Karachi Export Processing Zone (KEPZ) left behind all the export processing zones (EPZs) of the country in terms of exports during the financial year ended June 30, 2023. Total exports from all the EPZs stood at only $891 million compared to $665.50 million in KEPZ during the year, EPZs export statistics show. A total of seven EPZs are operating in Karachi, Sialkot, Gujranwala, Risalpur, Saindak, Duddar and Reko Diq. The zones were developed under different modes like public sector development plan, joint venture with provincial departments and single entity zone of a company. Karachi EPZ's Phase-I and Phase-II were developed on 211 and 94 acres, respectively, and both were fully occupied with no land available. A total of 68.32-acre Phase-III of the KEPZ is in the planning and designing phase, and will be completed by December 2025. The EPZs are working under the Export Processing Zones Authority (EPZA), a government-owned venture conceived and designed to increase and improve the exports of the country. Its main objectives are accelerating the pace of industrialisation in the country and enhancing the volume of exports by creating an enabling environment for investors to initiate ambitious export-oriented projects in the zones, which would, as a corollary, create job opportunities, bring in new technology and attract foreign investment.

The EPZA charges a presumptive tax from the exporting units at the rate of 1% of the Free On Board (FOB) value of the exported commodities, and over Rs2.4 billion presumptive tax was collected in FY23. Established in 1980, the EPZA is one of the fast-growing projects undertaken by the government and carries a great appeal for both local and overseas investors. "At EPZA, we believe in providing quality services to achieve the goal of 'export for progress'," said Dr Saifuddin, the authority's chairman. He said that the reason for "our success in this venture is simple as we provide service with a mission' and this success would not have come about without active cooperation and participation of some other sectors, which worked closely with 'us and helped us stand where we are today."

"The EPZA is pursuing an extensive programme to create a network of export processing zones in Pakistan. These EPZs are being established in close cooperation or under joint venture arrangements with the private sector," he stated. Talking about future initiatives of the authority, Saifuddin said efforts were being made to develop an EPZ in Sukkur to promote industrialisation and employment generation in upper Sindh. He added the provincial government had been requested to provide 200 acres of land for the purpose. He said the EPZA offered industrial and trading units exemption from customs and other duties on the import of raw materials, equipment and machinery, while laws and regulations pertaining to import export, foreign exchange, labour and banking were not applicable in the EPZs. He said past restrictions on imports had not affected trading units established in EPZs.

Credit: Independent News Pakistan (INP)