Hattar Industrial Estate: A Hub of Economic Activity in Pakistan

Hattar Industrial Estate is one of the oldest and most significant industrial zones in Pakistan. Located in the Haripur district of Khyber Pakhtunkhwa, it covers an area of 1,032 acres and hosts more than 400 operational units that produce a variety of goods and services.

Graana.com tells you about the history, features, benefits and challenges of Hattar Industrial Estate below, and provides a list of some of the industries operating in that zone.

 

History of Hattar Industrial Estate

Hattar Industrial Estate (HIE) was established in 1985-86 by the government of Pakistan to promote industrialisation and create employment opportunities in the region. The estate was developed with proper planning for the management of industrial effluents and the provision of basic infrastructure such as roads, water supply, sewerage and electricity. 

Furthermore, the estate attracted both local and foreign investors, who set up their units in various sectors such as food and beverage, textile, crockery, paper printing, chemical, cement, publishing, rubber, carpets and leather products.

 

Features of Hattar Industrial Estate

 

 

Some of the key features of Hattar Industrial Estate are as follows:

• It is located near major cities such as Islamabad (60 km), Rawalpindi (80 km) and Peshawar (120 km), thus providing easy access to markets, transport facilities and skilled labour.
• It exports products to many countries such as the USA, UK, Germany, France, Italy, Japan etc.
• It has a dedicated power grid station that ensures an uninterrupted supply of electricity.
• It has a well-developed network of roads that connect it to other parts of the country.

 

Benefits of Hattar Industrial Estate

Hattar Industrial Estate has contributed significantly to the economic development of Pakistan by generating revenue, creating jobs and boosting exports. Some of these are:

• It generates an annual turnover of about Rs. 100 billion (approximately $600 million) for Pakistan’s economy.
• It employs over 40,000 people directly and indirectly, who earn their livelihoods from working in various industries.
• It provides opportunities for technology transfer and innovation by collaborating with foreign partners who bring their expertise and know-how to improve quality standards and productivity levels.

 

Challenges for the Industrial Zone

 

 

Despite its achievements, Hattar Industrial Estate also faces some challenges that hamper its growth potential. Some of these are:

• It suffers from environmental issues such as air pollution due to emissions from factories; water pollution due to untreated effluents; noise pollution due to machinery; solid waste disposal problems due to lack of proper facilities; land degradation due to erosion; loss of biodiversity due to habitat destruction etc.
• It faces competition from other industrial zones in Pakistan such as Faisalabad Industrial Estate Development & Management Company (FIEDMC), Sundar Industrial Estate (SIE), Quaid-e-Azam Industrial Estate (QIE) etc., which offer better incentives and facilities to investors.
• It lacks adequate support from government agencies such as the Board of Investment (BOI), Small and Medium Enterprises Development Authority (SMEDA), Export Processing Zones Authority (EPZA) etc., which could help it overcome regulatory hurdles, provide financial assistance, facilitate market access, enhance skills development etc.

 

Hattar Special Economic Zone

The Federal Board of Investment has approved the Hattar Economic Zone as a Special Economic Zone, making it the first of its kind in Khyber Pakhtunkhwa. The SEZ Act, promulgated on September 13, 2012, offers fiscal benefits.

Some of the benefits include a one-time exemption from customs duties and taxes for all capital goods imported into Pakistan for developing, operating, and maintaining an SEZ, and an exemption from all income taxes for ten years for both the developer and zone enterprise. 

After the SEZ Act, the Khyber Pakhtunkhwa Economic Zones Development & Management Company is overseeing the development and management of the Hattar Economic Zone. This significant achievement marks a major step towards the industrialisation of the province.

 

How to Reach Hattar Industrial Estate

Hattar EZ is connected to the rest of the country via three major roads, namely the Hazara Motorway, the Taxila-Haripur Road, and the Khanpur Road. Firstly, the Hazara Motorway offers direct access to the Hattar Industrial Estate Interchange, which is just an hour’s drive away from Islamabad.

To reach Hattar Industrial Estate from Islamabad or Rawalpindi, one can take the Grand Trunk Road (N-5) towards Peshawar and turn right at Taxila onto Khanpur Road (N-125). After about 16 kms on this road, one can find the entrance to Hattar Industrial Estate on the left. Alternatively, one can also take the Islamabad-Peshawar Motorway (M-1) and exit at the Burhan interchange. 

From there, one can follow Haripur Road (N-35) for about 20 kilometres and then turn left onto Khanpur Road (N-125). Lastly, after about 10 kilometres on this road, one can find the entrance to Hattar Industrial Estate on the right.

 

List of Industries Operating in Hattar Industrial Estate

HIE hosts over 300 industrial units that employ over 40,000 people. They mainly produce food and beverage, textile, crockery, paper printing, chemical, cement, publishing, chemical, rubber, carpets, and leather products. Some of the notable industries in Pakistan that are operating in Hattar are as follows.

 

Glass Industry

 

 

The glass industry in Hattar produces and supplies various types of glass products for different applications. Some of the major glass manufacturers in Hattar include Ghani Global Glass Limited, Pakistan’s leading glass tubing company. The company has a production capacity of over 900 tons per day and exports its products to more than 20 countries.

 

Chemical Industry

Hattar has a variety of chemical industries that produce sulfuric acid, synthetic fibre, plastic, rubber, leather products, crockery, carpets, paper printing and other materials. These industries use raw materials such as natural gas, coal, limestone, cotton etc., and produce products that are used for various purposes such as construction, textile, agriculture etc.

 

Pharmaceuticals Industry

The pharmaceutical industry is one of the fastest-growing sectors in Pakistan and has a huge potential for innovation and development.

Hattar has several pharmaceutical companies that produce medicines and healthcare products for both human and animal consumption. Some leading pharmaceutical companies operating here are Genome Pharmaceuticals Pvt Ltd, SPL Pharmaceuticals Pvt Ltd, Lucky Core Industries (Pharmaceuticals Hattar Plant) etc.

 

Beverage Industry

 

 

Hattar has recently attracted significant foreign investment from Coca-Cola İçecek (CCI), which is a Turkish multinational beverage company and a bottler of Coca-Cola Company products. CCI has started constructing its bottling plant in HIE with an estimated cost of $50 million. The plant will have an annual production capacity of 450 million litres of beverages such as Coca-Cola, Sprite, Fanta etc.

 

Steel Industry

Hattar has also witnessed the groundbreaking ceremony of Pak Steel’s plant in SEZ with an estimated cost of $20 million. Pak Steel is a privately-owned company that produces steel bars and rods for construction purposes. Furthermore, the plant will have an annual production capacity of 72 thousand tons of steel products.

 

Cement Industry

Hattar boasts two fully operational cement companies, with respective production capacities of 1.27 million tonnes per annum and 1.12 million tonnes per annum.

These plants collectively employ over 1,500 individuals. Additionally, the Frontier Works Organisation (FWO) and the Fatima Group have acquired mining leases for limestone from the KP Mines and Minerals Department in the area.

 

Food Industry

Some of the food products produced in Hattar include biscuits, snacks, beverages and dairy products. Some of the food companies operating in Hattar are Silver Lake Foods Limited, Capital Food Industries and Asian Food Industries.

Apart from these companies, the industrial estate has a manufacturing plant of English Biscuits Manufacturers, which is a market leader with over 50 years of baking excellence and innovation. The company produces a variety of biscuits and snacks under the brand name Peek Freans.

These industries not only provide employment opportunities but also contribute to social welfare and environmental protection through various initiatives, such as waste management systems, corporate social responsibility programs, green energy projects etc. 

 

Conclusion

Hattar Industrial Estate is a thriving hub of industrial and economic activity in Pakistan, with a range of diverse industries and companies operating there. Furthermore, with its strategic location and access to major road networks, the estate offers significant opportunities for investment and growth. 

Hattar is expected to grow further as more industrial units are being established under the SEZ scheme, plus other incentives are being offered by the government – all of which will continue to drive growth in the region.

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