Infrastructure development: K-P upbeat over industrial policy

Focus on subsidised lending rates to help sector.

PESHAWAR: With Khyber-Pakhtunkhwa’s industrial policy due, it has been suggested that the provincial government offer a discount in mark-up on all new loans, subsidising the same by up to 5%. The move, suggested to be for a period of three years, will encourage industrialisation and generate additional funds for further infrastructure development in the province.

Talking to The Express Tribune, a government official working on the policy draft said that a number of measures will be taken to attract investment as the industrial sector has been hit hard by the militancy and has faced several problems including lack of finance, infrastructure, skilled workers, vocational training among others.

“I am positive that the chief minister will approve all these recommendations,” he argued.

Access to finance

It has also been suggested that the government should ensure 10% increase in banks’ lending.

Deposits and lending ratio specifically for industrial sector in KP will be fixed through consultation with industrialists.

The Industrial Estate Management Committee will be empowered, which would result in quicker decisions meant for the uplift of industrialisation and infrastructure.

Meanwhile, the KP-Board of Investment will provide one window service to investors which will result in cost reduction.

Fair share

The province, under the NFC Award, has been getting 1% additional fund from the national divisible pool due to insurgency. Some chunk from that fund will be provided to the industrial sector for building industrial infrastructure.

Major industries of the province include marble and granite, steel, light engineering, pulp and paper, textile, furniture, handicrafts among others.

Published in The Express Tribune, April 17^th, 2015.