion, Balancing, Modernization and Replacement (BMR) of existing industrial units within the frame-work of industrial/financial policies of the Government of Pakistan.

i) Agricultural Development Bank of Pakistan (ADBP).

ii) Allied Bank of Pakistan Limited (ABP).

iii) Habib Bank Limited (HBL).

iv) Industrial Development Bank of Pakistan (IDBP).

v) Muslim Commercial Bank (MCB).

vi) National Bank of Pakistan (NBP).

vii) Pakistan Industrial Credit & Investment Corporation (PICIC).

viii) Pak-Libya Holding Company (PLHC).

ix) Pak-Kuwait Investment Company (PKIC).

x) Saudi-Pak Industrial & Agricultural Investment Company (SAPICO).

xi) Askari Commercial Bank.

xii) United Bank Limited (UBL).

xiii) PICIC Commercial Bank.

xiv) Alflah Bank.

xv) Union Bank.

xvi) SME Bank Ltd.

xvii) Soneri Bank Ltd

Besides the financial institutions mentioned above a number of Leasing Companies, Modaraba Companies, Private Investment Banks are also providing financing facilities to the industrial sector. Punjab Small Industries Corporation has launched a Soft Loan Credit Scheme to provide credit to Small Industrial Sector. The main priority sectors will be as under:-

In order to promote the traditional crafts in Punjab the PSIC is also launching a Soft Loan Scheme to provide loan upto Rs. 40,000/- at the mark up rate of 7% per annum with repayment period of two years including a grace period of 4 months to individuals / units with fixed investment upto Rs. 2 lac. 50% beneficiaries would be the women.Other details if any, could be ascertained from the Regional / Local Offices or the Headquarters Office of Punjab Small Industries Corporation, Egerton Road, Lahore.Small & Medium Enterprise Development Authority (SMEDA) has also been established to develop small and medium enterprises in Pakistan through aggressive sector development programs, formulation of policy guidelines for the Government and facilitate the small & medium enterprises by providing a variety of support services

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