ISLAMABAD: The government has devised a comprehensive plan to set up 37 special economic zones (SEZs) across four provinces and special areas under the China-Pakistan Economic Corridor (CPEC) to boost industrial production.

SEZ Act 2012 provides the governing structure for these zones and allows both federal and provincial governments to set them up under various administrative frameworks.

The list of the proposed sites for establishing SEZs was shared with Chinese authorities in the last Joint Cooperation Committee (JCC) meeting held in Beijing recently.

A source in the Planning Commission told Dawn that the sites were identified by the provinces themselves.

For attracting Chinese enterprises, the government is working on an investment package, which is expected to be finalised before the end of March, the source added.

At the same time, the Board of Investment (BoI) will host potential investors from China, including the Tianjin region, for an exploratory visit. SEZs are believed to be critical for the industrial sector as they have played a key role in the industrial development in many Asian economies.

Four SEZ sites were identified in Punjab. Punjab-China Economic Zone and Quaid-i-Azam Apparel Park SEZ are in Sheikhupura while M-3 Industrial City and Value Addition City are in Faisalabad.

Out of these four SEZ sites, the JCC referred only two to the joint working group (JWG) on industrial cooperation for consideration: Punjab-China Economic Zone (priority) and M-3 Industrial City Faisalabad (alternative).

In Balochistan, nine places were identified for SEZs: Bostan Industrial Zone, Dasht Industrial Zone, Turbat Industrial Zone, Industrial Zone at the Junction of Qilla Saifullah, Zhoband Loralai, Gwadar Industrial Estate, Lasbela Industrial Estate, Dera Murad Jamali Industrial and Trading Estate and Winder Industrial and Trading Estate.

Only two of these requests were referred to the JWG for further action: Bostan Industrial Zone (priority) and Khuzdar Industrial Zone (alternative).

In Sindh, four sites were identified for SEZs. These are China Special Economic Zone at Dhabeji in Thatta, China Industrial Zone near Karachi, Textile City and Marble City. Two of these projects were considered in Thatta: China Special Economic Zone, Dhabeji (priority) and Keti Bandar (alternative).

The Khyber Pakhtunkhwa government requested the establishment of SEZs in 17 places under the CPEC. These include economic zone at Karak, Nowshera, Bannu, Jalozai, Rashakai, Risalpur, Chitral, Buner, Swat, Batagram, Jahangir, Mansehra and Gadoon Amazai. Others include Hattar Phase VII Industrial Zone, Ghazi Economic Zone and Gomal Economic Zone in Dera Ismail Khan.

Only two of the 17 sites were referred to the JWG for consideration: Rashakai Economic Zone (priority) and Hattar Phase VII Industrial Zone (alternative).

Moqpondass SEZ will be established in Gilgit-Baltistan.

In Azad Jammu and Kashmir, Bhimber Industrial Zone will be the priority project while Muzaffarabad SEZ will be the alternative.

In Fata, the only SEZ will be Mohmand Marble City.

ICT Model Industrial Zone will be established in Islamabad while an industrial park will be developed on Pakistan Steel Mills’ land in Port Qasim near Karachi.

According to the source, Pakistan agreed to provide gas, water, electricity and other facilities to factories in industrial parks. “Pakistan will also consider providing Chinese enterprises with a suitable policy package to attract potential investors,” the source said.

Experts on industrial zones from China will be visiting Pakistan in the near future to advise the country regarding the most suitable places for economic zones, the source said.

Published in Dawn, February 12th, 2017