Special Economic Zone Framework in Pakistan

  • Special Economic Zone Framework in Pakistan

    The SEZ Act was promulgated on September 13, 2012 and later this year the SEZ Rules were notified. The law provides SEZs to be set up by the Federal or Provincial Governments themselves or in collaboration with the private sector under different modes of public-private partnership or exclusively through the private sector. The fiscal benefits under the SEZ law include a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for the development, operations and maintenance of a SEZ (both for the developer as well as for the zone enterprise) and exemption from all taxes on income for a period of ten years. The provincial SEZ authorities, set up under the law, are required to move the applications received from developers to the Federal Board of Investment which is to act as the secretariat to the Board of Approval and the Approval committee.

    Approvals Committee

    There shall be an Approvals Committee that shall be chaired by the Chairman of the BoI. The Approvals Committee shall exercise all such powers and responsibilities as are delegated to it by the BOA, subject to such conditions as it may deem fit. The BOA may delegate all or any of its remaining powers and responsibilities to the Approvals Committee. A decision taken by the Approvals Committee shall be submitted to BOA at its meetings or by circulation for approval. The BOA may, at any time, exercise any responsibility or any power which it has delegated to the Approvals Committee.

    Board of Approval (BoA)

    The Board of Approval (BOA), the highest approving forum is headed by the Prime Minister with membership from Economic Ministries, Provincial Governments, Public and Private Sectors. Approvals Committee is headed by the Chairman BOI and membership from Economic Ministries, Provincial Governments, Public and Private Sectors and SEZ Authorities (at provincial level including Gilgit- Baltistan) work under the leadership of the Chief Ministers. The Provincial Governments have received many applications for various potential zones in their respective provinces and are in the process of preparing documents to further process the applications. They are also engaged with potential local and foreign investors to finalize arrangements for infrastructure development of the areas identified for Zones.

    sez center

    Special Economic Zones (SEZs) Act, 2012 (Amended in 2016)

    • Minimum land requirement is 50 acres (20.23 hectors or 202,343 Sq m) with no maximum limit
    • Board of Investment is the Secretariat for SEZ

    Fiscal Incentives for SEZs

    For Developers

    • One time custom duties exemption on plant and machinery
    • Income Tax exemption for 5 years

    For Zone Enterprises

    • One time custom duties exemption on plant and machinery
    • Income tax exemption for 10 years for units starting production by 30-06-2020 and 5 years for the units starting production thereafter
    Sezs Key Points image

Approved / Notified SEZs

Proposed SEZs UNDER CPEC

  • Rashakai Economic Zone
    Rashakai Economic Zone
  • Port Qasim, Karachi
    Port Qasim, Karachi
  • ICT Model Industrial Zone
    ICT Model Industrial Zone
  • Allama Iqbal Industrial City
    Allama Iqbal Industrial City
  • Moqpondass SEZ, GB
    Moqpondass SEZ, GB
  • Dhabejji, Thatta
    Dhabejji, Thatta
  • Mirpur SEZ
    Mirpur SEZ
  • Bostan Industrial Zone
    Bostan Industrial Zone
  • Momand Marbel City
    Momand Marbel City

PRIORITY SECTORS UNDER CPEC

  • IT & ITes
    es
  • Automobiles
    automotive
  • Textile
    textile
  • Logistics
    img
  • Food Processing
    agriculture

SEZ Development Modes

  • 01
    Through

    Public Sector public sector

  • 02
    Through

    Private Sector Private Sector

  • 03
    Through

    Public-Private Partnership Public-Private Partnership

SEZ Act