ISLAMABAD: Pakistan’s Special Economic Zones (SEZs) have witnessed significant expansion, growing from seven in 2019 to 44 by 2025, as part of a concerted effort to strengthen industrial cooperation under the China–Pakistan Economic Corridor (CPEC), officials informed Federal Minister for Investment Qaiser Ahmed Sheikh during a briefing in Islamabad.
The update came during Minister Sheikh’s visit to the Project Management Unit of the CPEC Industrial Cooperation Development Project (PMU CPEC–ICDP), where officials reviewed the ongoing progress of SEZ development under Phase-II of CPEC. The PMU serves as the implementation arm of the Board of Investment (BOI), which acts as Pakistan’s lead agency for industrial cooperation alongside China’s National Development and Reform Commission. Since its establishment in 2019, the unit has played a pivotal role in expanding the SEZ framework and facilitating investors.
Officials briefed the minister on several key initiatives, including the development of the Karachi Industrial Park and a SEZ in Gilgit-Baltistan, along with the approval of a land lease policy for the BQIP. These measures aim to resolve structural challenges faced by investors and streamline the transition of projects from planning to operational stages. The BOI also plays a central role in ensuring the provision of essential utilities to SEZs, a critical step to make them investment-ready and operationally viable.
A core focus of CPEC Phase-II is to deepen Pakistan–China business-to-business engagement. Officials cited the B2B Investment Conference held during Prime Minister Shehbaz Sharif’s visit to China in September 2025, which resulted in the signing of more than 160 memoranda of understanding (MoUs) and joint ventures. A follow-up mechanism has been established to convert these commitments into tangible investment activity, reflecting the sustained momentum of industrial cooperation between the two countries.
The briefing also highlighted the long-term action plan for CPEC industrial cooperation, which has been aligned with the transition to CPEC 2.0. This plan emphasizes export-oriented manufacturing, technology transfer, and value addition, positioning SEZs as anchor platforms for industrial growth. The plan aims to boost local production capabilities, integrate global supply chains, and enhance Pakistan’s competitiveness in regional and international markets.
Minister Sheikh underscored the importance of continuity and institutional capacity to sustain progress under CPEC Phase-II. He reaffirmed the government’s commitment to facilitating investors, ensuring policy coordination, and providing a supportive environment for industrial development. The minister further highlighted upcoming initiatives in 2026, including programs to mark 75 years of Pakistan–China diplomatic relations, which are expected to further deepen industrial cooperation and bilateral investment ties.
The expansion of SEZs and strategic industrial planning under CPEC Phase-II reflects Pakistan’s commitment to leveraging its partnership with China to drive economic growth, generate employment, and attract foreign investment. By focusing on structural reforms, investor facilitation, and B2B engagement, the government aims to transform SEZs into engines of export-oriented industrial development, ensuring long-term benefits for the national economy.
Officials concluded that with institutional support, streamlined regulations, and enhanced infrastructure, Pakistan’s SEZs are well-positioned to play a central role in advancing industrialization, technology adoption, and sustainable economic growth under CPEC Phase-II.
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