Working out new KP industrial policy

The Industrial policy which had been announced in May 2016 by the previous Khyber Pukhtunkhwa government could not take off. Hundreds of sick industries could not be revived and the ones which are running with low capacity could not be technologically upgraded. A draft of new industrial policy with attractive incentives is being worked out which shall be shared with business community for further refinement before it is formally approved. The input of business leaders shall be taken to put in place such a industrial policy which is instrumental in bringing back the investors who had left the province because of extremely unfavourable economic environment.

In the industrial policy which was announced four years ago included the only an incentive of 25 percent rebate in electricity bills which did not attract investors. An industrial policy which does not provide for tax holiday of preferably for 10-20 years may not boost industrial investment in the province. But the bitter fact is that the incentive of tax holiday which had been announced in 1986 for the Gadoon Industrial Estate had been secretly withdrawn after three years in 1989 when the industrialist of Karachi and Lahore had published front page advertisements titled industrial cobra, condemning the tax holiday granted for this industrial estate. Hence, the industrial policy of Khyber Pukhtunkhwa government can achieve the desired results in terms setting up new industries and revival of sick industries only when it is backed by the fiscal incentives of the federal government.