ISLAMABAD: Pakistan’s government is piloting a strategy to revitalise its Special Economic Zones (SEZs) by handing over the Karachi Industrial Park (KIP) to China, which is being developed on the land of non-functional Pakistan Steel Mills (PSM), a senior government official disclosed to The News.
The KIP is one of nine SEZs established under the China Pakistan Economic Corridor (CPEC) framework. Covering 1,500 acres, the KIP would be developed on the steel mills land which is around 19,000 acres. The federal government is contemplating dismantling the existing steel mill structure, while the Sindh government has been allocated 700 acres to establish a new state-of-the-art steel mill on the same site.
Officials said that the transition to Chinese hands 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 aimed at enhancing the investor-friendliness of SEZs through the adoption of global best practices, he said.
During a recent meeting, Federal Minister for Board of Investment Abdul Aleem Khan, who leads the Focal Group on Industrial Zones, highlighted key challenges facing SEZs, 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, each designed to attract a range 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, as well as M3 Industrial City, Value Addition City and Quaid-e-Azam Business Park in Punjab. Additional SEZs are also located in Punjab, Balochistan and Islamabad with the National Science and Technology Park, providing ample development prospects.
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