June 11, 2008	Wednesday	Jamadi-us-Sani 06, 1429

PESHAWAR, June 10: The NWFP government has prepared a plan to make functional 277 sick units in the province’s five industrial zones and install 803 new factories to boost local economy and create job opportunities.

According to a report prepared by the NWFP Ministry of Commerce, Industries and Labour, 500 small industrial units, located in places other than industrial zones, which had been closed for different reasons, would also be given concessions so they could resume operations.

The report said the province had 394 industrial units in operational condition in the five industrial zones -- Peshawar, Risalpur, Haripur, Gadoon Amazai and the Risalpur processing zone.

There are 1,474 industrial plots in the five zones and factories have been built on 394 of the plots.

The report said the provincial government had prepared a plan to give subsidy to the closed units on electricity and tax holiday for five years to enable them to start afresh.

The existing 10 small industrial zones located at the Kohat Road, Peshawar, Mardan, Haripur, Abbottabad, Mansehra, Kohat, Bannu, Dera Ismail Khan and Charsadda, had only 454 factories, the report said, adding that 1,351 plots in these small zones were empty, mainly due to lack of conducive atmosphere for investment and the prevalent law and order situation in the province, the report said.

Of 41 ghee units in the province, 22 were closed, it added. It said 109 of 233 flour mills in the province were not functional, and the rest operated only for two to three hours a day due to shortage of wheat.

“This situation has brought industries and local economy on the verge of collapse and the government has no option but to give generous concessions to support industries,” the report said.

An official told Dawn that these measures would be announced in the coming budget under a ‘special package’. He said steps planned by the government would have a positive impact on the investment scenario because the law and order situation in the province had started improving, especially after the peace deal with the local Taliban.

In the coming budget, 25 per cent rebate would be given to existing industrial units on electricity and new units would be exempted from property tax, he said, adding the plan to boost local industries also included establishment of five new industrial zones where investors would be given tax holiday for five years.