Summary
The Federation of Pakistan Chambers of Commerce and Industry has raised an urgent call for a new industrial zone in Hyderabad. The trade body says the city’s rising population and the absence of any fresh industrial development now threaten its economic future. Officials warn that the existing industrial area can no longer support the growing demand for business space.
Background
Hyderabad has long depended on a single industrial base to support its economy. This zone, known as SITE Hyderabad, was set up back in 1952 and spreads across roughly 1,264 acres. It remains, even today, the only formal Hyderabad industrial zone serving the entire city and its surrounding districts.
Over the decades, Hyderabad’s population has grown steadily. Yet no comparable effort has gone into expanding industrial capacity. This imbalance is now at the centre of growing concern among the city’s business community, who argue that industrial development in Hyderabad has effectively stalled for more than seven decades.
Details
According to a statement issued this week, FPCCI Executive Committee member Adeel Siddiqui said Hyderabad’s SITE area currently houses 665 registered industrial units. Of these, only around 450 units are functional at present. The remaining plots sit idle, a sign of the pressure building within the city’s only formal industrial estate.
Siddiqui noted that despite ranking as Sindh’s second-largest industrial zone after Karachi, the Hyderabad SITE area has been left to decay over the years. He said no meaningful steps have been taken to expand capacity or plan a new industrial estate in Hyderabad that could ease the load on the existing site.
He also pointed to the poor state of roads and drainage inside the zone. Thousands of trucks and containers pass through the area daily, and the resulting wear has left infrastructure in a fragile state. Water supply, sewerage, and treatment facilities were all listed among the pressing issues in the 74-year-old estate.
Rising land values inside SITE have added another layer of difficulty. What was once affordable industrial land has turned into costly commercial real estate, according to Siddiqui. This shift has made it financially difficult for new investors to set up operations without diverting funds meant for machinery and technology.
Quotes
Siddiqui described the condition of roads inside the zone in blunt terms, saying industrialists were navigating potholes and broken roads “like a war zone.” He argued that without new, affordable industrial land, the city risks losing fresh investment altogether.
He further questioned why authorities have collected large sums through an infrastructure cess on imports over the past five years, yet industrial areas continue to see little visible improvement. He called for public disclosure of how these funds have actually been used.
Impact
The lack of a new industrial zone in Hyderabad carries consequences well beyond the SITE area itself. Industrialists unable to expand locally often look toward other cities, taking jobs and investment with them. For a city that ranks as Sindh’s second-biggest economic hub after Karachi, this steady drift could weaken its regional standing over time.
Small and medium manufacturers, who form a large share of Hyderabad’s business fabric, are especially exposed. Rising land costs inside the existing Hyderabad industrial area leave many unable to compete for space, pushing some toward informal or unplanned locations that lack basic infrastructure altogether.
Conclusion
Business leaders are now pressing provincial authorities to prioritise fresh industrial planning for the city. Whether this translates into an approved new industrial zone in Hyderabad will depend on how quickly officials respond to mounting pressure from the trade community. For now, the demand adds to a broader conversation around Hyderabad industry and its long-neglected infrastructure needs.
Frequently Asked Questions
What are the newest industrial areas in Hyderabad?
At present, Hyderabad does not have any newly developed industrial area beyond the decades-old SITE zone. Business groups, including the FPCCI, have been pushing officials to approve and develop a fresh industrial estate, but as of now, SITE Hyderabad remains the only functioning industrial base serving the city and nearby districts. Any newer project would need formal government approval and land allocation before construction could begin.
What are the top 10 industrial areas in Hyderabad?
Hyderabad’s industrial activity is largely concentrated within the SITE Hyderabad estate and the adjoining Kotri SITE zone, rather than spread across ten distinct areas. Within these zones, various clusters handle textiles, light engineering, food processing, and general manufacturing. Because no additional formal industrial estate has been developed in recent decades, businesses seeking new locations often have limited options beyond these two established areas.
What is the upcoming future city in Hyderabad?
There is no officially confirmed “future city” project tied to Hyderabad’s industrial sector at this time. Discussions have focused instead on the pressing need for a new, affordable industrial zone to relieve pressure on the aging SITE area. Any large-scale future city or expansion plan would likely emerge only after authorities address current calls for industrial land and infrastructure development.
