Govt approves Karachi Industrial Park as federal special economic zone

The government has approved Karachi Industrial Park (KIP) as a federal Special Economic Zone (SEZ), aiming to attract export-oriented investment, promote technology transfer and generate employment.

The approval was granted at the 11th meeting of the Board of Approvals (BOA) for SEZs, chaired by Finance Minister Muhammad Aurangzeb in Islamabad on Friday, according to a Finance Division press release.

The board also approved general eligibility criteria for providing utilities and allied services to privately established SEZs through government funding, under the SEZ Act, 2012.

The criteria establish a framework for considering government-funded road access, utilities and other essential infrastructure up to the designated zero point of privately established zones on a case-by-case basis.

In another decision, the board approved a land lease policy for public-sector SEZs and industrial estates in Punjab to facilitate industrial investment by reducing upfront land costs and promoting the efficient use of public industrial land.

The policy seeks to encourage investment in key industrial sectors and emerging industries with high export potential through long-term leasing arrangements.

The decisions reflect the government’s efforts to facilitate industrialisation, improve the investment climate and encourage greater private-sector participation in export-oriented production.

The meeting was attended by Federal Minister for Board of Investment Qaiser Ahmed Sheikh, Planning Minister Ahsan Iqbal, Commerce Minister 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 SEZ authorities, relevant ministries and provincial departments, along with sector representatives, also attended the meeting.