industrial policy, its spatial aspects and cluster development in ...

• Product branding and up gradation.
• Accessing international markets.
• This should be done by creating linkages with universities, research centres
available locally and internationally, and by creation of centres of excellence.
• Captive power generation should be permitted at the estate level.
• Effluent Treatment Plants and Solid Waste dumping sites should be established
in all industrial estates. Incentives such as tax break should be provided for local
construction/fabrication of effluent treatment plants.
• With falling duties, the attraction of EPZs (where imports are duty free) has fallen
dramatically. EPZ such as the one in Gujranwala should be turned into an
industrial zone.
• The government should rationalize its existing portfolio of industrial estates. The
failed estates or SEZs (e.g., Gadoon) need to be liquidated and lessons learned
from their failures. Sukkur Small Industrial Estate should be developed.
• Business incubators for SMEs should be set up to reduce costs for business startups.
Strengthen Governance
There are several issues in governance that can easily compromise any industrial policy.
The following is a list of recommended measures:
Smuggling (Afghan Transit Trade): The Afghan Transit Trade Agreement is a serious
issue for industry. A range of goods which are officially imported for the Afghan market
make their way into Pakistan through well established and strong smuggling networks
operating at both sides of the Afghan-Pakistan border. Prices of these smuggled items in
the local market are much below those of local manufactures resulting in an erosion of
their market share and a loss in revenue. One way to control smuggling is to increase the
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