The industrial community of Khyber Pakhtunkhwa have pinned hopes on the newly Industrial Policy 2016 announced by the PTI led coalition government in the province. The provincial government of Khyber Pakhtunkhwa in the industrial policy 2016 has offered incentives which are not only attractive rather unprecedented in the industrial history of the province.
The incentives are included over 70 percent concession over mark-up on industrial loans, 25 percent concession in land acquisition, 25% concession in electricity bills and 25% concession on the transportation of the industrial machinery.
Prominent industrialist and PTI Senator, Nauman Wazir has termed the industrial policy a revolutionary package reflecting the vision and development oriented thinking of the provincial government. He said that besides incentives to woo investors for establishment of industries, the policy will also usher in progression of employment to thousands of unemployed youth in the province.
Furthermore, he said that as some of the industrial estates of the province are located adjacent to tribal areas. Therefore, beside, increasing industrial activities, thousands of youth from FATA will also get employment. He said that after the moving of investors from Karachi and Lahore, financial institutions will also start disbursement of credit in the province.
Another prominent industrialist and a former chairman of All Pakistan Textiles Mills Association (APTMA), Senator Mohsin Aziz while hailing the attractive incentives of the provincial government for promotion of industrialisation said that the policy will usher industrial revolution in the province.
Similarly, Senator Ilyas Ahmad Bilour, a known businessman and leader of Businessman Forum (BF) termed subsidy on mark-up a welcoming step. However, is critical of the announcement of the province related policies in federal capital Islamabad. He said that as the conditionality of the issuance of no objection certificate (NoC) for the establishment of new industrial unit was already been abolished. Therefore, the establishment of new industrial estates will not give immediate benefit and the provision of infrastructure facilities will take some time.
Senator Bilour said that beside the up-gradation of the existing industrial estates, their problems should also be resolved to enable the revival of sick units. However, he is also doubtful about the full implementation of the policy as the government and bureaucracy are in good terms and some important matters will have to fall victim of the cold storage.
Commenting on the new industrial policy, the chairman, Khyber Pakhtunkhwa Economic Zones Development and Management Company (KP EZDMC), Ghulam Dastgir said that the policy has fixed industrial destination for the province, saying the subsidy on mark-up will enable the local industry to compete with their counter parts of Karachi.
He said that the transportation charges of the raw material were used to increase the cost of production in Khyber Pakhtunkhwa and the concession on the transportation of raw material from Karachi to Peshawar will remove the difference. He said that in the short period of one month, since the approval of the new industrial policy, they had launched Hattar Economic Zone and up till now they had received applications from 200 interested parties included big and renowned groups. By the end of January 2016, all 424 acres land will be provided to industrialists.
The target of the provincial government, he said is the creation of 2 million employment opportunities and for this purpose, a Job Cell will be established in each industrial estate of the province. He said that along with the filing of application for the establishment of unit, the industrialists will have to give details of his workers and on the operationalizing of the unit they will be provided skilled workers.
Under the new industrial policy, the chairman, KP EZDMC said all new industrial estates will be special economic development zones. The commercial banks not issuing loans in the province will not get deposits and will be blacklisted.
President, Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI), Zulfiqar Ali is not too much optimistic about the industrial policy 2016 termed the abolition of ban on new gas connections, gas load shedding, low pressure and security issue as major problems demanding immediate resolution.
He said that the industrial policy has major stress on the establishment of new industrial estates and expressed the fear that this step should not bad impact on the old and existing estates. Therefore, he also stressed need for concentration on the existing industrial estates also.
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