Home Top News Unfair policies, lack of industrialization crippling KP’s economy: Salim

Unfair policies, lack of industrialization crippling KP’s economy: Salim

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DLP Report
PESHAWAR
Salim Saifullah Khan, former senator and federal minister has strongly criticized both the Khyber Pakhtunkhwa (KP) and federal government for their failure to industrialize the province despite its vast natural resources.
In a statement issued here on Wednesday, he said that KP is self-sufficient in natural gas, producing more than it consumes, and also generates electricity at cheaper rates. However, instead of utilizing these advantages to boost industrialization, the government has imposed unfair energy policies that are crippling businesses and pushing industries towards closure.
One of the most damaging decisions has been the steep increase in gas prices—specifically targeting Captive Power Plants that rely on gas for in-house electricity production. This has made operations financially unsustainable for many industries, forcing them to shut down. Instead of supporting industrialization, the government is effectively driving businesses out of KP. “Why is KP, which produces more gas than it needs, being charged higher prices than even imported RLNG?” Mr. Khan questioned. “This discriminatory policy is destroying local industries and causing massive job losses.”
In addition to energy resources, KP is also rich in precious minerals, including marble, limestone, chromite, and gemstones. However, due to a complete lack of processing industries within the province, these raw materials are extracted and sent outside KP—and in many cases, exported out of Pakistan—without adding any local value. Instead of creating jobs and economic opportunities, this outdated approach benefits other regions and countries while KP remains underdeveloped.
“The mineral wealth should be a key driver of economic growth, but instead, we are allowing it to be exploited by others,” Mr. Khan stated. “Without local processing industries, we are losing billions in potential revenue and employment opportunities. The government’s negligence in this sector is unacceptable.”
Mr. Khan demanded that both the KP and federal governments take immediate corrective action by reversing the unfair gas pricing policy that has forced industries to shut down. Facilitating investment in industrial zones to allow businesses to thrive. Establishing mineral processing industries within KP to ensure that the province benefits from its own resources. Implementing long-term industrialization policies to create jobs and boost economic growth.
“If these issues are not urgently addressed, KP will continue to suffer economic stagnation while its natural wealth is used to benefit others,” Mr. Khan warned. “The government must act now before more industries collapse, and before KP’s potential is completely wasted.