PESHAWAR: Khyber Pakhtunkhwa CM Pervez Khattak has announced to grant 5% concession on mark up on new loans for setting up industries in Khyber Pakhtunkhwa. He directed the relevant authorities to make three major rebates and certain other incentives part of the provincial industrial policy. The major attractions for industrial investment, he pointed out, must be included rebate on the mark up rate, electricity tariff and industrial transportation charges.

Presiding over a high level meeting at the CM Secretariat today, the Chief Minister disclosed that all companies interested in establishment of oil refineries in southern districts of the province had been directed to first approach the federal government for acquiring the oil quota under the prescribed procedures. He, however, made it clear that the present Khyber Pakhtunkhwa government has waived off the condition of NOC for establishing all kinds of industries including sugar mills and oil refineries.

The meeting was held to discuss the drafts of new industrial policy and early bird investment policy which mainly aimed at “building prosperous Khyber Pakhtunkhwa through sustainable and balanced industrial development thereby creating large employment opportunities and fiscal space for human and infrastructure development and to overcome problems of low investment, poor productivity and degrading physical and social infrastructure”, the policy document contained.

The meeting was told that under the present KP government initiatives for economic revival of the province and creation of large scale employment opportunities through sustainable industrial growth, certain major target have been achieved which included strengthening of TEVTA, establishment of BOIT, replacement of the role of Sarhad Development Authority by newly formed EZDMC and formulation of first draft of new industrial policy.

The participants were informed that the strategy for industrial growth under the proposed policy envisages development of industrial infrastructure, promotion of labor intensive industries, availability of funds / credits for industrial investment, skill development for both local and foreign job markets, development of specific sectors like gems, marble, granite, hydro power, cement, silica, building materials, phosphates, coal etc., trade promotion, exploitation of CPEC potential and opportunities, development of dry ports and border trade terminals, development of renewable energy, establishment of special economic zones, improving environment compliance, revival of closed and sick industries and provision of logistic parks etc.

Discussing the recommendations presented under the industrial and early investment policy, the Chief Minister Pervez Khattak stressed the need for arranging incentives first for a viable industrial growth and directed the concerned authorities to approach the major commercial banks and development finance institutions for obtaining at least 100 billion rupees financing for industrial investments.

He was confident that only Bank of Khyber will be able to spare 30-35 billion rupees for the loan disbursements. He was of the view that in locational disadvantageous Khyber Pakhtunkhwa it would be rather impossible to achieve the goal of sustainable industrial growth without grant of attractive incentives for industrial investment. He further clarified that the provincial government was authorized to utilize the locally produced electricity for industrial consumption at much cheaper rate and directed that establishment of an industrial estate at Malakand be given priority so that electricity being generated by Malakand III and Pehur projects could be allocated for the proposed Malakand industries.

The Chief Minister also stated that financial allocations for industrial incentives would be made in the next annual budget and directed to remove impediments in establishment of already planned four Special Economic Zones at Hattar, Rashakai, Jalozai and Ghazi. He also asked EZDMC to look into prospects of using liquid natural gas for industries and power generation.