10 economic zones planned across KP.

PESHAWAR -- The Khyber Pakhtunkhwa government has planned to establish at least 10 economic zones across the province in the next decade under the Industrial Policy, 2020.

The provincial cabinet had approved the policy last month.

According to the policy, a copy of which is available with Dawn, the proposed zones include Rashkai Special Economic Zone and Nowshera Economic Zone Extension and will be set up in Jalozai, Nowshera, Chitral, Mohmand, Ghazi, Darband, Swat, Buner and Shakas areas. Also, the establishment of two special economic zones under the public-private partnership in the next five years has been planned.

The document shows that the policy will promote construction, automobile, pharmaceutical, electronics, apparel, transshipment, IT and food and labour intensive industries in the province.

It also includes a snapshot of the province's existing small and medium enterprise and cottage industry and proposes the establishment of 19 small industrial estates across the province in the next decade.

Government also intends to set up two SEZs under public-private partnership

The policy proposes that the province's human resources be equipped with modern and technical skills, including artificial intelligence, and those required for fourth industrial revolution.

It also calls for leveraging the province's natural resources like hydel, mines and minerals, oil and gas, food and beverage processing, and cottage industry to make the local industrial sector competitive.

The fiscal incentive package proposed for investors to set up industrial units in the province provides for the exemption from provincial electricity duty for new and expansion projects, initial installation and balancing, modernisation and replacement facility for one-time duty, tax-free import of capital goods both plant and machinery, exemption of tax on transfer of sick unit property and repatriation of profit for foreign investors subject to the existing laws and commitments.

Similarly, the financial incentive package provides for 25pc concessions on land lease charges till breakeven or for a period of three years, whichever is earlier. In case of government land, the acquisition of land will take place over five years with 25 per cent down payment instead of upfront payment.

The policy notes that industrial cooperation under the CPEC provides KP with opportunities to jumpstart industrialisation.

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