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S.# Subject Page No 1. Brief Introduction of AJ&K 1 2. Industrial

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S.# Subject Page No 1. Brief Introduction of AJ&K 1 2. Industrial 1 Index S.# Subject Page No 1. Brief Introduction of AJ&K 1 2. Industrial Venture in AJ&K 2 3. Potential Areas of Investment 3 4. Existing Industrial Estates / Infrastructure 3 5. Mode of Payment for Industrial Plots 4 6. Policy, Incentives and Facilitation 5 7. Potential / Proposed Projects for 8 investment 8. Procedure for Acquiring Industrial Plots 9 9. Contacts for further Detail 10 2 Brief Introduction of AJ&K: The State of Azad Jammu & Kashmir Lies between longitude of 73° – 75° and latitude of 33° – 56° and comprises an area of 5134 square Miles (mi2) (13,297 square Kilometers). The area is divided into three Divisions and ten districts. Western side of the state boundary linked with the provinces of Punjab and KPK, while the boundary on south Estern side is flanked by Indian Occupied Jammu & Kashmir. The topography of the area is mainly hilly and mountainous with valleys and stretches of plains. The elevation from sea level ranges from 360 meters in the South to 6325 meters in the North. The snow line in winter is around 1200 meters above sea level while in summer, it rises to 3300 meters. The State of Azad Jammu & Kashmir has an estimated population of 4.45 million with rural to urban population ratio 88:12. The population density is 300 persons per sq. km, and majority of the rural population depends on forestry, livestock and agriculture to earn its subsistence. Average per capita income has been estimated to range from 500 to 600 US$. About 84% households have very small land holding between one to two acres per family. Major crops are maize, wheat & rice, whereas minor crops include vegetables, grams, pulses (red lobia) and oil-seeds. Major fruits are apple, pears, apricot and walnuts. Agriculture and livestock income ranges between 30-40% of household earnings. The remaining share comes from other sources including employment and business etc. It is also worthwhile that Overseas Kashmiries are contributing almost 20% towards foreign remittances of Pakistan. Industrial Venture in AJ&K: At the time of Independence in 1947, the economy of Azad Jammu & Kashmir was on subsistence level. It was early 70’s, when economic development of the area started. Despite financial constraints, efforts were made in developing infrastructure for the rapid development of the area. There are various types of small, medium & large scale Industrial units which have been established in AJ&K during last few decades and majority of these are still operational in spite of national & international economic crises. Potential Areas of Investment: The Government of Azad Jammu and Kashmir is encouraging investment in following areas / sectors; i. Small & Cottage Industries. ii. Medium and large Industries 3 iii. Mineral and Forest based Industries iv. Hydel Projects v. Tourism Potential and commercial viability of proposed industrial units depend on their location. Owing to close proximity to the market of Pakistan, districts Mirpur and Bhimber are most suitable locations for establishment of Medium and large scale industries. However, some opportunities for cottage / small & medium Industries are also available in Northern areas (Poonch & Muzaffarabad) of AJ&K in addition to investment in Mineral, Hydel, Tourism and Housing Sectors of AJ&K. Existing Industrial Estates / Infrastructure: To accelerate the pace of development through industrialization, the Department of Industries GoAJ&K has established six Industrial Estates in various districts of Azad Jammu and Kashmir providing basic infrastructure like roads, water supply, sewerage system, telephone and electricity etc. whereas, new industrial estates at Dudyal District Mirpur including Special Economic Zones in Mirpur and Muzaffarabad are also in progress. Detail of Existing Industrial Estates with graded plots including present lease price is as under: S.# Name of Rates per 100 50 25 08 04 02 01 Industrial kanal in kanal kanal kanal kanal kanal kanal kanal Estates Pak. Rs. 1. New Industrial 85000/‐ 10 20 32 20 35 42 118 Area Mirpur 2. Small Industrial 67000/‐‐ ‐ ‐ ‐ 25 29 64 Estate Bhimber 3. Old Industrial 100000/‐ 34 92 111 Estate Mirpur 4. Mini Industrial 94800/‐ 13 42 Estate Muzaffarabad 5. Mini Industrial 126900/‐ 7 53 Estate Kotli 6. Mini Industrial 113220/‐ 17 43 Estate Rawalakot Mode of Payment: 1. 25% down payment and remaining 75% to be paid in 10 equal annual installments for New Industrial Area Mirpur. 4 2. 20% down payment and remaining 80% to be paid in 20 equal annual installments after availing 3-years as grace period for all other Industrial Estates. Policy, Incentives and Facilitation i. Industrial Policy Govt. of Azad Jammu and Kashmir has adopted the policy of Govt. of Pakistan. Accordingly, except the following, all types of industries are allowed to be established in private sector under this policy. a) Arms and ammunition. b) Security printing c) Explosives material d) Radioactive material ii. Special Incentives for Industrialization in AJ&K: a) Exemption of Industrial products from payment of Sales Tax for a period of five years from the date of production. b) Conducive environment for investors including foreigners in free and fair atmosphere under protection of Economic reforms Act, 1992. c) Free transaction of principal amount and profits without prior permission of the Government for foreign investors. d) Exemption of octroi and local Taxes for five years from the date of commencement of production. e) Industrial plots are being allotted on 99-years, on lease basis in the Industrial Estates at nominal rates and easy installments. f) Provision of loan facilities in local as well as foreign exchange from the national banks, financial institutions & loan giving agencies for industries being set up in Azad Kashmir. g) To provide local, cheap and skilled Labour Force for Industrialization, more than 170 Vocational Training Institutes, Industrial Training Centers & Skill Development Centers (for Males & Females) including a Poly Technique Institute are functional under the management of AJK-TEVTA. h) Establishment of Dry Port at Mirpur (in process). i) Provision of Sui-Gas to Industrial Estates (in process). j) Provision of Railway link to Mirpur & MZD (in process). 5 iii. Financing Facilities All scheduled Banks and DFIs working in Pakistan are also operational / available in Azad Jammu & Kashmir to provide financial assistance to investors. Whereas, Bank of Azad Jammu & Kashmir (BAJK) established in the territory is providing special assistance to investors in AJ&K. iv. Overseas Kashmiries Facilitation Cell Islamabad: This office is functioning under the direct control and supervision of Chief Secretary GoAJ&K. The main office of the Cell is established in Kashmir House Islamabad for the convenience of investors especially for Overseas Kashmiries. Applications and proposals for investment can be forwarded to this office for further proceeding. v. Registration of Companies and Firms: Corporate Law Authority is also established in AJ&K headed by Chief Secretary GoAJ&K, whereas, regarding registration of Companies and Firms, Registration wing is also functioning with the Department of Industries & Commerce GoAJ&K. vi. Industrial Development Board: Azad Jammu & Kashmir Industrial Development Board (IDB) headed by the Chief Secretary AJ&K has been constituted to address to issues of investors / industrialists at higher level in AJ&K. iv. Allotment Committee for Industrial plots: Allotment Committee headed by Minister for Industries GoAJ&K is also established regarding allotments of industrial plots in industrial estates of AJ&K. Potential / Proposed Projects for Investment: Keeping in view, the potential & requirement of AJ&K, there are so many opportunities of investment available in various Industries like food, readymade garments, furniture, plastic products, Hydro power generation, Tourism and Mineral based Industries in the area. 6 A list of proposed / identified projects is as below. S.# Name of Projects S.# Name of Projects 1. Herbal Medicines 18. Marble chips & powder making units 2. Furniture industry 19. Chip / Fiber board-manufacturing 3. Ceramic tableware 20. P.V.C & RCC Pipe manufacturing 4. Polythene / Polypropylene bags 21. Sports goods (Bats &Hockeys etc.) 5. Mineral Based Industries 22. Fruit / vegetable preservation and spices grinding 6. Capacitor manufacturing projects 23. Hotels & Motels 7. Wooden crates making units 24. Steel furniture including grills, Doors & Windows etc. 8. Agricultural implements and tools plants 25. Machinery / spare parts manufacturing 9. Tooth picks / Matches manufacturing units 26. Bolts and nuts plants 10. Poultry forming 27. Readymade Garments 11. Cement Industry (small scale) 28. Solar Panels & Products 12. Melamine Industry 29. Hydro Power Generation 13. Potato chips & Tomato Catch-up plants 30. Pre-Fabricated Building Structure 14. Pharmaceutical Industries 31. Tourist Huts / Parks 15. Transport & Rubber Tyre factories 32. Electronic products / wires 16. Mineral water / Beverages 33. Silk reeling / processing 17. Soap / Washing powder Procedure for Acquiring Industrial Plots: Following documents are required to be enclosed with applications for allotment of industrial plots in industrial estates established by the industries department GoAJ&K. Three copies of feasibility reports of proposed project(s) including Form B&C (Annexure-i). Certificate of financial soundness regarding applicant(s) from the Banks. In case of a company, name of shareholders / Directors and other related details (Form-29 Annexure-ii).
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