PESHAWAR - In view of almost a decade long militancy and now energy crisis, around 70 to 80 per cent industry in Khyber Pakhtunkhwa has either shifted to other provinces or abroad ultimately badly affecting economic activities and largely downgrading economy of the province.

It was stated by Sarhad Chamber of Commerce and Industry (SCCI) in its report on Economic Stagnation of Khyber Pakhtunkhwa; specifically with primarily focusing of “Energy and Banking Perspective Part-I”. The KPCCI President Afan Aziz formally launched the report on Thursday.

The report further reveals that for a decade, the industrial growth in war-shattered province has steadily slowed down.

Both, economic and industrial activities had remained standstill amid the growing disparity of natural resources, which was not only caused acute shortage of electricity and gas for manufacturing and exporting units in the province, but also generated huge unemployment over past a decade.

The indigenous potential resources neither support commercial nor industrial consumers in the KP as the current imbalanced share under present policy framework, mere benefiting to other provinces instead of KPK.

The KPCCI report shows for the last three decades in war situation in this region, the KP industrial stagnation had not only dwindling its’ economy, but has also lowering the ratio of internal and external investment comparatively with other provinces.

The report revealed that almost 70 to 80 percent of KP industry either shifted to other provinces or abroad, while most of units turned to standstill in prevailing energy crisis, which resulted in downgrading the economy of the province.

In the unfavorable environment, local investor in generally and foreign in particularly were reluctant to invest in the current circumstances.

According to the report, the province has net consumption of gas domestic, commercial, general industries transports CNG, remains 60, 7, 35 and 49 MMCFD respectively during 2011-12. Of the total gas consumption of 3,400, the Punjab consumes 1,807 MMCFD, Sindh 1,200 MMCFD, Balochistan 242 MMCFD, and KPK mere 151 MMCFD. While gas consumption and production from July-2011 to March-2012, the KP has consumed less against its actual production ratio as compared to other provinces.

Sindh province produces 2,849 MMCFD with 67.3 percent share, followed by KPK 369 MMCFD with 8.7 percent share, Punjab 205 MMCFD with 4.8 percent share, and Balochistan 813 MMCFD with 19.2 percent share of the total production of the country in the period. .

Comparing the energy consumption with rest of the country, the report said that a total electricity consumption of KP has remained at 2,184 with mere 33 percent growth rate, whereas Punjab province has significantly increased growth at 20,605 consumption, followed by Balochistan 2,226 with share of 122 percent growth, Sindh 5,672 with growth ratio of 56 percent, and Azad Jammu Kashmir (AJK) with marginal growth of 825 during the 2010-11. The KPCCI proposed to have a natural resource management to extend full benefits of the natural potential to all provinces.