Bannu District

Trend Analysis




Area SqKms






Population Density / SqKm



Urban Population



Rural Population



Total Housing Units



Housing Units having Electricity



Housing Units Having Piped Water



Housing Unit using Gas for cooking



Source: Pakistan Bureau of Statistics


Bannu’s economy has potential to develop on multiple sectors. Chief among them are Manufacturing, Agriculture and Dairy and Livestock. In the manufacturing sector, Bannu has space for Spice and Processed Food items. In Agriculture, this district produce enough cereal and pulses to have Agro Based Industry of its own. Similarly, with over 540 million liters of annual milk production, there is ample cause for local or multinational dairy company to setup its plant here. In addition to these aforementioned sectors, Transportation and Hydrocarbon development can also support Bannu’s growth in the long run.


1. Manufacturing Sector


In manufacturing sector, Bannu District can produce items like Grinded Spices, Processed Food and Leather goods. As such the future growth of this sector depends on the proper incentives and development of above mentioned industries.



  1. Potential for growth in sectors like spice processing, processing food and leather goods.


  1. Cement plants and steel mills can be established in this region.
  2. Famous leather brands could be invited to open their manufacturing units in the district. These may include Nike, Adidas, Zara, Hugo Boss etc.
  3. Similarly, companies which specialize in making spices and food processing can also be invited to setup their plants in the region, such as Shan Foods, National Foods, Laziza Foods etc.
  4. Provide special insurance bonds to foreign companies so that their security and damages fears could be removed;
  5. In cooperation with Pakistan Railways, the rail connections between Bannu and other Industrial cities of Pakistan (Sialkot, Peshawar, Faisalabad, Lahore etc.) could be strengthened through fast trains. This would allow quick transportation of raw materials and industrial products.

 2. Agriculture


Bannu district also carries a significant comparative advantage in production of pulses and cereal crops (wheat, maize etc. with annual production that amounts to 2.09 % and 1.03 % of Provincial production). There is possibility of increasing the production, given the size of the fallow land which is about 35,780 hectares (source: KP Agriculture Dept. Crop Statistics 2015-16) in the district. With such attributes, there is a great possibility for Bannu to have an agro based industry of its own.



  1. One of the highest annual producer of wheat and maize in KP.
  2. Large area for cultivation (83,043 hectares) and the land is fertile.


The Government of KP can act upon following recommendations to increase the efficiency of this sector:

  1. Given low education level of local farming community and their subsistence farming approach, it is advised that:
    • Agriculture Department of KP, in collaboration with Agriculture University of KP, should apprise local farming community of productivity levels of different crops in their area.
    • A seed research facility should be established in the district.
    • Farmers should be encouraged by the government to plant crops in which their given area holds comparative advantage. In this regard, a certain amount of financial cushion should be provided to farmer to help them in the transition phase –– in cases where farmers are not used to or not familiar with a high yielding agricultural product.
    • Regular workshops and seminars should be conducted to educate farmers on modern farming techniques. In this regard, assistance from USAID could also be sought.
    • Ministry of Commerce should help provide the local farmers to have access of their products to the neighboring countries, i.e. Afghanistan, China and Central Asian States. As area is close to the newly developed CPEC road infrastructure, it would be a very feasible initiative.
  2. To make credit easily accessible to local farmers following initiatives can be adopted;
    • Encourage commercial banks to open Islamic branches and offer easy credit packages to the farming community in the area. Khyber Bank and ZTBL branches can play an important role.
    • Educate the farmers how easy credit schemes could help them in getting accessories and expanding their output.
  3. Invite local and foreign firms to setup sil  os in the area for cereal based products and silos for grain storage.
  4. China could be offered to buy some of the land for farming, given the expected shortage it would face in future for cereal products. It has already bought some land in Africa and Russia for this purpose.


 3. Dairy and Livestock


Bannu has a fairly untapped development potential in Dairy and Livestock business. There are about 1.9 million farm animals, which include 0.13 million Cattle, 56 thousand Buffalos, 92 thousand Sheep and 0.22 million Goats. Consequently, the milk production from this region is fairly high –– with daily production of 3 million liters and 540 million liters annual production (source: Bureau of Statistics report). With such promising figures, it is very much possible that Bannu can have vibrant dairy and livestock industry.


  • 1.9 million farm animals – high production of milk.
  • Capability to develop dairy and livestock Industry.


To exploit this trade potential of livestock from Bannu, the Government of KP can take following initiatives:

  1. Setup modern facilities to facilitate the growth of this sector.
    • A modern research institute on Veterinary Sciences based on best international practices, in collaboration with Agriculture University Peshawar or International donor agency. Cooperation in this regard can also be sought from New Zeeland and Australia.
    • A butchery with meat processing facilities.
    • Cold storage facilities for storing milk and meat.
    • A training institute for farmers and cattle herders where seminars and workshops for them are regularly arranged.
  2. Invite local and foreign investors to install state of the art farm amenities;
    • Nestle, Engro Foods etc. can be invited to setup their plants.
    • These companies would also be asked to train the local community on cattle raising.


 4. Transit and Transport


Bannu District is geo-strategically placed to be the Transit and Transport Hub of KP province. It is close to the Western CPEC route, and provide access to KP province to Afghanistan. Furthermore, neighboring districts of Kohat and Karak have proven reserves of oil and gas –– which means any transport of these hydrocarbons will have to be facilitated by Bannu District.


  • Strong geo-strategic position to be the hub of transit and transport system of KP.
  • Close proximity to Western route of CPEC and Central Asia through Afghanistan


To fully capitalize on geographical location of Bannu, KP Government can take following initiatives:

  1. Upgrade the existing road network in the Bannu District;
  2. Concentrate efforts on the establishment of Bannu Interconnection Corridor –– Linking CPEC Western Route through Mianwali to Bannu and further into FATA, with Rail Link.
    • Open bidding process for contractors and invite local and foreign investors.
    • For financial assistance, seek help from ADB, AIIB or the World Bank.
  3. Also establish a CPEC Trucking and Logistic Park and equip it with following facilities;
    • Parking Sheds
    • Driver Rest Areas
    • Refueling Stations
    • Washrooms
    • Mosque
    • Restaurants
    • Driver Training Centers
    • Technical Training Centers (Automotive Technicians)


 5. Energy Hub


There are oil seepages in the area under Lucky Block –– Domail region to be precise. Currently, the proper estimates of reserves of hydrocarbons are not known. But if they are found to be in substantial figures, it can completely change the fortunes of entire region. In essence, Bannu has the potential to be the Energy Hub.



  1. Oil seepages in the region


For development of this sector KP government can take the following route:

  1. The government of the KP along with geological survey of Pakistan and geological department of University of Peshawar should conduct an intensive survey of the area and record the exact estimates of hydrocarbons in the region;
    • Technical Assistance could be sought from US Geological Survey department and KPOGDCL.
    • Financial assistance could be sought from USAID and World Bank.
  2. Investor brief should be prepared after the survey and hydrocarbon hotspots should be identified properly for the investors.
  3. Proper security arrangements be provided to foreign investors willing to drill in the area along with options for insurance.
  4. A special investment insurance program for Energy Sector can be launched for Investors, to woo foreign investors into bringing in their capital.
  5. In the Bannu Economic Zone, companies specializing in support materials for Energy Sector can be invited to setup their manufacturing units.


 6. Conclusion

Bannu district is full of opportunities for the investors but if these opportunities are availed properly while addressing the above mentioned threats, the district’s economy can grow excessively.