Back to business: ‘Industrialists steadily returning to K-P’

KPCCI president says relatively peaceful environment drawing interest from investors

PESHAWAR:

Investment is slowly but steadily returning to the province as industrialists, who were once sent running for the hills by extortionists and militants, are coming back to Khyber-Pakhtunkhwa with their wealth and business acumen.

“All the businessmen who had given up on K-P are now returning,” said the Khyber-Pakhtunkhwa Chamber of Commerce and Industry President Fawad Ishaq on Tuesday. “Not only local, but international investors are keeping a close eye on the province and want to invest.”

Over the last decade, the security situation, coupled with the lack of electricity and gas, had resulted in massive damage to the industrial sector. This prompted several industries to close down and many traders and industrialists were forced to settle in other parts of the country.



“For the last four months, KPCCI has not received a single complaint of an extortion threat,” Ishaq told a press conference. The president added dozens of traders contacted him to say they were coming back to the province. “They have stopped their constructions in other provinces and are returning,” he assured.

However, some of these businessmen, especially those dealing with international companies, have reservations over electricity and gas supply. They asked the KPCCI president to ensure steady supply. He also revealed that three of the companies were eager to invest in the construction of oil refineries in Karak district.

Although the chamber is satisfied with the overall situation, small traders said some of them still suffered issues such as street crime which had surged in recent times.

Opportunities aplenty

Industrialists cannot ignore the importance of K-P. Apart from being a gateway to Central Asia, the region is recovering from devastation and presents plenty of opportunities for businessmen to make a decent return on investment.

There are several factors responsible for attracting businessmen back to the province. One of them, as mentioned by the industrialists, is a five-year package provided by the federal government to the province through which they are exempt from income tax. Secondly, the restoration of peace and steps taken by the police department resulted in a substantial drop of extortion complaints.

“At least 70% of our issues have been solved owing to measures taken by security forces,” said Ishaq. He also explained the steps taken by the federal government to restore favourable business conditions in K-P. He said that the five-year package as well as plans to construct a dry port and expo centre would have a positive impact. Ishaq also appreciated the relief in export charges to Afghanistan and the respite in turnover taxes.

Published in The Express Tribune, September 30^th, 2015.