With realization of the long awaited desire for peace in crisis prone Khyber Pakhtunkhwa (KP); the environment for investing in the sustainable development of the society at large and bringing economic affluence to the region can now finally be turned into a reality.
KP’s share in Pakistan’s Gross Domestic Product (GDP) has been historically around 10.5%, amounting to over US$ 30 billion making it the third largest provincial economy in Pakistan. The Province accounts for 11.9% of Pakistan’s total population. The major economy of KP constitutes of mining & forestry. Furthermore, almost 78% of Pakistan’s marble production also comes from KP. In the pursuit towards economic prosperity, one cannot overlook the importance of industrialization.
Not only does industrialization spur economic activity commensurate with its scale, but also generates employment and skilled labor. The geo-political landscape has recently witnessed some positive signs of stability and recuperation in terms of attracting foreign investments due to China Pak Economic Corridor (CPEC).Therefore, the need for rapid industrialization has gained even more importance to uplift the province of KP.
Project Director Message
I feel immensely pleased and honoured to share the accomplishments in trade, industry, and Small and Medium Enterprise (SME) realized in Khyber Pakhtunkhwa (KP), with the support of Multi- Donor Trust funded project- “The Economic Revitalization in Khyber Pakhtunkhwa (ERKF).” It forms a key part of the Government of Pakistan’s overall vision for strong and sustainable economic growth and to off-set the adverse effects of crises caused by militancy and natural disaster/floods. ERKF project is a shining example of the power of collaboration. We have consulted with our stakeholders at every step, and put their respective expertise to good use on a joint platform whilst deepening interaction and understanding of the existing diversity in the areas of SME’s development, Institution Capacity Building and Competitive Sector Development. As a cornerstone, it will play a critical role in transforming the region into a thriving hub for industry as well as contributing to the economic prosperity of the wider country.
Since the onset of the ERKF project in 2013, it has delivered a series of important outputs in the ongoing reform process. For us, supporting the SME sector itself is pivotal for boosting the domestic economy and serving as a backbone of the larger industries. A neglected sector in the past governments- this sector discovered a lifeline with the ERKF matching grants programme.
It not only endorsed business owners’ access to banks for financial assistance but also formalized the undocumented economy which jointly encouraged business investment, capacity building, and employment generation and activity. Since the project’s onset, 1725 SMEs have been supported via grants disbursement and approximately 12000 jobs have been created/restored in various sectors. Hence, the project serves simultaneously as a stimulus to our economic growth and a basis for socio economic development, harmonized development and effective management of its resources – all of which are in line with the Sustainable Development Goals and KP Integrated Development Strategy.