SEZs turn into real estate projects: BoI chief

ISLAMABAD: Special economic zones proposed to be set up under the Chinese corridor framework have turned into real estate projects as prices of industrial lands are not rationalised, a senior official said on Wednesday.

Chairman Board of Investment (BOI) Haroon Sharif said the government is focusing improved governance, provision of sufficient basic utilities and rationalisation of land prices to ensure establishment of an efficient industrial base in the country.

“Prices of land for industrialisation are a major issue as most of the zones (SEZs) are becoming a real estate project,” Sharif said. He was addressing the fifth meeting of approvals committee of special economic zones (SEZs) at the Board of Investment (BOI), according to an official statement.

The government planned nine SEZs under the $62 billion-China-Pakistan Economic Corridor.

BOI chief said the approach is discouraged, and policy revision would be made to introduce best models. He asked the provinces to plan the best competitive models for industrial development concerning the SEZs, aligned with the federal government priorities. “BOI will fully cooperate and ensure efficient policy formulations at high level,” he added.

BOI Chairman said the government has carried out a detailed analysis and it is focusing to revive the existing seven special economic zones. “Time-bound plans for utility provisions are being finalised to address the major obstacle that hinders progress of these SEZs.”

BOI Director General CPEC Hamid Ali briefed the committee on the observations of the BOI relating to the seven applications for SEZs. The committee directed the developers of the seven applications, including Rahim Yar Khan, Bhalwal and Vehari industrial estates, Rachna Industrial Park, Oil Village SEZ, Roshan Sun Tao Paper Mills, and Zaamin Industrial Park to address the observations raised by the Board of Investment.

A representative of Khyber Pakhtunkhwa government said the provincial cabinet approved concession agreement of Rashakai SEZ and it would be submitted on April 16 to the federal BOI after endorsement of public-private partnership board of the province.