Khyber Pakhtunkhawa Governor Sardar Mehtab Ahmed Khan has approached Finance Minister Ishaq Dar seeking new incentive packages (2016-17) in three major areas of finance; power and taxation to boost industrial activity and to accelerate economic development in Federally Administered Tribal Areas (FATA).
Sources told Business Recorder here on Wednesday that the Governor KPK has communicated an industrial policy to the Finance Ministry for accelerating economic development in FATA.
Governor KPK informed Finance Ministry that more than a decade old militancy in FATA has dealt a harsh blow to public and private infrastructure and has severely strained the already fragile livelihood opportunities in the region. Presently thousands out of job tribesmen in every agency pose a big challenge to the Government as without putting them back in jobs, sustainable peace in the region would remain an unrealised dream.
It is heartening to see that the government is sparing no effort to address the problems that have befallen the unfortunate region and has undertaken many initiatives to restore the damaged public infrastructure and rehabilitate the misplaced families. Nonetheless, such is the scale of devastation and unfulfilled need that all that has been done in FATA so far seems but minuscule and the pressing requirement for doing more urgently is emphasised.
Realising this, and given the fact that the path to speedy economic salvation is invariably routed through industrial activity, a committee was constituted comprising eminent entrepreneurs of the region and senior Government servants to propose a workable plan to accelerate economic development in FATA. The committee after thorough investigation and meetings with all the relevant stakeholders including Chairman FBR has submitted its report which recommends a set of incentives in three major areas of Finance; Power and Taxation to boost industrial activity in FATA. Being cognisant of the potential misuse, the proposed incentives have been structured in a fashion that prime beneficiaries would be the industry that is not in clash with the formal economy of Pakistan and could be sustainable in FATA.
Coming from the potential investors in FATA, Governor KPK feel that the recommendations are based on the reality on ground in FATA and therefore merit to be adopted as an Industrial Policy for the region. The opening up of new economic horizons due to the emerging trade routes to the east & west and thus act as the much needed catalyst to encourage investment in the region without burdening the national economy. Since sustainable peace in the region could only be achieved through economic development, Government KPK showed confidence in Federal Government who will accord its approval to the proposition at the earliest and thereby consolidate the achievements of the ongoing Zarb-e-Azb on the economic front.
It is recommended that the large cold stores and general consumer goods warehouses in FATA do not appear to be feasible in the current trade scenario between Pakistan and Afghanistan.
It is recommended that small cold stores for indigenous fruit and vegetable produce could be sponsored at Wana in South Waziristan and Durrani Camp and Shasho Gwaki in Kurram Agency.
It is further recommended that Wana in South Waziristan Agency tops FATA in fruit and vegetable production. It also has world's largest Chalgoza forests in surroundings. This seems an ideal location for setting up a Small industrial Estate for Agro-based Industry.
It is recommended that the Spinki Raghzi and Makeen could have Small Industrial Estates for mineral based industry at an appropriate time in future when security situation is improved.
It is recommended that the Marai Plain in Orakzai Agency is a potential site that seems to be suitable for a cement plant.
It is recommended that a mineral Trading yard/Industrial Estate for mineral based industry is apparently feasible around Mirzail Picquet/Chowk in Bakka Khel FR Bannu.
It is recommended that the Empirical Data on the economic potential of different areas of FATA is very limited. Professional studies be conducted in every Agency/FR to ascertain the commercial viability of available economic potential and sites for industrial infrastructure if required, Governor Khyber Pakhtunkhawa added.
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