Page 70 - CMA Journal (Sep-Oct 2025)

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Development Procedure of Special Economic Zones (SEZs) in Pakistan

8. Statutory Permits & 9. Infrastructure
Customs Setup: Construc on:
1. Concept &
Prefeasibility: U lity NOCs, Roads, u li es, ETP,
customs/PSW facilita on services
Dra concept notes,
prefeasibility study
7. Detailed Design & 10. Zone Enterprise
2. Feasibility & Master Financing: Onboarding:
Planning (Developer): Engineering designs, Plot marke ng,
Full feasibility, master financing arrangements enterprise registra on
plan, financial model
6. Land Acquisi on &
3. Environmental & Legal Clearance: 11. Enterprise Opera ons:
Social Due Diligence:
Secure land tle, zoning Plant construc on,
IEE/ESIA, stakeholder approvals commissioning, opera ons
consulta ons

4. Zone Applica on 5. Developer Selec on & 12. Governance & 13. Expansion &
Submission: Development Agreement: Monitoring: Lifecycle Ac ons:
Provincial SEZA → BOI → Tender/nego a on, sign One-window facilita on, Expansion, upgrades,
BOA approval DA BOA/SEZA monitoring voca onal centres.

Source: Special Economic Zone Framework in Pakistan, BOI
https://www.invest.gov.pk/sez

Types of Economic and Industrial Zones in Pakistan

Types of
Scope & Facilities & Example in Governing
Zones Definition
Focus Incentives Pakistan Authority

Quaid-e-Azam Apparel Sector-specific
Zone dedicated to a Tailored infrastructure Park (Sheikhupura, Ministries/Authorities (e.g.,
Specialized specific Narrow and policies for that Punjab), National IT Ministry of IT & Telecom for
Zone sectoral focus.
industry/sector. sector. Park (Islamabad – IT Parks, Textile Division for
planned) Apparel Parks)
Cluster of industrial Mixed Shared utilities, Sundar Industrial Estate Provincial Industrial
units with common production transport, industrial (Lahore, Punjab), Bin Development Authorities
Industrial Park
infrastructure and (domestic & services; fewer fiscal Qasim Industrial Park (e.g., PIEDMC in Punjab,
services. export). incentives than SEZ/EPZ. (Karachi) SITE in Sindh)
Industrial zone Duty-free imports of raw Karachi Export
Export Export-
dedicated to materials/machinery, tax Processing Zone Export Processing Zones
Processing oriented
producing goods for holidays, simplified (Sindh), Sialkot EPZ Authority (EPZA)
Zone (EPZ) manufacturing.
export only. procedures. (Punjab)
Area where goods can
Duty-free
be imported, stored, Trade & Federal Board of Revenue
Free Trade processed, or re- logistics- imports/exports, Gwadar Free Zone (FBR), Gwadar Port
Zone (FTZ) simplified customs, (Balochistan)
exported without focused. warehousing. Authority, Customs
customs duties.
Designated area with
Special special policies to Broad: Tax holidays, customs Rashakai SEZ (Khyber Board of Investment (BOI),
Economic attract investment, manufacturing, exemptions, simplified Pakhtunkhwa), Gwadar SEZ Authorities, CPEC
regulations,
trade, services,
Zone (SEZ) boost industrialization, logistics. infrastructure support. SEZ (Balochistan) Secretariat
and exports.

68 ICMA’s Chartered Management Accountant, Sep-Oct 2025