The Khyber Pakhtunkhwa (KP) government has planned to establish teneconomic zones across the province in the next decade.
These economic zones will be established under the Industrial Policy, 2020,after the provincial cabinet’s approved the policy in this regard lastmonth.
According to the media reports, the proposed zones include Rashkai SpecialEconomic Zone and Nowshera Economic Zone Extension, which will be set up inJalozai, Nowshera, Chitral, Mohmand, Ghazi, Darband, Swat, Buner, andShakas areas.——————————
Additionally, the establishment of two special economic zones (SEZs) underthe public-private partnership (PPP) has also been planned for the nextfive years.
The policy document also proposes the establishment of 19 small industrialestates across the province in the next decade.
The policy covers construction, automobile, pharmaceutical, electronics,apparel, transshipment, IT, food, and labor-intensive industries in theprovince, proposing that human resources be equipped with modern andtechnical skills, including artificial intelligence, and those required forthe fourth industrial revolution.
The policy is also aimed at leveraging the province’s natural resources,including hydel, mines and minerals, oil and gas, food and beverageprocessing, along with cottage industry in a bid to make the localindustrial sector competitive.
The policy also proposes an exemption from provincial electricity duty fornew and expansion projects as part of the financial incentive package toencourage investors to set up industrial units in the province.
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The same exemption will also be applicable on projects that include initialinstallation and balancing, modernization and replacement facility forone-time duty, tax-free import of capital goods both plant and machinery.——————————
There is also the clause of exemption of tax on the transfer of sick unitproperty and repatriation of profit for foreign investors subject to theexisting laws and commitments.
The policy is also inclusive of the merged tribal districts, especiallythose with raw material and human resources. The policy proposals for theseareas include providing a 15 percent quota in credit incentives for smalland medium enterprises (SMEs).
The land in the specific merged areas, earmarked for industrial zones, willbe provided at a 15 percent discounted price, while electricity will besupplied through independent feeders.
Additionally, the State Bank of Pakistan (SBP) will be asked to direct bothpublic and private sector commercial banks to extend Shariah-compliantcommercial lending to these districts. The exemption of KP sales tax onservices will continue in tribal districts until June 30, 2023, the policyproposes.
