ISLAMABAD: Pakistan is providing incentives to the Special Economic Zones (SEZs) to reap its economic dividends, says an official.
Countries such as China, Poland, South Africa, and Malaysia have utilized SEZs to stimulate rapid economic growth. Globally, the SEZs result in substantial increases in gross domestic product (GDP), employment, trade, and technology transfer when they are implemented successfully.
An official from the Board of Investment (BoI) told WealthPK that an SEZ’s success depends on the prevailing governance structure, administrative setup, and institutional framework, along with the socio-economic and political conditions of the country.
“In Pakistan, the BoI has offered various incentives to SEZs to attract foreign investment and set the country on a sustainable growth path,” said the official.
WealthPK research shows that a comprehensive framework has been developed by Pakistan to attract foreign direct investment (FDI) by providing a business-friendly environment. As a result of its consistent policy trends, Pakistan has pursued liberalization, deregulation, privatization, and facilitation as its most significant goals.
In order to attract investment, Pakistan offers a variety of grants and incentives. Incentives such as tax concessions, double taxation agreements, low-interest loans, etc., are available to companies. Foreign investment is protected in the country through the Foreign Private Investment (Promotion and Protection) Act 1976 and the Protection of Economic Reforms Act 1992.
Chief Executive Officer of Khyber Pakhtunkhwa Economic Zone Development and Management Company (KP-EZDMC) Javed Iqbal Khattak stated that the establishment of nine new economic zones within two years has resulted in the realization of the province’s dream of industrialization.
He said five additional economic zones are in the pipeline, including one SEZ. They include the Daraban SEZ, Buner Marble City, Salt & Gypsum City Karak, Mansehra EZ, and Katlang EZ.
Javed Iqbal said that so far, an investment to the tune of Rs129 billion has been made in the province, and from next year, four more economic zones will be specified for the indigenous mineral sector. These zones include Buner Marble City, Salt City, and Gypsum City Karak. These industrial activities are expected to generate over 400,000 jobs.
Globally, the World Bank estimates that there are approximately 3,000 economic zones in 135 countries, accounting for 68 million direct jobs and $500 billion in direct trade-related value addition within zones.
