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In the Chagai district of Balochistan, a new Export Processing Zone (EPZ) was authorized by the government. The Siah Dik Copper Project, of which China owns 80%, is located there.
The project was approved by the Economic Coordination Committee (ECC) of the Cabinet, which is chaired by Finance Minister Muhammad Aurangzeb. Near Saindak, three mining leases span 4,208 acres and have been declared a Private Export Processing Zone.
China Metallurgical Group Corporation owns 80% of the shares in the KoheSultan Mining Company Limited, while the local Siakoh Mineral Development Corporation has the other 20%. The company will be responsible for managing the zone.
The decision’s stated goal is to release the mineral resources of the area to their full development and export potential. A news source states that officials from Pakistan’s finance ministry have stated that, although the country is still required by an IMF condition to phase down EPZs and Special Economic Zones (SEZs) built before 2023, they have made an exception for projects that were approved within the past two years.
Regardless of whether or not they are operational, the incentives for current SEZs and EPZs are required by the IMF agreement to expire by 2035.
The government took this step after earlier this year withdrawing the EPZ proposal to meet IMF requirements, only to reapply for approval of the Siah Dik project under the revised framework.
