FPCCI urges creation of new industrial zone in Hyderabad amid decaying SITE complex
The Federation of Pakistan Chambers of Commerce and Industry warned that Hyderabad’s sole industrial area, SITE, is deteriorating and called for a new affordable industrial zone to attract investment.
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Negative · Do not buy
Hyderabad’s industrial decay hurts Cement, Steel and Textile sectors – Don't buy.
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Desk call: Do not buy · Negatively affected
- CementNegatively affected
- SteelNegatively affected
- TextileNegatively affected
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- INDU· Negatively affected · Do not buy
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Sectors: Cement, Steel, Textile — Negative · Do not buy. PSX tickers: INDU. Hyderabad’s industrial decay hurts Cement, Steel and Textile sectors – Don't buy.
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Open on Dawn## FPCCI raises alarm over Hyderabad’s industrial stagnation
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) issued a statement on Tuesday highlighting the lack of new industrial development in Hyderabad, a city whose population is rapidly expanding. Executive Committee member Adeel Siddiqui warned that the absence of fresh industrial zones threatens both the local economy and social stability.
## Existing SITE area in decay
Hyderabad’s only industrial park, SITE, was established in 1952 and spans 1,264 acres. It houses 665 units, of which roughly 450 are operational. Despite being Sindh’s second‑largest industrial hub, the complex suffers from severe infrastructure problems: pothole‑riddled roads, broken drainage, inadequate water supply, and aging treatment plants. Siddiqui described the condition of the roads as “like a war zone,” noting that daily truck traffic has accelerated wear and tear.
## Land prices and investment hurdles
Over the years, the commercial value of land within SITE has surged, turning what was once an affordable industrial location into expensive commercial property. Prospective investors now face steep land‑acquisition costs, leaving little capital for machinery, technology upgrades, or operational expenses. This financial strain discourages new businesses from setting up in Hyderabad and pushes them toward other regions, accelerating the city’s de‑industrialisation.
## Calls for government action
Siddiqui questioned why the government continues to neglect the development of new industrial zones while the existing SITE becomes commercially unviable. He pointed out that more than Rs1.5 trillion has been collected as infrastructure cess on imports over the past five years, yet visible progress is lacking. Although Rs1.10 billion was approved for road and drainage improvements, no tangible work has been reported.
## Potential impact on PSX sectors
The stagnation of Hyderabad’s industrial base could weigh on sectors linked to construction materials, steel production, and manufacturing, as reduced domestic demand may affect listed companies in these areas.