PESHAWAR, Jan 31: A comprehensive strategy, involving incentive package to ensure capital investment in the backward areas, greater access to credit, strengthening of the provincial level institutions responsible for industrial development and public-private partnership in the infrastructure development has been recommended in a recently conducted study to boost NWFP limping industrial sector.

“An effective industrial strategy is needed to spur the momentum of development in the NWFP,” the study said.

The study, conducted recently by the industries, commerce, mineral development, labour and transport department, NWFP, taking cognizance of the over all state of affairs of the provincial industrial sector, explored reasons for industrial backwardness.

The study also contains a large set of recommendations that may help reshape the industrial sector of NWFP putting it on the progressive track and infusing new life in more than 640 closed down small and medium industrial units out of a total of 1970 units set up in the province.

“Rapid growth [of industries] in the developed areas of the province concentrated capital investment in a few pockets and drew off work force from the less-developed and rural areas, shrinking the base and scope of industrial sector in the province,” the study said.

It said that with increased population and diminishing returns in agriculture sector, industrial development was essential for NWFP by utilizing mineral and small hydel resources as cheap raw material and energy for industry.

“In the ultimate analysis, sustained development can only take place, if balanced growth in the form of industrialization is ensured in all regions, areas and parts of the country,” recommended the study adding the improvement of NWFP’s industrial sector would help attain economic integration at the national level.

It asks for carrying out regular analysis of the industrial potential of the backward areas - the degree of its capacity in terms of contributing to the overall industrialization in the province.

It recommended the government to ask the utilities— Wapda, PTCL, SNGPL— to give preferential treatment to the backward areas, especially involving manufacturing units, so as to bring them at par with other parts of the country.

Apart from recommending special incentive package to attain sustainable development particularly to help attract capital investment in the backward areas of the province, the study has stressed upon the government that once incentive packages and policies are framed for the industrial sector the same should not be withdrawn until they attain maturity.

Furthermore, special package for ensuring one window facility for the provision of utilities in the industrial estates, technical training centres in industrial zones and public-private investment in infrastructure have also been recommended.

The provincial government has been recommended to ensure increased funds from the federal government to develop infrastructure in the province.

Similarly, it also asks for improving private sector’s access to credit facilities especially for the small entrepreneurs. In this respect, it has asked for simplification and improvement of lending procedures, on the part of commercial banks and DFIs.

It has asked for consistency in the public sector policies to restore confidence of the private sector.