Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema chaired a high-level meeting Thursday to review the development of Karachi Industrial Park, where a proposed land lease model and incentive framework aimed at attracting export-oriented industries neared finalisation ahead of a planned early launch.
Cheema said the government is committed to expediting development of the park and ensuring industrial units become operational as soon as possible. He stressed that the framework must prioritise export-oriented industries, with land allocation and concessions tied to clearly defined export commitments to ensure the project meaningfully contributes 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 concessions to measurable export commitments.
Officials briefed the minister on proposals to prioritise industrial units with strong export potential, particularly those expected to export more than 50% of their production. They said the framework would focus on facilitating industries whose output is predominantly export-oriented.
Cheema directed that the framework incorporate clearly defined export performance obligations, ensuring concessions are extended only to industries genuinely contributing to export growth. He emphasized that industries acquiring land or incentives based on export commitments must fulfill those obligations, and directed that the framework include provisions for withdrawing incentives and imposing penalties on units that fail to meet their commitments.
The meeting agreed that the land lease model and incentive package should remain focused on promoting export-led industrial growth, with land allocation and concessions linked to measurable export performance and accountability mechanisms in place to prevent misuse of industrial land and incentives.
Officials informed the minister that a considerable number of industrialists had expressed interest in establishing export-oriented units at Karachi Industrial Park, subject to the availability of appropriate incentives and essential infrastructure.
Reviewing infrastructure requirements, Cheema underscored the importance of ensuring adequate water and gas supplies, along with improved road connectivity, to make the industrial park fully functional. He said the federal government would coordinate with the Government of Sindh on water supply requirements and the development of a proposed 11-kilometre access road, while coordination with the Ministry of Petroleum and Sui Southern Gas Company would address gas supply needs.
Cheema assured that all necessary support would be extended at the federal level through the Board of Investment, Special Investment Facilitation Council, Ministry of Industries and Production, and other relevant institutions to facilitate the project's development and resolve outstanding issues.
He also highlighted the importance of productive land utilisation, saying the project should serve the dual objectives of enhancing Pakistan's exports and contributing toward reducing the outstanding liabilities of Pakistan Steel Mills. He directed authorities to thoroughly examine viable development and investment models and finalise a commercially attractive, performance-based land lease and incentive framework that encourages export-oriented manufacturing while ensuring long-term project viability.
Cheema reiterated that coordinated efforts among federal and provincial authorities and relevant stakeholders would be essential to expedite the park's development 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.
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