KP Mineral Sector Overview

Tobacco • ° • • • In Khyber Pakhtunkhwa, various types of tobacco, such as Flue Cured Virginia, White Patta and Burley are grown. In the overall production of tobacco in the country, nearly 75-80 per cent of tobacco is produced in Khyber Pakhtunkhwa (Khan, 2013). The Flue Cured Virginia commonly known as cigarette tobacco is the main cash crop of growers of districts Swabi, Mardan, Charsada, Bunner and Mansehra, producing 60-70 million KGs of the World standard tobacco (Khan, 2013). The Federal government is the main beneficiary of the crop because it annually gets Rs. 46-47 billion as Central Excise Duty which constitutes 70 percent of the price of cigarette while Pakistan Tobacco Board gets Rs. 60-65 million in shape of Tobacco Cess and the provincial government of Khyber Pakhtunkhwa gets more than Rs. 100 million in shape of provincial Tobacco Development Cess (Khan, 2013). Approximately 6-8 percent of tobacco is annually exported (Khan, 2013). Oil & Gas Khyber Pakhtunkhwa has Oil & Gas reserves of one billion barrel oil and four trillion cubic feet gas. Oil & Gas Development Company (OGDCL) holds the largest stake in exploration activity of oil and gas. Oil & Gas sector has a great potential of attracting foreign direct investment. In Khyber Pakhtunkhwa, huge deposits of oil and gas have been discovered in the southern belt of the province, including districts Kohat and Karak. Khyber Pakhtunkhwa has generated Rs.17.5 billion revenue during the financial year 2014-2015 from oil and gas royalties. According to the budget documents of the same year, 5 percent of the amount has already been transferred to districts where major Oil and Gas exploration occurred like Kohat and Karak (Daudzai, 2015). This is expected to serve as an engine of economic change in the area.

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