A plan to revitalize the Special Economic Zone (SEZ) is underway, as the government is moving to transfer the Karachi Industrial Park (KIP) to China.
A senior government official indicated that KIP is one of nine SEZs established in Pakistan under the China-Pakistan Economic Corridor (CPEC) initiative. The park will be developed on the site of the non-functional Pakistan Steel Mills (PSM), utilizing 1,500 acres of the steel mill’s total 19,000-acre area.
The government in Islamabad is contemplating the dismantling of the current steel mill infrastructure, while the Sindh government has been allocated 700 acres to build a new state-of-the-art steel mill at the same location.
Officials noted that the transfer of KIP to Chinese management could serve as a model for making Pakistan’s SEZs more attractive to investors by incorporating international standards and practices.
Green Light from the Prime Minister Shehbaz Sharif
Prime Minister Shehbaz Sharif has already given the green light to this initiative, which aims to enhance the investor appeal of SEZs by adopting global best practices.
During a recent meeting, Federal Minister for Board of Investment Abdul Aleem Khan, who heads the Focal Group on Industrial Zones, emphasized the significant challenges facing SEZs, such as inadequate infrastructure and lack of policy support.
Khan also stated that tailored incentives and operational reforms are necessary to foster industrial growth and economic development within SEZs.
At present, Pakistan has 21 notified SEZs spread across the country, each designed to attract various investment opportunities.
Noting further, key industrial 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, alongside M3 Industrial City, Value Addition City, and Quaid-e-Azam Business Park in Punjab. Additional SEZs are also situated in Punjab, Balochistan, and Islamabad, including the National Science and Technology Park, which offer substantial development prospects.
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