The government is developing a strategy to revitalize the Special Economic Zone (SEZ) by planning to hand over Karachi Industrial Park (KIP) to China, as reported by The News on Sunday. A senior government official informed the publication that KIP, one of the nine SEZs developed across Pakistan under the China-Pakistan Economic Corridor (CPEC) framework, is being established on the land of the non-functional Pakistan Steel Mills (PSM).
The project, which will cover 1,500 acres, will develop on the land of the steel mills that spans 19,000 acres. Islamabad is considering dismantling the existing steel mill structure, while the Sindh government has received 700 acres to establish a new state-of-the-art steel mill on the same site.
Officials stated that the transition to Chinese management will set a precedent for making Pakistan’s SEZs more appealing to investors by integrating international standards and practices. Prime Minister Shehbaz Sharif has already approved this initiative, which aims to enhance the investor-friendliness of SEZs by adopting global best practices.
During a recent meeting, Federal Minister for Board of Investment Abdul Aleem Khan, who leads the Focal Group on Industrial Zones, highlighted the key challenges that SEZs face, including inadequate infrastructure and insufficient policy support.
“To enable industrial growth and economic progress, SEZs need tailored incentives and an operational overhaul,” Khan stated, calling for swift reforms.
Currently, Pakistan hosts 21 notified SEZs across the country, with each designed to attract a variety of investment opportunities.
Notable hubs include Bin Qasim Industrial Park, Korangi Creek Industrial Park, and Khairpur SEZ in Sindh; Hattar SEZ in Haripur; and Rashakai SEZ in Nowshera, Khyber Pakhtunkhwa. Punjab hosts M3 Industrial City, Value Addition City, and Quaid-e-Azam Business Park, along with additional SEZs in Balochistan and Islamabad, including the National Science and Technology Park, which offers ample development prospects.
[embedpost slug=”pakistan-government-decision-to-auction-in-islamic-bonds/”]
