Special Economic Zones Of Pakistan

Since independence, Pakistan has been focusing on its industrial development. In 1952, Pakistan Industrial Development Corporation (PIDC) was established to encourage industrial growth that work successfully till 1970.

Special Economic Zones Of Pakistan

A Special Economic Zone (SEZ) is a specific area of land used to promote industrial growth in a country by providing moderate economic and tax policies. The government of Pakistan has promoted five industrial estates as Khairpur Special Economic Zone, Rashkai Economic Zone, Marden, and Hattar Economic Zone.

i. Khairpur Special Economic Zone

Khairpur’s special economic zone has been established by the government of Sindh at 140 Acres of land, to facilitate industrialization in Pakistan. The KSEZ is envisioned to provide best-in-class infrastructure and facilities & services to local and foreign entrepreneurs. The project is ideally located near Tando Nazar Ali on the National highway new of Khairpur Town and is set to emerge as a splendor of opportunity in the province of Sindh.

Key Areas of Investment

• Non-food processing.
• Agro-food processing.
• Light Engineering/ Manufacturing.

ii. Rashakai Economic Zone

Mardan Rashakai Economic Zone (REZ), the flagship project of KPK Economic Zone Development and Management Company (KPEZDMC) is spread over an area of 1000 acres. Rashakai Economic Zone is strategically located on M1 Motorway at the intersection and links to CPEC through the Burhan interchange. REZ also serves as a bridging post to the Northern Areas of Khyber Pakhtunkhwa and has close proximity to the Afghan border. Due to this central position of the economic zone in the province, the company foresees it to be the imminent trade hub of Khyber Pakhtunkhwa.

Rashakai Economic Zone will have the infrastructure of international standards including the facility of one window operation to support the industrialists. The zone enterprises will have access to all amenities like water treatment plants, vocational training facilities, state-of-the-art IT systems, security, and uninterrupted water, and energy supply. Based on the strengths of the connected districts and resource pool, the economic zone has predominant investment feasibility for industries in fruit & food packaging, textile, and auto manufacturing. The central location also provides opportunities for industrial setups involving marble processing, furniture, electrical products, pharmaceuticals, matchbox manufacturing, sugar mills, tobacco, and juices.

iii. Hathar Economic Zone

Khyber Pakhtunkhwa Economic Zones Development & Management Company has undertaken a project on undeveloped land owned by the Government of Khyber Pakhtunkhwa at Hattar Phase 7, Haripur. Hattar Economic Zone is strategically located in the Haripur area adjacent to the existing Old Hattar Industrial Estate. Haripur District also has to join boundaries with four other districts of Khyber Pakhtunkhwa and two districts of Punjab province. The economic zone is (located) at a short distance of 39 km from Islamabad, the capital territory of the country.

The project of Hattar Economic Zone envisages developing an industrial area on 1424 acres of land out of which 103 acres is earmarked for infrastructure including roads, drainage, tube wells, overhead tanks, power plants, water supply system, accommodation for necessary staff, etc. 317 acres of plots are reserved for allotment to industrialists. The main idea of developing an economic zone in Hattar is to provide quality infrastructure for accelerated industrialization in an organized and scientific manner, to attract investment, and to generate economic activities, employment, and income generation.

1. Export processing zones

Export Processing Zones Authority is a Pakistan Government venture conceived and designed to increase and improve the exports of the country. EPZA) is a Pakistan Government venture conceived and designed to increase and improve the exports of the country? EPZA is one of the fast-growing projects undertaken by the government and carries a great appeal for both local and overseas investors.

The reason for our success in this venture is simple: we provide service with a mission. And this success would not have come about without the active cooperation and participation of some other sectors which worked closely with us and helped us stand where we are today. Following are the export processing units of Pakistan.

•  Karachi Export Processing Zones

Karachi Export Processing Zone or KEPZ is located adjacent to the Landhi Industrial Area in Karachi, Sindh, Pakistan. KEPZ is located within a distance of 18 km from the Quaid-e-Azam International Airport, 20 km from Port Qasim and 35 km from Karachi Seaport. The Zone is linked with the National Highway network.

Incentives

1. Developed land at competitive rates for 30 years
2. Duty-free import of machinery, equipment and materials
3. Freedom from national import regulations
4. Exchange control regulations of Pakistan are not applicable
5. Repatriation of capital and profits
6. No sales tax on input goods including electricity/gas bills
7. Duty-free vehicles are allowed under certain conditions
8. Domestic market available to the extent of 20%. Exceptions may be available
9. Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability
10. Obsolete/old machines can be sold in domestic market of Pakistan after payment of applicable duties & taxes
11. Defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up-to 3% of total value
12. EPZ units allowed to supply goods to Custom manufacturing bonds

• Risalpur Export Processing Zones

Risalpur is a city in the Khyber-Pakhtunkhwa province of Pakistan. The city is mainly known for its Marble industries and rich mineral resources in the nearby areas.

• Sialkot Export Processing Zones

Sialkot is the world’s largest producer of hand-sewn footballs, with local factories manufacturing 40 to 50 million football per year, amounting to 70% of world production. Sialkot is also providing all sorts of hospital equipment. Other important industries in Sialkot include Leather tanneries, Leather garments, musical instruments, and Surgical and dental instruments. These are all export-oriented businesses and earn billions of dollars every year.

• Gujranwala Export Processing Zones

Gujranwala is a commercial and industrial center, that plays a major role in the Pakistan economy. It has a number of textile mills and large agriculture processing plants. Major exports include rice, sanitary, fittings, textiles, plastic, furniture, pots, heaters, gas stoves, metal utensils, auto parts, military machinery, motorcycles, food products, and industrial motors.

2. Industrial Estates

Industrial estates are the zones that are used to carry out industrial activities. Activities such as roads, power, and other utility services are provided to facilitate the growth of industries and minimize impacts on the environment. The selection of industrial sites should depend on social, environmental, and economic factors. Industrial estates should maintain safe distances from residential areas. Industrial estate units monitor data, review it at regular intervals, and compare it with the operating standards so that any necessary corrective actions can be taken. These include:

• Multan Industrial Estate phase

In the 1960s approval was obtained by the Provincial Government to establish an Industrial Estate in the south of Punjab and 1410 acres of land were acquired for this purpose. However, the Government of Punjab decided to develop it into two phases. Phase-I comprising 743 acres was developed & completed in the 1980s whereas, 667 acres were planned to be developed subsequently as phase II. All plots in phase-I were leased out for a period of 99 years to industrialists and some Govt. Institutions.

In 2004, the Government of Punjab (GOP) formally handed over MIE to Punjab Industrial Estates in order to revive industrial activity. An amount of Rs. 100 million was allocated by the GOP for the upgradation of the infrastructure and the same amounts were contributed by PIEDMC expanded form.

• Multan Industrial Estate Phase-II

Encouraged by the response of up-gradation work in Phase-I, PIEDMC was assigned the task of developing of infrastructure work for Phase-II in September 2006. It is located adjacent to Phase-I at a distance of approximately 17 km southwest of Multan City. Phase II spreads over an area of 667 Acres having 349 plots. Multan Industrial Estate is led by a Board of Management belonging to the private sector representing various industrial segments of the estate and the rest representing the Government.

• Rahim Yar Industrial Estate

Rahimyar Khan Industrial Estate is an ongoing project of PIEDMC aiming to bring the district of Rahimyar Khan into the mainstream of economic growth. Rahimyar Khan Industrial Estate has been developed over 450 Acres of land providing state-of-the-art industrial infrastructure to industrialists from all over Pakistan. Big names like Suncrop (Pvt.) Ltd., Big Bird Group; Sunrise Plastic Industries (Pvt.) Ltd. has already become part of Rahimyar Khan Industrial Estate. Plots starting from 0.5 acres onwards are currently available for sale in Rahimyar Khan Industrial Estate.

District Rahimyar Khan is rich in wheat, cotton and sugarcane, mangoes, citrus, and dates and has abundant livestock resources.

Hence it is a good opportunity for industrialists operating in the field of Cotton ginning, leather, meat/poultry processing, Textile, vegetable ghee, fruit juices, and fertilizers to invest in Rahimyar Khan Industrial Estate and make use of available resources plus generate employment for local residents.

• Bhalwal Industrial Estate

Bhalwal Industrial Estate has located at a prime location just 15 km from M-2 Motorway between Salam & Bhera Interchange. Bhalwal Industrial Estate spans over 450 acres and is located in the best citrus-producing area of the world in District Sargodha. Plots starting from 0.5 Acres are available for sale in the Bhalwal Industrial estate and many renowned names of Pakistani Industry including Dawn Bread, National Foods, Kemya Pharma, Nutra Allied, etc. are already a part of this industrial estate.

District Sargodha is famous all over the world for its citrus-producing ability. 52% of the national production of oranges is from Sargodha District which has a high export value. Along with citrus, its produce is sugarcane, rice, wheat, potato, and tomato. Bhalwal Industrial Estate is planned to cater to food processing units including juices, jams jellies and snacks, citrus grading, and cold storage. It also has potential for sugar mills, flour mills, and rice husking units’ other trades include leather, paper board, PVC, chipboard, nutraceutical, etc. Read more