ISLAMABAD: The federal government has approved Karachi Industrial Park (KIP) as a federal Special Economic Zone (SEZ) to attract export-oriented industrial investment, promote technology transfer and value addition, and generate employment.

The decision was taken at the 11th meeting of the Board of Approvals for SEZs here on Friday. Chai­­red by Finance Mini­ster Muhammad Aurang­zeb, the meeting discussed measures to facilitate industrial investm­ent, improve infra­struc­ture provision and ensure the effective utilisation of industrial land.

According to an official announcement, the board approved the application for KIP to be designated as a federal SEZ. The proposed zone aims to attract export-oriented industrial investment, encourage technology transfer and value addition, and create jobs.

The board also approved the General Eligibility Criteria for providing utilities and allied services up to the designated zero point of privately established SEZs through government funding under the SEZ Act, 2012. The criteria establish a framework for considering the provision of road access, utilities and other essential facilities at government expense on a case-by-case basis.

In addition, the board approved the Land Lease Policy for Public Sector SEZs and Industrial Estates in Punjab. The policy seeks to promote industrial investment through long-term leasing, reduce upfront land costs and ensure the optimal use of public-sector industrial land, while encouraging investment in key sectors and emerging industries with high export potential.

The decisions reflect the government’s continued focus on facilitating industrialisation, improving the investment climate and strengthening the SEZ framework. The measures are intended to support greater private-sector participation, encourage export-oriented production and ensure the effective utilisation of public resources and industrial land.

Published in Dawn, October 24th, 2026