Ayesha Mudassar

Special economic zones (SEZs) have emerged as an important tool to attract investment, enhance industrialization, and promote trade openness. Talking to WealthPK, Abdullah Shehryar, Executive Commercial Officer of China Road and Bridge Corporation (CRBC), said that SEZs in Pakistan are flagship projects of industrial cooperation under the China-Pakistan Economic Corridor (CPEC) framework.

The zones have predominant investment feasibility for different sectors including processing and manufacturing, pharmaceuticals, information technology, agriculture and horticulture, home appliances, automobiles, and building materials. According to the CRBC executive commercial officer, the SEZs will foster collaboration and innovation, boost infrastructural connectivity, generate employment opportunities, and enhance productivity.

Discussing the inauguration of Rashakai Special Economic Zone (RSEZ), Abdullah Shehryar said Chinese investment had encouraged investors from various countries to invest in a wide range of sectors. So far, 23 enterprises have been attracted including Century Steels Limited, Pakistan Oxygen Limited, and Aryana Innovation Chemicals, he added.

Owing to the country’s locational advantage and resource pool, these economic zones will significantly improve regional and global integration, as they have the potential to become a base for exports to Afghanistan, Central Asia, and beyond. WealthPk found that countries across the world have developed SEZs to promote regional development and prosperity. Considering their effectiveness at the world level, Pakistan developed the SEZ Act in 2012 to promote economic development.

Talking to INP-WealthPK, PIDE research economist Saddam Hussein said the SEZs will play a significant role in reducing inequality and poverty by supporting innovation. Moreover, the offered incentives – low tax rates – will help businesses become more competitive. However, for their sustainable development, these SEZs should be built considering the needs and constraints of the local community.

Credit: Independent News Pakistan-WealthPk