PESHAWAR: Khyber-Pakhtunkhwa Planning and Development department (P&D) observed “serious shortcomings and inconsistencies” in a report outlining plans for Special Economic Zone of Hattar and Rashakai.
Reviewing the documents containing details of the two SEZ following under China-Pakistan Economic Corridor (CPEC), submitted to the Board of Investment and Special Economic Zone (SEC) Secretariat by K-P Economic Zones Development and Management Company (KPEZDMC), the P&D department termed it a reflection of weak intra-organisational system for quality assurance and control.
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The 20-page letter outlining discrepancies was sent to the chief executive officer (CEO) of the provincial government-owned company on September 11 after a meeting chaired by additional chief secretary of K-P.
The letter, a copy of which is available with The Express Tribune, said the P&D department highlighted major inadequacies while the KPEZDMX failed to respond to queries. It said the documents were poorly narrated, incomprehensible and rigged with conflicting data and calculations.
It further emphasised inconsistencies in financial analyses, cost estimates, foreign direct investment, field investigations, master and operational plans, project schedule, power plant capacity and special purpose of vehicle and land transfers.
Expanding on the criticism for financial analyses, the department observed that the financial internal rate of return (FIRR) and net present value (NPV) were miscalculated. Similar objections were raised for cost estimates.
It noted that the projects were designed for FDI yet an appendix referred to Pakistan as one of the most dangerous countries in the world, ranked fourth in the Global Terrorist Index. The documents ascribed high demand for pharmaceutical products to casualties from terrorist attacks. The P&D department observed that “such damaging statements can repel FDI.”
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The documents also included incorrect geological and topographic data. The company also missed field and laboratory investigations. The P&D department highlighted that the master plan lacked appropriate land distribution and the six separate project schedules lacked details including critical path, task dependencies and project milestones. The department also noted a poorly carved operational plant that lacked staff requirement and cost details.
In its recommendations, the P&D department advised the company to review the documents.
Despite repeated attempts, KPEZDMC CEO Saeed Ahmad Khan could not be reached for comment.