KP released Industrial Policy 2020
PESHAWAR, August 27 – Khyber Pakhtunkhwa Industrial Policy 2020 was released here Thursday afternoon.
A special focus was being given to the development of CPEC Special Economic Zones (SEZs) and Industrial Zones.
According to the Policy, China-Pakistan Economic Corridor (CPEC) has significantly improved the infrastructure in the province, making the investment climate more promising.
The policy’s core objectives include increasing competitiveness of industrial sectors in the province, providing a conducive environment for collaboration to develop indigenous products and technology, constructing SEZs, promoting the cottage industry, utilizing mines and mineral base in the province, creating skilled human resources, encouraging women and marginalized groups to participate in the workforce, and ensuring that local population is the main beneficiary of the industrial development.
The desired outcome is envisaged as the establishment of 19 small industrial estates in ten years, state-of-the-art Common Facility and Training Center in Darra Adamkhel in collaboration with Pakistan Hunting & Sports Arms Development Company, clusters of Small- and Medium-Sized Enterprises (SMEs) and cottage facilities.
The Industrial Policy has been made more effective by adopting an integrated and gender-equal approach.
Disabled persons are also given due consideration by ensuring their inclusion in the workforce. Emphasis is made on providing opportunities for training and development of the disabled workforce as vocational and technical training would enable them to acquire and enhance skills.
Labour protection and a safe working environment will also be a priority and child labour will be prohibited.
The incentives proposed in the policy include the exemption of 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 the implementation of policy in the province will make the industrial sector compete at national and global levels.
The policy also lays focus on creating a “Pull Factor” for investors to form joint ventures with local investors and invest in indigenous natural resources.
“The policy supports human resource development and innovation and creates a supply chain to capitalize on the opportunities available in Khyber Pakhtunkhwa (including merged districts) to make the environment competitive for investment”, reads the policy document recently passed by the provincial cabinet. The priorities of the provincial government are structured under three pillars including revival and rehabilitation, growth, and competitiveness.
The policy also outlines key barriers and challenges under each pillar and makes a recommendation to overcome those barriers while achieving the overall objectives.
According to the policy document, the provincial government has strongly emphasized the development of a convenient and integrated platform for ease of doing business to facilitate prospective investors.
