Export processing zones to reopen ‘dead industrial units’

Exclusive zones for China, Turkey and Bangladesh under study.

KARACHI: The management of Export Processing Zones Authority (EPZA) has vowed that it will revamp all processing zones in the country by attracting new investments and reopening dead industrial units.

Talking to selected media, EPZA Chairperson Muhammad Tariq Hassan said the impressive potential of export processing zones encouraged the new management to redefine the face of these zones despite difficult economic conditions in the country.

Nine export processing zones were working in different cities, of which three were running in deficit because of different infrastructure issues, he said, adding two zones of Karachi were the most profitable.

Hassan, who took the helm of affairs at EPZA last month, said he had set a target to revive at least 50 sick industrial units in different zones this year while 30 other units would be rehabilitated in later months. “EPZA is in talks with 37 closed industrial units and hopes that all industries will restart production soon after finalisation of all matters,” he said.

To increase investment in the export processing zones, the new management decided to address all structural problems that arose from time to time. Export processing zones of Gujranwala, Sialkot and Risalpur had problems of gas and electricity supply that were being resolved by taking business community of these cities into confidence, he said.

Shedding light on the problems of Karachi Export Processing Zone, Hassan said all the irritants like extortion and land grabbing were controlled by increasing security measures inside and outside of the zone. He said Rangers and police personnel had arrested a number of miscreants owing to which security at the zone had improved substantially.

The new management is also interested in studying exclusive export processing zones for China, Turkey and Bangladesh to improve the performance of local zones and increase exports.

Experts say owing to lack of marketing, export processing zones have never been able to receive good response from national and international investors. Even 30 years after establishment, most of the zones are in initial phases of development due to lack of political will of successive governments.

Published in The Express Tribune, October 18^th, 2011.