Pakistan offers 1,000 acres to Turkiye for Export Processing Zone in Karachi

Pakistan has offered 1,000 acres of land free of cost to Turkiye for the establishment of a dedicated Export Processing Zone (EPZ) in Karachi Industrial Park, The News reported, citing official sources. 

The initiative, first proposed by Prime Minister Shehbaz Sharif during a bilateral meeting with Turkish President Recep Tayyip Erdogan in April 2025, aims to attract Turkish investment in Pakistan’s manufacturing and export sectors and support a $5 billion bilateral trade target.

A high-level Pakistani delegation, including officials from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and Sindh Export Processing Zone Authority, recently visited Istanbul and Ankara to make the case for the EPZ. 

During the visit, the delegation studied Turkish EPZ models, which have over six decades of experience. Initially government-run, Turkish EPZs have been developed and managed by the private sector since 1995, with the government playing a regulatory role. 

These zones offer highly attractive incentives, including 20-year tax holidays, nominal land charges, and uninterrupted utilities such as electricity, water, and gas. Pakistani officials said these practices would guide the development of the Karachi EPZ.

The delegation highlighted Karachi’s strategic location, developed infrastructure, and proximity to Middle East and Central Asian markets. “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,” a senior official said.

Ongoing discussions also aim to expand Pakistan’s Preferential Trade Agreement with Turkiye and explore a Free Trade Agreement with Gulf Cooperation Council (GCC) countries to open new channels for Pakistani exports and investment partnerships. 

The EPZ is seen as a potential game-changer, offering a streamlined, investor-friendly environment that could encourage Turkish manufacturing units to relocate to Karachi, taking advantage of cost reductions and regional market access.