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FPCCI Calls for New Hyderabad Industrial Zone as Existing SITE Land Becomes Too Expensive
By Mariam Khan
Real Estate Analyst
4 min read
The Federation of Pakistan Chambers of Commerce and Industry has called for development of a new industrial zone in Hyderabad, arguing that the existing 1,264 acre SITE industrial area, established in 1952, can no longer accommodate affordable industrial expansion as the commercial and real estate value of land within it has risen sharply enough to make acquisition prohibitively expensive for new manufacturers.
The Scale of the Existing Estate and Its Current Condition
SITE Hyderabad remains the city's only industrial zone despite continued population growth, hosting 665 registered units, of which only about 450 are actually functional. Despite standing as Sindh's second largest industrial zone, FPCCI says the estate has effectively been left to decay, with no meaningful effort made to expand industrial capacity or develop new areas to meet growing demand. FPCCI specifically highlighted deteriorating roads, drainage, water supply, and treatment infrastructure across the 74 year old estate, along with heavy daily truck and container traffic through both Hyderabad and the neighbouring Kotri SITE areas.
The Specific Funding Accountability Question Raised
FPCCI noted that Rs1.10 billion had been approved for road and drainage work at the estate, but said visible progress has remained lacking despite that allocation. The federation separately raised a broader accountability question, asking for disclosure of how more than Rs1.5 trillion collected nationally through infrastructure cess on imports over the past five years has actually been used, given the condition of industrial infrastructure in Hyderabad and Kotri specifically.
A New Industrial Zone Proposal Already Exists at the Provincial Level
This call is not happening in a policy vacuum, and a relevant proposal already exists at the provincial level worth understanding alongside FPCCI's demand. According to the Sindh Economic Management Company's own official project page, a Hyderabad Industrial Enclave has already been proposed for development under a public private partnership structure, approved by the company's own board, with a consultant already selected to conduct feasibility studies and transaction advisory services. A prospective land parcel of roughly 951 acres, combining a 451 acre and a separate 500 acre portion, has already been identified near Hyderabad on the east bank of the Indus River, roughly 150 kilometres from Karachi. This existing provincial proposal suggests the underlying need FPCCI is highlighting has already been formally recognised at the institutional level, even if it has not yet translated into a delivered, operational new industrial zone.
Why Hyderabad's Existing Business Base Matters for Any New Zone
The same provincial proposal notes that the Hyderabad Business Chamber has around 200 direct members and 1,200 associate members, with member businesses accounting for roughly 40 percent of the country's motorcycle industry and forming the second largest cluster of the khadi textile industry nationally, alongside various small and medium manufacturing operations based in the city. This existing industrial and manufacturing base is specifically cited as a advantage for any new enclave, since it would provide readily available, already trained human resources given the area's long established industrial tradition.
What Remains Unresolved
No confirmed timeline, funding commitment, or construction start date has been established for the proposed Hyderabad Industrial Enclave beyond the feasibility and transaction advisory stage already under way. FPCCI's specific question about how previously collected infrastructure cess funds and the Rs1.10 billion road and drainage allocation have actually been spent also remains unanswered based on available information.
What This Means for Industrial Land Values and Manufacturing Investment
Rising commercial and real estate values within SITE Hyderabad itself are, according to FPCCI, actively pushing new manufacturing investment away from the city's existing industrial estate, since acquisition costs within SITE no longer support affordable industrial expansion for new entrants. If the already proposed Hyderabad Industrial Enclave does move from feasibility toward actual development, the identified roughly 951 acre site could offer a genuinely more affordable alternative for new manufacturers specifically priced out of SITE's current land values, though this depends entirely on the pace at which the existing provincial proposal progresses beyond its current feasibility and advisory stage. Manufacturers and investors evaluating industrial land options in the Hyderabad area should watch for confirmation of the enclave's feasibility study outcome and any subsequent transaction advisory progress as the concrete next milestones, rather than treating FPCCI's public call alone as confirmation that a new zone is imminent.