Pakistan’s Board of Investment (BoI) has moved to accelerate the development of Special Economic Zones (SEZs), including a zone with Iran, which were initiated before the International Monetary Fund (IMF) imposed restrictions on new SEZs under Pakistan’s Extended Fund Facility (EFF), according to a news report.
The IMF’s EFF, approved on September 25, 2024, restricts the establishment of new SEZs, allowing exceptions only for zones under prior international obligations or approved by the relevant SEZ authority.
In this context, the Board of Approvals (BoA) has been requested to grant SEZ status to projects legally protected under the SEZ Act, 2012.
Four SEZs, tied to international commitments, remain to be established. These include the Mohmand SEZ, Karachi Industrial Park, Federal SEZ in Islamabad (approved under the Pak-China Joint Cooperation Committee of CPEC in 2016), and the Gabd-Rimdan Border SEZ under a 2024 memorandum of understanding with Iran. Letters of Intent are being issued to identify development partners and expedite submissions under relevant rules.
In Gilgit-Baltistan, the Moqpandas Export Processing Zone (EPZ) was approved in principle in January 2025, pending certain formalities. A Letter of Intent issued by BoI enabled the GB government to begin negotiations with potential investors. The application has now been resubmitted for final approval, and the BoA is expected to grant SEZ status after procedural formalities are completed.
Several private-sector SEZ applications in Punjab and Sindh are also advancing. United Business Park in Lahore, covering 258.7 acres near Raiwind, and the Capital SEZ in Chakwal have had per-acre industrial plot costs revised to Rs 99 million and Rs 40 million, respectively, following recommendations from SEZA Punjab.
Similarly, the Green Industrial Park in Lahore, spanning 63 acres, has seen its per-acre cost reduced to Rs 120 million from Rs 150 million. In Sindh, the Oborcon Industrial Zone in Thatta, a 300-acre project, has been resubmitted after addressing prior observations and is awaiting BoA consideration.
Established SEZs, such as Bin Qasim Industrial Park in Karachi, continue to operate under standard criteria with 60-year lease terms. The Pakistan Industrial Development Corporation (PIDC) has proposed a new annual preferential land lease model at $10,000 per acre per year for up to 50 years to reduce costs and attract investors.
New qualification criteria have been jointly formulated by the BoI, Special Investment Facilitation Council (SIFC), Ministry of Industries and Production, SEZA Sindh, and PIDC.
The BoI’s push to implement previously approved SEZs is aimed at leveraging investment opportunities within the limited window allowed under existing IMF commitments, while promoting industrial development and foreign investment.
