Trade zones

A Special Economic Zone (SEZ) is a specifically demarcated duty-free area that is regarded as a foreign territory for the purposes of trade. It has economic laws different from a country’s typical economic laws. Such zones have been set up in several countries in order to create a hassle-free regime to promote exports and enhance foreign investment.

At present, Pakistan’s foreign exchange reserves are abysmally low. Establishment of SEZs would result in the inflow of foreign exchange in the country. On its part, the government should ensure removal of all deterrents to foreign investment like red-tape, high tariffs, taxes, etc, as the existence of these deterrents would fail the very purpose for which these zones would be established. Under CPEC, the government has planned to establish nine SEZs in the country which would be completed in a period of three years.

Air-Cdre (r) Azfar A Khan

Karachi