ISLAMABAD: The government is considering a proposal to provide electricity to Special Economic Zones (SEZs) at the same rates applicable to power Distribution Companies (Discos) and K-Electric (KE), sources told Business Recorder. This move, however, would conflict with the government’s commitment to the International Monetary Fund (IMF) to eliminate concessional tariffs for industries and refrain from granting new fiscal incentives to SEZs.
The Board of Investment, in collaboration with SEZ authorities and the Special Investment Facilitation Council (SIFC), recently completed a comprehensive survey of SEZs. Based on the findings, an action plan has been devised to make SEZs more attractive for investors, including a provision allowing SEZ developers with Nepra licenses to receive power outside the uniform tariff regime. However, the tariffs in SEZs will not exceed those of Discos/KE.
The Power Division has been tasked with updating the government on this proposal, particularly in light of the severe power shortages affecting SEZs like Rashakai, which has seen investment withdrawals due to insufficient electricity supply.
Chinese and Pakistani officials have expressed concerns over these issues, emphasizing the need for a swift resolution to ensure the continued success of SEZs under the China-Pakistan Economic Corridor (CPEC).
Story by Mushtaq Ghumman
