CPEC: Pakistan to hand over one SEZ under to China on ‘trial basis’

Islamabad: Pakistan government has decided to hand over one Special Economic Zone (SEZ) under the China-Pakistan Economic Corridor (CPEC) to China on a ‘trial basis.’

Federal Minister for Board of Investment, Privatization, and Communications Abdul Aleem Khan presided over a high-level meeting of the Prime Minister’s Focal Group on Industrial Zones to review the progress and challenges facing the SEZs across Pakistan, established under the mega CPEC.

During the session, the group discussed development updates, examined obstacles, and explored potential solutions to enhance the functioning of these zones.

Chairing the meeting, Federal Minister Abdul Aleem Khan observed that special incentives are mandatory for these Special Economic Zones. “This includes to declare the Karachi Industrial Park as a model and we also have to finalize many steps including to handover one Special Economic Zone to China on trial basis as desired by the Prime Minister (Shehbaz Sharif),” he said.

Minister Khan underscored the need for special incentives to attract investment and drive growth in SEZs.

According to an official statement issued after the meeting, he highlighted the potential of SEZs in revitalizing Pakistan’s industrial sector, which has faced years of neglect, leaving many zones in disrepair and in urgent need of support.

The Minister called for immediate steps to restore these zones and directed the Focal Group to prepare final recommendations to address outstanding issues swiftly.

Minister Khan also emphasized the necessity of moving beyond traditional approaches to foster a conducive environment for establishing new industries.

Federal Secretaries from the Energy, Industry, and Investment sectors, along with other senior officials, presented updates and briefed the Minister on the status of SEZs.

It was decided that the Focal Group would convene again to finalize a comprehensive agenda and expedite significant decisions to ensure rapid development in all industrial zones.