What are Special Economic Zones (SEZ)?

The backbone of CPEC is the Special Economic Zones (SEZ) which will be built across the country to facilitate industrialization and large scale manufacturing. The investors will be given special preferential privileges under the SEZ Act of 2016. This would not only create jobs for the local population but would also boast the exports of Pakistan. On 3rd January 2020, the ground breaking of first SEZ called Allama Iqbal Industrial City took place in Faisalabad. Faisalabad is an industrial city known for its contribution in the textile sector of Pakistan. The SEZ is already connected to electricity, water and gas infrastructure and the existing expertise in the region makes its initiation a wise decision. It is also a powerful signal to the industrial sector of Pakistan.