Karachi Industrial Park
ISLAMABAD: The government of Pakistan is formulating a strategy to revitalize the country’s Special Economic Zones (SEZs), with plans to hand over the Karachi Industrial Park (KIP) to China as part of this effort, according to a report on Sunday.
A senior government official confirmed that KIP, which is one of the nine SEZs developed under the China-Pakistan Economic Corridor (CPEC) framework, is located on the land of the Pakistan Steel Mills (PSM), which has been non-operational for years.
The industrial park, which spans 1,500 acres, is part of the larger 19,000-acre steel mill property, and there are discussions underway to dismantle the existing structure of the steel mill. Simultaneously, the Sindh government has been allocated 700 acres of the same site to construct a new, state-of-the-art steel mill.
The transition of KIP into Chinese hands is expected to serve as a model for future SEZs in Pakistan, with the aim of enhancing their appeal to international investors.
By aligning SEZ operations with global standards, the government hopes to create an investor-friendly environment that will boost industrial growth and economic development.
Prime Minister Shehbaz Sharif has already given the green light to this initiative, which is focused on adopting global best practices to improve the functioning and attractiveness of SEZs.
The decision is seen as a step forward in reinvigorating Pakistan’s industrial sector and strengthening ties with China, especially within the CPEC framework.
During a recent meeting, Federal Minister for Board of Investment Abdul Aleem Khan, who heads the Focal Group on Industrial Zones, addressed the key issues facing SEZs in Pakistan, such as inadequate infrastructure and limited policy support. He emphasized the need for tailored incentives and operational reforms to ensure the success of these zones.
“To enable industrial growth and economic progress, SEZs need tailored incentives and an operational overhaul,” Khan stated, urging the government to implement swift reforms to attract investment.
Currently, Pakistan has 21 notified SEZs, each designed to cater to various investment opportunities. Some of the key SEZ hubs include Bin Qasim Industrial Park, Korangi Creek Industrial Park, and Khairpur SEZ in Sindh; Hattar SEZ in Haripur; and Rashakai SEZ in Nowshera, Khyber Pakhtunkhwa.
Punjab is home to several notable SEZs as well, such as M3 Industrial City, Value Addition City, and Quaid-e-Azam Business Park.
SEZs are also located in other provinces, including Balochistan and Islamabad, with initiatives like the National Science and Technology Park, further enhancing development prospects.
By handing over KIP to China and revitalizing SEZs nationwide, Pakistan is aiming to create a more competitive industrial landscape and attract foreign investment to fuel economic progress.
I am a dynamic professional, specializing in Peace and Conflict Studies, Conflict Management and Resolution, and International Relations. My expertise is particularly focused on South Asian Conflicts and the intricacies of the Indian Ocean and Asia Pacific Politics. With my skills as a Content Writer, I serve as a bridge between academia and the public, translating complex global issues into accessible narratives. My passion for fostering understanding and cooperation on the national and international stage drives me to make meaningful contributions to peace and global discourse.
