The provincial government of Khyber Pakhtunkhwa has planned the establishment of 10 Special Economic Zones (SEZs) in the province to promote industry, trade and general employment opportunities for youth.
According to draft policy of KP Industrial Policy 2020-30, the provincial government would construct ten economic zones that are included Hattar SEZ extension (1000 acres), Darband (D.I. Khan) SEZ (1500 acres), Mohmand SEZ (350 acres), Nowshera extension EZ (77 acres), Swat EZ, Buner EZ, Shakas (KPEC), Chitral EZ, Ghazi and Jalozai.
Besides, these projects, the provincial government would also establish at least two SEZs under Public Private Partnership (PPP) like Rashakai SEZ in next five years and would provide effective governance system to help support rapid industrialization.
Under the proposed industrial policy, the provincial government would also promote coordination and integration amongst the government functionaries to facilitate investment/industrialization. The draft policy has also proposed the establishment of international standard logistic parks and provision of easy access and availability of diversified credit lines by commercial banks to the industries.
The policy has also proposed the establishment of the sector specific economic zones across various districts of Khyber Pakhtunkhwa, and promotion of competitive SMEs and cottage industry and generation of the herds of skilled workforce as per demand of the industry.
For the achievement of the desired goals, the provincial government beside construction industry will also take steps for the promotion of pharmaceutical, electronics, home appliances, apparel, transshipment, IT based as well as food and beverages and labor intensive industries.
The government is also going to offer incentives for attracting enterprises to establish industries in economic zones. The provincial government under the new industrial policy would provide necessary utilities such as electricity and gas in a timely manner in close coordination with federal government to galvanize and expedite industrial activity and also reduce processing time for obtaining utility connections.
It would also take steps for establishment of a simple and comprehensive PPP legal framework, capacity building of stakeholders for handling PPP framework and coordination with national and international zone developers for establishment of SEZs under PPP and joint ventures and will support export led industry, import substitution and encourage joint ventures.
It is also working on plan of bringing efficient and effective dispute resolution system. The provincial government would strengthen coordination with commercial banks for ensuring availability of financing with a special focus on Bank of Khyber and will identify feasible and viable locations for establishment of sector specific special economic zones and encourage both local and foreign companies to establish their units across different areas of the province.
The provincial government would also make efforts to avoid duplication in regulations to establish effective structure of Research and Development (R&D) and innovation industries and would adopt emerging technologies like artificial intelligence, Chinese traditional medicines and encourage local investors/ industrialists to relocate their industries to Khyber Pakhtunkhwa.
