The federal government has withdrawn a proposal to establish a new Export Processing Zone (EPZ) in Balochistan, in line with conditions set by the International Monetary Fund (IMF).
According to a news report, the Ministry of Industry and Production had initially pushed for the EPZ to promote copper exports from Siah Diq, but the Ministry of Finance opposed the plan, leading to its withdrawal during an Economic Coordination Committee (ECC) meeting chaired by Finance Minister Senator Muhammad Aurangzeb.
The proposal to designate the Siah Diq copper mine as an EPZ was brought before the ECC, but opposition from the Ministry of Finance, based on IMF stipulations under the $7 billion Extended Fund Facility (EFF), led to its withdrawal.
Reports indicate that the IMF has barred Pakistan from creating any new Special Economic Zones (SEZs) or EPZs, with all existing incentives set to expire by 2035.
Khyber-Pakhtunkhwa has reportedly refused to accept this condition, but the federal government’s compliance has raised concerns among officials.
Earlier in the day, Special Investment Facilitation Council Secretary Jamil Qureshi had stated that there were no restrictions on new EPZs, but the proposal was withdrawn just hours after his remarks.
