Stakeholders press KP to prioritise industry growth

PESHAWAR: Pakistan Business Forum Khyber-Pakhtunkhwa Chairman Ashfaq Paracha has called on the provincial government to give industrial development a central place in the upcoming Budget 2026-27, saying long-term economic growth, jobs, exports and revenue depend on a stronger industrial base.

He said Khyber-Pakhtunkhwa had presented a budget of more than Rs2.1 trillion for FY2025-26, with an annual development programme of Rs547 billion focused on social services, but argued that industrial development had not received the level of attention required to reshape the province’s economy.

Paracha said the sector was facing multiple obstacles, including weak infrastructure, elevated energy costs, irregular gas supply and restricted access to financing. He also said that despite having high-quality marble and mineral reserves, the province continued to send out most of these resources in raw or semi-processed form.

In a statement, he said value addition was taking place in other provinces, which was depriving people in Khyber-Pakhtunkhwa of jobs and wider economic gains. "Industrialisation is the backbone of every successful economy. Unfortunately, K-P continues to export raw materials while value-addition takes place in other provinces. This deprives our people of employment and prosperity," he added.

Paracha also proposed the creation of a dedicated Industrial Development Fund to support infrastructure, modernise industrial estates and speed up work on special economic zones.