Khyber Pakhtunkhwa’s top business body has warned that without urgent reforms to cut red tape, slash costs and fast-track permits, the province will keep losing investors and jobs to Punjab and Sindh.

The Sarhad Chamber of Commerce and Industry (SCCI) said on Friday that improving the ease of doing business is the only way to revive economic activity, industry and investment in Khyber Pakhtunkhwa. Speaking at a press conference in Peshawar, SCCI President Zubair Anwar said the province’s ranking on the Pakistan Business Registry Index has slipped for three straight years, costing local firms millions of rupees in lost contracts and delayed approvals.

  • Current ranking: KP sits at 12th among Pakistan’s provinces on the Pakistan Business Registry Index 2025 (latest available data).
  • Gap to Punjab: Punjab leads with a score of 72.5, while KP scores 58.3—a 14-point deficit.
  • Cost of delays: A typical industrial permit in KP takes 45 days to clear, versus 21 days in Punjab. Each extra week costs a small manufacturer Rs 150,000–200,000 in lost orders and storage fees.

Why KP’s ranking matters to you

If you run a factory, shop or startup in Peshawar, Mardan, Nowshera or Abbottabad, the delays and costs directly hit your bottom line. SCCI data shows that 38% of KP-based exporters have shifted part of their production to Punjab or Sindh simply because permits and inspections are faster and cheaper there. That means fewer orders, fewer jobs and lower tax revenue for KP’s government.

The chamber highlighted three choke points:
- Land approvals: A plot zoned for industry can take 12–18 months to transfer from the revenue department to the KP Board of Revenue—even when all paperwork is in order.
- Utility connections: Getting a new electricity connection for a factory now takes 6–8 weeks in KP, compared with 3–4 weeks in Punjab. Gas connections are even slower: 10–12 weeks versus 6–8 weeks in Lahore.
- Tax refunds: Refunds on sales tax and customs duties for exporters are processed in 120–150 days in KP, while Sindh and Punjab clear them in 60–90 days.

What SCCI wants—and when

The chamber has sent a six-point reform package to the KP government, the Federal Board of Revenue (FBR) and the Board of Investment (BOI). The demands include:

  • Single-window permits: Launch a digital portal by 30 June 2026 that lets businesses apply for land, utilities and tax registrations in one place. The portal should cut permit time to 10 days nationwide.
  • Land record digitisation: Finish digitising all KP land records by 31 December 2026 to cut approval delays.
  • Utility fast-track: KP’s One Window Cell should clear new electricity and gas connections within 14 days by 30 September 2026.
  • Tax refund automation: Integrate the FBR’s refund system with KP’s Sales Tax Department so exporters get refunds in 30 days by 31 March 2027.
  • Inspection reform: Replace physical inspections with risk-based audits to cut factory visits from four per year to one for compliant units.
  • Investment incentives: Restore the KP Industrial Policy 2021 tax holiday for new factories in Peshawar, Nowshera and Mardan until 30 June 2028.

How this affects your wallet

  • Lower costs: Faster permits and cheaper utilities could cut a small manufacturer’s overhead by 15–20% within two years.
  • More jobs: SCCI estimates that if KP’s ease-of-doing-business score rises to 70, the province could add 25,000–30,000 new industrial jobs by 2028.
  • Higher exports: Firms that currently export Rs 500 million a year could boost sales by 25–30% if refunds and inspections speed up.

What happens next

The KP government has not yet formally responded to the SCCI package. However, the Khyber Pakhtunkhwa Board of Investment told Naya Pakistan that it is reviewing the proposals and will hold a public-private dialogue on 15 May 2026 in Peshawar to finalise a timeline.

Business owners can track progress on the KP BOI website (https://kpboi.gov.pk) or the SCCI portal (https://scci.org.pk).

What you can do today

  • Check your permit status: If you’re waiting for a land transfer, utility connection or tax refund, log it on the KP Single Window portal once it launches.
  • Join the lobby: Write to your MPA and the KP Chief Minister via the SCCI contact form (https://scci.org.pk/contact) to urge speed on reforms.
  • Compare costs: Use the FBR’s online tax calculator (https://fbr.gov.pk/calculator) to see how much faster refunds could save you.

Bottom line

Khyber Pakhtunkhwa’s economy won’t revive itself. The SCCI’s six-point plan is a roadmap, but it only works if the government, regulators and business owners act together. If delays and red tape stay the same, more factories and jobs will quietly move to Punjab or Sindh—and KP will keep falling behind.

The clock is ticking: the next six months will decide whether KP’s ease of doing business improves—or keeps getting worse.