SPECIAL ECONOMIC

ZONE-SEZ IN
PAKISTAN

PRESENTED BY: MUHAMMAD ALTMASH ASIF & SIKANDAR SALEEM KHAN

 INTRODUCTION
⬩ SEZ are the areas established to promote a certain form of economic activity by offering
policies, lower taxes and subsidized utility rate.
⬩ SEZs are also known as investment promotion zones, industrial estates, free trade
zones and export processing zones.
⬩ Its helps a country through increased flow of FDI
⬩ China’s fastest economic growth is an example.
⬩ SEZs together with industrial sector contribute to 22 percent of GDP of China, 60
percent in total exports and 46 percent in attraction of foreign director investment (FDI)
inflows.

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SEZ IN PAKISTAN
⬩ SPECIAL ECONOMIC ZONES (SEZS) ACT, 2012 (AMENDED IN
2016)
⬩ Minimum land requirement is 50 acres (20.23 hectors or
202,343 Sq. m) with no maximum limit
⬩ Board of Investment is the Secretariat for SEZ
⬩ For developer, one time custom duties exemption on plant and
machinery and income tax exemption for 5 year.

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INCENTIVES OFFERED BY SEZ’s
⬩ Onetime exemption from custom duties on the import of capital goods
⬩ Income tax exemption for 10 years for units starting production by 30-06-
2020 and 5 years for the units starting production thereafter.
⬩ Gas, Electricity and other utilities at the zero-point of zones.
⬩ Security arrangements by the respective provincial government.
⬩ Warehouse and Dry Ports
⬩  Public Transport, Fire brigade, Hotels, Banks, Restaurants/Coffee Shops,
Hospital & Trauma Center, Petrol Pump & CNG Stations and Labor Colonies

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SEZ-BENEFITS FOR PAKISTAN
⬩ FDI
⬩ INDUSTRIAL DEVELOPMENT
⬩ EMPLOYEMNET QUALITY AND
GENERATION
⬩ TRASNFER OF TECHNOLOGY
⬩ INCREASE IN EXPORTS
⬩ ADJOINNING AREAS PROSPER.
⬩ INCREASE IN FOREGIN
EXCHANGE EARNING
⬩ GOVERNMENT TAX AND NON-
TAX REVENUE
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APPROVED/NOTIFIED SEZs
⬩ Rahim Yar khan industrial
estate
⬩ Vehari industrial estate
⬩ Bhalwal Industrial Estate
⬩ Rachna Industrial Park
⬩ Oil Village SEZ Rawalpindi
⬩ M-3 Industrial City, Faisalabad
Punjab
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⬩ Hattar Special Economic
Zone,KPK
⬩ Quaid-e-Azam Apparel Park
⬩ Korangi Creek Industrial Park
⬩ Bin Qasim SEZ
⬩ Kairpur SEZ
PROPOSED SEZs UNDER CPEC
⬩ Rashakai Economic Zone
⬩ Allama Iqbal Industrial City
⬩ Dhabejji, Thatta
⬩ Mirpur SEZ
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⬩ Port Qasim, Karachi
⬩ ICT Model Industrial Zone
⬩ Moqpondass SEZ, GB
⬩ Momand Marble City.
INDUSTRIAL ZONE DETAIL

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EXPORT PROCESING SEZs
⬩ EPZs are export oriented SEZs 1. EPZ-Karachi
with limited access to domestic 2. EPZ-Sialkot
markets.
3. EPZ-Sandak
⬩ The purpose of an EPZ is to
4. EPZ-Rsalpur
enhance a country’s exports.
⬩ The initiative of EPZs in Pakistan
commenced in the 1980.
⬩ There are a total of 4 EPZs in
Pakistan:

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INCENTIVES OFFERED IN EPZs
⬩ Developed land on competitive
rates for 30 years
⬩ Duty-free import of machinery,
equipment and materials
⬩ Freedom from national import
regulations
⬩ All filing and documentation is
done on-site
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⬩ Exchange control regulations
of Pakistan not applicable
⬩ Repatriation of capital and
profits
⬩ No sales tax on input goods
including electricity/gas bills
INCENTIVES OFFERED IN EPZs
⬩ Duty-free vehicles allowed
under certain conditions
⬩ Domestic market access
available at 20%; exceptions
may be available
⬩ Presumptive tax @ 1%.
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⬩ Obsolete/old machines can be
sold in domestic market of
Pakistan after payment of
applicable duties & taxes.
⬩ Defective goods/waste can be
sold in domestic market after
payment of applicable duties,
maximum up-to 3% of total
value.
S E Z D E V E LO P M E N T
MODES

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 REFERENCE
http://www.kcci.com.pk/research/wp-content/uploads/2019/10/SEZs-A-Fast-Track-Solution-to-Pakis
tans-Industrial-Development.pdf
http://pbit.gop.pk/special-economic-zones
https://fiedmc.com.pk/?page_id=14
https://www.pide.org.pk/psde/pdf/AGM32/papers/Special-Economic-Zones-SEZs.pdf
http://cpec.gov.pk/special-economic-zones-projects
https://invest.gov.pk/sez#
https://fiedmc.com.pk/?page_id=14

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 THANK YOU!
FOR YOUR ATTENTION

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Q/A SESSION
We’re Looking Forward To Answer Your Questions.

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