The federal government will fund utilities and essential infrastructure for privately developed Special Economic Zones (SEZs) under a new policy approved to support industrial investment in Pakistan.

The government has also granted federal SEZ status to Karachi Industrial Park and approved a new land lease policy for public-sector industrial zones in Punjab.

Finance Minister Muhammad Aurangzeb chaired the 11th meeting of the Board of Approvals for SEZs on October 23, 2026, where the three measures were approved to promote industrial development and export-oriented production.

Karachi Industrial Park is expected to attract export-focused investment, encourage technology transfer and value addition, and create employment opportunities.

Under the new framework, privately established SEZs can seek government funding for road access, utilities and other essential services up to their designated zero point. Requests will be assessed on a case-by-case basis under the SEZ Act, 2012.

The board also approved a land lease policy for public-sector SEZs and industrial estates in Punjab. The policy aims to reduce upfront land costs through long-term leases and encourage businesses to invest in industrial activities.

It is also intended to improve the use of publicly owned industrial land and attract investment in key sectors and emerging industries with export potential.

The government said the measures would encourage private-sector participation, improve the investment environment and support more efficient use of public resources and industrial land.

Federal ministers Qaiser Ahmed Sheikh, Ahsan Iqbal and Jam Kamal Khan attended the meeting, along with Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan and Punjab Industries, Commerce and Investment Minister Shafay Hussain.

Senior officials from the Finance Division, Board of Investment, Special Investment Facilitation Council, federal and provincial SEZ authorities, relevant ministries and provincial departments also attended.