By Hasnain Ali
The Board of Investment (BoI) has decided to relaunch several major Special Economic Zones (SEZs) that were put on hold after the International Monetary Fund (IMF) told Pakistan to stop creating new ones. One of these zones even involves a deal with Iran.
Under the IMF’s Extended Fund Facility (EFF) agreement, which was approved on September 25, 2024, Pakistan is not allowed to establish any new SEZs. The only exceptions are projects that are part of international agreements or that the SEZ Authority had approved earlier.
Because of these restrictions, the Board of Approvals (BoA) has been asked to sign off on SEZ applications that are protected under the SEZ Act of 2012. Since these projects already had approval before the IMF rules, they still qualify to become SEZs.
Four Zones Linked to Global Pacts
Reporters learned from sources that four SEZs are still moving forward because they are tied to agreements with other countries. Three of these are part of the China-Pakistan Economic Corridor (CPEC), and one is with Iran. These projects include:
- Mohmand SEZ
- Karachi Industrial Park
- Federal SEZ, Islamabad (Model SEZ) – This was first approved back on December 29, 2016, during a CPEC meeting.
- SEZ on Gabd-Rimdan Border – This is part of a written agreement Pakistan and Iran signed on April 22, 2024.
Government officials said that since the special tax breaks for investors in these zones won’t last forever, they are quickly issuing Letters of Intent (LoIs). This will help them find development partners and speed up the final approval process.
Gilgit-Baltistan Moqpandas Export Processing Zone
The application for the Gilgit-Baltistan Moqpandas Export Processing Zone was first shown to the Approvals Committee in January 2025 and got conditional approval.
Following this, the BoI issued a Letter of Intent, which let the GB government start talking with possible investors.
The zone’s application has now been sent back for final approval. The BoA is expected to grant it official SEZ status once all necessary steps are completed.
Private SEZs: Developers Will Pay for Upgrades
In the private sector, the companies building the new zones will be responsible for funding the roads, utilities, and other facilities inside and outside the zones.
United Business Park, Lahore:
- On June 14, 2024, the SEZ Authority of Punjab submitted an application for a 258.7-acre zone near Raiwind, to be developed by Din Properties Pvt. Ltd. The BoI reviewed it, found problems, and later received a corrected version.
- When the case was discussed on January 7, 2025, the committee delayed approval because they questioned the price of the land leases. The developers have now resubmitted the proposal, lowering the price from Rs 120 million to Rs 99 million per acre.
Capital SEZ, Chakwal:
- This project was also reworked after the committee gave advice. The cost of the land has been cut from Rs 72.14 million to Rs 40 million per acre.
Green Industrial Park, Lahore:
- Another application was submitted by SEZA Punjab for a 63-acre SEZ near Raiwind, to be developed by H.Y. Constructions Pvt. Ltd. It was initially put off due to cost concerns but has now been resubmitted with a lower price of Rs 120 million per acre, down from Rs 150 million.
Oborcon Industrial Zone, Thatta:
- SEZA Sindh applied for a 300-acre private zone in Mirpur Sakro, Thatta, to be developed by Oborcon Industrial Zone Pvt. Ltd. It was first submitted in May 2023 but was sent back because details were missing. After corrections, the final application was resubmitted on July 30, 2025.
- The BoA is now reviewing it for final approval. If it passes, the zone will get its official SEZ status under current law.
Bin Qasim Park Switches Strategy to Lure Global Money
The Bin Qasim Industrial Park (BQIP) in Karachi, which was already an official SEZ since July 2014, is huge, covering 930 acres. It currently offers 60-year leases at Rs 70 million per acre.
In a meeting on January 2, 2025, the Special Investment Facilitation Council (SIFC) Apex Committee suggested changing to a new lease plan: $10,000 per acre per year for up to 50 years. The goal of this major shift is to lower business costs and attract more global investors.
To ensure only real, serious investors benefit, new rules and ways to enforce them have been created. These new procedures were designed by the BoI, SIFC, the Ministry of Industries and Production, SEZA Sindh, and PIDC, all working within the current SEZ Law.
Why This Matters
Pakistan is aggressively pursuing SEZ projects, even though they have been largely restricted by the IMF or fall under broader international agreements.
Government officials view these zones as crucial for attracting investment, developing major infrastructure, and boosting industrialization. However, they emphasize the need to act quickly to achieve these goals.
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