By Abdul Ghani

The Special Investment Facilitation Council (SIFC) has approved 6,409 acres of Karachi Industrial Park (KIP) as a Federal Special Economic Zone (SEZ) on Pakistan Steel Mills (PSM) land, with about 5,875 acres proposed for development by multiple developers.

According to official documents available with Wealth Pakistan, an initial block of 534 acres has been proposed under the Public Sector Development Program (PSDP), while the remaining approximately 5,875 acres has been proposed for multiple developers.

Separate approval would be required for individual developers.

The proposed financial models for KIP include a plug-and-play, fully developed model, an export-oriented model, and a private/co-developer model.

Under the private/co-developer model, 500 to 1,000 acres of undeveloped land parcels would be offered free of cost. The developer would finance and develop the zone and ensure industrialization.

The developer would not charge more than a specified amount per acre per year for a minimum 70% export, while the master developer, Pakistan Industrial Development Corporation, would bear 90% of the development cost.

Under another model, the government would develop 560 acres, which would be available by March 2027. The model provides different rates linked to minimum export requirements of 70% and 50%.

The plug-and-play model envisages more than 100 acres of fully developed land, with electricity, gas and water available. This model is ideally suited to export-oriented industry because of its proximity to the seaport.

The documents also show foreign engagement supporting the KIP pipeline, including memorandums of understanding (MoUs) with Abu Dhabi Ports, IFZA of the United Arab Emirates, and Shandong XinXu of China. MODON of Saudi Arabia and Türkiye are listed as having engagement with the project.

The KIP is ideally suited to export-oriented industry, with land leases of up to 50 years and access to a port, off-dock terminal, customs bonded warehouse, skilled human resources, raw materials, and hinterland connectivity.

Credit: INP-WealthPk