The federal government plans to establish a Special Economic Zone (SEZ) on the Pakistan Steel Mills (PSM) land, with development to occur in two phases. This will involve repurposing land to attract industrial investments and promote economic growth.
Phase 1: Development of Karachi Industrial Park (KIP)
The first phase will focus on 1,534 acres of Karachi Industrial Park (KIP) land. This phase is expected to be completed by December 2025, with an estimated budget of Rs 30 billion. The government will fund this phase, and construction will begin in February 2025.
| Phase 1 Details | Information |
|---|---|
| Land Area | 1,534 acres of KIP |
| Completion Date | December 2025 |
| Funding | Rs 30 billion (subject to approval) |
| Construction Start | February 2025 |
Phase 2: Repurposing of PSM Land
In the second phase, 4,875 acres of PSM land will be converted for industrial use. This phase is expected to be completed by June 2027. The Ministry of Industries and Production is responsible for expediting the land transfer process.
| Phase 2 Details | Information |
|---|---|
| Land Area | 4,875 acres from PSM |
| Completion Date | June 2027 |
| Ministry in Charge | Ministry of Industries and Production |
| Funding | Public sector and private investment |
Government-Private Collaboration Model
The project will explore a Government-to-Government (G2G) development model, with private developers involved. Public Sector Development Programme (PSDP) funding will be used, ensuring efficient development and alignment with investor needs.
| Collaboration Model | Information |
|---|---|
| Development Model | G2G with private developers |
| Funding Source | PSDP funds and private investment |
| Approval Process | Board of Investment approval |
Investor Incentives: Lease Model
A lease model will be introduced with a cost of $10,000 per acre per year, without any additional charges. Investors can choose to buy, lease, or license land for 30 years or more, making it a cost-effective option.
| Lease Model Details | Information |
|---|---|
| Lease Cost | $10,000 per acre per year |
| Additional Costs | None (no security deposit required) |
| Lease Duration | 30 years or more |
Summary
The Karachi Industrial Park, developed in two phases, aims to boost Pakistan’s industrial sector by repurposing land from PSM and KIP. The project will create job opportunities and attract investments, contributing to economic growth in the region. With flexible and affordable leasing terms, it offers an attractive investment opportunity for businesses.
