Islamabad, September 12, 2024- The federal government has shelved a proposal to establish a new Export Processing Zone (EPZ) in Balochistan, citing conditions set by the International Monetary Fund (IMF).
According to reports, the Ministry of Industries and Production had initially proposed the EPZ to boost copper exports from the Siah Diq area. However, during a meeting of the Economic Coordination Committee (ECC), chaired by Finance Minister Senator Muhammad Aurangzeb, the Ministry of Finance opposed the plan, leading to its withdrawal.
The proposal aimed to designate the Siah Diq copper mine as an EPZ, but the Ministry of Finance raised objections based on IMF stipulations under the $7 billion Extended Fund Facility (EFF). These stipulations reportedly prevent Pakistan from establishing new Special Economic Zones (SEZs) or EPZs, with all existing incentives set to expire by 2035.
While the Khyber-Pakhtunkhwa government has reportedly resisted this condition, the federal government’s compliance has sparked concern among officials.
It is worth noting that earlier in the day, Special Investment Facilitation Council (SIFC) Secretary Jamil Qureshi stated that there were no restrictions on new EPZs, but the proposal was withdrawn just hours after his remarks.
