Govt approves 8 SEZs, to attract Rs507bn investment

ISLAMABAD: The government Thursday gave approval to eight special economic zones (SEZs), with three being sole enterprises SEZs, predominantly located in the Punjab and Sindh provinces. These SEZs have the potential to attract an investment of Rs507 billion, and create 74,000 direct jobs, according to financial experts.

The Approvals Committee of SEZs, convened under the chairmanship of Federal Minister for the Board of Investment and Special Initiatives Chaudhary Salik Hussain, granted the approval. The decision would now be circulated among the members of the Board of Approval (BoA) for their consideration, as they typically endorse such projects, an official of the Board of Investment (BoI) said.

Among the approved SEZs are two multi-industry proposals from Sindh and three from Punjab. The approved SEZs include Dhabeji SEZ Thatta, SITE Larkana, DWP Innovation Park (sponsored by DWP Group) in Kasur, Smart SEZ (a project of Habib Rafiq Group) in Sheikhupura, and Sundar Green SEZ (sponsored by Bin Arif Industries) in Lahore.

Furthermore, the committee granted approval for three Sole Enterprise SEZ proposals, one from Sindh for Armstrong ZE Tyres SESEZ in Thatta, and two from Punjab for Ombre SESEZ (Outfitters) in Lahore and Sapphire Chemicals Limited SESEZ in Khushab.

The committee consisted of members from federal ministries, provincial governments, provincial Board of Investments (BoIs), private sectors, and senior officers, including Secretary BoI Asad Rehman Gilani. They were all present during the meeting.

Three of the SEZs will be established in underdeveloped districts. Except for Dhabeji SEZ and SITE Larkana, all the projects will be developed in the private sector.

The committee also approved establishment of SEZ committees for the newly-approved zones, aiming to facilitate their operationalisation promptly. Secretary BoI commended the provincial SEZAs for their efforts in developing these proposals to promote industrial growth in the current economic conditions. He emphasised the BoI’s role is to support the SEZAs and facilitate investment in the country.

Qassim Naveed Qamar, Special Assistant to the Chief Minister of Sindh on Investment and Public-Private Partnership, also attended the meeting. He expressed the commitment of the Sindh government to prioritise industrialisation over revenue generation through plot sales. He hoped that the Dhabeji SEZ, the first public-private partnership SEZ project in Sindh, would serve as a role model for the province.

The chairperson acknowledged the efforts of government officials in facilitating investments in Special Economic Zones and emphasised the importance of establishing a robust enforcement mechanism to ensure that commitments made by promoters are fulfilled within the specified timeframes.

Additionally, approval was granted for Zone Regulations for Challenge Fashion SEZ, and a standardised template of the development agreement, to be signed by zone developers and provincial and federal governments. The meeting also discussed the need for establishing a dedicated Secretariat for SEZs in BoI and recommended presenting the case before the Board of Approvals. Khashihur Rehman, Additional Secretary BoI, informed the attendees that the BoI, as the custodian of all SEZs, is responsible for governing SEZs at the national level consistently. The BoI is working to support provincial SEZAs in efficiently carrying out their delegated roles in SEZ governance through consultation and standardization. The standardised template for development agreements enables SEZAs to negotiate on their own terms while adhering to SEZ laws.

The Special Economic Zone Authorities (SEZAs) concerned provided an update on the colonisation and infrastructure development of the existing SEZs, revealing substantial progress following the digitization of SEZ approvals. This digitisation has effectively eradicated real estate activities that previously impeded realisation of genuine investments.