ISLAMABAD: The federal government has approved Karachi Industrial Park as a Federal Special Economic Zone (SEZ), a move aimed at attracting industrial investment, increasing exports and creating employment opportunities.
The approval was granted during the 11th meeting of the Board of Approvals for Special Economic Zones, chaired by Finance Minister Muhammad Aurangzeb on October 23.
According to the Finance Division, the proposed zone is intended to attract export-oriented industries, encourage technology transfer and promote value-added manufacturing.
The decision forms part of the government’s efforts to strengthen Pakistan’s industrial sector and improve conditions for domestic and foreign investors.
Government Approves Infrastructure Support Framework
During the meeting, the board also approved eligibility criteria for providing government-funded infrastructure and utility connections to privately established special economic zones.
Under the framework, road access, utilities and other essential services may be provided up to the designated boundary connection point of eligible private economic zones.
Such support will be considered on a case-by-case basis under the Special Economic Zones Act, 2012.
The measure is intended to address infrastructure requirements that can increase the cost of establishing industrial operations.
New Industrial Land Policy for Punjab
The board separately approved a land lease policy for public-sector special economic zones and industrial estates in Punjab.
The policy is designed to encourage long-term leasing of industrial land, reducing the initial financial burden on businesses seeking to establish manufacturing facilities.
It also aims to improve the use of public industrial land and attract investment in industries with export potential.
The Karachi Industrial Park approval and related policy decisions are intended to encourage greater private-sector participation in Pakistan’s industrial development.
The government’s announcement confirms approval of the park’s federal SEZ status but does not establish that all planned industrial facilities are operational.