Industrial sector can be top source of State revenues, says KIU board chief
‘Vital for govt to prepare a long-term strategy’
KUWAIT CITY, May 4: Chairman of the Board of Directors of Kuwait Industries Union (KIU) Hussein Al-Kharafi says the local industry has more potential than ever to be the primary source of national income for the country and an alternative to oil, especially after proving its existence as a strategic source of food and medical security in the country, reports Al-Anba daily.
In an interview, Al-Kharafi stressed that it has become necessary for the government to prepare a long-term strategy to help the industrial sector to become an alternative to the main source of income in light of the low oil prices.
He highlighted that this strategy must take into account the need to reduce the financial burdens on the industrial sector, remove obstacles facing its continuity, and address all the imbalances that this sector suffers from at present.
Al-Kharafi affirmed that all these measures will ensure the financial sustainability of the industrial sector, referring to a memo presented by the union earlier which included a number of solutions and proposals to address the imbalances and ensure the sustainability of the local industry.
Regarding the proposals presented amid the coronavirus crisis, he said the union suggested solutions to address the imbalances and ensure the financial sustainability of the industrial sector, which included important proposals that the union hopes will be taken into account such as exempting the industrial sector from paying for electricity and water consumption during the global recession, and finalizing the executive regulations of law No. 74/2019 and taking into account support for the local product.
Al-Kharafi indicated that the union also wished for postponing the factories’ loans for one year or until the coronavirus pandemic subsides, as well as simplifying the procedures related to industrial affairs and reducing the documentary cycle.
He said, “Among the proposals presented by the union was one to prioritize local products and give higher preference to them over all foreign products including the regional ones.
This proposal must be presented for immediate activation in coordination with State institutions. Also priority must be given to expansion of strategic industries, as their importance has been affirmed from the current experience”.
In addition, Al-Kharafi indicated that the proposed solutions include requiring the government agencies to pay the dues of the companies contracted to implement government contract within 15 days of the delivery of the due payment to the government agency, compensate the Kuwaiti exporters financially by paying the cost difference resultant from shipping, and review the electricity tariff on the factories to be more fair.