China Takes Charge of Karachi Industrial Park to Enhance SEZs

Pakistan is embarking on a transformative journey to enhance its Special Economic Zones (SEZs) by transferring the Karachi Industrial Park (KIP) to China, a move aimed at revitalizing these vital economic hubs. The KIP, situated on the site of the defunct Pakistan Steel Mills (PSM), spans approximately 1,500 acres and is one of nine SEZs established under the China Pakistan Economic Corridor (CPEC). This strategic initiative, recently approved by Prime Minister Shehbaz Sharif, seeks to attract foreign investments by integrating global best practices and standards within the country’s industrial landscape.

The federal government is considering the dismantling of the existing PSM infrastructure while allocating 700 acres to the Sindh government for the establishment of a modern steel mill on the same site. This shift not only signifies a move towards making Pakistan’s SEZs more investor-friendly but also sets a precedent for further development across the nation.

Federal Minister for Board of Investment Abdul Aleem Khan, during a recent meeting, highlighted the ongoing challenges faced by SEZs, including insufficient infrastructure and policy support. He emphasized the need for tailored incentives and an operational overhaul to foster industrial growth and economic progress. With 21 notified SEZs spread across the country, including significant hubs like Bin Qasim Industrial Park and M3 Industrial City, the potential for development is vast, promising new opportunities for investment and growth in Pakistan.