By Abdul Ghani

 The government has proposed the establishment of a Federal SEZ Authority to oversee special economic zones in the Islamabad Capital Territory (ICT), according to a document available with Wealth Pakistan.

The move aims to accelerate industrialization through selected projects under the China-Pakistan Economic Corridor (CPEC).

Currently, the Board of Investment (BOI) serves as the SEZ Authority for the ICT under Clause 8(2) of the SEZ Act. To implement this plan, the government has proposed a key amendment to the SEZ Act 2012.

The proposed amendment under Clause 10 (1) suggests the creation of a Federal SEZ Authority, bringing all SEZs in the federal capital under a centralized federal framework.

Given the involvement of multiple stakeholders, including foreign investors and government entities, the government believes a more streamlined institutional structure is essential.

The proposed Federal SEZ Authority will help reduce procedural delays, particularly in obtaining No Objection Certificates (NOCs) and regulatory approvals from various departments. While approvals related to provincial jurisdictions will remain with respective provinces, the federal authority will act as a single-window facilitator for investors operating in federal SEZs.

The reform is expected to enhance investor confidence by ensuring quicker decision-making and minimizing bureaucratic hurdles, thereby improving Pakistan’s attractiveness as an investment destination.

Furthermore, the proposed changes aim to strengthen coordination between the federal and provincial governments, ensuring smoother execution of industrial projects and timely completion of SEZ-related infrastructure.

Analysts believe that establishing a dedicated Federal SEZ Authority could be a game-changer in addressing long-standing administrative bottlenecks and unlocking the full potential of SEZs in the capital.

Credit: INP-WealthPk