i ECONOMY

Gas shortages, high utility costs slow growth in Hub industrial area in PakistanBreaking

November 07, 2023

 The Hub industrial area in Balochistan is the backbone of the provincial economy as it not only generates employment but also contributes to the province’s revenue.Hub is a newly- established district of Balochistan, previously part of the Lasbela district. The industries in Hub are represented by the Lasebla Chamber of Commerce and Industry (LCCI). Due to its proximity to Karachi, Hub is close to the port and centre of economic activities. With the construction of the Northern Bypass and Coastal Highway, it has emerged as an industrially and commercially active region of Balochistan, having great potential for investments. “Presently, about 150 industrial units with an estimated investment of Rs150 billion are in operation in Hub, producing electric power, cement, textile yarn and fabrics, glucose, sugar, food and pharmaceutical products, petrochemicals, chemicals, ceramics, engineering goods, marble and granite products,” Ismail Suttar, the LCCI President, said. He said Hub was also home to a marble city and a large shipbreaking yard.

Suttar said that LCCI enjoyed distinction of being the most active, popular and important chamber of Balochistan, representing the business community of the district. It was formed in 1995 after being licensed by the ministry of commerce, and is registered with the Securities Exchange Commission of Pakistan. Formerly, Hub Association of Trade and Industry was merged into LCCI. Suttar, however, said that the industrial area was facing numerous challenges. He pointed out that gas shortage, poor infrastructure, high utility costs were some of the issues hurting the economic activities in the area. He said that the industrial base of Balochistan was not developed as investors were reluctant to put their money in there because of multiple issues, the most important being the absence of a robust infrastructure.

“It is the most backward province of Pakistan, which is also far behind other provinces in road sector development. The province has a road network comprising 25,099 kilometres, which is less than that of the other provinces despite huge land mass. The existing road network in Balochistan is in dire need of maintenance and repair. The roads do not interlink all the 32 districts of the province, hence missing links between economic centres,” he explained. The LCCI president said the limited road access affected the people of rural areas, reducing their access to markets. “This is a potent cause of prevailing poverty in the province.”

Credit: Independent News Pakistan (INP)