The Provincial Government of Khyber Pakhtunkhwa has planned to create at least 10 economic zones in the province in the next decade in line with the Industrial Policy of 2020 after the provincial cabinet approved a policy last month.
According to local media outlets that reviewed the policy, the proposed areas include the Rashkai Special Economic Zone and the Nowshera Economic Zone Expansion and will be established in Jalozai, Nowshera, Chitral, Mohmand, Gazi, Darband, Swat, Buner and Shakas districts, while two SEZs are planned with a partnership between the public and private sectors (PPP) in the next five years.
The Policy document proposes the creation of nineteen small industrial parks throughout the province in the next decade.
This policy will foster the development of construction, automobiles, medicine, electronics, clothing, recharging, information technology, food and labor-intensive industries in the province, proposing to equip human resources with modern and technical skills, including artificial intelligence, and those required for the fourth. Industrial revolution.
It also calls for the use of the province’s natural resources, such as mineral water, mines and minerals, oil and gas, food and beverages, and cottage industries, to make the local industrial sector competitive.
The proposed package of financial incentives for investors to set up industrial enterprises in the province includes exemption from regional electricity charges for new and expanding projects, initial setup and budgeting, upgrades and the possibility of replacing with a one-time fee, tax-free capital import of goods, machinery and equipment. as well as tax exemption on transfer of ownership of Disease units and return of profits to foreign investors in accordance with applicable laws and obligations.
The policy also offers incentives in integrated tribal areas, especially in regions where raw materials and human resources are available, and says it will spend 15% of the credit incentives for SMEs. The State Bank of Pakistan (SBP) will have to instruct both public and private commercial banks to expand commercial lending in accordance with Sharia law in these areas.
In addition, land in the designated merged FATA territories designated for industrial zones will be provided with a 15% discount, and electricity will be provided through independent channels. There will also be easy access to local markets for goods that are processed and produced in integrated tribal areas.
The policy also indicates that the KP sales tax exemption on services will continue in tribal areas until June 30, 2023
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