NO.SO-(Eco-1)/CMS/KP/2025
26-March-2025
Chief Minister’s Secretariat Khyber Pakhtunkhwa
Khyber Pakhtunkhwa to Conduct Audit of Industrial Land for Effective Utilization:
In a recent directive issued by the Chief Minister’s Secretariat, Khyber Pakhtunkhwa, the government has decided to take action regarding the misuse of industrial land acquired for the establishment of industrial units. A substantial portion of land originally acquired for industrial development has reportedly been either left vacant or repurposed for non-industrial activities, such as housing colonies. This situation has raised concerns, as it goes against the original intent of land acquisition, which was to promote industrial growth and economic development in the region.
The Chief Minister has expressed his concern over the violation of land use regulations and has instructed the formation of a Task Force to conduct a province-wide audit. This task force will be tasked with reviewing land acquisition documents, analyzing the legal standing of these acquisitions, and identifying any unauthorized land use. Additionally, stakeholder consultations will be held with local authorities, industry representatives, and affected landowners to find viable solutions. Please find the notification:
CHIEF MINISTER’S SECRETARIAT
KHYBER PAKHTUNKHWA
NO.SO-(Eco-1)/CMS/KP/2025
Dated the Peshawar, 26th March, 2025
To
The Chief Secretary,
Government of Khyber Pakhtunkhwa.
SUBJECT: EFFECTIVE UTILIZATION OF LAND Acquired FOR ESTABLISHING INDUSTRIAL UNITS
I am directed to refer to the subject cited above and to state that the Federal Government in the early 1950s, established the Pakistan Industrial Development Corporation (PIDC) as a State Corporation under the administrative control of the Ministry of Industries & Production. The Corporation was mandated to lay the foundation of a robust industrial base, particularly in capital-intensive sectors and in areas where private sector participation was minimal or non-existent.
2. In furtherance of this mandate, the office of the Director Industries-headquartered in Lahore with sub-offices in the then-capital cities of various provinces-was designated as the Land Acquisition Collector under the Land Acquisition Act, 1894. This empowered the Director Industries, operating under the Federal Ministry of Industries and in coordination with PIDC, to acquire land specifically for industrial development purposes. Officers from the Revenue Department were deputed to assist in these acquisitions and were stationed within the Directorate of Industries.
3. Following the dissolution of the One Unit scheme, the authority to undertake land acquisition was devolved to the respective Deputy Commissioners in 1979-80. Consequently, the Revenue Department staff, along with the associated acquisition records, was repatriated to the respective districts.
4. It has now come to the attention of the Honorable Chief Minister, Khyber Pakhtunkhwa, that a substantial number of industrial plots acquired and allocated for industrial development are either non-functional or remain vacant with no structures erected thereon. Alarmingly, in many cases, the land is reportedly being utilized for non-industrial purposes, including but not limited to the development of housing colonies.
5. Such deviation constitutes a flagrant violation of the terms and intent under which the land was originally acquired and allocated and is legally untenable. These actions are not only in breach of public trust and administrative process but may also attract judicial scrutiny under the applicable land acquisition and land use laws.
6. In view of the above and with a view to ensuring compliance with the legal framework and the original purpose of land acquisition, the Honorable Chief Minister has been pleased to direct the following:
- Constitution of a Task Force comprising representatives of the Industries Department, Law Department and Board of Revenue to conduct a comprehensive province-wide audit of all such lands acquired for industrial use.
- Legal Review of the original land acquisition notifications, awards and associated documentation, along with current land use regulations to ascertain the legal standing and implications of any unauthorized conversions.
- Stakeholder Consultations with local authorities, industry representatives and affected landowners to explore viable, legally permissible and administratively feasible remedies.
- Formulation of a Remedial Plan to address unauthorized use, including-where appropriate reclamation of land, initiation of legal proceedings, imposition of penalties or proposals for reactivating the plots in accordance with the original industrial purpose.
7. You are accordingly requested to submit a comprehensive plan, along with actionable recommendations for the consideration of the Chief Minister within 30 days, please.
Yours Sincerely,
Deputy Secretary (Economics)
Action Plan for Industrial Land Utilization in Khyber Pakhtunkhwa:
The Khyber Pakhtunkhwa government is taking significant steps to address the misuse of industrial land, as part of its broader strategy to enhance economic development in the province. The Chief Minister’s directive emphasizes a legal and administrative review of lands initially acquired for industrial purposes but now either lying vacant or being used for non-industrial purposes.
To ensure that these lands serve their intended purpose, the government has ordered the creation of a comprehensive action plan. This plan includes conducting audits, reviewing the legal status of land use, and considering legal actions against unauthorized land conversions. In addition to legal proceedings, the government will look into measures such as land reclamation and reactivating industrial plots to ensure compliance with the original acquisition terms.
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