By Samia Khalid ISLAMABAD, Mar. 14 (INP-WealthPK): Pakistan’s special economic zones (SEZs) provide regionally more competitive incentives which makes it an attractive destination for investors. According to the CPEC Authority, of the total nine SEZs under the China Pakistan Economic Corridor, four are at an advanced stage of completion, in addition to the Gwadar Free Zone. The SEZs are seen as economic policy tools for boosting acceptability and legitimacy of industrial transformation plans, as well as attracting domestic and international investment and opening up the economy. They also increase the value-added component of exports, generate jobs, boost import substitution, and mobilise foreign exchange. Many developing and affluent countries have successfully built economic zones for regional growth and prosperity, with the purpose of generating economic spillover outside of the zones. The SEZs, a type of industrial strategy that focuses on attracting both domestic and foreign direct investment (FDI), are continuing to expand and change across the world. The SEZs not only serve as a policy tool for attracting foreign direct investment (FDI), but they also promote global FDI competitiveness by offering a variety of incentive packages to investors. According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report issued in 2019, there are more than 5,400 SEZs in almost 150 countries, up from 4,000 SEZs in 2015, indicating a 35% rise. The aims and forms of SEZ policies vary significantly among economies at different phases of the development ladder, as defined by the UNCTAD. Most SEZs in industrialised economies are custom-free zones that relieve tariffs and the administrative load of customs procedures, allowing complex cross-border value chains to thrive. Incentives are the driving force behind any SEZ’s capacity to attract investors. The fiscal incentive package has been adjusted multiple times in the previous two years to make it more attractive and regionally competitive. In the whole region, SEZs in Pakistan offer regionally competitive incentives. In terms of tax incentives, Pakistan provides a full tax exemption on income for 10 years as compared to other countries in the region. Moreover, there is a facility of duty-free import of all plant, machinery, equipment, spares and accessories required for manufacturing and the provision of services. The SEZs in Pakistan also provide customs and other duty exemptions for export-oriented units. In Pakistan, 19 multi-industry SEZs are open for business with respect to the availability of infrastructure (electricity, gas, water, road accessibility, etc.) for investors who wish to set up units in the next two years. According to the CPEC Authority, 5,300 acres of land is available in these SEZs. Moreover, an additional 1,000 acres of land is planned to be added. Out of the total of nine CPEC SEZs, four are at an advanced stage of readiness, in addition to the Gwadar Free Zone. With the provision of exceptional incentives in SEZs, Pakistan can boost industrial upgrading like other advanced economies. Pakistan is keen to kick-start by using new adapters in manufacturing, industrialisation, and export generation in order to compete with other countries in the region. In this regard, China’s Shenzhen SEZ is a prime example for Pakistan.