INDUSTRY
Gadoon Amazai Industrial Estate is one of the big industrial zones of Pakistan. It was established with the aim to create employment opportunities in the region and streamline the Gadoon area of Swabi district as a productive part in the industrial network of the country. However, today this premier industrial zone is going through very hard times.
Various political parties came into power and established their governments, but none did anything for the estate. Because of this indifferent attitude, now only a few dozen industrial units are functional there. Majority of the skilled and non-skilled labourers from different areas of the district in general, and Gadoon in particular, are now performing their duties at different other industrial estates of the country.
This state of affairs is adversely affecting the economy of the district. Many are unemployed, and a few who are still working at different units in the estate, have no protection against abuse and violation of labour rights.
According to different sources, in most of the textile mills, 60 percent labourers are children. The provincial government has declared Rs15,000 as minimum monthly salary for a labourer, but here almost all labourers are getting a salary below Rs8,000.
Similarly, they are performing 12 hours of duty, instead of 8 hours and they are also not being compensated with overtime. In most of the industrial units, there’s a sub-contract system, or ‘thekedari system’.
Under this system, labourers have no service structure. They work on contract basis, and are not issue an appointment or agreement letter. They are only compensated on a daily basis. Besides, registration with Employees Old-Age Benefits Institution (EOBI) and Employees Social Security Institution (ESSI) is also not available to most of the workers. Making unions is strictly prohibited. In many units, they perform their duties even during Eid holidays.
Gadoon is a mountainous area of Swabi district in Khyber Pakhtunkhwa. It touches Haripur district of Hazara division on one side and Buner district of Malakand division on the other. It consists of more than 50 villages and its population is at least 0.3 million. Farming is the major profession of the locals. While most people are doing their jobs overseas and some are traders. Most of the educated people are government servants. However, the majority of the people are not prosperous financially and besides the miserable situation of health, education and drinking water, unemployment is a major problem that needs the attention of the government.
In the past, the economy of Gadoon area along with its neighbouring areas, for example Amazai, Tanol and Utman was dependent on the cultivation of poppy. Because its climate and environment was very much suitable for poppy, high quality varieties were being produced.
In 1984, the government of Pakistan imposed ban on the cultivation of poppy and its business in Gadoon area. It created unrest among locals.
In 1984, the USAID granted Rs320 million to establish Gadoon Amazai Project. Later on, this fund was increased but the people were unsatisfied and they stressed for sustainable development in the area. Chief of Gadoon-Amazai, Ashraf Khan Gadoon and other leaders of the region met with then Prime Minister Muhammad Khan Junejo in 1987 and demanded an industrial zone and other benefits for the people. He accepted their demands and announced the establishment of a state-of-the-art industrial estate on 116 acres in the area to resolve the issue of unemployment.
According to his plan, there would be 400 plus industrial units in the estate and it would have educational institutes, communications system, health centres, drinking water, non-stop electricity and gas, and a better sewerage system. As the people of Gadoon and Amazai areas were facing hard times, the estate was named ‘Gadoon-Amazai Industrial Estate’. Distance from Peshawar to the estate is 120 kilometres and from Islamabad via Tarbela Dam is 140 kilometres.
When Pakistan Peoples’ Party came into power and made its government in 1988, its chief minister for Khyber Pakhtunkhwa Aftab Ahmad Khan Sherpao declared the Statutory Regulatory Order (SRO)-517 through the federal government for the betterment of the Gadoon-Amazai Industrial Estate. Due to this act, industrialists were enabled to set their units by taking loan from banks on three percent mark-up. There was no tax on importing raw materials and machinery from overseas and relief on electricity and gas was 50 percent. Industries were freed of all types of taxes for 10 years. As a result, industrialists and investors from all over the country came here and started work on establishing their factories. In a very short time, more than 80 units were established. Thus, the estate started its journey with outstanding productivity.
However, this progress was stopped when Nawaz Sharif came into power in 1990. He allegedly stopped all incentives, grants and packages to the estate. This resulted in discouraging the investors and industrialists, who took their machinery and capital and went to other industrial zones of the country. As a result, Gadoon-Amazai Industrial Estate lost majority of the industries.
According to the Sarhad Development Authority’s data, in Gadoon-Amazai Industrial Estate, the total number of industrial units is 321, of which 98 are operational, 124 are closed, 19 under-construction, 10 near-operational, and 70 are vacant plots. The total number of employees is 15,734. Plastic/ PVC, chemicals, textile, paper sacks/ paper cone, steel re-rolling/ steel furnace, soap, disposable syringes, marble, beverages, foam, carpets and chipboard are the major industrial products.
To address the problems of the region, rehabilitation of the estate is very much necessary. The federal government must chalk out a strong and effective strategy in order to resolve this issue of great concern by restoring all incentives and grants to the estate. Similarly, the provincial government should also play its due role in this regard.
A well-known economist and assistant professor at Department of Economics, University of Peshawar Dr Sajjad Ahmad Jan says, “The establishment of Gadoon-Amazai Industrial Estate was a wise step towards the development of an underdeveloped region of the country, ie Khyber Pakhtunkhwa. This had not only pulled millions out of poverty but also had brought more cohesion and integration among the federating units as well as the federation. This is what we actually lack in Pakistan and this is what we really need if we want to be a developed and prosperous nation.”
If the government takes necessary measures, the environment will become investment-friendly, stabilise the economy, and generate employment opportunities, all of which will bring development and prosperity to the region.
Senior journalist Sultan Sidiqqui says, “Even seven decades after independence, unfortunately we still lack stability in our policies. Every ruler who comes into power establishes policies for achieving his personal and political objectives only. Due to this state of affairs, proper attention is not given to the establishment of strong and long-term policies, which is why almost all of our sectors are in miserable condition. Same is the case of Gadoon-Amazai Industrial Estate. On international insistence, the people were deprived of their source of livelihood in the shape of a ban on poppy cultivation. The alternate way of employment provided them was withdrawn by wrong policies. Therefore if no fruitful and effective strategy can be established for the rehabilitation of the estate, people must be allowed to cultivate poppy for positive purposes as it has many constituents used in life-saving drugs. This act will not only bring a prominent positive change in the financial status of the locals but also contribute to the health sector of the country.”
The writer works as a staff reporter with Daily Jang in Peshawar
