Without industrialisation, exports govt cannot progress

Next three years are crucial for economy of KP and Pakistan. Without industrialisation and exports the government cannot progress and achieve economic prosperity, said Javed Iqbal Khattak, CEO Khyber-Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC).

In an interview, he said that he completed Bachelors in Mechanical Engineer and Postgraduate Diploma in Industrialisation, Trade and Economic Policies from UET, Peshawar. He KPEZDMC as CEO since March 2020. Prior to this he was GM SMEDA. He worked with public and private sector for last 29 years. He said, “Due to working with SMEDA, I had already known most of the industrialists in KP and Islamabad and had knowledge of issues they faced with respect to industrialisation. Hence, I had a profound insight to the issues of investment facilitation and investment opportunities in KP before joining KPEZDMC.”

What do you hope to accomplish in terms of industrialisation, economic uplift and job creation in the province in the next three years?

Next three years are crucial for economy of Khyber-Pakhtunkhwa (KP) and Pakistan. Without industrialisation and exports the government cannot progress and achieve economic prosperity. KPEZDMC has a major role in the development of the province. Due to CPEC and government focus on industrialization, KPEZDMC will fast track launching of Economic Zones. In next 3 years we will launch Rashakai SEZ (1,000 acre), Ghazi EZ (89 acres), Chitral EZ (40 acres), Nowshera Extension (76 acre), D.I Khan, Daraband EZ (3,125 acres), Mohmand EZ (350 acres), Buner EZ (126 acres) and Bannu EZ (408 acres). We will also revive over 100 sick units. We plan to establish 550 units, create 25,000 jobs, and attract Rs18 billion investment in next 3 years. This is an ambitious target however I like challenges and Insha Allah will achieve my set goals.

How do you foresee Hattar Special Economic Zone would bring economic prosperity and job creation to this province and Pakistan?

Hattar SEZ is the flagship project of KPEZDMC. Since taking over the reigns of the Company, one of my top priorities was arranging gas and electricity for Hattar SEZ. I have successfully arranged 2.5 mmcfd gas for the Zone through a dedicated HSEZ CMS. Similarly, the poles for 10 MW, 11 kv feeder and 40 MW, 132 KV transmission line are being installed. The civil works of the 132 kv HSEZ grid station stands complete. We are in process of getting Rs2.8 bn PC-1 approved by provincial government for completion of roads, sewerage, water supply and other infrastructure requirements. Hence very soon, the Zone will be equipped with all the amenities required by industrialists. We have allotted 288 acres of land to 99 industrialists out of 332 acres available for sale. Next year with advent of electricity and gas, I foresee Rs5 billion investment mobilization and over 800 job opportunities at the Zone. Upon colonisation, we expect Rs40 billion investment and over 25,000 jobs.

What is the status of Rashakai SEZ and when do we expect to see construction of the zone and industries?

Rashakai SEZ is comes under CPEC umbrella and is the first Industrial Cooperation Project between China and Pakistan. Development Agreement has been signed with CRBC and we expect PM Imran Khan to launch the Zone very soon. We have received 1855 applications for 3,500 of acres. The 1,000 acre SEZ will create 50,000 jobs and bring PKR 347 bn of investment. 10 MW of electricity at the Zone has been arranged through 11 kv feeder. Work is in progress on the 160 MW, 132 grid station. Due to its excellent location on Motorway and proximity to Torkham Border hence Central Asia, the Zone is expected to be the game changer for KP and Pakistan.

How will CPEC effect investment in manufacturing sector in KP?

Due to CPEC, accessibility to multi-billion dollar Afghanistan and China market have been made easy. From Afghanistan, the lucrative markets of Central Asia are within reach from KP. KP being the starting point of CPEC, KP holds a significant position in availing the vast opportunities arising from CPEC route. We expect many industries from China to relocate to Rashakai SEZ and other parts of KP in second phase of CPEC. Pakistani Industrial Groups can also participate in the economic prosperity by entering JVs with the Chinese or setting up their own units in KP.

How will Industrial Facilitation Centers benefit industrialists?

Investor facilitation is the core of my professional philosophy. As soon as I joined KPEZMDC I instructed my team to enhance their customer services and ensure that all our industrialists are delighted with the services we are providing them. One issue I had observed even before joining KPEZDMC was that the investors in KP have to visit so many government offices to get their tasks done. This would waste their precious time and discourage them. Hence, I asked my team to hand hold industrialists and ensure they get all services under one roof. Now my team not only solve issues of industrialists within KPEZDMC but also coordinates with PESCO, SNGPL, District Administration, Police and Board of Investment to solve issues of industrialists on priority basis. Offices of all Economic Zones are now call Industrialists Facilitation Centers due to our enhanced scope of work with our clients, the industrialists.

What are KPEZDMC achievements so far?

KPEZDMC since its inception in 2015 has come a long way. In last two years, we have established over 60 units, created 2500 jobs, revived 47 units creating another 1950 jobs. Rehabilitation of Gadoon, Hattar and Peshawar Economic Zones was under taken at a cost of Rs1.728 billion. We have successfully launch Hattar SEZ and Jalozai EZ. The tasks in pipeline will change industrial landscape of KP.

uring the turbulent and uncertain circumstances arising due to the recent pandemic of COVID-19, how to do you plan to operate, support industries and attract investment in KP?

COVID 19 has played havoc with the economies of the world. However due to effective handling of the KP government, we were able to minimize the effects of Corona on Industries. I am also the head of Task Force on effects of COVID-19 on Industries in KP. My team has been guiding industries to follow SOPs set by the government. All Zone Managers are instructed to visit industries regularly and ensure no lapse in SOPs transpire. A thorough weekly report is shared by all Zone Managers with me. Industries failing to follow SOPs are encouraged to rectify the procedures.

Which personality traits make a good leader? What is the biggest challenge in being a CEO of a Company like KPEZDMC?

I believe sincerity, commitment and hard work are the most essential traits of a leader. Sincerity to the job, organization and your team is a big asset. As a CEO, my biggest challenge is to galvanize my team and do things which were previously unthinkable, like launching of Jalozai EZ. Jalozai EZ was an unviable project in books however I believed in its success firmly. Once I launched it became an instant success with industrialists where demand is much more than the available land. Now we plan to go for an extension of the Zone. Another challenge is slow approvals in processes. Sometimes I would like to achieve things at much faster speed however scrutiny and procedures of public organizations delay tasks.

What message would you like to give to investors? Why should they invest in KP?

I would like to tell the investors in Pakistan and around the world especially the Pakistani diaspora to come and invest in KP as the time is ripe now. We are in momentum due to CPEC, federal and provincial governments focus on industrialization and vast resources of KP. Mines, minerals, gemstones, fruit and food processing are outstanding areas to invest in KP due to their raw material availability and export potential. My doors are always open and I can be reached by investors on my mobile 24/7 to assist them in setting up their units in KP.