Establishing SEZs.
The Khyber Pakhtunkhwa (KP) government's decision to set up ten special economic zones (SEZs) is a welcome move. The purpose behind the establishment of SEZs is to ensure the socio and economic uplift of the locals. Some of the sectors the government wants to focus on are the ones that are already established in the province, for instance, pharmaceuticals and food and beverages. These sectors will attract more attention from local investors. Whereas the electronics and IT industries can bring in foreign investments.
The concessions that the government offers to the investors in these SEZs are indeed lucrative enough to lure investors both local and international. The foreign investments, particularly from China, will ensure technology transfer spillovers to domestic firms in identifiable industrial clusters. Thus, final products will meet international standards and we could see potential improvements in overall quality.
The choice of SEZs' locations shows that the officials are aware of the strong distance decay effect. Such attention to the details is crucial to reap maximum benefits from these setups. Undoubtedly, KP is in dire need of such initiatives. The industries will provide...
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