PESHAWAR: The Khyber Pakhtunkhwa government on Wednesday has offered a robust incentives’ package for industrial development and to stimulate economic activities in the newly merged districts (NMDs).
The package which figures prominently in the new industrial policy 2020, is reflecting incentives relating to access to finance, land and electricity besides access to markets to rejuvenate industries in those areas of the tribal regions having local resources including raw material and human resources.
According to the policy, which is described as a pull factor for investors, reveals that incentives would be primarily offered to industries based on indigenous resources of the newly merged tribal districts in order to give impetus to economic activity in a sustainable manner.
As part of the package, access to finance would be provided to Small and Medium Enterprises (SMEs) by offering a 15 percent quota in credit. In this regard, the State Bank of Pakistan (SBP) would be asked to direct both public and private sector commercial banks for extending sharia compliant commercial lending in NMDs.
Similarly, land in specific NMDs areas earmarked for SMEs in Special Economic Zones (SEZs) and Economic Zones (EZs) would be provided at 15 percent discounted prices.
Moreover, power supply would be provided through independent feeders, wherever necessary.
Easy access to local markets would be ensured in respect of the goods processed and manufactured in tribal districts areas.
Moreover, exemptions of KP sales tax on services available to NMDs shall likewise continue for the specified period upto June 30, 2023.
The KP government will consider further continuation of the current fiscal dispensations after examining the industrial development level in NMDs, and will, if need be, take it up with the federal government accordingly.