The Board of Investment (BoI) has decided to accelerate the development of Special Economic Zones (SEZs), including a planned zone along the Iran border. These zones were initiated before the new restrictions imposed by the International Monetary Fund (IMF). Under the Extended Fund Facility (EFF) approved for Pakistan on September 25, 2024, the IMF has prohibited the establishment of new SEZs. However, zones based on prior international commitments or approved by the relevant SEZ authority are exempt from this restriction.
In this context, the Board of Approvals has been directed to grant formal SEZ status to zones protected under the SEZ Act 2012 and in line with relevant regulations. According to sources, four SEZs were committed by the Government of Pakistan under international agreements:
- Mohmand SEZ
- Karachi Industrial Park
- Federal SEZ Islamabad (Model SEZ) – approved at the 6th Pak-China Joint Cooperation Committee meeting on December 29, 2016
- Gabd–Rimdan Border SEZ – under an MoU signed with Iran on April 22, 2024.
Sources added that, given Pakistan’s limited window to capitalize on SEZ incentive schemes to boost investment in industrial infrastructure, Letters of Intent (LoIs) are being issued to identify development partners and expedite submission of zone applications.
The Gilgit-Baltistan Moqpondas Export Processing Zone (EPZ) was presented to the Approval Committee in January 2025 and received in-principle approval, subject to fulfillment of certain conditions and information. Subsequently, the BoI issued Letters of Intent to enable the Gilgit-Baltistan government to initiate negotiations with potential investors. The application has now been resubmitted for final approval, and the Board of Approvals is expected to formally notify its SEZ status soon.
