ISLAMABAD: The International Monetary Fund has asked Pakistan to stop setting up any industrial zones that offer incentives for investment, Bloomberg reported on Friday, a dictate that could undermine Islamabad’s efforts to attract more Chinese industries into the South Asian country.
The IMF’s condition comes as part of the approval of a new $7 billion bailout package last month and as Prime Minister Shehbaz Sharif tries to convince Chinese companies to shift more industries into Pakistan to give fresh momentum to projects under its Belt and Road Initiative. The country had planned to build at least nine special economic zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) project that are at various stages of development.
“The authorities will refrain from providing incentives such as tax breaks and subsidies to any new or existing special economic zones,” Bloomberg reported, quoting an IMF report from Oct. 10. “This will help provide a level playing field for investment.”
The lender has asked Pakistan to offer a level playing field to businesses to attract investments without undermining the country’s tax base, according to Nathan Porter, IMF’s mission chief for Pakistan.
The country has provided protection or concessions to sectors that were low in productivity, he said in a briefing last month, which was why Pakistan hadn’t been able to achieve the kind of sustainable growth rates many of its regional peers have.
“The demand from IMF is expected to immediately hit a new export processing zone that the government plans to build at the site of Pakistan Steel Mills in Karachi, Pakistan’s commercial capital,” Bloomberg said.
Pakistan authorities, after securing the 37-month loan from the IMF in September, are working to invite about 100 major Chinese industries to invest in the textile parks that Ruyi Shandong Group will start building in its southern Sindh and central Punjab provinces later this year.
The Sharif government has been wooing investors through offering special tax incentives, including exemptions from paying taxes and customs duties on imported goods, to businesses set up in such industrial zones.
China has built major infrastructure and energy projects in Pakistan to push its flagship CPEC corridor project that has helped the nation but left it burdened by huge debts.
IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg
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IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg
- IMF has asked Pakistan to refrain from providing incentives such as tax breaks and subsidies to any new or existing SEZs
- Pakistan has been wooing investors through special tax incentives, including exemptions on taxes and customs duties
Pakistan secures $3 million to protect marine biodiversity, reform fisheries
- Global Environment Facility funding will help improve monitoring of coastal and marine ecosystems
- Fisheries contribute about 1 percent to Pakistan’s GDP but are a critical livelihood source in coastal areas
KARACHI: Pakistan has secured $3 million in funding from the Global Environment Facility (GEF) to conserve marine biodiversity and shift toward sustainable and regenerative fisheries management, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said on Saturday.
The funding, drawn from the GEF Trust Fund, will support a project aimed at strengthening fisheries governance, reducing environmental damage and improving monitoring of coastal and marine ecosystems. Of the total amount, $1.2 million will finance biodiversity interventions, while $1.8 million will address land degradation linked to coastal and marine areas.
“Our sector faces overfishing, high post-harvest losses, and illicit practices that strain marine environments,” Chaudhry said in a statement. “With 701 boats in tuna fishing, mostly artisanal with some semi-industrial, unselective methods and poor onboard storage lead to waste and lost market opportunities.”
“Pakistan, a key player in the Indian Ocean Tuna Commission (IOTC) and aligned with G16 like-minded coastal states, struggles with unreliable data, weak regulations, and over 70 unofficial landing sites that hinder monitoring, control and policy-making,” he added.
The minister said the program would focus on data collection, policy reform, infrastructure upgrades, capacity building and improved market access, while advancing commitments such as reducing fishing effort, expanding Marine Protected Areas and cutting bycatch.
GEF, which finances environmental initiatives under major global conventions including the UN Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD), supports projects in biodiversity, climate change, international waters and land degradation.
Fisheries contribute about 1 percent to Pakistan’s GDP but are a critical source of livelihoods in coastal areas.
Chaudhry said the initiative was designed to modernize the fisheries sector, improve the livelihoods of fisherfolk and align Pakistan’s marine management practices with national and international environmental commitments.
