Sick Industrial Units in Gadoon Amazai Industrial Estate, Causes and Solutions for Revival

Abstract

Industrialization plays a pivotal role in the economic development of a country but unfortunately from the last few decades industrialization is facing quite a lot of problems in the country. At present in Pakistan the number of sick industrial units has gone over 4,000 units. The average growth rate of large scale manufacturing which was 8.2 % during the 1980s, reduced to 1. 6% in 1999-2000. The increasing incidence of industrial sickness is certainly a matter of deep concern not only for the industrialists, shareholders and creditors but also for the government and the society at l arge. Gadoon Amazai I ndustrial Estate (GAlE) in NWFP is also ser iously affected by this industrial sickness t rend. This industrial estate was established in 1988 by government to stop poppy cultivation, to provide job opportunities to the peopl e, to generate income for the country to earn foreign exchange and to bring this backward area at par with other developed areas of the country. GAlE \'lith subsequent policies, after enj oying an unprecedented boom among industries for about two years, discovered itself in hot waters. Industrialists started leaving the industrial estate and billions of investments were wasted. People lost jobs, government revenues and industrialists the will to do business.