Several SEZs have been established under CPEC, attracting many foreign investors from countries like China, South Korea, and the UK. The SEZs will benefit the local economy and help attract Foreign Direct Investments (FDI) into the country.
The established SEZs are Rashakai M-1 SEZ, Dhabeji SEZ, Allama Iqbal Industrial City Faisalabad and Bostan Balochistan. According to the Board of Investment (BOI), these four SEZs are estimated to generate 1.47 million jobs, 475,000 direct jobs, and 1,000,000 indirect jobs across the country.
Special Economic Zones are designated areas where business and trade laws differ from the rest of the country. SEZs are located within a country’s national borders to increase trade balance, employment, investment, and effective administration.
SEZs are an integral part of the China-Pakistan Economic Corridor (CPEC) to revitalise the local economy in under-developed regions. The operation model for SEZs includes the provision of tax reductions and a conducive investment environment for local and foreign investors.
Currently, the government is making progress in establishing SEZs in the country as they will boost employment and ramp up local industries, leading to sustainable future economic growth.
Recently, the KP government has established two Special Economic Zones in DI Khan. These two SEZs are the Daraban Special Economic Zone and a Sole Enterprise Special Economic Zone. The Sole Enterprise SEZ was a cement industry declared a Special Economic Zone and is the first private sector SEZ in the province.
The multi-purpose Daraban Special Economic Zone will be set up on 4,000 acres of land and established with an estimated cost of Rs7.8 billion. It will have mineral and food-based industries and create 40,000 direct and 120,000 indirect employment opportunities.
The Sole Enterprise Special Economic Zone will be set up with an estimated cost of Rs51.9 billion with the capacity to generate about 500 direct and 4,000 indirect employment opportunities.
The SEZs can give Pakistan a new industrial identity, making the country capable of standing side by side with Chinese companies to embark on exciting new economic activities in these zones.