Rashakai Economic Zone , M-1, Nowshera

Project Rashakai Economic Zone , M-1, Nowshera
Project Objective

The main objective of the project for Government of KP and by extension KPEZDMC, is to promote industrialization through optimally priced, world-class industrial infrastructure in the province, which enables industrial investment, job creation and economic uplift.
The project also provides an opportunity for the Government of KP to generate some non-tax revenue through KPEZDMC. This reduces the financial burden on the exchequer, as KPEZDMC can cover some of its costs, liabilities, etc., and plough-back the earnings into further development of industrial infrastructure. 
The execution of the project is conceived in the PPP mode, whereby KPEZDMC creates an investment 'nest' or 'protected envelope' wherein foreign investment from CRBC and Zone Enterprises can function with reasonable security and facility.
Pakistani professionals and engineers will be able to work in the SPV Company, resulting in capacity building in the development, management and operations of industrial parks and infrastructure.


Project Description

The RSEZ is situated centrally in the China Pakistan Economic Corridor at the junction of Karakoram Corridor and ML-1 development corridor, at 34.070714 East Longitude and 72.184269 North Latitude. It is nested in the center of major urban centers of the region, which will act as support to RSEZ and the platform for economic growth.
Its location provides ideal and convenient connectivity at Karnal Sher Khan Interchange on the M-l Motorway. The location is within about one-hour drive from the new Islamabad International Airport and is within a similar distance from Peshawar & the M-l / N55 Indus Highway Interchange. Hakla Interchange of M-l / CPEC Western Route is about 30 minutes' drive, while Karnal Sher Khan Interchange of M-l / CPEC Second Northern Route is about 10 minutes' drive. In addition to being a key part of the Belt & Road Initiative, RSEZ will be ideally located to utilize the resource base, and serve the markets of, central / north-eastern K-P, north / western Punjab, AJ&K, Gilgit-Baltistan and eastern Afghanistan.
RSEZ is set to become, and will be designed, to be the Key Trade & Logistics Hub connecting Kashgar, Kabul and Gwadar on the Belt and Road, and be a high-end host of international commercial, technological and manufacturing hub. It will house modern training base, modern technology transfer center, 'utilization' type modern manufacturing center, finance center and hi- tech innovation center.
RSEZ is proposed to be a classic example of cooperation between two countries in industrial modernization & urbanization.
A detailed Economic and Financial feasibility study was conducted by the venturing parties, which is currently under review of the K-P Department of Industries, Commerce & Technical Education and Department of Planning and Development and in-depth discussions are being held.
Under the rolling development strategy the project in the draft Concession Agreement, the 1000 acres land of RSEZ will be developed in three phases over the next 5. The total area designated for Industrial use is 702 acres - as per Federal SEZA Regulations, of which 159 acres will be developed in Phase I, 279 acres in phase II and subsequently 264 acres in Phase III. For commercial use, an area of 76 acres has been allocated.
Industrial clustering for the project has been established, following the modern concept for ensuring long-term viability of industrial and commercial economic zones.

RSEZ will house the following industrial clusters;

(i) Garment and Textile Products

(ii) Home Building Materials,

(iii) General Merchandize

(iv) Electronics and Electrical Appliances

(v) Automobile and Mechanical Equipment.

RSEZ will also house K-P IT Board's 100 Acre Technology City (incorporating and Electronic Manufacturing Centre).


Province Khyber Pakhtunkhwa
Area (Acres) 1000
Type of Industry

Fruit/Food/Packaging/Textile Stiching/Knitting


Land acquired


  • Airport 50 KM
  • Dry port 65 KM
  • Railway Station 25 KM
  • Motorway 0 KM
  • Highway 5 KM
  • City Center 15 KM
Project Progress Update
  • Feasibility studies of SEZs is shared with Chinese side.
  • The MoU and Engagement Agreement for the development joint undertaking of the RSEZ project was signed between KPEZDMC and CRBC in January 2018. Subsequently, the two parties set out to negotiate the terms of Joint Venture Agreement, which has already been signed in November 2018. Presently, the two parties are in end stages of finalizing and signing the Concession Agreement, following which the Ground Breaking of the project will take place.