akistan has to have a sustainable industrial base. The economy is in dire need of foreign exchange income, which can be sustainably generated through exports.

Given its increasing youth population, Pakistan needs a sound industrial base to create jobs, earn foreign exchange and reduce poverty. The governments have to prioritise the country’s industrialisation on a war footing.

The Khyber Pakhtunkhwa government understands the need to provide industrial infrastructure to accelerate the province’s economic development. In 2015, it established the Khyber Pakhtunkhwa Economic Zones Development and Management Company to fast-track industrial development.

The company manages 14 economic zones, including two special economic zones and an export promotion zone. Five new economic zones are in the pipeline. The existing EZs cover eight KP districts; the upcoming five will cover another four districts.

Swabi has an EZ spread across 1,116 acres, Peshawar has one on 868 acres, and Nowshera has five, spread over 1,535 acres. These include the Rashakai SEZ and the Export Processing Zone at Risalpur. Haripur has two EZs on 1,583 acres, including the Hattar SEZ.

Bannu has one EZ spread over 408 acres, Dera Ismail Khan has an EZ on 189 acres, Chitral has an EZ on 40 acres and Mohmand one on 350 acres. The zones to be launched soon include the 284-acres Karak EZ, the 126-acres Buner EZ, the 3,200 acres DI Khan EZ, the 471 acres Mardan EZ and the 32 acres Manshera EZ. The company hosts 1,200 industries and has revived 200 sick units. These zones employ approximately 150,000 people.

The company has completed the Rs 1,500 million rehabilitation project of Hattar EZ, Peshawar EZ and Gadoon EZ. The company is developing the infrastructure in 10 economic zones,including the Jalozai EZ, the Nowshera EZ, the Nowshera EZ extension, the Chitral EZ, the DI Khan EZ, the Mohmand EZ, the Bannu EZ, the Hattar SEZ, the Ghazi EZ and the Risalpur EPZ.

These projects include roads, sewerage, water supply, electricity supply, entrance gates and office buildings. These projects will cost Rs 7 billion and will conclude by 2024. Out of the total expenditure, Rs 3 billion is being provided by the PSDP for electricity supply through 11 KV feeders and 132 KV transmission lines to the SEZs.

The Rashakai SEZ is a CPEC project with excellent infrastructure, electricity, gas and state-of-the-art security. A 10 MW 11 KV feeder and a 160 MW 132 KV transmission lines costing Rs 116 million and Rs 689 million, respectively, are part of the project.

Under the SEZ Act 2012, supplying electricity and gas to SEZ’s zero point is the federal government’s responsibility. The KPEZDMC is providing Rs 4 billion for these projects from its own resources.

The Rashakai SEZ is a CPEC project with excellent infrastructure, electricity, gas and state-of-the-art security. For the Rashakai SEZ, a 10 MW 11 KV feeder and a 160 MW 132 KV transmission lines costing Rs 116 million and Rs 689 million, respectively, are planned.

Another 50 MW of electricity supply will cost Rs 1,019 million. With ample labour, the Hattar SEZ is close to Islamabad. It has almost complete infrastructure, including 10 MW electricity and 2.5 mmcfd gas. Another 40 MW electricity through the 132 KV HSEZ grid station will be available shortly.

The federal government has paid Rs 69 million to supply 10 MW electricity through 11 KV feeders and Rs 375 million to supply 40 MW through 132 KV transmission lines. Another 110 MW of electricity will be provided to the 132 KV HSEZ grid station through the 220 KV Haripur grid station. This will cost the federal government Rs 592 million. Rs 650 million road, sewerage and water supply projects are in the final stages of completion.

A dedicated zone management office is under construction to facilitate the industrialists 24/7. Due to the location and good law and order in Haripur, demand for land at the zone is very high. Therefore, the KPEZDMC plans to expand the Hattar SEZ.

The KP is trying to become a popular destination for industries. To this end, it is providing quality infrastructure despite the smaller local markets and the long distance from the Karachi Port. The KP is rich in marble, granite, gemstones and agriculture. It can also serve as a gateway to Central Asia through KPEC, connecting Karachi to Dushanbe, a $450 million project funded by the World Bank.

The CPEC now links the KP to China. The KPEZDMC EZs and SEZs have excellent infrastructure.

Many factories are under construction or near production in these zones. More industrialists interested in exporting to Central Asia, Afghanistan and China can invest in one of the economic zones.

The writer is Zone Manager, Hattar SEZ, KP Economic Zones Development & Management Company, Government of KP