Chairing a review meeting of Industries Department, Chief Minister Mahmood Khan directed for the completion of pending modalities to facilitate the foundation laying of establishing Special Economic Zone (SEZ) at Rashakai. The industrial estate is one of the nine such economic zones that are to be set up for the relocation of Chinese industries and some joint ventures with Pakistani entrepreneurs for exports goods producing industries under the umbrella of China-Pakistan Economic Corridor (CPEC). Realisation of this initiative is inevitable for the second phase of industrialisation in the country.
Despite the game-changer mantra about CPEC day in and day out by the former Planning Minister Ahsan Iqbal work on the establishment of SEZs could not move an inch in the last PML-N government. Although the present government has priortised three special economic zones, including the one at Rashakai, but things are moving at snail pace. The project is yet to be jump-started and its overselling in media will not serve useful purpose. The technology stagnation and neglect of skill development will be major hindrances for materializing joint ventures and opening employment opportunities for locally available manpower. It was two years ago that Chairman State Engineering Corporation had cautioned the entrepreneurs to move forward from the existing second generation technology to fifth generation if they are really interested to grab the opportunity of joint ventures with Chinese entrepreneurs in SEZs. Likewise, he emphasised for skill development of human resource at extensive and intensive scales to enable the locally available manpower in the application of latest technologies. The previous PTI government in Khyber Pukhtunkhwa had closed the vocational training institutes. The Technical Education and Vocational Training Authority (TEVTA) has not been successful in performing its mandated job. The research and training facilities in public sector Engineering Universities are not state-of-the-art.
The estimated requirement of electricity supply for Rashakai Special Economic Zone is 200 megawatt. It will need installation of a separate Grid Station and high power transmission system. These projects fall within the domain of federal government. How PESCO and NDTC will do this is a million dollar question if the failure in upgrading and expanding the existing distribution and transmission system is any guide? Tripping and breakdown of distribution system and recurrence transmission faults due to overload and distribution imbalances has become a regular feature of power sector. The existing rag-tag power transmission and distribution system is unable to pick the additional load of electricity supply. The Asian Development Bank had sanctioned a loan of $4.5 billion in 2016 for the up-gradation of power distribution and transmission system but it could not be disbursed although commitment charges are being paid on it for the last three years.
Another major impediment in the way of industrial development of the province is the high price of electricity. The provincial government has not been able so far to provide electricity at competitive price from Pehur hydel power station to Gadoon Industrial Estate, notwithstanding repeated announcements in this regard. The province does not have its own transmission and distribution system and the provincial government had to sign an agreement with power division to sell 70 plus megawatt electricity to NDTC. In the prevailing unfavourable economic environment, the upbeat media publicity of Rashakai Special Economic Zone may turn out counterproductive with unexpected political damage for the PTI. It would be worthwhile that provincial government take concrete measures, as far as possible, for human resource development and improvement in technological skill to meet the demand of trained manpower if at all the dream of industrialisation of the province comes true.
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