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Khyber Pakhtunkhwa Economic Zones Development & Management Company

120 Industrial Estate, Jamrud Road,

Hayatabad, Peshawar - 25000

Khyber Pakhtunkhwa.

091-5890826, 9217708

Khyber Pakhtunkhwa Economic Zones Development &

Management Company

Government of Khyber Pakhtunkhwa

TOWARDS a

PROSPEROUSKHYBER PAKHTUNKHWA

e n t e r p r i s e . b e a u t y . h o s p i t a l i t y

Message�fromPERVEZ�KHATTAK

Chief�Minister,�Khyber�Pakhtunkhwa

Message�fromGHULAM�DASTAGIR

Chairman,�KPEZDMC

Message�fromMOHSIN�SYED

CEO,�KPEZDMC

SterlingKhyber�

Pakhtunkhwa

CPECChina�Pakistan�

Economic�Corridor

AboutTHE�COMPANY

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OneWINDOW�OPERATION18ENERGY

INCENTIVES

WOMEN�BUSINESS�PARK

REVITALIZATION��OF�SOUTHERN�KP

INDUSTRIALREVIVAL

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W

Contents

D.I Khan

Bannu

Karak

Kohat

Nowshera

Gadoon

Ha�ar

Buner

Swat

Mansehra

Chitral

RashakaiRisalpur

Batagram

Ghazi

Jehangira

Jalozai

e n t e r p r i s e . b e a u t y . h o s p i t a l i t y

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Message�from

PERVEZ�KHATTAKChief Minister, Khyber Pakhtunkhwa

The establishment of modern Economic Zones in the province is a testament to our futuristic vision of a prosperous and developed Khyber Pakhtunkhwa. These Economic Zones will play a pivotal role in attracting investment, creating jobs and restoring confidence of the international community and local businessmen to trust us with their future and as a result it will help us bring the change that we have promised.

PIONEERSA Word

from the

With an aim of rapid industrialization, KPEZDMC has planned the installation of world-class infrastructure with uninterrupted power supply, efficient water and sewerage systems along with other essential amenities. Development and industrialization is vital for the economic growth and prosperity of Pakistan, especially KP. The principal objective of KPEZDMC is to effectively develop modern infrastructure and maintain state-of-the-art Economic Zones, thereby greatly enhancing Pakistan’s earning potential, creating employment opportunities, inviting investment from local and overseas channels and expediting skill development at all levels. We plan to handhold the industrialists at all levels allowing them to focus on construction, production and marketing while KPEZDMC takes care of all their issues through one window operation.

Message�from

MOHSIN�SYEDChief Executive Officer

KPEZDMC is on a mission to develop a chain of Economic Zones in a dynamic and innovative manner by capitalizing on proposed & existing industrial and other strengths of Khyber Pakhtunkhwa. It is an important initiative of the Government of KP which aims at industrialization, creating jobs, alleviating poverty and contributing towards GDP growth. Under the dynamic leadership and strategic vision of Pervez Khattak, Chief Minister Khyber Pakhtunkhwa, KPEZDMC is dedicated to bring about a meaningful change through rapid industrialization in the province. Based on public-private partnership, the Company will achieve orderly and planned industrialization through a network of modern and world class Economic Zones with one-window facilities for the entrepreneurs.

Message�from

GHULAM�DASTAGIRChairman

KPEZDMCKPSEZACPEC Advisory Committee

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With a population of 27.5 million, Khyber Pakhtunkhwa is the 3rd largest province of the country. It is spread over an estimated area of 74,521 sq.km. KP benefits from a favorable geo-strategic location by having access to Afghanistan & Central Asia through the Torkham Border while it has access to China via Khunjerab Pass. It is imperative to understand that this geo-strategic position of the province will enable it to serve as a hub of logistics and connectivity across Asia and Russia. Khyber Pakhtunkhwa is exceptionally rich in terms of natural resources. The province historically contributes 10.5% of Pakistan's GDP amounting to over USD 30 billion. Tapping into these assets will result in bringing new investment opportunities for unexplored reserves of oil & gas, mines of marble, emeralds and other gem stones. The major source of livelihood of most of the inhabitants of the province is agriculture, comprising of Sugarcane, Wheat, Maize and Tobacco.

The elegant people of the Khyber-Pakhtunkhwa Province have kept their sterling qualities of reliability, loyalty, love of beauty, sturdiness, and hard work over the centuries. The people of Khyber Pakhtunkhwa have the pride of long-held custody and stewardship of many beautiful gifts of nature and tradition. Khyber Pakhtunkhwa has cultivated and proudly maintained their strong traditions of hospitality, commerce and enterprise in spite of the vagaries of time. In Khyber-Pakhtunkhwa, guests are welcomed as forever partners and friends, and are offered a place close to the heart. People of Khyber-Pakhtunkhwa demonstrate life-long commitment to friends.

Khyber Pakhtunkhwa

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CHINA PAK ECONOMIC CORRIDORInvestment Opportunities in

Khyber Pakhtunkhwa

KPSEZA to administer, oversee & ensure alignment of the projects. A significant impact of the Economic Zones will be utilization of the strategic position of KP because of it’s linkage to CPEC routes and access to abundant natural resources. In the next 15 years, KPEZDMC anticipates that these Economic Zones will become a central hub of CPEC due to their excellent infrastructure, incentives and amenities. The zone enterprises will have a competitive edge of being able to export to international markets more efficiently.

The Government of Khyber Pakhtunkhwa has introduced investment friendly policies including the Industrial Policy 2016, that is offering attractive incentives to both local and foreign investors with the objective of encouraging the industrial development in the Province.

CPEC, a strategic initiative between China and Pakistan is of paramount importance, as the projects under CPEC have tremendous potential in uplifting the economy of the Province. CPEC will change the fortune & fate of millions in Pakistan. It w i l l b o o s t e c o n o m i c g r o w t h a n d international partnership through regional cooperation and connectivity. The share of Khyber Pakhtunkhwa in the Western Route of CPEC will be around 20 percent. Khyber Pakhtunkhwa also enjoys a favorable position by having a long, porous border with Afghanistan which connects it to Central Asian markets.

T h e G o v e r n m e n t o f K h y b e r Pakhtunkhwa has prepared a framework to enhance the productivity of CPEC. It has established a CPEC Oversight Committee, chaired by Chief Minister-KP himself to oversee issues pertaining to CPEC. The CPEC Oversight Committee also has an Executive Advisory Committee, which is chaired by the Chairman of KPEZDMC &

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TransparentCustomer FriendlyProcess

Availabilityof all

Amenities

StrategicClustering

Khyber Pakhtunkhwa Government has put all its efforts to revitalize the economy of the Province by focusing on the industrial sector. The Government has realized that most of the economic constraints can be attributed to the slow pace of the industrial development in the Province.

For this reason, the Government has established KPEZDMC, a not for profit organization within the meaning of section 42 of the Companies Ordinance, 1984 which is exclusively owned by the Government of Khyber Pakhtunkhwa. The objective of the Company is to bring rapid industrialization and create employment opportunities for the people of this region. It was established on the public private partnership modalities to capitalize on the experience and skill set of the professionals in the private sector.

KPEZDMC will facilitate industrial growth by developing modern Economic Zones leading to mass job creation, skill enhancement and increased productivity, that will ultimately contribute to poverty reduction & economic stability of Khyber Pakhtunkhwa. The Company will engage in activities necessary for the economic development of the region and will create a positive impact on the industrialization in KP.

Apart from the development of new Economic Zones and management of existing industrial estates, KPEZDMC is also working towards reviving sick industrial units throughout KP by giving industrialists marketing, management, financial and technical consultancies.

ABOUT THE COMPANY

Khyber Pakhtunkhwa Economic Zones Development & Management Company

World ClassInfrastructure KEY

SUCCESS FACTORS

Secure &Eco-FriendlyEnvironment

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This Economic Zone covers an area of 189 acres in district D.I Khan & is strategically located on the border of KP and Punjab. The city is connected to Bannu via Indus highway, which further connects it to the provincial capital Peshawar via Kohat and Darra Adam Khel. Another road connects it to Bhakkar in Punjab situated on the eastern bank of the Indus River. This geo-strategically located Economic Zone has the potential to uplift the economy of the Southern Region of KP because of it’s rich supply of natural resources, human capital and benefits of well-established industrial setups.

D.I. KHAN ECONOMIC ZONE

Hattar Special Economic Zone (HSEZ) is the first Economic Zone launched by KPEZDMC. It is strategically located at 33 km from Islamabad and 6 km (approx) from a link to China Pakistan Economic Corridor (CPEC). Hattar Special Economic Zone has been a major success for the Company, this can be assessed by the fact that the number of applications have far exceeded the number of available plots. KPEZDMC is in the process of acquiring an additional 1000 acres of land at Hattar, adjacent to the HSEZ. Hattar Special Economic Zone is expected to attract Rs.31 billion direct investment from Pakistan, KSA and UAE, creating over 100,000 employment opportunities in different sectors. Many multinational companies and local giants are also in the advance stages of their lease agreement process at Hattar Special Economic Zone.

HATTAR SPECIAL ECONOMIC ZONEKPEZDMC VENTURE

All Economic Zones of KPEZDMC will qualify for SEZ status to avail the incentives extended by Federal Government. Hattar Special Economic Zone is an approved SEZ while the Economic Zones of Rashakai, D.I Khan, Ghazi, & Jalozai are approved from the Provincial SEZ authority and await Federal Approval.

e n t e r p r i s e . b e a u t y . h o s p i t a l i t y

D.I Khan

Bannu

Karak

Kohat

Nowshera

Ha�ar

Ghazi

Buner

Swat

Mansehra

Chitral

Jalozai

Batagram

Rashakai

Risalpur

Jehangira

Gadoon

Peshawar

Economic ZoneIndustrial EstateWomen Business Park Tech Park

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A great achievement in the development process of marble & granite sector, Nowshera Economic Zone spreads over an area of 100 acres and is situated on G.T Road. It has access to Central Asian market through Export Promotion Zone (EPZ). The Zone is located at a distance of approximately 50 km f r o m Pe s h a w a r n e a r M a r d a n interchange on Islamabad-Peshawar motorway section.

NOWSHERA ECONOMIC ZONE

This Economic Zone is spread over an area of 257 acres. JEZ will be a strategic location for small and medium enterprises largely from KP who would like to have their industries in close vicinity of Peshawar. The Economic Zone connects to G.T Road through a link road of 15 km approx from Pabbi, and has proximity to Afghan borders. The industrialists of JEZ will have readily available trained human resource due to its locality in the center of a settled area, which also has a long established industrial tradition. This Economic Zone will also facilitate industrialists through one window operation and can have access to plenty of natural resources and agricultural products.

JALOZAI ECONOMIC ZONE

A flagship project of KPEZDMC, Rashakai Economic Zone is spread over an area of 1,000 acres of land. This project is conceptualized by KPEZDMC, giving its incumbents an additional benefit of being an exceptionally preplanned Economic Zone of international standards. Rashakai Economic Zone is located on M1 Motorway at Mardan Interchange and links to CPEC through Burhan Interchange on M1 and is on the main road to Afghan border. Due to its central position in Province, the Company foresees it to be the imminent trade hub of Khyber Pakhtunkhwa. This Economic Zone will also host an IT park of 100 acres in collaboration with Board of IT KP. The strength of this Economic Zone is it’s strategic location by being connected to districts and a resource pool, which has a predominant investment favorability for industries in fruit & food packaging, textile and auto manufacturing.

RASHAKAI ECONOMIC ZONE

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TECHNOLOGY UPGRADATION

Economic Zones of KPEZDMC will also have strong impact on the technology upgradation and automation in the province. K P E Z D M C i n c o l l a b o r a t i o n w i t h t h e Government of KP is encouraging new technology by bearing 25% of the electricity bill maximum up to 3 years from the start of commercial production for all the new units, which are unique in nature. This will not only entice investors from outside KP but also overseas investors. Economic Zone will host Companies that are expected to automate their function. Furthermore, KPEZDMC is also providing upgraded technology via waste treatment plants in the Economic Zones. This will also help in monitoring pollution in the area and facilitate the industrialists to be more socially responsible.

KPEZDMC appreciates that the continuous livelihood development of the local residents is of paramount importance for sustainable peace. In this regard KPEZDMC aims to train more than 200,000 skilled and unskilled youth on industry demand driven trades. The Company is also liaising with industrialists to help generate jobs for the local youth. “Job Cell Initiative” corresponds directly to the demand of the market and the curriculum is designed in accordance with the industry needs. This initiative will eradicate the growing problem of unemployment and will provide support and assistance to the unemployed youth of the Province especially those with limited skills and resources. This initiative will elevate the education level of the area, help relocation of the displaced people by providing them employment opportunities in their hometown.

JOB CELL

Empowering Youth, Realizing a Prosperous KP

FACILITIES PROVIDED IN

EACH ECONOMIC

ZONE

Captive Power Generation

One Window Operation

Sewerage &Effluent Treatment

Telecom & ITInfrastructure

Efficient Road Network

Centralized Commercial Area

Vocational Training Centers

ControlledAccess

Solid WasteManagement

Water Supply

Security

Support Services

Fire Fighting Emergency Medicare

ONE WINDOW OPERATION The incumbents of all Economic Zones of KPEZDMC will enjoy a one window facility, which will make the Company a one stop shop for all the amenities including incentives, government liaison & trained human resource. The Company will provide complete solution/assistance to industrialists to accomplish their goals.

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Special Economic Zones Incentives

* Government of Khyber Pakhtunkhwa Notification No. AEA(Ind) 13-42/2016

Exemption from custom duties one time exemption from custom duties and the taxes on all Capital Goods imported into Pakistan

Tax HolidayExemption from all taxes on income for Enterprises commencing operation in SEZ: 10 years

25% discount on transportation cost of plant and machinery for setting up new units.

25% Discount on Transportation

Government of KP shall finance 25% of the equity investments for Women Entrepreneurs subject to maximum of PKR 3.0 Million per investor

25% equity for Women Entrepreneurs

Waiver on LandTransfer Fee in Economic Zones

Government of KP Incentives

To further facilitate investors in Khyber Pakhtunkhwa, the Government of KP for the first time drafted an Industrial Policy to ensure the sustainable development of industries across the province. The Industrial Policy 2016* is based on c r e a t i n g e m p l o y m e n t opportunities by encouraging and facilitating industrialists to set up new industrial units. KPEZDMC will also attain SEZ status for all its Economic Zones eventually making KP a preferred destination for investors. These SEZ’s will play a pivotal role in the socio-economic development of the Province.

INCENTIVES

Zone and this will be the first thermal power project of this scale in the province of Khyber Pakhtunkhwa. Various options are currently under consideration to develop a technically and financially feasible electricity generation mix for all the Industrial Estates and Special Economic Zones of KPEZDMC.

T h e g o v e r n m e n t o f K h y b e r Pakhtunkhwa signed a historic MoU with the Government of Canada for generation of up to 1000 MW power starting with 50 MW solar power generation for Hattar Special Economic Zone. KPEZDMC has also signed three MoU’s to establish 225 MW gas turbine combined cycle (GTCC) power projects with Chinese Companies like CEEC for Hattar Special E co n o m i c Zo n e, C N E E C f o r R a s h a k a i Economic Zone and CMEC for D-I Khan Economic Zone. These projects will ensure uninterrupted power supply in the Economic Zones.

To facilitate the process of rapid industrialization in Khyber Pakhtunkhwa, KPEZDMC will ensure uninterrupted supply of electricity to all the Industrial Estates and Economic Zones. The Federal Government has allocated the Provincial Government of Khyber Pakhtunkhwa, a quota of 100 mmcfd (million cubic feet per day) gas for power generation through a mutually signed Memorandum of Understanding. Therefore, KPEZDMC has embarked on establishing three Gas Turbine Combined Cycle (GTCC) based power projects for Hattar Special Economic Zone (including its 1000 acre extension), Rashakai/ M1 Economic Zone (1000 acres), and Kohat Economic Zone (1000 acres). Each of the three GTCC power projects will have a generation capacity of 225 MWs with a minimum of 55% thermal efficiency.

In order to extract maximum benefit from the opportunities presented by the China Pakistan Economic Corridor (CPEC), the P r o v i n c i a l G o v e r n m e n t o f K h y b e r Pakhtunkhwa is extending its full support to include these GTCC power projects under the umbrella of CPEC. The first power project to be established will be at Hattar Special Economic

ENERGY

Government of KP shall bear 5% markup onFinancing for 5 years for new/expension projects

5% Discount on Markup FinanceRs

Government of KP shall finance 25% of the cost of property (Plots) acquired for setting up industrial units up to December 2017, viz early bird investment to expedite the industrialization process.

25% Discount on the Cost of Property

Government of KP shall bear 25% discount of the electricity bill for 3 years (special/unique units)

25% Discount on Electricity

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WOMEN BUSINESS PARK

KPEZDMC has taken an unprecedented step towards women empowerment by introducing the concept of “Women Business Park” in three Economic Zones. Women Business Parks would be established in Risalpur, Nowshera and Jalozai. Under this provision, twenty five (25) kanals of land will be reserved specially for women entrepreneurs. This step aims to encourage women to partake business and achieve excellence in the field. In addition to the facilitation provided under “One Window Operation” the women industrialist will also benefit from the incentive given.

A 25% of equity shall be granted by the Government of Khyber Pakhtunkhwa subject to PKR 3.0 million per investor. This equity shall be granted upon commencement of commercial production.

REVITALIZATION OF SOUTHERN KP Even though the Southern Districts of Khyber Pakhtunkhwa are home to abundant natural resources, the potential of this area is yet to be actualized. The Government fully realizes that the Southern Districts of KP have long suffered due to law and order situation. Khyber Pakhtunkhwa Economic Zones Development & Management Company has developed a blue print for revitalizing Southern KP to bring prosperity in the region. It is important to note that employing modern tools for industrialization and commercialization will play a vital role in the development of an economically viable industry. Agriculture alone is insufficient for the development of agro-based industry. There is a dire need to place proper emphasis on processed products for intermediate and final consumption. Therefore, commercialization of agriculture by encouraging value addition and offering new lucrative agro-based business opportunities, would further stimulate the process of improvement in the local economy. To this end KPEZDMC has developed the following projects in the action plan of industrialization of the Southern districts of KP.

Poli�cal Empowerment

Equality in Wages

Women Share in Paid Employment

Economic Security

Women Produc�vity

Women Earnings

Women Bargaining Power

Women Literacy Rate

Women Skills & Techniques

Access to Livelyhood Resources

Leadership Opportuni�es for Women

Labor Force Par�cipa�on & Mobility

Innova�ve Approaches and Partnerships

D.I Khan Economic

Zones

Kohat Economic

Zone

Bannu Economic

Zone

Shezadi-BandaAirport

OilRefinery

Sugar

Mills

TruckingPorts

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INDUSTRIES REVIVAL

For the rehabilitation of closed and s i c k i n d u s t r i a l u n i t s a c r o s s K h y b e r Pakhtunkhwa, KPEZDMC is actively working to facilitate the owners of the sick industries by giving them the desired consultancy in order to continue with the industrial operations. With a futuristic approach, the Sick Units Revival team is focused on providing consultancy services in the field of management, marketing, technical and finance. It is an assisting desk between sick unit owners and the institutions/investors providing these services. KPEZDMC has formed a Sick Industrial Revival Desk for determining the preventive, remedial and other measures required to facilitate sick i n d u s t r i a l u n i t s a n d f o r e x p e d i t i o u s enforcement of the measures determined. The desk examines issues and suggests their possible solutions.

Units having issues with government agencies and industrial estate management were first selected by KPEZDMC team so that t h ey c o u l d b e r ev i v e d w i t h m i n i m u m intervention. With the help of Ministry of Industries KP, KPEZDMC has taken up these issues with the concerned agencies.

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