PESHAWAR: Business activities remained tough in Khyber Pakhtunkhwa due to multiple challenges, the business community has told the federal government.
According to the Sarhad Chamber of Commerce & Industry (SCCI), security challenges in KP have dealt a severe blow to business activities in the region.
The prolonged closure of Pak-Afghan border, especially Torkham, since October 2025 has halted trade. KP government says it has suffered over Rs 8 billion loss and an 80% decline in Infrastructure Development Cess collection. Economic activities in tribal districts have come to a standstill.
High taxation, rising utility costs, and inadequate facilities have pushed SMEs in Peshawar to the brink of collapse. Restrictions on wheat movement from Punjab and taxes on ex-FATA/PATA are also hurting traders.
Peshawar has huge potential in gemstones, pharmaceuticals and other sectors, but lack of product finishing facilities and infrastructure is blocking exports. The Peshawar Expo Centre project is facing delays.
Commercial banks are not providing State Bank’s SME financing schemes in KP.
At least 229 industrial units have already closed in KP, including 52 in Gadoon Economic Zone, due to power shortages, security worries and lack of incentives, leaving hundreds jobless.
The SCCI has demanded urgent government intervention, business-friendly policies, and greater representation of KP in federal boards.
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