KP industries await incentives govt promised in 2016

PESHAWAR: The industries in Khyber Pakhtunkhwa have yet to receive incentives they were promised by the provincial government in a notification issued on March 31, 2016.

According to the notification, the industries were to receive 5 percent return on markup, 25pc rebate on electricity and the same percentage on transportation.

Under the scheme, Rs4.8 billion were allocated to KP Economic Zones Development and Management Company (KP EZMDC) and Rs700 million were transferred to their account.

However, not a single penny of the incentive has been given to any industry in the province.

In a letter addressed to KP Chief Minister Pervez Khattak, Sarhad Chamber of Commerce and Industry President Zahidullah Shinwari has written that due to a lack of interest on part of KP EZDMC, industries have neither received the promised amount nor has any single case been approved or processed.

As per the letter, non-payment of the promised amount has left the business community of KP with the impression that the Pakistan Tehreek-e-Insaf (PTI) government is not serious about industrialisation.

Shinwari has demanded that the chief minister intervene in the matter.

On the other hand, while speaking to Geo News, KP EZDMC Chief Operating Officer Adil Salahuddin said the company did not have a good experience in the past dealing with Gadoon Industrial Estate. 

He added that industrial units at the estate were operating only until incentives were paid to them. As soon as the provision of incentives stopped, the industrialists packed their machinery and left, causing the estate to collapse, Salahuddin added.

Nevertheless, he said they were working on 12 applications requesting the incentives, but would give approval for only those industrial units that start functioning efficiently.