Govt greenlights import of local construction materials for EPZs

Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has given the green light to important changes aimed at boosting the country’s Export Processing Zones (EPZs) and facilitating the construction materials’ imports to Sialkot and Gujranwala in Punjab, and Risalpur in Khyber Pakhtunkhwa (KP), according to news published on July 26.

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In the wake of the recent developments, the key changes will now allow the import of construction materials into EPZs in the Northern region by using local currency instead of foreign convertible currency.
This is a move aimed at expediting the development of the EPZs and helping meet export targets. However, this relaxation will apply only to locally manufactured products by Pakistani entrepreneurs, and the special provision will be in effect for the next five years.
The Ministry of Industries and Production (MoIP) proposed these amendments based on the request from the Sialkot Chamber of Commerce and Industry (SCCI). The ECC not only agreed to apply the changes to Sialkot but also extended them to Gujranwala, Risalpur EPZs, and any future EPZs.
Previously, EPZs were set up mainly by foreign investors or non-resident Pakistanis, and due to a lack of locally manufactured construction materials, they had to rely on imports.

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Now, with the availability of locally made construction materials, the government aims to encourage investors to use Pakistani products like iron, steel, cement, ceramics, and others to support the domestic industry and save foreign exchange. Further, the amendments to the EPZA Rules of 1981 and EPZs (Control of Entry and Exit of Persons and Goods) Regulations of 1994 are now set for final approval by the federal cabinet.