Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema on Thursday chaired a high-level meeting to review the development of Karachi Industrial Park, where the proposed land lease model and incentive framework, aimed at attracting export-oriented industries and accelerating industrial investment, were discussed as they approach finalisation ahead of a planned early launch.
The Minister expressed the government's commitment to expediting the development of Karachi Industrial Park and ensuring that industrial units become operational at the earliest. He stressed that the proposed framework must prioritise export-oriented industries, with land allocation and associated concessions linked to clearly defined export commitments to ensure that the project contributes meaningfully to Pakistan's export growth.
The meeting examined various development and investment models, including a proposed land lease package designed to attract industrial investment through competitive incentives while linking land allocation and associated concessions to clearly defined export commitments.
Senator Ahad Cheema said the development of Karachi Industrial Park should be aligned with the country's broader economic objectives, particularly export enhancement, industrialisation and productive utilisation of available land.
During the meeting, officials briefed the Minister on proposals to prioritise industrial units with strong export potential, particularly those expected to export more than 50 percent of their production. They informed the meeting that the proposed framework would focus on facilitating industries whose output is predominantly export-oriented.
The Minister directed that the proposed land lease and incentive framework must incorporate clearly defined export performance obligations to ensure that concessions are extended only to industries genuinely contributing to export growth.
He emphasised that industries acquiring land or availing themselves of incentives on the basis of export commitments must fulfil those obligations. He directed that the proposed framework include provisions for the withdrawal of incentives and concessions, along with appropriate penalties, in cases where industrial units fail to meet their export commitments.
The meeting agreed that the proposed land lease model and incentive package should remain firmly focused on promoting export-led industrial growth. It was emphasised that land allocation and the provision of concessions must be linked to measurable export performance, with appropriate accountability mechanisms to prevent the misuse of industrial land and incentives.
Officials informed the Minister that a considerable number of industrialists had expressed interest in establishing export-oriented industrial units at Karachi Industrial Park, subject to the availability of appropriate incentives and essential infrastructure.
Reviewing the infrastructure requirements, Senator Ahad Cheema underscored the importance of ensuring adequate water and gas supplies, along with improved road connectivity, to make the industrial park fully functional.
He assured that the federal government would coordinate with the Government of Sindh to address water supply requirements and facilitate the development of the proposed 11-kilometre access road. He further said that coordination would be undertaken with the Ministry of Petroleum and Sui Southern Gas Company (SSGC) to address gas supply requirements for the industrial park.
The Minister assured that all necessary support would be extended at the federal level through the Board of Investment (BOI), Special Investment Facilitation Council (SIFC), Ministry of Industries and Production and other relevant institutions to facilitate the project's development and resolve outstanding issues.
Senator Ahad Cheema also highlighted the importance of productive utilisation of the land associated with Karachi Industrial Park, emphasising that the project should serve the dual objectives of enhancing Pakistan's exports and contributing towards reducing the outstanding liabilities of Pakistan Steel Mills.
He directed the concerned authorities to thoroughly examine viable development and investment models and finalise a commercially attractive yet performance-based land lease and incentive framework that would encourage export-oriented manufacturing while ensuring the project's long-term viability.
The Minister reiterated that coordinated efforts among federal and provincial authorities and relevant stakeholders would be essential to expedite the development of Karachi Industrial Park and transform it into a productive industrial hub contributing to export growth and economic development.
The meeting was attended by Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, Director General SIFC, Secretary Law, Secretary SIFC and other senior officials.
