STAR SECTOR 1: INDUSTRY
Offering an abundant supply of raw material and a steady increase in skilled workforce, the tax-free industrial sector of FATA has attained forward momentum. Do you have what it takes to join the next generation of investors who will spearhead the future of industrial growth in FATA?
NATURE OF INDUSTRY 70
66.12
60 50 40 20
9.81
15.59
30 7.27
10
1.21
FATA Secretariat has taken an integrated approach towards industrial growth for economic development. Being driven by comparative advantage, the industrial sector of FATA is further enabled by sufficient incentives and regulatory structures. Small and medium enterprises are at the core of industrial activities. These include marble processing units, textile weaving centers, edible flour mills, PVC pipes manufacturers, furniture making outlets, sporting arms producers and confectionary sweet makers. Furthermore, thousands of people are associated with retail, wholesale and supply management of different products that are either manufactured in FATA or traded through its constituencies.
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Secretary, Production Department FATA
% age of industries
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The rich natural endowment of FATA backed by a youth oriented labor force is shaping the industrial sector growth in FATA. The geostrategic location, business friendly policies and the government's increased priority are contributing towards industrial development in the region. We invite you for an industrial experience that has limitless potential of transforming locally available raw material into globally competitive products.
0 Manufacturing
Processing
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Other
Source: Directorate of Industries FATA
To boost the productivity and competitiveness of the industrial sector, FATA Secretariat is working on a multidimensional plan under its Competitive Industries Strategy 2015. Under the strategy, the industrial undertakings will be directly reinforced through introducing policy reforms and providing microfinance credits. The integrated strategic vision also calls for nurturing the youth of FATA through skill development programs and giving access to new markets for both raw material and finished goods.
According to the Directorate of Industries FATA, 1082 industrial units are currently operating in the private sector. This fact gives a clear insight into the scope and opportunity that are available for industrialists and entrepreneurs. The industrial structures falling under the classification of small and medium enterprises are scattered across the breadth of FATA in all the tribal agencies and frontier regions. Marble cutting and stone processing have underwent considerable development during the last decade with ever more investors working in the form of clusters. According to the recently conducted “Survey of Existing Industries and Labor Force in FATA”, opportunities for industrial undertakings are vast and promising.
The Directorate of Industries FATA is working with the FATA Investment Facilitation Authority, FATA Development Authority, Pakistan Board of Investment and the Tribal Areas Chamber of Commerce and Industries across a range of regulatory and policy areas. A variety of raw material including marble, copper, wood and different chemicals are used in the industrial units in FATA. This raw material is supplied through both national and international channels. Majority of the firms are using local raw material with the addition of imported raw material from Afghanistan, Middle East, Korea, Japan and Iran. This indicates that existing businesses have the capacity to achieve sustainable growth by consuming and adding value to locally available raw material.
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% age of industries
NATURE OF RAW MATERIAL
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Source: Directorate of Industries FATA
FRUIT AND VEGETABLE PROCESSING UNITS IN FATA A large number of fruit and vegetable processing entities are in operation both in organized sector and informal sub-sector. Major processors are Shezan International, Mitchell's Fruit Farms, Ahmed Food Industries, Nestle Milkpak, S.A. Rehman & Co., Benz Industries, Rafhan Best Foods and Hamdard Fruit Products. According to the estimates of Export Promotion Bureau (EPB), the capacity for the production of fruit juices, canned fruits, tomato products and processed vegetables are estimated at about 100,000 tons per annum. Other fruits and vegetable processors include Shangrila Foods, National Foods, Tops Fruit, Salman Foods and Kinza Foods.
INDUSTRIAL AND MARBLE CITY IN MOHMAND AGENCY The marble prospects, particularly the opportunities prevailing in Mohmand Agency, have remained the cornerstone of investment and economic opportunities in FATA. Building up further on that, a Marble City is being developed in Mohmand Agency to harness that potential with a kinetic impact. With the collaboration of Pakistan Stone Development Company, the mega project will lead to the transformation of the industrial sector of FATA by offering marble products which are compatible in the international markets. The industrial city will be stretched across a total land area of 310 acres which has already been acquired and is being developed.
INDUSTRIAL ESTATE IN FRONTIER REGION KOHAT Clusters of small and medium enterprises engage in majority of the industrial sector activities. The recently conducted “Survey of Existing Industries and Labor Force in FATA� has revealed that due to its present and future investment outlook, Frontier Region Kohat can become a hub of industrial activities in the region. Dara Adam Khel area is world renowned for its indigenous arms industry operating since decades. The aptitude and dexterity of the locally available workforce is recognized not only in Pakistan but abroad as well. FATA Secretariat has recognized this potential and has initiated spadework to establish an industrial estate in Frontier Region Kohat.
FROM MACHINE OPERATOR TO A PROSPEROUS BUSINESSMAN Ali Khan from Bajaur Agency is a man of few words but with industrious skills which do the talking for him. Starting as a woodcutting machine operator, he runs a thriving wood products business today in Khar, Bajaur Agency. Because of his business acumen as well as the economic dividends of operating in FATA, he has found clientele not just in his native Bajaur but also in Peshawar, Rawalpindi and Islamabad. As he inspects the furniture order ready to be delivered to Peshawar, Ali spells out his plans of opening a second furniture manufacturing unit in FATA and a display outlet in Peshawar. From minimal daily wages to a flourishing business enterprise, Ali fits one cog within the industrial growth of FATA. The rest are there to be taken.