Pakistan eyes $3 billion investment as Sindh announces China-backed special economic zone

Pakistan’s Sindh Chief Minister Syed Murad Ali Shah (6th from top right), along with his cabinet members and other officials, witnesses the signing ceremony of a MoU between the developer of the Dhabeji Special Economic Zone and Chinese representatives in Karachi on January 18, 2025, to enhance industrial cooperation between Pakistan and China. (Photo courtesy: Sindh Information Department)
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Updated 18 January 2025
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Pakistan eyes $3 billion investment as Sindh announces China-backed special economic zone

  • CM Murad Ali Shah emphasizes its transformative potential amid hopes for over 100,000 jobs
  • Dhabeji SEZ will be located near Karachi’s ports, offering connectivity to regional trade routes

KARACHI: The provincial administration of Sindh on Saturday announced the establishment of a special economic zone after the signing of a memorandum of understanding supported by Chinese authorities, projecting the initiative to transform Pakistan’s economy by attracting $3 billion in investment and creating over 100,000 jobs.
The announcement is part of the second phase of the China-Pakistan Economic Corridor (CPEC), which aims to enhance industrial development by setting up such economic zones. The first CPEC phase focused on infrastructure and energy projects, while the second phase emphasizes industrial collaboration between the two countries.
The Dhabeji Special Economic Zone (SEZ), which is being developed under public-private partnership by the Sindh administration, is strategically located near Karachi’s ports, offering connectivity to regional trade routes to position it as a vital industrial hub.
“The Dhabeji SEZ is set to transform Pakistan’s economic landscape,” Sindh Chief Minister Syed Murad Ali Shah said, according to an official statement released after the MoU signing.
He added the project would stimulate industrial growth, reduce reliance on imports, boost exports and create a self-reliant and sustainable economy.
Special Assistant to the CM on Investment, Syed Qassim Naveed Qamar, also highlighted the SEZ’s transformative potential.
“This SEZ will create over 100,000 direct and indirect jobs, promote value-added industries and empower local communities through skills development.”
The MoU signing ceremony was also attended by members of the Sindh Cabinet, senior officials and other dignitaries.


Pakistan puts border districts on high alert amid Iran protests — official

Updated 6 sec ago
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Pakistan puts border districts on high alert amid Iran protests — official

  • The development comes as Iranian authorities try to suppress protests over faltering economy, with over 2,600 killed
  • Militancy in Balochistan has declined following the return of nearly 1 million Afghans, the additional chief secretary says

QUETTA: Pakistan has heightened security along districts bordering Iran as violent protests continue to engulf several Iranian cities, a top official in Pakistan’s southwestern Balochistan province said on Thursday, with authorities stepping up vigilance to guard against potential spillover.

The development comes as Iranian authorities try to suppress protests, which began late last month over the country’s faltering economy and the collapse of its currency, with more than 2,600 killed in weeks of violence in the Islamic republic.

The clampdown on demonstrations, the worst since the country’s 1979 Islamic revolution, has drawn threats from the United States (US) of a military intervention on behalf of the protesters, raising fears of further tensions in an already volatile region.

Pakistan, which shares a 909-kilometer-long border with Iran in its southwest, has said that it is closely monitoring the situation in the neighboring country and advised its citizens to keep essential travel documents with them amid the unrest.

“The federal government is monitoring the situation regarding what is happening in Iran and the provincial government is in touch with the federal government,” Hamza Shafqaat, an additional chief secretary at the Balochistan Home Department, told

Arab News in an exclusive interview on Thursday.

“As far as the law and order is concerned in all bordering districts with Iran, we are on high alert and as of now, the situation is very normal and peaceful at the border.”

Asked whether Islamabad had suspended cross-border movement and trade with Iran, Shafqaat said trade was ongoing, but movement of tourists and pilgrims had been stopped.

“There were few students stuck in Iran, they were evacuated, and they reached Gwadar,” he said. “Around 200 students are being shifted to their home districts.”

SITUATION ON PAKISTAN-AFGHANISTAN BORDER

Pakistan’s Balochistan province has long been the site of an insurgency by ethnic Baloch separatists and religiously motivated groups like the Tehreek e Taliban Pakistan (TTP). Besides Iran, the province shares more around 1,000-kilometer porous border with Afghanistan.

Islamabad has frequently accused Afghanistan of allowing its soil for attacks against Pakistan, an allegation denied by Kabul. In Oct., Pakistan and Afghanistan engaged in worst border clashes in decades over a surge in militancy in Pakistan. While the neighbors agreed to a ceasefire in Doha that month, relations between them remain tensed.

Asked about the government’s measures to secure the border with Afghanistan, Shafqaat said militancy in the region had declined following the return of nearly 1 million Afghan nationals as part of a repatriation drive Islamabad announced in late 2023.

“There is news that some of them keep on coming back from one border post or some other areas because we share a porous border and it is very difficult to man every inch of this border,” he said.

“On any intervention from the Afghanistan side, our security agencies which are deputed at the border are taking daily actions.”

LAW AND ORDER CHALLENGE

Balochistan witnessed 167 bomb blasts among over 900 militant attacks in 2025, which killed more than 400 people, according to the provincial government’s annual law and order report. But officials say the law-and-order situation had improved as compared to the previous year.

“More than 720 terrorists were killed in 2025 which is a higher number of operations against terrorists in many decades, while over a hundred terrorists were detained by law enforcement agencies in 90,000-plus security operations in Balochistan,” Shafqaat said.

The provincial government often suspended mobile Internet service in the southwestern province on various occasions last year, aimed at ensuring security in Balochistan.

“With that step, I am sure we were able to secure hundreds of lives,” Shafqaat said, adding it was only suspended in certain areas for less than 25 days last year.

“The Internet service through wireless routers remained open for the people in the entire year, we closed mobile Internet only for people on the roads because the government understands the difficulties of students and business community hence we are trying to reduce the closure of mobile Internet.”