BoI directs relevant entities to resolve challenges faced by investors in SEZs

The Board of Investment (BoI) has instructed relevant entities to resolve the challenges faced by investors in Special Economic Zones (SEZs), particularly in Punjab and Balochistan. 

According to a news report, the directive came during a meeting of the Working Group on SEZs, convened at the request of the Special Investment Facilitation Council (SIFC) to address concerns raised by Challenge SEZ and Hub SEZ.

Challenge Fashion (Pvt) Ltd had flagged issues with the draft development agreement. These were initially discussed in a meeting between the Special Economic Zones Authority (SEZA) Punjab and the Punjab Board of Investment and Trade (PBIT), where it was suggested that the company negotiate terms directly with SEZA Punjab. 

Challenge Fashion’s CEO confirmed the company’s willingness to proceed with construction once access roads are completed and utilities are provided at zero point. The access road, under construction since September 2024, is expected to be completed by February 2025.

During the meeting, BoI’s Director General (SEZ & Projects) asked SEZA Punjab to clarify the situation. A representative from SEZA Punjab noted that SNGPL had issued a demand notice for utility connections, which requires payment before further action. 

Challenge Fashion’s CEO, however, stressed that providing utilities to zero point is the government’s responsibility, while the company will develop internal infrastructure as planned. SEZA Punjab has sought BoI’s guidance to move forward.

For Hub SEZ in Balochistan, the Managing Director (MD) of the Lasbela Industrial Estates Development Authority (LIEDA) highlighted funding challenges. The revised PC-1, including cost escalations and additional components, is awaiting approval from the Provincial Development Working Party (PDWP) and Central Development Working Party (CDWP). 

The MD pointed out the need for additional funds for two 4MW feeders and the absence of external infrastructure, including gas, electricity, and water, at zero point.

The Ministry of Planning, Development & Special Initiatives clarified that no pending actions remained on its part, stating that the PC-1 would be presented to the CDWP for review once received. However, representatives from the Ministry of Industries & Production, SEZA Balochistan, and the Government of Balochistan were absent from the meeting, leaving key issues unaddressed.

The BoI emphasized the need for prompt action to ensure progress on SEZ development, addressing investor concerns, and facilitating timely provision of infrastructure to support industrial growth in these zones.