Peshawar: According to the Department of Industry, as reported by ARY News, the escalating unrest and insufficient government support have led to the closure of 229 industrial facilities in Khyber Pakhtunkhwa (KP).
This includes 52 facilities in the Gadoon Economic Zone and 177 units managed by the Khyber Pakhtunkhwa Economic Zones Management and Development Company (KPEZMEC), resulting in hundreds of workers losing their jobs and businesses facing significant financial challenges, as noted by ARY News.
With a total of 2,563 industrial units in KP, companies are increasingly struggling to operate amid the region's growing instability. Industry leaders attribute the closures to several factors, including persistent power shortages, security concerns, and a lack of government incentives, as reported by ARY News.
Last year, the Sindh Assembly revealed that the electricity crisis has led to the shutdown of 81 industrial facilities over the past five years, including five sugar mills and ten textile mills. Opposition leader Ali Khursheedi criticized the government's lack of transparency and called for a comprehensive explanation regarding the closures and the establishment of new units from 2018 to 2023, according to ARY News.
In light of these challenges, Pakistan's economic outlook remains grim. The World Bank's Global Economic Prospects Report 2025 forecasts that Pakistan's GDP will grow at a modest rate of 2.8 percent annually, as reported by ARY News. In contrast, other South Asian nations are expected to perform significantly better.
The Maldives is projected to grow at 4.7 percent, while Bhutan is anticipated to achieve a growth rate of 7.2 percent. Additionally, Nepal, Bangladesh, and Sri Lanka are expected to surpass Pakistan with growth rates of 5.1 percent, 4.1 percent, and 3.5 percent, respectively, as cited by ARY News.
Economists and business leaders are calling for urgent reforms to rejuvenate Pakistan's struggling industrial sector and restore investor confidence as the nation's industries continue to face significant challenges.
