Government neglect pushes Pakistan's industrial estate towards collapse

May 30, 2026

Khyber Pakhtunkhwa [Pakistan], May 30 : The Gadoon Amazai Industrial Estate (GAIE) in Khyber Pakhtunkhwa is facing an uncertain future as industrialists warn that years of government neglect, rising operational costs, and inadequate infrastructure are driving businesses toward closure. Several industrial units have already shut down, while many others are struggling to remain operational amid mounting economic pressures, as reported by Dawn.
According to Dawn, business leaders associated with the estate highlighted a range of challenges undermining industrial activity, including its remote location, persistent electricity disruptions, gas shortages, and escalating transportation expenses. They noted that the cost of importing raw materials from Karachi and distributing finished products across Pakistan has significantly increased production expenditures, making manufacturing operations less competitive.
These factors have left many investors questioning the viability of continuing their businesses in the industrial zone. Fazal Rahim Jadoon, president of the Swabi Chamber of Commerce and Industry, expressed frustration over the situation, stating that he would consider shifting his industrial operations elsewhere in Pakistan or even abroad if better opportunities emerged. He emphasised that protecting investments and ensuring a secure future for his family remain his foremost concerns.
Industrialists recalled that the estate was established in 1988 during the government of former Prime Minister Benazir Bhutto as part of an initiative to provide alternative livelihoods to poppy growers in the Gadoon Amazai region after the government banned opium cultivation. However, stakeholders claim that the original objectives were never fully realised due to the failure to create sustainable economic opportunities for affected communities, as highlighted by Dawn.
Former stakeholders also criticised successive governments for inconsistent policies. Generous incentives offered under SRO-517 initially attracted investors from across the country, but the abrupt withdrawal of those benefits in 1990 severely damaged confidence in the estate. Industry representatives argue that decades of appeals to federal and provincial authorities have yielded little progress, as reported by Dawn.

More News