ISLAMABAD: The government has approved Karachi Industrial Park as a federal Special Economic Zone (SEZ) and endorsed a framework for government-funded utilities and allied infrastructure in privately established zones, seeking to attract export-oriented investment, reduce industrialisation costs and boost employment.
The Federal Minister for Finance and Revenue, Muhammad Aurangzeb, on Friday chaired the 11th meeting of the Board of Approvals (BoA) for Special Economic Zones (SEZs), which discussed key measures to facilitate industrial investment, improve infrastructure provision, and promote the effective utilisation of industrial land.
The Board confirmed the minutes of its 10th meeting and considered three substantive agenda items. The Board approved the application for Karachi Industrial Park (KIP) as a Federal Special Economic Zone. The proposed zone aims to attract export-oriented industrial investment, promote technology transfer and value addition, and generate employment.
The Board also approved the General Eligibility Criteria for the provision of utilities and allied services up to the designated zero point of privately established SEZs through government funding, under the SEZ Act, 2012. The criteria establish a framework for considering the provision of road access, utilities and other essential facilities at government expense on a case-by-case basis.
The Board further approved the Land Lease Policy for Public Sector SEZs and Industrial Estates in Punjab. The policy promotes industrial investment through long-term leasing, reducing upfront land costs and ensuring optimal use of public-sector industrial land, while encouraging investment in key industrial sectors and emerging industries with high export potential.
The decisions reflect the Government’s continued focus on facilitating industrialisation, improving the investment environment and strengthening the framework for Special Economic Zones.
The measures are intended to support greater private-sector participation, encourage export-oriented production and ensure that public resources and industrial land are utilised effectively.
The meeting was attended by Federal Minister for Board of Investment Qaiser Ahmed Sheikh; Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal; Federal Minister for Commerce Jam Kamal Khan; Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan; and Punjab Minister for Industries, Commerce and Investment Shafay Hussain.
Senior officials from the Finance Division, Board of Investment, Special Investment Facilitation Council (SIFC), Federal and Provincial Special Economic Zones Authorities, relevant federal ministries and provincial departments, as well as representatives of the relevant sectors, also attended.
Copyright Business Recorder, 2026
























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