Pakistan has offered Turkiye 1,000 acres of land at no cost for setting up a dedicated Export Processing Zone (EPZ) within the Karachi Industrial Park.
The initiative, initially put forward by Pakistan Prime Minister Shehbaz Sharif during a bilateral meeting with Turkish President Recep Tayyip Erdogan in April, seeks to draw Turkish investment into Pakistan’s manufacturing and export industries while advancing the goal of achieving $5 billion in bilateral trade.
A senior Pakistani delegation comprising representatives from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and the Sindh Export Processing Zone Authority recently traveled to Istanbul and Ankara to promote the proposed EPZ.
During the visit, the delegation examined Turkish Export Processing Zone (EPZ) models, which benefit from more than 60 years of experience. Originally operated by the government, these zones have been privately developed and managed since 1995, with the government now serving primarily as a regulator.
These zones provide generous incentives, such as 20-year tax exemptions, minimal land costs, and continuous access to essential utilities like electricity, water, and gas. Pakistani officials noted that these features would serve as a blueprint for shaping the Karachi EPZ.
The delegation emphasized Karachi’s strategic positioning, well-established infrastructure, and close access to markets in the Middle East and Central Asia.
“Karachi Industrial Park offers immense potential. Turkish companies relocating here could cut freight costs from $4,000 to just $1,000 per ton for exports to the region,” an official said.
Ongoing talks also focus on broadening Pakistan’s Preferential Trade Agreement with Turkiye and pursuing a Free Trade Agreement with Gulf Cooperation Council (GCC) nations, aiming to create new opportunities for Pakistani exports and investment collaborations.
The proposed EPZ is viewed as a transformative initiative, designed to provide a simplified, investor-friendly setting that could attract Turkish manufacturers to shift operations to Karachi, benefiting from lower costs and improved access to regional markets.
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