A total of 46 potential sites have been identified in Pakistan for establishment of Special Economic Zones (SEZs) along various routes of the China-Pakistan Economic Corridor (CPEC). 46 Special Economic Zones would be established at 41,715 acres of land across the country. As many as 17 industrial zones would be established in Khyber Pakhtunkhwa, nine in Balochistan, seven in Sindh, four in Punjab, two in Gilgit-Baltistan, one in erstwhile Federally Administered Tribal Areas (FATA), four in Azad Jammu and Kashmir (AJK) and two in Islamabad.
The government announced an incentive package for investors for establishment of industrial zones. According to documents, the incentive package includes; (i) provision of land plot on installments (50 percent down payment and remaining 50 percent in four biannual installments basis), (ii) markup support at 50 percent of the markup (to a maximum of 5 percent) to be provided by respective governments on the loans taken in Pakistani currency for financing the project, (iii) freight subsidy at 50 percent on the inland transportation of plant and machinery for installation in/development of any of the priority SEZ, (iv) one window operation, (v) the developer shall be allowed to purchase gas, electricity and other utilities from utility providers in bulk and supply the same to the enterprises at rates that are duly notified by Special Economic Zone Authority (SEZA) in consultation with stakeholders, and (vi) to reduce cost of setting up, the developer would also be allowed to rent out sheds for industrial use.
The federal government has notified seven various types of Special Economic Zones including (i) Khairpur Special Economic Zones at 140 acres of land in Sindh for agro-based industry and data processing, (ii) Bin Qasim Special Economic Zone (SEZ) at 930 acres of land in area of Pakistan Steel Mills, Sindh, for light engineering auto vendors, steel fabricating units, chemical and food, pharmaceuticals, electrical and consumer goods and furniture, (iii) Korangi Creek SEZ at 240 acres of land in Sindh for consumer goods, food and pharmaceutical, garments, value added textile, light engineering, packaging and printing, warehouses/logistics, (iv) Hattar Phase-VII SEZ at 424 acres of land in Khyber Pakhtunkhwa for mining, marble, fruit processing, (v) Quaid-e-Azam Apparel Park at 1,536 acres of land in Sheikhupura, Punjab, for textile and cotton, (vi) M-3 Industrial City at 4,356 acres of land in Faisalabad, Punjab, for textile, engineering and construction, chemicals, pharmaceuticals, electronics, food and beverages, IT and (vii) Value Addition City, Faisalabad, at 225 acres of land in Punjab for textile, chemicals, pharmaceutical, engineering, and information technology.
The government has prioritized nine more Special Economic Zones and most of their feasibility study has been completed. Rashakai Economic Zone M-1, Nowshera, would be established near Motorway in Khyber Pakhtunkhwa at 1000 acres of land for fruit/food, packing, textile and stitching/knitting. The feasibility study of this industrial zone has been completed. The industrial zone is 65 kilometer away from airport and dry port and 25km away from Railway Station. Bostan Industrial Zone at 1000 acres of land would be established in Balochistan near Highway (N-50) for fruit processing, agriculture machinery, pharmaceutical, motor bikes assembly, chromate, cooking oil, ceramic industries, electric, appliances and Halal food industry. It is 23km away from airport and dry port. Allama Iqbal Industrial City Faisalabad would be established at 3,000 acres of land for textile, steel, pharmaceutical, engineering, chemicals, food, processing, plastic, agriculture implements etc. It would situate adjacent to existing SEZ of M-3 Industrial City Faisalabad. China Special Economic Zone Dhabeji will be set up at 1,000 acres of land in Sindh. However its feasibility is being prepared.
According to documents, Moqpondass Special Economic Zones would be established at 250 acres of land in Gilgit-Baltistan for marble, granite, iron ore processing and fruit processing. The feasibility study of this industrial zone has been completed and it is 35 kilometers away from Gilgit airport and 160 kilometers away from Skardu city. Special Economic Zone in Mirpur city of Azad Jammu and Kashmir will be set up at 1,078 acres of land. It is mixed industry and 22 km from main GT Road Dina-Jhelum and 130 km away from airport. Mohmand Marble City at more than 350 acres of land would be established in erstwhile FATA. It is 29km away from Peshawar and 200 km away from Islamabad. ICT Model Industrial Zone at 200 to 500 acres land would be established in Islamabad for hi-tech industry food procession and beverages pharmaceutical and chemicals printing and packaging light, engineering etc. However the land is not acquired for it so far. Identification of land is under process with Islamabad Capital Territory (ICT). Industry of development of IP on Pakistan Steel Mills land in Port Qasim near Karachi would be established at 1500 acres of land for steel, auto and allied, pharmaceutical, chemical, printing and packaging, garments etc. however its approval is pending of PS Board while land has been earmarked. Pakistan Steel Mills (PSM) will transfer the land to National Industrial Parks Development & Management Company (NIP).