The Board of Investment (BoI) has directed relevant authorities to address the challenges investors are facing in Pakistan’s Special Economic Zones (SEZs).
Sources say the BoI organized a meeting of the Working Group on SEZs in response to a request from the Special Investment Facilitation Council (SIFC). The meeting focused on issues raised by Challenge SEZ regarding the draft development agreement. These issues had already been discussed between SEZA Punjab and PBIT, with a recommendation for Challenge Fashion (Pvt) Ltd to negotiate directly with SEZA Punjab.
The CEO of Challenge Fashion confirmed that the company had contacted the BoI but noted that the letter had not reached them. He emphasized that negotiations with SEZA Punjab should take priority, and once those are settled, the BoI could step in to resolve the matter.
The CEO also mentioned that construction would begin once the access road, currently under construction since September 2024, is completed, which is expected by February 2025. The SEZ also needs utilities provided up to the zero point before the allotment process can start.
The BoI Chairperson asked SEZA Punjab to clarify the situation, and SEZA Punjab responded that SNGPL had issued a demand notice to the company, which must be paid before further actions can proceed. The CEO pointed out that providing utilities up to zero point is the government’s responsibility, while the company is committed to developing the internal infrastructure as planned.
Turning to issues at Hub SEZ, the Chairperson invited the Managing Director of LIEDA to update the group. The MD explained that Hub SEZ is facing funding issues for development. The revised PC-1 (Second Revision), which includes new components and cost escalations, is still awaiting approval from PDWP and CDWP. Additional funding is needed for two 4MW feeders, and there is a lack of external infrastructure such as gas, electricity, and water supply to the SEZ’s zero point. The MD mentioned that he had requested funds from the Ministry of Industries & Production but had not received a response.
A representative from the Ministry of Planning, Development & Special Initiatives clarified that no action was pending on their end, and once the PC-1 is submitted, it will be reviewed by the CDWP. However, representatives from the Ministry of Industries & Production, SEZA Balochistan, and the Government of Balochistan were absent from the meeting.
