By Faiza Tehseen ISLAMABAD, Feb. 04 (INP WealthPK): Industrial zones in the federal capital Islamabad – established in 1963 – have reached their full capacity, leaving no space for the establishment of a new industrial unit. Currently, there are three industrial zones in the capital where around 1,200 industrial units including steel, marble, flour, edible oil, cement, furniture, pharmaceuticals, chemicals, soap, information technology and engineering are operating, employing a sizable workforce. Owing to the lack of space in the federal capital for setting up a new industrial zone, potential investors are left with no option but to move towards other local or foreign markets. The flight of capital to the offshore markets is particularly alarming for the country. Islamabad needed a new industrial estate around 10 years ago. The industrialists had suggested the establishment of a new zone at Sector I-17, but no progress could be made in this regard at the government level. In order to materialise this idea, a delegation of Islamabad Chamber of Commerce and Industry (ICCI) recently held a meeting with Chairman of Capital Development Authority (CDA) Amir Ahmed Ali. The positive outcome of the meeting was that both parties had agreed to go ahead with the proposal. Both sides agreed that the establishment of a new industrial estate in Islamabad will increase investment, promote business and create more job opportunities for skilled, semi-skilled and unskilled workforce. Being the federal capital, an exemplary industrial estate is essential in Islamabad to demonstrate the industrial development in the country for foreign visitors. In a statement, President ICCI Shakeel Muneer said the establishment of a new industrial zone was the need of the time. He said it was important to promote business and generate new opportunities for employment in the federal capital. “Installation of a new industrial unit in the federal capital will contribute towards economic uplift of Pakistan. It will encourage foreign investment and reduce import of raw material to a large extent. For new industries and the existing units, the government should decrease import duty concerning machinery, spare parts and other necessities. These steps will help maximise production of value-added goods and enhance exports as well,” said Shakeel Muneer. A delegation of ICCCI – led by Shakeel Muneer – also met with Federal Minister for Planning, Development and Special Initiatives Asad Umar in Islamabad and discussed the establishment of a new industrial zone in the federal capital under the public-private partnership (PPP) structure. The minister agreed that there was no space available in the existing industrial areas for setting up new units and agreed in principle to set up a new industrial estate to generate economic activity, employment, and revenue. Asad Umar said a model industrial estate was needed to showcase industrial development in the country for foreign visitors. He also committed to ensuring the availability of electricity, gas, water, and other basic amenities in the industrial zone. He said a new industrial estate would be a source of employment not only for Islamabad, but also for the residents of areas adjoining Islamabad. Pakistan has concentrated to build nine prioritised zones in all provinces and other federal areas of Pakistan. Work on special economic zones (SEZ) namely Allama Iqbal Industrial Zone, Rashakai Zone, Faisalabad, and Bostan Balochistan is under process and greater interest for investment in these SEZs has been shown by a large number of foreign investors. The successful industrial zones, including Hattar Industrial Zone and Bin Qasim Park, have contributed billions of rupees to the national treasury and generated thousands of jobs. According to the data analysis of the second quarter of the fiscal year 2020-21, industrial production in Pakistan averaged 5.01 percent from 1990 to 2021, with a regular rise in percentage of 67.60 in April 2021, while there was a decrease only in April of 2020. It is also worth mentioning that industrial production increased by 12.28 percent in August over the same month in the previous year, according to the State Bank of Pakistan (SBP). Source: https://tradingeconomics.com By the end of the last quarter of 2020-21, 6.50 percent growth was expected, while according to the economic models, the growth trend of Pakistan’s industrial production was forecast around 1 percent in the coming year. Source: https://tradingeconomics.com According to a World Bank statement released on October 28, 2021, Pakistan’s GDP growth rebounded to 3.5 percent after 0.5 percent contraction in the fiscal year 2020-21 along with the onset of a global pandemic. Pakistan has also got a revival in export, according to the World Bank data.