As Pakistan looks for new ways to revive its economy, one crucial question stands out: can the Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) provide the transformation the country needs? CPEC has entered its second phase, shifting focus from infrastructure and energy projects to industrial cooperation and socio-economic development.

At the core of this shift is the establishment of SEZs, designed to steer Pakistan’s economy toward sustainable growth, driven by exports, while reducing the dependence on imports.

The strategy centers around attracting Foreign Direct Investment (FDI), moving away from traditional government-to-government financing and focusing on forming profit driven partnerships. The SEZs offer a range of attractive incentives, such as tax holidays, duty-free machinery imports and simplified processes through one window operations. The goal is not just to build infrastructure but to create millions of skilled jobs, transfer modern technology and introduce advanced management practices, which will shape Pakistan’s industrial future.

Significant progress is already visible in several SEZs across Pakistan. In Rashakai SEZ, located in Khyber Pakhtunkhwa, the first phase is operational, with over 60% of the land leased out for projects in industries like steel, pharmaceuticals and electronics assembly. In Allama Iqbal Industrial City in Punjab, the focus is on high-value sectors such as textiles, automotive parts and light engineering. The area is supported by modern energy infrastructure, making it an attractive hub for industrial growth. In Dabaji SEZ in Sindh, though it’s still in the early stages, progress is evident, with investment in sectors like food processing, chemicals and consumer goods........

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