Khyber Pakhtunkhwa Province is gifted with a natural ecology and land fit to grow a variety of quality crops, fruits and vegetables. Government of Khyber Pakhtunkhwa is focused to exploit the potential in the Agriculture sector and take steps to promote the production and export potential of fruits and vegetables, along with major and minor crops of the Province.
The horticultural sector contributes about 12% to the national agricultural GDP of Pakistan and holds great potential for increasing export of premium quality horticultural produce, and offering multiple employment opportunities throughout the supply chain, particularly in rural areas. Investment in the modern post-harvest management facilities (grading, packing, storage and transport/cool-chain) will reduce post-harvest losses, increased production surplus along with improving shelf life and quality of fresh produce, which will help meet the demand in domestic markets, as well as to substantially boost export to highly lucrative and competitive international markets. Such lucrative investment opportunities are available at multiple locations of the Province.
KP has been bestowed with 5 Agro-climatic zones, having an edge over the rest of the country. The land is extremely fertile producing different crops, fruits and vegetables.
Variety of corps including wheat, maize, rice, sugarcane, gram and barley are produced in KP. Districts including Charsadda, Mardan and Swabi are producing quality sugarcane. High quality tobacco is also produced in KP with around three fourth of the total country production.
Several leading multinational tobacco companies are operating in the Province with brands sold in global markets. This huge tobacco production and demanding market is offering viable investment opportunities.
Fruits and Vegetables Production in KP
Livestock occupies a unique position in the national and provincial program of economic development. It has contributed about 55.1 percent to the agriculture value added and 11.6 percent to national GDP, during 2010-11 as compared to 54.6 percent and 11.6 percent in the previous year. In Khyber Pakhtunkhwa, livestock mainly comprised of buffalo, cattle, sheep, goat, mule, asses and poultry. Livestock products including meat, milk, bones, fat, hides and skins are generating significant revenues for investors.
There is a huge investment potential in this sector as International Halal Food Market worth more than US$3 trillion is presenting opportunities to increase meat export, earn foreign exchange and promote high quality meat worldwide. Malaysia, Iran, Indonesia, Jordan, European and Gulf Countries are amongst the major meat importing countries. Supply of Pakistan meat to foreign market is increasing as exports in 2012 reached to US$123.61 million, showing an increase of 13.9% over last year. It has also earned US$ 722 million from leather exports.
Investment Opportunities in Modern Slaughterhouses:
Increasing awareness regarding food safety standards as well as high local and export demand is offering opportunities to both local and foreign investors to invest in halal meat production with the establishment of modern slaughterhouses and meat processing complexes. The Government is already taking steps to make the Province a hub by opening new avenues for entering the global market.
Government is also offering following facilitation to the investors:
- Government land in various ecological zones.
- Basic infrastructure with the availability of electricity and water.
- Enactment of the required legislation.
- Halal Certification.
- Tax holidays and duty free imports of machinery/equipment.
Sheep being a small animal having qualities to be used for mutton and wool production, has a good fertility rate and produces a lot of offspring under good husbandry management. Sheep farming in Pakistan is still traditional and intervention on modern lines is the need of the day to fulfil the increasing demand for quality wool and mutton. In the region, mutton is highly preferred and liked by the people and consumers are paying high prices for it. Sheep farming is very encouraging with fewer risk factors and is quite profitable if run according to the modern practices. Sheep farming in Pakistan is constrained by the lack of money on the part of farmers.
Investment in Sheep Farming will generate significant revenue for investors as well as for the local community; with labour services provided. Hazara and Malakand divisions of the Province are well-known for trans-humant livestock production, specially the wool and mutton animals. Rambouilett Sheep Farm established in 1954 at Jaba, in District Mansehra of Hazara division, is located on the main Mansehra-Naran Highway at the gateway of Naran Valley and adjacent to the Silk Road leading to the Republic of China.
Rambouilett sheep flock at Jaba farm is the only one of its kind in South Asia. Rambouilett sheep are famous for fine wool production. The Ramghani sheep breed developed as a result of crossing the local Kaghani sheep with the exotic Rambouilett is spread all over Hazara and Malakand divisions, and its population in the region is more than 3.00 million, producing about 600 metric tons fine wool. If proper wool processing facilities are created in the area, the farmers will be encouraged, and wool production will increase manifolds.
Following opportunities are available to the investors in the area:
- Land for the establishment of wool processing set up.
- Organized and trained farmers.
- Health covers to sheep population in the area.
- Establishment of Wool shearing and wool collection centers established.
- Tax holiday for 3 years.
- Custom duty exemption on import of machinery and equipment.
- Supporting development projects.
- Cheap labour
- Dairy Farming
- Poultry Farming
Pakistan is the third largest milk producing country after India and USA. In KP, buffalo, cattle, sheep and goat are the major contributors in milk production. Dry milk powder is imported to fulfil the demand. The sector has the potential to transform into Billion dollars industry.Dairy sector has become the top priority for the Government as well as the private investors. It is a very viable investment opportunity as a number of small and large dairy farms can be set up at various locations in the Province, from where milk can be sold to domestic individual consumers and bulk buyers. Several local and multinational companies are operating in the region collecting milk from the local farms. The Government is also taking steps to modernize the milk collection and storage systems and helping businesses adopt modern dairy farming systems.
The Province is offering investment in Poultry farming. Rural and peri-urban areas around the major cities of the Province are suitable for setting poultry farms of both; egg-laying and meat-producing chickens. There is significant potential in this sector, which will benefit the investors as the demand is high for meat and eggs in the market and can also be exported. Government is taking steps to facilitate the promotion of Poultry businesses on modernised basis to meet international standards as well as inviting investors to undertake viable investment opportunities.
Fisheries resources of Khyber Pakhtunkhwa are immense. The whole Province is strewn with natural and manmade lakes, rivers, nullahs, khwars, waterlogged areas, irrigation canals and ponds of various sizes. These are inhabited by diverse varieties of fishes and crustaceans, etc. This diversity of fauna is, in fact, a reflection of the diversity of environment, which ranges from the high snow covered wet parts in the north, to low, dry and hot parts in the south. The endowment of diversity of resources, with its rich fauna, permits the nation to exploit aquatic resources of this Province, not only for tourism and irrigation but also for fisheries.
Khyber Pakhtunkhwa as compared to other provinces has an edge of having vast resources including cold, semi-cold and warm water fisheries resources.
Investment opportunities in this sector through public/private partnership include:
- Management of Tarbela & Khanpur Dams for enhancement of fish
- Trout production
In order to explore the huge fish production potential from Tarbela and Khanpur Dams, the Provincial Government has included a project in Provincial Annual Development Programme (ADP). Under the said project, during the first phase, 120 to 180 kanal land will be purchased at Swabi District, whereas during Phase-II, carp hatchery complex will be established with estimated cost of Rs.500.00 million for a period of 03-years, which will produce 7.00 million fish seed per annum.
The Tarbela and Khanpur reservoirs spread over an area of 70,175 acres (64,000 acres & 6,175 acres respectively). During the winter season, the total water area of these reservoirs shrinks about 50%, thus total stocking area also reduces to 50% of the total area, i.e., 35,000 acres, which need about 7 million fish seed (fry/fingerlings) to be stocked on an annual basis. To achieve the goal of 7 million fish seed production annually, the establishment of carp fish hatchery complex is proposed.
KP-BOIT, in collaboration with the Agricultural Department, invites private investors to come forward and avail this huge potential by setting up the following facilities, for which lease rights of the reservoirs with all relevant NOC’s can be provided on mutually agreed terms.
- Stocking of fish seed
- Packing/processing unit
- Ice/cold storage unit
- Installation of cages
There are a total of 8 (eight) Government Trout Hatcheries in the Province with total Fish Seed Production capacity of 1.530 million, and 75 Trout Fish farms have been established in the private sector, out of which, 37 Fish farms exist in Swat Valley. The estimated trout production is 77 Metric Ton per annum. In the view of fish farming potentials, the production can be enhanced many folds.
Besides above, the water resources available in the shape of Alpine Lakes of the Province, comprises over an area of about 2,155 hectors. If the potential of these Alpine Lakes is properly explored for production of Trout Fish, Trout Fisheries can be developed as an industry through public and private partnership and investment in the following areas:
- Establishment of Trout Processing and Packaging unit in the private sector at Swat.
- Establishment of Trout Fish Feed Industry in the private sector.
- Establishment of Trout Fish Farms in the private sector.
- Development of Trout at Alpine Lakes for the promotion of Tourism.