Framework for SEZs: BoI initiates consultation process

The Board of Investment (BoI) has initiated consultation process for development of a national framework for the Special Economic Zones (SEZs) development, including a policy for private zones, single enterprise zones, conversion of existing industrial estates into the SEZs.
The BOI prepared a standardised template for the development agreement in line with the SEZ Act 2012 for public but in a process of developing template for private sector SEZs.
The Ministry of Law and Justice has been consulted, whether the status of SEZ may be awarded to a single enterprise under the SEZ Act 2012 and rules frame thereunder.
The ministry has principally endorsed single zone applications.
The notification of Sheikhupura Sun Tao Paper Mills (Pvt) Limited, Sheikhupura as sole enterprise SEZ is pending with the BOI.
No private developer is, however, allowed to develop SEZs under the China-Pakistan Economic Corridor (CPEC).
The documents available with Business Recorder show that a total of nine SEZs under the CPEC will be developed by public sector and the participation of private developer is not permitted. The BOI has notified only one SEZ under the CPEC and rest eight have been under process.
The participation of private developers has been allowed in development of non-CPEC SEZs. Total 13 SEZs have been notified since the promulgation of the SEZ Act 2012. One SEZ under the CPEC and 12 comes under non-CPEC, which have been notified.
Total number of non-CPEC SEZs is 22. Out of total, four will be developed by the public sector and six by the private sector as 12 were already notified. The government approved allocation of Rs19.90 billion for five years and Rs2.19 billion was allocated for the current financial year.
The board in consultation with the Power Division and the Planning Commission has evaluated the required amount of funds, which will be allocated in the financial year 2020-21.
A meeting of the Board of Approvals constituted under Section 5 (i) of the SEZ Act 2012 was held under the chairmanship of Prime Minister Imran Khan on March 4, 2020.
The committee evaluated two applications Bostan and Hub for award of status of SEZs in Balochistan.
Two more applications of Naushahro Feroze and Bholari, Sindh for award of status of the SEZ were evaluated.
A private developer applied for Bolhari SEZ in Sindh.
The BOI prepared a standardized template for the development agreement in line with the SEZ Act 2012 for public but was in a process of developing template for private sector SEZs.