The Khyber Pakhtunkhwa Economic Zones Development & Management Company (KP-EZDMC) has announced plans to set up 9 new economic zones within a period of two years to promote industrialisation in the province. According to the government officials, five more economic zones including one Special Economic Zone (SEZ) i.e. Daraban SEZ, Buner Marble City, Salt & Gypsum City Karak, Mansehra EZ and Katlang EZ are also in the pipeline.
These economic zones will bring an investment of about Rs 338 billion and will increase exports and decrease imports which will ultimately strengthen the country’s overall economic growth. It has been estimated that installation of these economic zones will provide jobs to around 4,00,000 people (Pakistan Today, 2022). The KPK government is committed to bring improvement in the industrial infrastructure and promoting of industries in the province to generate employment opportunities.
The KPK government is committed to promoting industrial development in the province and has taken initiatives to operationalise several economic zones. Earlier, the DI Khan Economic Zone has been made operational and 9 industrial units have started production while 16 more are under construction. Similarly, around 90% plots have already been allotted in Bannu Economic Zone and construction work on them has also been started.
Furthermore, the Export Processing Zone (EPZ) Nowshera has been restored and now products are being exported from it. Also, a big industrial unit has been installed to manufacture the parts of drilling machines that are being exported to Saudi Arabia. Besides this, the government is focusing on the revival of sick industrial units, for which 160 units have already been revived in the Gadoon Economic Zone wherein big and strong industrial groups have made investments in pharma, steel, pipe and foam manufacturing units.
Globally, these Special Economic Zones have immense importance in promoting a country’s economic growth. They attract investment, create jobs and boost exports, both directly and indirectly and create building linkages with the broader economy. These zones are an investment promotion tool and support global value chain participation, industrial upgrading, and diversification.
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