PBF calls for policy change on KP special economic zones
PESHAWAR: Ashafaq Paracha, Chairman of the Pakistan Business Forum (PBF) Khyber Pakhtunkhwa chapter, has stressed the immediate need for policy reforms concerning Special Economic Zones (SEZs) and industrial areas in Khyber Pakhtunkhwa (KP), according to a press release issued here.
Paracha highlighted that the current practice of offering land for sale in industrial zones has resulted in unintended consequences that are hampering the growth of the region’s industrial sector.
Govt taking prudent steps to promote economic growth
In a meeting with Senator Falak Naz Chitrali, Paracha pointed out that a major obstacle in KP’s industrial development is the treatment of industrial plots. “We’ve observed that many members of the business community have purchased land in industrial areas as an investment rather than establishing industries as originally intended,” he stated with concern.
He further elaborated that land designated to promote industrial growth and economic development remains idle or is being resold, which is detrimental to the region’s broader economic progress.
Paracha expressed concern that these industrial zones were originally designed to boost business activity, generate employment, and encourage manufacturing in the region. However, the prevailing trend of land being acquired for speculative purposes instead of actual industrial use undermines the fundamental goals of these zones. “It’s a lost opportunity for economic growth when land meant for industries is held as a mere asset without any industrial activity taking place,” he added.
He recommended that the government revise its policy on land allocation within Special Economic Zones. Instead of selling plots outright to businesses, he suggested the government lease these plots for a period of 10 years. This leasing model, he argued, would benefit both the government and the business community.
“By leasing the land instead of selling it, the government can ensure that industrial zones are actively developed and utilized for their intended purpose. Lease agreements would also provide flexibility, with an option to extend the lease after 10 years if the business proves successful,” Paracha explained.
Additionally, he proposed including a clause allowing the government to revoke the lease if an industrial unit is not established within two years of the plot’s allocation. This, he said, would ensure that plots are awarded to serious investors committed to contributing to the local economy.
Paracha believes that such policy changes would not only address the issue of idle land but also motivate businesses to fulfill their industrial development commitments.
“The lease system will discourage speculative investments, ensuring that land is used for its intended purpose. This, in turn, will boost the local economy and create job opportunities for the people of KP,” he concluded.
