SPECIAL ECONOMIC ZONES IN PAKISTAN: A COMPREHENSIVE ANALYSIS OF POLICY, PERFORMANCE, AND PROSPECTS

Abstract

This study examines the evolution, governance, performance, and developmental impact of Special Economic Zones (SEZs) in Pakistan within the broader context of industrialization, regional connectivity, and foreign direct investment. Using a mixed-methods approach that combines policy review, comparative analysis, and secondary data evaluation, the manuscript argues that SEZs occupy a critical yet underperforming position in Pakistan’s economic landscape. While CPEC has accelerated SEZ deployment by integrating them into regional industrial corridors, persistent governance challenges, infrastructure bottlenecks, policy inconsistencies, and coordination failures have hindered their full potential. Findings indicate that SEZ effectiveness depends heavily on predictable regulatory frameworks, competitive incentives, export orientation, and institutional capacity. The study proposes a refined policy model that aligns Pakistan’s SEZ strategy with global best practices and sustainable development goals.