The term “sustainable industrial development” stresses the need to adopt better natural resource governance mechanism and ensure better management of industrial practices. Pakistan over the years has been trying to move a step closer towards successful transition towards sustainable industrial development. Despite a lot of efforts, it still lags behind the developed nations who have successfully transformed their structures and governance mechanism to achieve sustainable industrial development. The present study keeping in view the policy debates and multi approaches towards sustainable industrial development transition discuss the role of Government in sustainable industrial development in Pakistan taking Hattar as case study. The present study adopts qualitative approach and the relevant public stakeholders of KPK and Federal Government as well as the private stakeholder’s in-depth interviews was conducted. The stakeholders include KP Board of Investment, KP Government, KP Special Economic Zone Authority, KP Economic Zone Development and Management Company, Hattar and Sarhad Chamber of Commerce as well as the industry owners in Hattar. The study results show that low coordination between government agencies, poor stakeholder consensus between industries and Government during policy formulation as well as implementation, poor utility distribution and lack of governance mechanism have been the key reasons behind non-sustainable industrial development in Hattar. Further there is a need to improve the incentive mechanism regarding tax and technology to enhance sustainable industrial development. It was found that the new KP Policy of 2020 focuses to address issues with increased focus on special economic zones development, creating ease of doing business, adopting an integrated approach and developing a monitoring mechanism for effective implementation of policy and ensure achieving the sustainable industrial development in future in KP. It is recommended that the institutions and policy interventions through which government attempts to transform the industrial development should focus on building institutional capacity, improving political power structures and creating stakeholder consensus before policy formulation and implementation. Supervisor:- Dr. Usman Qadir