Khyber Pakhtunkhwa

Economic Zones Development &

Management Company

120 Industrial Estate,

Jamrud Road, Hayatabad,
Peshawar - 25000 Khyber Pakhtunkhwa.
+92 91 5890826, 9217708
+92 335 5739362
kpezdmc.org.pk
kpezdmc COMPANY PROFILE
kpezdmc
CONTENTS
Pervez Khattak (Chief Minister) Khyber Pakhtunkhwa
Faheem Wazir (Acting Chairman BOD)
04
05
Saeed Ahmad Khan (CEO) 05
Khyber Pakhtunkhwa 06
About The Company 09
China Pakistan Economic Corridor (CPEC) 11
Rashakai Special Economic Zone 12
Hattar Special Economic Zone 13
Jalozai Economic Zone 14
D.I Khan Economic Zone 15
Export Processing Zone 16
One Window Operation 17
Technology Upgradation 18
Energy 19
Incentives 20
Women Business Park 21
Revitalization of Southern KP 22
Industrial Revival 23
KPEZDMC Pictorial 24
Key Achievements 26
 Message
from the
Government of
Khyber Pakhtunkhwa enterprise . beauty . hospitality P ONEERS
 KPEZDMC shares the ambitious dream of the KP Government's visionary leaders and takes pride in being
a significant participant in brightening the future of the Khyber Pakhtunkhwa.

Our focus is not merely on infrastructure developments, but in creating high-growth industrialization
environment that creates new jobs and supports economic activity. KPEZDMC is in a process of developing state
of the art Special Economic Zones with all amenities including water, power, road infrastructure and security. In a
short span of time KPEZDMC has established itself as a propellant of industrialization in KP, thanks to its
continuing commitment to professionalism and quality standards. We believe that our success comes from our
relentless pursuit of excellence, focus on innovation, integrity, transparency and delivering outstanding projects.
Fahim Wazir
Acting Chairman BOD

PERVEZ KHATTAK PERVEZ KHATTAK

Chief Minister
Khyber Pakhtunkhwa
At KPEZDMC, we believe that an ethical and professional approach is the core value of our organization.
Professionalism and ethical values are evident in every interaction with our employees, customers, investors,
suppliers and other stakeholders. We have a team of highly talented and professional individuals who are
diligently working together, to make a positive difference in KP and continue to ensure that every project is the
Our plans to establish modern Economic Zones in the province is a testament to our futuristic vision of a prosperous and envy of the Country. Whether it is the construction of a Special Economic Zone or a power generation project we
developed Khyber Pakhtunkhwa. These Economic Zones will play a pivotal role in attracting investment, creating jobs and deliver best projects possible.
restoring confidence of the international community and local businesses to trust us with their future, and as a result, it will help us KPEZDMC believes in building long lasting business relationships with investors and industrialists. Our
bring the change that we have promised. relationships are built on trust and integrity, providing the best services and delivering nothing but excellence. I
am proud of the dedicated and ambitious team of professionals at KPEZDMC and would like to thank the
SAEED AHMAD business community for putting their trust in us and would ensure them, that we at KPEZDMC, shall continue to
KHAN 'outperform targets' and deliver state of the art Economic Zones.
CEO

04 05
KHYBER
With a population of 30.5 million, Khyber Pakhtunkhwa is the 3rd largest province of the country. It is spread over an
PAKHTUNKHWA 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 Europe through 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 mainly of sugarcane, wheat, maize and tobacco.

The elegant people of 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 a life-long
commitment to friends.

06 07
 ABOUT THE COMPANY
The Government of Khyber Pakhtunkhwa 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 industrial development in the Province.
For this reason, the Government has established KPEZDMC, 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 is engaged 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 providing
industrialists marketing, management, financial and technical consultancies.

KEY SUCCESS FACTORS

Ÿ Transparent Customer Friendly Process
Ÿ One Window Operations
Ÿ Secure & Eco-Friendly Environment
Ÿ Availability of all Amenities
Ÿ World Class Infrastructure
Ÿ Strategic Clustering

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 CPEC, a strategic initiative between China and Pakistan is of paramount
importance, as the projects under CPEC have tremendous potential of uplifting
the economy of the Province. CPEC will change the fate & fortune of millions of
people in Pakistan. It will boost economic growth and 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.

CHINA PAK ECONOMIC CORRIDOR

The Government of Khyber 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

Investment Opportunities CPEC.

A significant impact of the Economic Zones will be utilization of the
in Khyber Pakhtunkhwa 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

(CPEC) 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
industrial development in the Province.

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RASHAKAI SPECIAL ECONOMIC ZONE HATTAR SPECIAL ECONOMIC ZONE
A flagship project of KPEZDMC, Rashakai Economic Zone is spread Hattar Special Economic Zone (HSEZ) 424 acre is the first
over an area of approx 1,000 acres of land. This project is conceptualized by Economic Zone launched by KPEZDMC. It is strategically located at 33 km
KPEZDMC, giving its incumbents an additional benefit of being an from Islamabad and 6 km (approx) from a link to China Pakistan Economic
exceptionally preplanned Economic Zone of international standards. Corridor (CPEC). Hattar Special Economic Zone has been a major success
Rashakai Economic Zone is located on M1 Motorway at Mardan for the Company, this can be assessed by the fact that the number of
Interchange and links to CPEC through Burhan Interchange on M1 and is on applications have far exceeded the number of available plots. KPEZDMC is
the main road to Afghan border. Due to its central position in Province, the in the process of acquiring an additional 1000 acres of land at Hattar,
Company foresees it to be the imminent trade hub of Khyber adjacent to the HSEZ. Hattar Special Economic Zone is expected to attract
Pakhtunkhwa. This Economic Zone will also host an IT park of 100 acres in Rs.31 billion direct investment from all over Pakistan, KSA and UAE,
collaboration with KP Board of IT. The main strength of this Economic Zone creating over 100,000 employment opportunities in different sectors. Many
is it’s strategic location by being connected to districts and a resource pool, multinational companies and local giants are also in the advance stages of
which has a predominant investment favorability for industries in fruit & their lease agreement process at Hattar Special Economic Zone.
food packaging, textile and auto manufacturing. A further expansion of Engagement Agreements have been signed with China Road and
1,000 acres approx is under consideration. Bridge Corporation (CRBC) to develop Hattar Special Economic Zone (1000
Engagement Agreements have been signed with China Road and acres) and with China Energy Engineering Corporation (CEEC) for
Bridge Corporation (CRBC) to develop 1,000 acres and convert it into SEZ. establishment of 225 MW-CCGT Power Plant at Hattar & convert it into
CRBC will also build a 225 MW - Combined Cycle Gas Turbine (CCGT) Power SEZ.
Plant at Rashakai Economic Zone.

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JALOZAI ECONOMIC ZONE D. I. KHAN ECONOMIC ZONE
This Economic Zone is spread over an area of 256 acres. JEZ will be a This Economic Zone covers an area of 3,200 acres in district D.I
strategic location for small and medium enterprises largely from KP who Khan (Daraband I & II) & is strategically located on the border of KP and
would like to have their industries in the close vicinity of Peshawar. This Punjab. The city is connected to Bannu via Indus highway, which further
Economic Zone connects to G.T Road through a link road of 15 km approx connects it to the provincial capital Peshawar via Kohat and Darra Adam
from Pabbi, and has proximity to Afghan borders. The industrialists of JEZ Khel. Another road connects it to Bhakkar in Punjab, situated on the eastern
will have readily available trained human resource due to its locality in the banks of the Indus River. This geo-strategically located Economic Zone has
center of a settled area, which also has a long established industrial the potential to uplift the economy of the Southern Region of KP because of
tradition. it’s rich supply of natural resources, human capital and benefits of well-
This Economic Zone will also facilitate industrialists through one established industrial setups.
window operation and can have access to plenty of natural resources and Engagement Agreements have been signed with China Machinery
agricultural products. Engineering Corporation (CMEC) to develop Daraband-I (D. I. Khan),
convert it into SEZ and establishment of 225 MW Combined Cycle Gas
Turbine (CCGT) power plant.

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EXPORT PROCESSING ZONE EXISTING INDUSTRIAL ESTATES ONE WINDOW OPERATION
EPZ Risalpur is spread over an area of 92 acres. It is a joint venture between KPEZDMC Ÿ Hattar Industrial Estate 1443 acres The incumbents of all Economic Zones of KPEZDMC will have one window facility, which will make the Company a one stop shop for all the
and Export Processing Zones Authority. It is located in Nowshera KP. Export Processing (District Haripur, KP) amenities including incentives, Government liaison & trained human resource. The Company will provide complete solution/assistance to industrialists to
Zones Authority is a Pakistan Government venture conceived and designed to increase Ÿ D. I. Khan Industrial Estate 189 acres accomplish their goals.
and improve the exports of the country. Its main objectives are accelerating the pace of (District D.I. Khan, KP)
industrialization in the country and enhancing the volume of exports by creating and Ÿ Hayatabad Industrial Estate 866 acres FACILITIES PROVIDED IN EACH ECONOMIC ZONE
enabling an environment for investors to initiate ambitious export-oriented projects in (District Peshawar, KP)
the Zones which would, as a corollary, create job opportunities, bring in new Ÿ Nowshera Industrial Estate 86 acres
One Window Operation
technology and attract foreign investment.. (District Nowshera, KP)
Ÿ Gadoon Industrial Estate 1116 acres
(District Swabi, KP) Centralized Commercial Area Sewerage & Effluent Treatment Telecom & IT Infrastructure

Solid Waste Management Efficient Road Network Vocational Training Centers

Controlled Access Power Supply Water Supply

SUPPORT SERVICES

Security Fire Fighting Emergency

Medicare

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TECHNOLOGY UPGRADATION JOB CELL ENERGY
Economic Zones will also have KPEZDMC has a vision that creating employment opportunities through To facilitate the process of rapid industrialization in Khyber Pakhtunkhwa, KPEZDMC will
strong impact on the technology technical & vocational trainings of the local residents is of paramount ensure uninterrupted supply of electricity to all the Industrial Estates and Economic Zones. The
upgradation and automation in the importance for sustainable socio-economic growth. In this regard, KPEZDMC Federal Government has allocated the Provincial Government of Khyber Pakhtunkhwa, a quota of
province. KPEZDMC in collaboration with aims to train more than 50,000 unskilled youth on demand driven trades from 100 mmcfd (million cubic feet per day) of gas for power generation through a mutually signed
the Government of KP is encouraging new industry. The Company has also established strong linkage with industrialists, Memorandum of Understanding.
technology by bearing 25% of the National Vocational Technical Training Commission (NAVTTC) and Provincial
electricity bill maximum up to 3 years from Technical Education and Vocational Training Authority (TEVTA) to help generate In order to extract maximum benefit from the opportunities presented by the China Pakistan
the start of commercial production for all jobs for the local youth in the industries. “Job Cell Initiative” corresponds directly Economic Corridor (CPEC), the Provincial Government of Khyber Pakhtunkhwa is extending its full
the new units, which are unique in nature. with the demand of the industry and the curriculum is designed in accordance support to include these CCGT power projects under the umbrella of CPEC. The first power project to
This will not only entice investors from with the industrial needs. This initiative will eradicate the growing problem of be established will be at Hattar Special Economic Zone and this will be the first thermal power project
outside KP but also overseas investors. unemployment and will provide support and assistance to the unemployed and of this scale in the province of Khyber Pakhtunkhwa. Various options are currently under
marginalized youth of the province particularly those with limited skills and consideration to develop a technically and financially feasible electricity generation mix for all the
Economic Zone will host resources. Industrial Estates and Special Economic Zones of KP.
Companies that are expected to automate
their function. Furthermore, KPEZDMC is KPEZDMC has successfully completed its first pilot project of technical & The Government of Khyber Pakhtunkhwa signed an MoU with the Government of Canada for
also providing upgraded technology via vocational training in collaboration with UNDP in Hattar Industrial Estate. generation of up to 1000 MW power starting with 50 MW solar power generation for Hattar Special
waste treatment plants in the Economic Furthermore, recently KPEZDMC has been awarded three major projects of Economic Zone. KPEZDMC has also signed Engagement Agreements to establish 225 MW
Zones. This will also help in monitoring vocational training in industries by NAVTTC in the Industrial Estates of Peshawar Combined Cycle Gas Turbine (CCGT) power projects with Chinese Companies CEEC, CMEC & CRBC
pollution in the area and encourage and Nowshera. All the financial resources of the training program will be borne for Hattar Special Economic Zone, D.I Khan Economic Zone & Rashakai Economic Zone respectively.
industrialists to be more socially by NAVTTC. At the end of the training program, the trained workforce will be These projects will ensure uninterrupted power supply to the Special Economic Zones.
responsible. employed in the same industries as committed by the industrialists.

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 Government of KP Incentives
5% Discount on Markup Finance
Rs
Rs
Government of KP shall bear 5% markup on Financing for 5 years Women
for new/expansion projects.
Earnings Access to Livelyhood
Women Productivity Resources

INCENTIVES 25% Discount on the Cost of Property

Government of KP shall finance 25% of the cost of property (Plots)
acquired for setting up industrial units up to December 2017, viz
WOMEN BUSINESS PARK Women Literacy Rate Women Share in Paid
Employment
To further facilitate investors in Khyber Pakhtunkhwa, the early bird investment to expedite the industrialization process. KPEZDMC has taken an unprecedented step towards Political
Government of KP for the first time drafted an Industrial Policy to Empowerment Equality in Wages
women empowerment by introducing the concept of “Women
25% Discount on Electricity
ensure the sustainable development of industries across the Business Park” in three Economic Zones. Women Business Parks
Government of KP shall bear 25% of the electricity bill
province. The Industrial Policy 2016* is based on creating for 3 years (special/unique units). would be established in Risalpur, Nowshera and Jalozai. Under this Women
employment opportunities by encouraging and facilitating provision, twenty five (25) kanals of land will be reserved specially Bargaining Power Economic Security
industrialists to set up new or to expand their existing industrial 25% Discount on Transportation for women entrepreneurs. This step aims at encouraging women to
units. For this purpose an incentive unit has been established at 25% discount on in land transportation cost of imported plant and take part in business and achieve excellence in their field. In
machinery. Innovative Approaches
KPEZDMC to assist in disbursement of incentives. Women Skills &
addition to the facilitation provided under “One Window and Partnerships
Techniques
25% equity for Women Entrepreneurs Operation” the women industrialists will also benefit from the
KPEZDMC will also attain SEZ status for all its Economic Government of KP shall finance 25% of the equity investments incentive given.
Zones eventually making KP a preferred destination for investors. for Women Entrepreneurs subject to maximum of PKR 3.0 Million
Labor Force Leadership
These SEZ’s will play a pivotal role in the socio-economic per investor. A 25% of equity shall be granted by the Government of Participation & Mobility Opportunities for
Khyber Pakhtunkhwa subject to PKR 3.0 million per investor. This Women
development of the Province.
equity shall be granted upon commencement of commercial
Special Economic Zones Incentives production.
Exemption from custom duties
One time exemption from custom duties and taxes on plant and
machinery imported into SEZ.

Tax Holiday
Exemption from all taxes on income for ten years.

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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 the 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
INDUSTRIAL REVIVAL
For the rehabilitation of closed and sick industrial units across Khyber Ÿ Total number of closed units in
development of an economically viable industry. Agriculture alone is
Pakhtunkhwa, KPEZDMC is actively working to facilitate the owners of the June - 16: 517
insufficient for the development of agro-based industry. There is a dire
sick industries by giving them the desired consultancy in order to continue Ÿ Units closed in SDA/KPEZDMC
need to place proper emphasis on processed products for intermediate and
with the industrial operations. With a futuristic approach, the Sick Units and SIDB= 364
final consumption. Therefore, commercialization of agriculture by
Revival team is focused on providing consultancy services in the field of Ÿ Units revived from June-16 in
encouraging value addition and offering new lucrative agro-based business
management, marketing, technical and finance. It is an assisting desk different Industrial Estates: 77
opportunities, would further stimulate the process of improvement in the
between sick unit owners and the institutions/investors providing these Ÿ These units were revived by
local economy.
services. KPEZDMC has formed a Sick Industrial Revival Desk for determining providing NOC’s & change of
To this end KPEZDMC has developed the following projects in the the preventive, remedial and other measures required to facilitate sick name, change of nature, gass
action plan of industrialization of the Southern districts of KP. industrial units and for expeditious enforcement of the measures determined. connections and other soft
Ÿ D.I Khan Economic Zones Ÿ Oil Refinery The desk examines issues and suggests their possible solutions. facilities.
Ÿ Bannu Economic Zone Ÿ Trucking Ports Units having issues with Government agencies and industrial estate
Ÿ Kohat Economic Zone Ÿ Sugar Mills management were first selected by KPEZDMC team so that they could be
revived with minimum intervention. With the help of Ministry of Industries KP,
KPEZDMC has taken up these issues with the concerned agencies.

22 23
KPEZDMC PICTORIAL KPEZDMC PICTORIAL

24 25
KEY ACHIEVEMENTS
Ÿ 424 acres of Hattar Special Economic Zone completely booked. 10 Industries in construction
phase.
Ÿ Applications for 2,600 acres received for Hattar extension (1000 acres).
Ÿ Establishment of Board of Management for Industrial Estates for prompt resolution of disputes
and prompt service delivery.
Ÿ Revision in the fee structures for Industrial Estates to promote industrialization in the province.
Ÿ Rehabilitation of Industrial Estates Infrastructure of Gadoon, Hattar & Peshawar.
Ÿ MoU’s worth USD 3 billion signed in road show to China for foreign investments in industrial
sectors of KP.
Ÿ Digitalization of records of Industrial Estates.
Ÿ Engagement Agreements to establish 225 MW Combined Cycle Gas Turbine (CCGT)
power projects with Chinese Companies CEEC, CMEC & CRBC for Hattar Special Economic
Zone, D.I Khan Economic Zone & Rashakai Special Economic Zone respectively. These
projects will ensure uninterrupted power supply to the Economic Zones.
Ÿ Engagement agreements signed with China Road and Bridge Corporation (CRBC) to develop
Hattar Economic Zone (1000 acres) & Rashakai Economic Zone (1000 acres) and convert it into
SEZ.
Ÿ Engagement agreement signed with China Machinery Engineering Corporation (CMEC) to
develop Daraband-I (D.I Khan Economic Zone) 1,500 acres and convert it into SEZ.
Ÿ Engagement agreements signed with China Railway First Group (CRFG) for establishment of
Special Economic Zone in Manshera and Rail Cargo System for SEZ’s in Central KP.

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