Page 69 - CMA Journal (Sep-Oct 2025)

SECTOR BRIEF

S B

SEZ

Special Economic Zones (SEZs) in Pakistan

By ICMA Research and Publications Department

Pakistan’s Special Economic Zones (SEZs) emerge as technology transfer, skill development, infrastructure
strategic gateways, connecting geopolitical advantages expansion, and industry diversification across textiles,
with global trade and investment avenues. Structured as automobiles, electronics, and information technology.
industrial clusters, they offer one-time exemption from Positioned as drivers of export-led growth, industrial
customs duties and taxes on capital goods for both modernization, and improved living standards, SEZs are
developers and enterprises, as well as a ten-year income projected to create 0.7–0.8 million jobs by 2030.
tax holiday. Beyond fiscal benefits, SEZs enable
HISTORICAL OVERVIEW

PERIOD PHASE TITLE KEY ACHIEVEMENTS IN EACH PHASE
Early
 Establishment of Industrial Estates (IEs) to promote industrialization.
Industrialization 
1960s–1980 & Export-  Shift toward export-oriented enclaves under the Export Processing Zone (EPZ) concept.
Promulgation of the Export Processing Zones Ordinance, providing a legal framework for
Processing
Foundations exports and investment.

Export-
1981–1989 Processing  Attracted foreign and local investment to promote industrialization.

Approach Financed by the government, marking a major policy shift toward export-led
development.
Expansion &  Expansion of EPZs and industrial estates in Sialkot, Gujranwala, and Risalpur.
1990s–1993 Global  EPZA became a founding member of the World Export Processing Zones Association
Integration (WEPZA).
Institutional  Board of Investment (BoI) established as the federal SEZ approving authority.
2001–2010
Development  Punjab Board of Investment & Trade (PBIT) created to facilitate SEZ operations in Punjab.
 Special Economic Zones Act enacted, introducing federal and provincial SEZ authorities.
 SEZ Rules issued and CPEC MoU signed, identifying 46 SEZ sites.
SEZ Legal 
2012–2016 Framework &  Sindh Economic Zones Management Company (SEZMC) incorporated.
CPEC Integration
 CPEC Joint Working Group on Industrial Cooperation constituted to push SEZ
development.

 Special Economic Zone Authority (SEZA) Sindh constituted.
Priority SEZs &
2015–2018  Balochistan Board of Investment & Trade (BBoIT) reorganized.
Regional Projects
 Gwadar Port Free Zone Phase-I inaugurated.
 Approval of Bostan SEZ (Balochistan), Mirpur SEZ (AJK), and Mohmand Marble City (KP).
 Allama Iqbal Industrial City (Punjab) launched with capacity for 3,000 workers.
 Port Qasim Industrial Park (Sindh) recognized as federal SEZ.
Rollout of CPEC
2019–2020  Prime Minister sanctioned Rs. 5.6 billion for SEZ utilities.
SEZs
 Rashakai SEZ (KP) development agreement signed.

 Rashakai SEZ Phase-I inaugurated.
 Dhabeji SEZ (Sindh) advanced with development agreements for 1,530 acres.

Expansion &  CPFTA-II approved during President's visit to China; 75% of tariff lines liberalized.
2023–2025
Trade Boost  China removed duties on 313 Pakistani exports (textiles, seafood, leather, chemicals,
plastics, auto parts, engineering goods).
 Pakistan’s exports to China reached USD 1.053 billion; FDI rose 37% to USD 1.88 billion
.
ICMA’s Chartered Management Accountant, Sep-Oct 2025 67