Copyright ©FATA-DA 2011 All rights reserved Citation, reproduction or translation of this publication, in whole or part, for educational or other non-commercial purposes is authorized, provided the source is fully acknowledged. FEASIBILITY STUDY OF REGULATORY REGIME FO R INDUSTRY, COMMERCE & TRADE IN FATA Contents Contents Acronyms .................................................................................................................................. I Executive Summary .............................................................................................................. III Chapter 1 ................................................................................................... 10 1.1 The present scenario..................................................................................................... 10 1.2 Background of Industrial Development in FATA ........................................................... 11 1.3 Obstacles to industrial development .............................................................................. 12 Chapter 2 ................................................................................................... 15 2.1 FATA- Administrative Structure ................................................................................... 15 2.2 Frontier Crime Regulation ............................................................................................ 19 2.3 What are regulatory laws, need and History? ................................................................. 21 2.4 Need for regulatory laws .............................................................................................. 22 2.5 Role of regulatory laws in today’s economy................................................................... 23 2.6 History of Pakistan regulatory laws. .............................................................................. 24 2.7 Why regulatory laws are not extended to FATA? ........................................................... 26 2.8 Advantages of regulatory laws ...................................................................................... 26 2.9 Demand for Regulatory Laws extension to FATA .......................................................... 33 Chapter 3 ................................................................................................... 35 Laws already extended to FATA .............................................................................................. 35 Chapter 4 ................................................................................................... 50 4.1 Laws proposed for extension ........................................................................................ 50 4.2 Prioritized list of laws that need to be extended in Phase I............................................... 88 Chapter 5 ................................................................................................... 90 Key findings of FGDs (Focused Group Discussions) ................................................................. 90 FEASIBILITY STUDY OF REGULATORY REGIME FO R INDUSTRY, COMMERCE & TRADE IN FATA Contents 5.1 FGD Region – 1 (Bajour Agency, Mohmand Agency, Khyber Agency, FR Peshawar).. 90 5.2 FGD Region – 2 (Aurkzai Agency, Kurram Agency, FR Kohat ................................. 92 5.3 FGD Region – 3 (North Waziristan Agency, FR Bannu, FR Lakki) ............................. 93 5.4 FGD Region – 4 (South Waziristan Agency, FR Tank, FR D.I. Khan) ......................... 95 Chapter 6 ................................................................................................... 97 Key findings of Stakeholders Workshop ................................................................................... 97 6.1 Stakeholders Workshop Region – 1 (Bajour Agency, Mohmand Agency, Khyber Agency, FR Peshawar)...................................................................................................................... 97 6.2 Stakeholders Workshop Region – 2 (Aurkzai Agency, Kurram Agency, FR Kohat ..... 99 6.3 Stakeholders Workshop – 3 (North Waziristan Agency, FR Bannu, FR Lakki) ........... 101 6.4 Stakeholders Workshop – 4 (South Waziristan Agency, FR Tank, FR D.I. Khan) ....... 104 Chapter 7 ................................................................................................. 106 Prospects of development in commerce and industry ............................................................... 106 Chapter 8 ................................................................................................. 108 8.1 Creating an ambience for growth and regulatory mechanism......................................... 108 8.2 Special Development Fund ........................................................................................ 112 8.3 Industrial Estates........................................................................................................ 113 8.4 Skill Development Centers (SDC)............................................................................... 114 8.5 Advancement of Loans............................................................................................... 116 8.6 Incentives .................................................................................................................. 117 8.7 Industry and Trade Development Cells ........................................................................ 120 8.8 Interest on Loans ....................................................................................................... 121 8.9 Arms Manufacturing ................................................................................................. 122 8.10 Mineral Development................................................................................................. 123 8.11 Finances: ................................................................................................................... 125 8.12 Commerce ................................................................................................................. 125 8.12.1 Reintroduction of Red Pass ................................................................................. 126 FEASIBILITY STUDY OF REGULATORY REGIME FO R INDUSTRY, COMMERCE & TRADE IN FATA Contents 8.12.2 Border Management of Turkham ......................................................................... 128 8.13 Issues of Security ....................................................................................................... 130 8.14 Regional Focus .......................................................................................................... 131 Chapter 9 ................................................................................................. 134 Key Recommendations and Way-forward............................................................................... 134 Chapter 10 ............................................................................................... 136 Conclusion ........................................................................................................................... 136 Regulatory Laws Extension Ordinance Format ...................................... 137 Annexure – 1 .................................................................................................. Focused Group Discussion Report Region - 1 ............................................................................... Annexure - 2................................................................................................... Focused Group Discussion Report Region – 2 .............................................................................. Annexure – 3 .................................................................................................. Focused Group Discussion Report Region - 3 ............................................................................... Annexure – 4 .................................................................................................. Focused Group Discussion Report Region - 4 ............................................................................... Annexure – 5 .................................................................................................. Stakeholders consultative workshop Report Region – 1 ................................................................. Annexure – 6 .................................................................................................. Stakeholders consultative workshop Report Region - 2.................................................................. Annexure – 7 .................................................................................................. Stakeholders consultative workshop Report Region - 3.................................................................. Annexure – 8 .................................................................................................. Stakeholders consultative workshop Report Region - 4.................................................................. FEASIBILITY STUDY OF REGULATORY REGIME FOR INDUSTRY, COMMERCE & TRADE IN FATA Acronyms Acronyms ADP Annual Development Plan APA Assistant Political Agent CARs Commissionate for Afghan Refugees CPC Citizens' Peace Committee (CPC) DC Deputy Commissioner DCO District Coordination Officer EDF Export Development Fund EIA Environmental Impact Assessment FATA Federally Administered Tribal Aras FC Frontier Corps FCR Frontier Crimes Regulations FDA FATA Development