Pakistan's Export Zones Under Threat as IMF Terms Loom

In a significant development, Pakistan is set to phase out Export Processing Zones (EPZs) and Special Economic Zones (SEZs) by 2035 due to conditions tied to the IMF's Extended Fund Facility. A parliamentary committee has urged the government to renegotiate these terms to protect the nation's industrial and investment landscape.

During a Senate Standing Committee on Finance and Revenue meeting, members expressed concerns that eliminating these zones could severely impact exports. Convenor Talha Mahmood emphasized the importance of safeguarding these economic pillars, while discussions also highlighted challenges faced by exporters in banking transactions.

To address these issues, the committee proposed practical alternatives, such as allowing insurance guarantees to replace traditional bank guarantees. Additionally, the meeting covered the introduction of facial recognition technology to help taxpayers with verification problems, as well as updates on the National Auto Policy aimed at boosting electric vehicle infrastructure.

The committee also discussed the ongoing energy crisis linked to RLNG supply disruptions, underscoring the need for the Federal Board of Revenue to enhance its rapport with the business community to improve the ease of doing business.

Source: www.dawn.com