Industrial Closures in Khyber Pakhtunkhwa Spark Concern Amid Economic Uncertainty

Peshawar: The ongoing economic crisis and lack of government support have led to the closure of 229 industrial units in Khyber Pakhtunkhwa (KP), raising alarms over job losses and declining business activity. According to the Department of Industry, these closures include 52 facilities in the Gadoon Economic Zone and 177 units under the Khyber Pakhtunkhwa Economic Zones Management and Development Company (KPEZMEC).

The province, which has a total of 2,563 industrial units, is struggling with growing operational challenges. Industry experts cite persistent power shortages, security concerns, and insufficient government incentives as the primary reasons behind the shutdowns. The worsening situation is making it increasingly difficult for businesses to sustain operations, leading to mounting financial losses.

The impact of energy shortages on industries is not new. In Sindh, reports indicate that 81 industrial units, including five sugar mills and ten textile mills, have shut down over the past five years due to the power crisis. Opposition leader Ali Khursheedi has criticized the lack of transparency and urged the government to provide a detailed account of industrial closures and new units established between 2018 and 2023.

Pakistan’s economic outlook remains uncertain. According to the World Bank’s Global Economic Prospects Report 2025, the country’s GDP growth is projected at just 2.8% annually. In contrast, several South Asian nations are expected to perform significantly better, with the Maldives projected to grow at 4.7%, Bhutan at 7.2%, and Nepal, Bangladesh, and Sri Lanka forecasted at 5.1%, 4.1%, and 3.5%, respectively.

Amid these challenges, business leaders and economists are calling for urgent policy reforms to revive Pakistan’s struggling industrial sector and restore investor confidence. Without decisive action, the nation’s economic trajectory remains at risk.

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