KP to Set Up 10 Economic Zones Throughout the Province

10 Economic Zones

The government of KP has planned to set up at least 10 economic zones throughout the province in the next decade under the Industrial Policy 2020 after the approval from the provincial cabinet of the policy in this matter last month.

As per the shared details, the local media outlets that reviewed the policy shared that 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, while the establishment of two special economic zones (SEZs) under public-private partnership (PPP) in the next five years has been planned.

In the same way, the document proposes the establishment of 19 small industrial estates across the province in the next decade.

The policy will boost construction, automobile, pharmaceutical, electronics, apparel, transshipment, IT and food, and labor-intensive industries in the province, proposing that human resources be equipped with modern and technical skills, including artificial intelligence, and those required for the 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.

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The financial 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, modernization and replacement facility for one-time duty, tax-free import of capital goods both plant and machinery, exemption of tax on the transfer of sick unit property and repatriation of profit for foreign investors subject to the existing laws and commitments.

The policy also suggests incentives in the merged tribal districts, especially in those with raw material and human resources, and says they will be provided with 15pc quota in credit incentives for SMEs. The State Bank of Pakistan (SBP) will be asked to direct both public and private sector commercial banks to extend Shariah-compliant commercial lending to these districts.

Moreover, land in the specific merged areas earmarked for industrial zones will be provided at 15 per cent discounted price, while electricity will be supplied through independent feeders. Also, an easy access to local markets will be ensured in respect of the goods processed and manufactured in the merged tribal districts.

The policy also shares that the exemption of KP sales tax on services will continue in tribal districts until June 30, 2023.

News Desk is the author at Research Snipers covering all Pakistan news including Business, Social, Entertainment, Economy, Pak News, World News, and More. News Desk is managed by a senior editor at Research Snipers.

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