The SEZ (Special Economic Zone) agreement was signed on 11th Sept 2020 by Prime Minister Imran Khan. This agreement has opened the first Pak-China economic corridor as it will bring Direct Foreign Investment in Pakistan.
The chairman of the board of directors of the investment petition, Atif Bukhari, said that the signing of the Rashakai Special Economic Agreement is an awareness of developing a Special Economic Zone in Pakistan. He also mentioned that the signing of the Rashakai Economic Development Agreement within the economic corridor would help realize the vision of exclusive economic zones that would ultimately lead to industrial Pakistan’s prosperity. He added that the $ 128 million projects, covering over 1,000 acres of land, were granted special economic zone status on August 6, 2019, and a concession agreement was signed in April 2019.
There has been a corresponding development on this front, and the regions are preparing to conduct commercial activities. Pakistan’s proximity to China is expected to enable these SEZs to increase economic interdependence for mutual economic benefits.
The Special Economic Zones Act 2012, according to section 13, binds the federation, the province, and the notable economic zone developer through an agreement to create and develop special economic zones, which is aptly called a Development Agreement.
This contract provides a roadmap for creating a special economic zone with the provincial or federal governments and a developer jointly responsible for the development and success of the special economic zones.