Pakistan Dramatically Expands Economic Zones with China’s Support
A surge in approved special economic zones signals a deepening economic partnership between Pakistan and China.
- The number of approved special economic zones (SEZs) has jumped from seven to 44.
- This expansion is a key component of the second phase of the China-Pakistan Economic Corridor (CPEC).
- the Board of Investment (BoI) is leading the effort, with support from China’s National Development and Reform Commission (NDRC).
- Progress is being made on key industrial parks, including Karachi Industrial Park and a SEZ in Gilgit-Baltistan.
Pakistan is considerably accelerating its industrial development with the approval of 44 special economic zones,a dramatic increase from the previous seven,thanks to collaborative efforts under the second phase of the China-pakistan Economic Corridor (CPEC). This ample growth, revealed during a briefing on Friday, underscores a renewed focus on SEZ-led industrialization and strengthened business-to-business (B2B) cooperation between the two nations.
The Board of Investment (BoI) is spearheading this initiative as the lead Pakistani agency for the Joint Working Group (JWG) on Industrial Cooperation, working in tandem with China’s National Development and Reform Commission (NDRC). Since its establishment, the Project Management Unit of the CPEC-Industrial Cooperation Development Project (PMU CPEC-ICDP) has been instrumental in revitalizing Pakistan’s SEZ framework.
Minister for Board of Investment, Qaiser Ahmed Sheikh, recently visited the Project Management Unit of the CPEC Industrial Cooperation Development Project (PMU CPEC-ICDP) in Islamabad to assess the progress of industrial cooperation and SEZ development under CPEC Phase-II. The visit highlighted key achievements, including advancements at the Karachi industrial Park (KIP) and the development of the Gilgit-Baltistan SEZ.
What are the biggest hurdles to foreign investment in Pakistan, and how is CPEC addressing them? The approval of the Land Lease Policy for Bin Qasim Industrial Park (BQIP) was specifically cited as a solution to a long-standing structural obstacle for investors. Moreover, the BoI is actively working to ensure that essential utilities are available to SEZs, facilitating their transition from the planning stage to full operational capacity.
The long-term plan for CPEC Industrial Cooperation has been finalized and is being implemented through a structured Action Plan aligned with ‘CPEC Phase 2.0’. This new phase prioritizes industry-led growth, export-oriented manufacturing, technology transfer, and value addition, with SEZs serving as central hubs.
The current industrial cooperation framework aligns with the government’s “Uraan Pakistan” 5Es Framework,notably in boosting exports,enhancing competitiveness,and fostering sustainable economic development through joint-venture-based industrialization.Officials emphasized the importance of a predictable, obvious, and investor-friendly environment for both domestic and foreign investors.
Looking ahead, 2026 marks the 75th anniversary of diplomatic relations between Pakistan and China. The PMU CPEC-ICDP is planning a series of commemorative and investment-focused events throughout the year to further strengthen bilateral industrial ties. The boi reaffirmed its commitment to proactive investor facilitation, policy coordination, and the effective implementation of CPEC industrial cooperation initiatives.
The briefing underscored the BoI’s structured approach to investment promotion and outreach, particularly targeting Chinese enterprises, signaling a continued dedication to fostering a robust and mutually beneficial economic partnership.
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