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Faithful efforts have been made
by the APCA soon after its
inception in 1998, incorporated
under the Companies Ordinance
1984 vide licence No.: 143
granted by Ministry of Commerce,
affiliated with the Federation
of Pakistan Chambers of Commerce
& Industry as “A” class
association, to address the
problems facing the construction
industry have met with
substantial success. Some of
these are listed below:
On the initiative of APCA,
Construction has been declared
as an industry, entitling all
fiscal incentives/special
treatment and other benefits, as
envisaged in the investment
policy, as amended from time to
time vide notification No. F
(10) IF-11/98, dated 07.04.1999
and F. No. 10 (10) IF-11/98
dated 04.06.1999 issued by the
GOP Finance Division (Investment
Wing).
The defunct Prime Minister
Housing Authority (now Pakistan
Housing Authority) awarded 42
Housing projects throughout the
country to construction
companies worth rupees Five
billion between June 1999 to
October 1999. With a change in
the government on 12th
October 1999 work was stopped.
On a call from affectees, APCA
took up the issue. As a follow
up of APCA efforts, 18 projects
were made ongoing which are
almost completed, while 24
projects were dropped.
Substantial payments of the work
done of the dropped projects
have been made.
National Highway Authority (NHA)
awarded a contract for the
construction of Islamabad
Peshawar Motorway (M-I) project
to a foreign contractor which
was terminated on 23.04.2001.
Pakistani subcontractors,
suppliers and manufacturers
approached APCA to help in the
recovery of their amount spent
in the execution of the works
and to save the industry from a
disaster. APCA responded this
SoS call and filed a
constitutional petition in the
Lahore High Court Rawalpindi
bench against competent
authorities and the foreign
contractor. As a follow up of
APCA efforts relief was made
available and payments of the
amount of the work done were
started in June-2003. By now as
on January-2004 over One billion
of rupees have been disbursed to
M-1 affectees.
Chairman APCA was included in
the advisory board established
by the Ministry of Housing and
Works, GOP. On the initiative of
Chairman APCA, Housing policy
was formulated specially for low
income group notified vide
notification No. F.6 (2) / 2000
- COORD, Islamabad the 9th
March 2000 and subsequently got
approved the Housing policy 2001
by the Federal Cabinet on
05.12.2001. Policy incentives do
include the acceptance of bid
bond, performance bond and
mobilization advance bond as
issued by “A” rating insurance
companies of Pakistan approved
by the Security Exchange
Commission of Pakistan.
Plant, Machinery equipment and
articles imported for
infrastructure projects
including development of
industrial zones
telecommunication etc have been
included in table II of the
investment policy thereby
entitling the import of
construction machinery at 10% of
the custom duty vide
Notification No. S.R.O.
358(1)/2002 dated 15th
June 2002 issued by GOP Ministry
for Finance, Economic Affairs,
Statistic & Revenue (Revenue
Division).
Preparation of documents and
subsequent follow up for the
notification of the Standard
Conditions of Contract by the
GOP to be adopted by all the
Engineering departments
throughout Pakistan vide office
order No.: 1 (698) / PP&H / PD /
2000 dated 12-04-2004 issued by
Planning and Development
Division GOP that the conditions
of contract now have a legal
status and may become a basis
for punitive action in case not
adopted by the departments.
All Pakistan Contractors
Association (APCA) agitated
against the unprecedent rise in
the price of steel with the
competent authorities in Federal
government and in the press.
ECNEC in its meeting held on
December 16, 2003 reduced custom
duty on imported billets from
20% to 10% and subsequently to
5%. We have now proposed zero
rate duty imports of Steel
Billets. To resolve the issue of
steel price escalation, APCA
Chairman met with the President
of Pakistan General Pervez
Musharraf and requested to
resolve the issue. In the light
of meeting with the President,
Prime Minister and the Finance
Minster the escalation in Steel,
Steel product, Cable, Aluminium
and Cooper products was allowed
vide order No.: 26 (183) Plan
Cord-11 / PC / 2004 dated
11-06-2004 issued by the
Planning and Development
Division GOP.
As a follow up of APCA to avail
the business opportunities by
the Pakistani contractors in
overseas construction markets it
is provided in the trade policy
2003-2004 that a fund would be
created which could be used for
the purpose of the collateral by
the banks to facilitate the
contractor’s bid bonds and
performance bonds requirements
enabling Pakistani contractors
to expand their business abroad.
In the Trade Policy 2003-2004,
construction companies working
in Pakistan on various projects
have been allowed duty free
import cum export of
construction machinery on the
recommendation of sponsoring
government agencies.
In the Trade Policy 2003-2004,
import of construction machinery
used in construction companies
abroad, irrespective of import
status on completion of overseas
projects by Pakistani companies,
has been allowed.
The GOP Ministry of Commerce
imposed a ban on the import of
second hand dumpers in March
2003. Dump trucks are a vital
construction equipment. APCA
took up the issue with Ministry
of Commerce, GOP requested for
withdrawing the restrictions
imposed on the import of second
hand dump trucks. GOP allowed
the import of second hand dump
trucks from July 2003.
To streamline the issues related
to the reconstruction and
rehabilitation works for
Afghanistan, The GOP, Revenue
Division, CBR allowed APCA to
manage the facility and tax free
storage of construction and
building materials in the export
houses in Peshawar and Chaman
and exports of the same to
Afghanistan vide No. C.No.10(1)
L&P/2002 Islamabad the 2nd
May-2002. This step of the
GOP was specially mentioned by
Mr. Shaukat Aziz, Minister for
Finance in his budget speech for
the year 2002-2003.
Chairman APCA has been nominated
on provincial committee on
investment (PCO1) of the Punjab
constituted by Governor of
Punjab, vide notification No.
AEA-III.4-5/92 dated 22nd
July-2002.
Chairman APCA was included in
various GOP delegations such as
the delegation led by Mr.
Shaukat Aziz, Minister of
Finance, GOP in tripartite
nations meeting of Pakistan,
Afghanistan and Iran in
connection with reconstruction
of
Afghanistan
held in Tehran. Chairman APCA
was also included in the
delegation of conference on WTO
led by Mr. Abdul Razzak Dawood,
Minister of Commerce, GOP.
Chairman. All Pakistan
Contractors Association (APCA)
led a trade delegation
consisting of Contractors and
Traders belonging to the
construction industry to
Afghanistan in connection with
reconstruction works of
Afghanistan
arranged by Export Promotion
Bureau (EPB), Ministry of
Commerce, Government of
Pakistan.
In view of shortages of skilled
workers by the Contractors, APCA
approached the Technical
Education and Vocational
Training Authority (TEVTA),
Government of Punjab. On the
representation of APCA to revive
the closed training facilities,
APCA and TEVTA initiated a Pilot
Project for the training of
Mason, Shuttering Carpenter and
Steel Fixer which started with
effect from 18.05.2005. APCA
paid a sum of Rs. 300,000/- to
TEVETA being its share for
running the Courses of the Pilot
Project. After the successful
results, the technical courses
are now regularly conducted by
the TEVETA and also included
other trades like Quantity /
Building Surveyors, Heavy Duty
Machine Operator, Plumber,
AutoCAD Civil Draftsman, Diesel
/ Hydraulic Mechanic, Material
Technician etc. etc.
APCA agitated in February 2007,
against the artificial rise in
the price of cement due to
formation of cement
manufacturer’s cartel and took
up the matter with competent
authorities in the Federal
Government and in the press. The
Minister of Industries, GOP
convened a joint meeting of APCA
and Cement Manufacturer’s
Association and in the light of
APCA’s earnest representation
the prices were reduced from Rs.
400/- to Rs. 220/- per bag in
the month of March 2007.
Various proposals / Working
papers prepared and submitted by
APCA to relevant authorities on
the issue of PEC licensing,
Implementation of National
Housing Policy, Standard bidding
Conditions, Conduct & Practice
of Consulting Engineers
bye-laws, price escalation
issues, Guide lines for
estimations etc. etc. APCA is
pursuing all the issues firmly
and diligently.
APCA has purchased its own
office having 2000 square feet
space in Block M, Model Town
extension, Lahore near Nespak
Head office. The office is being
furnished and APCA offices will
be shifted upto July 2007.
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