PESHAWAR
\nChairman, Pakistan Business Forum (PBF) KP chapter Ashafaq Paracha has emphasized the urgent need for policy reform regarding the Special Economic Zones (SEZs) and industrial areas in Khyber Pakhtunkhwa (KP), said a press release issued here on Sunday.
\nAccording to Paracha, the current approach of offering land for purchase in industrial zones has led to unintended consequences that hinder the growth of the region\u2019s industrial sector.
\nDuring the meeting with Senator Falak Naz Chitrai, Paracha pointed out that one of the significant challenges in KP\u2019s industrial development is the way plots are being treated. \u201cWe have seen that many in the business community, instead of establishing industries, have bought land in industrial areas as an investment and not for the intended purpose,\u201d he lamented.
\nHe further explained that the land, which is meant to foster industrial growth and economic development, is instead sitting idle or being resold, which is detrimental to the region\u2019s overall economic progress.
\nParacha\u2019s concern stems from the fact that these industrial areas were designed to stimulate business activities, create jobs, and promote manufacturing in the region. However, the current trend of land acquisition for speculative purposes rather than industrial use undermines the core objectives of these zones. \u201cIt\u2019s a missed opportunity for economic growth when land meant for industries is being held as an asset, but no actual industrial activity is taking place,\u201d he added.
\nHe recommended that the government modify its policy on land allocation within Special Economic Zones. Instead of selling land outright to businesses, he suggested that the government offer these plots on a lease basis for a period of 10 years. This lease model, he argued, would be more beneficial for both the government and the business community.
\n\u201cBy leasing the land rather than selling it, the government can ensure that the industrial areas are actively developed and utilized for their intended purpose. A lease agreement would allow for flexibility, with the possibility of extending the lease after 10 years if the business is successful,\u201d Paracha explained.
\nHe also proposed a clause that would allow the government to cancel the lease if a business fails to establish an industrial unit within two years of receiving the plot. This would ensure that plots are allocated to serious investors who are committed to contributing to the local economy.
\nHe believes that such a policy shift would not only address the issue of idle land but also encourage businesses to follow through with their commitments to industrial development.
\n\u201cThe lease system will also discourage speculative investment, ensuring that land is used for its intended purpose, which will, in turn, boost the local economy and create jobs for the people of KP,\u201d he said.
\nSenator Falak Naz, expressed support for the idea and acknowledged the potential benefits of such a policy shift. \u201cIt is essential that we create a more accountable system for land allocation in industrial zones. This proposal to offer land on a lease basis aligns with our goals of fostering industrialization and ensuring that these areas remain productive,\u201d she stated.
\nThe issue of underutilized industrial land has long been a concern for both the government and the business community. KP, with its strategic location and potential for industrial growth, has the opportunity to become a hub for manufacturing and export. However, Paracha pointed out, the current system of selling land for industrial purposes is not yielding the desired outcomes.
\nA shift towards a lease-based model, he believes, could be the key to unlocking the region\u2019s full economic potential.
\nPBF chairman also believes this policy change could play a crucial role in driving economic growth, creating employment opportunities, and enhancing the competitiveness of KP\u2019s industrial sector on a national and international level.<\/p>\n","protected":false},"excerpt":{"rendered":"
PESHAWAR Chairman, Pakistan Business Forum (PBF) KP chapter Ashafaq Paracha has emphasized the urgent need for policy reform regarding the Special Economic Zones (SEZs) and industrial areas in Khyber Pakhtunkhwa (KP), said a press release issued here on Sunday. According to Paracha, the current approach of offering land for purchase in industrial zones has led […]<\/p>\n","protected":false},"author":2,"featured_media":349804,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-459241","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n