Karachi Industrial Park Approved as Federal Special Economic Zone

ISLAMABAD: The government has designated Karachi Industrial Park as a federal Special Economic Zone (SEZ). The decision was taken at the 11th meeting of the Board of Approvals for Special Economic Zones, chaired by Federal Minister for Finance Muhammad Aurangzeb in Islamabad on Friday.

According to the board, the designation is meant to attract export-oriented industrial investment, encourage technology transfer and value addition, and create jobs. Karachi is the country’s largest industrial and commercial centre, and officials hope the SEZ status will give industries setting up there the facilities export production needs.

A new framework for private zones

The same meeting also approved general eligibility criteria for providing utilities and allied services to privately established SEZs through government funding. Roads, utilities and other essential facilities will be provided up to each zone’s designated “zero point”, with every case decided on its own merits. The framework has been drawn up under the Special Economic Zones Act, 2012.

Officials say the criteria should give private investors a clearer idea of how far public support for basic infrastructure can go, and help industrial land be used more effectively.

Lease policy for Punjab’s public zones

The board also approved a Land Lease Policy for public-sector SEZs and industrial estates in Punjab. Under the policy, industrial land can be offered on long-term lease, sparing investors the heavy upfront cost of buying land and making better use of public land. Priority will go to sectors with strong export potential and emerging industries with high growth prospects.

The meeting was attended by Federal Minister for Board of Investment Qaiser Ahmed Sheikh, Planning Minister Ahsan Iqbal, Commerce Minister Jam Kamal Khan, Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, and Punjab Minister for Industries, Commerce and Investment Shafay Hussain. At the outset, the board confirmed the minutes of its 10th meeting.

The government says the decisions are aimed at making industrialisation easier, improving the investment climate and giving the private sector a bigger role in export-oriented production.