PESHAWAR: The Khyber Pakhtunkhwa government has abolished the 44 years old Khyber Pakhtunkhwa Development Authority and transferred its assets and employees to the KP Economic Zones Development and Management Company.

The development came through the KP Taking Over of the Industrial Estate or Economic Zones Ordinance issued last Friday.

The ordinance was issued in line with the Peshawar High Court’s orders given early this year about the dissolution of the authority through an executive order.

According to Section 3 of the ordinance, on coming into force of this ordinance, all 10 industrial estates or economic zones in the province stand transferred from authority to the company and the authority shall cease to exist.


Govt issues ordinance to transfer KPDA assets, staff to Economic Zones Development and Management Company


Section 4 notes that all assets, liabilities, bank accounts, claims, proceedings before judicial or quasi-judicial forums, mediators, and regulators along with all necessary records in so far as pertaining to the statutory and administrative functions of the authority, shall henceforth vest in the company to the extent of the industrial estates or economic zones.

About the status of the authority’s 318 employees, the ordinance says that on the commencement of this ordinance, all of them shall stand transferred to the company. However, it says the company shall give option to the employees either to continue to serve the company on their existing terms and conditions as specified in KPDA Rules 2015, made under the repealed act or to continue to serve the company on the terms and conditions given by the company including golden handshake.

It however also says the option shall be exercised within a period of 60 days and the option once exercised, shall be final.

Section 8 of this ordinance notes that KPDA Act 1973 is hereby repealed.

Promulgation of the ordinance also transferred 10 industrial estates or economic zones including Hattar phase VII, Rashkai/M-1, Jalozai, Ghazi, Dera Ismail Khan, Bannu, Gadoon, Hayatabad and Nowshera to the KPEZDMC.

The KPDA also known as the Sarhad Development Authority (SDA) was set up under the KPDA Act 1973 with an objective of promoting economic and industrial development of the province and establishment of industrial estates or economic zones across the province.

The authority’s affairs were to be managed and administered by the board of directors headed by chairman, who were to be appointed by the government.

In March last year, the PTI-led government announced the disbanding of the authority and transfer of all its assets and employees to the KPEZMDC.

The EZDMC registered as non-profit organisation under the Companies Ordinance 1984 and owned by the KP government altogether was formally launched in August last year.

However, the disbanded authority’s employees challenged the move at the Peshawar High Court insisting on creation of the company assets worth billions of rupees were being transferred to the said company, while their services were being dispensed with.

In March 10, 2016, a PHC bench comprising Justice Nasir Hussain and Justice Waqar Ahmad Seth had disposed of the petition.

In the detailed judgment, the bench declared the setting up of the company legal and within the domain of the provincial government. However, it declared the transfer of SDA assets to the company through the executive order illegal.

KDPA chairman Sajid Jadoon told Dawn that the handing over of authority’s assets would take a month or two as its assets valued billions of rupees.

Published in Dawn, July 26th, 2016

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