CPEC has set the stage for investment in Khyber Pakhtunkhwa: Industrial Policy
China Economic Net
Peshawar: The China-Pakistan Economic Corridor (CPEC) has significantly improved the infrastructure making the investment climate in the province extremely promising, the Khyber Pakhtunkhwa Industrial Policy 2020 released here said.
A special focus was also being given towards development of CPEC Special Economic Zones (SEZs) and Industrial Zones to create clusters of Industrial excellence to jump start growth of industries.
The policy’s core objectives include increasing competitiveness of industrial sector in the provinces, to provide conducive environment for collaboration to develop indigenous products and technology, promotion of SEZs, Cottage industry, utilize mines and mineral base of the province, create a critical mass quality & skilled human resources, encourage women and those from marginalized groups to participate in the workforce and to ensure that local population is the main beneficiary of the industrial development.
The desired outcome through implementation of industrial policy was envisaged as establishment of 19 small industrial estates in ten years, establishment of state of the art Common Facility and Training center in Darra Adamkhel in collaboration with Pakistan Hunting & sports Arms Development Company, establishment of district wise clusters of Small and Medium-Sized Enterprises (SMEs) and the Cottage industry.
The Industrial Policy of the province has been made more effective by adopting an integrated and gender equality approach and pertinent connectivity is established with other existing policies.
Disabled persons are also given due consideration in the policy by ensuring their inclusion in the workforce. Emphasis was on providing opportunities of training and development of disabled workforce as vocational and technical training would enable them to acquire and enhance their skills.
Industrialization in the province would be steered towards adoption of good labour practices where protection and safe working environment for the labor would also be priority and child labour would be discouraged.
The incentives proposed in the policy are exemption from provincial electricity duty for new and expansion projects, initial installation facility for one time duty and tax free import of capital goods, exemption of tax on the transfer of sick unit property and repatriation of profit for foreign investors subject to prevailing laws and commitments.
Supporting relocation of industries through implementation of policy in the province would make the industrial sector to compete at National and global level.
The policy laus focus on prioritizing and incentivizing industrial sectors and to create a `Pull Factor’ for investors to form joint ventures with local investors, invest in utilizing indigenous natural resources.
“The policy supports human resource development, innovation and create a supply chain to capitalize on the many potential opportunities available in Khyber Pakhtunkhwa (including merged districts) to strengthen and make the environment competitive for investment and rejuvenate industrial sector,” reads the policy document recently passed from provincial cabinet. The key areas of focus and priorities of the provincial government are structured under three pillars including revival & rehabilitation, growth and competitiveness.
The policy also outlines key barriers and challenges under each pillar and makes recommendation to overcome those barriers while also achieving the overall objectives through actionable targets.
According to policy document, the provincial government has laid a strong emphasis on developing a convenient and integrated platform for ease of doing business to facilitate prospective investors.
