Rawalpindi: The Punjab government has revised its earlier plan to establish a Special Economic Zone (SEZ) along the Rawalpindi Ring Road and instead decided to develop an industrial estate due to policy constraints linked to ongoing discussions with the International Monetary Fund (IMF), according to official sources.
The Punjab Industrial Estates Development and Management Company (PIEDMC) has approved the new plan to set up an industrial estate in the corridor adjacent to the Ring Road project.
Officials said the change was made because tax exemptions and incentive packages typically associated with SEZs could not be extended under the current fiscal framework being negotiated with international lenders.
Land Acquisition and Development Plan
Sources indicated that once the required legal approvals are completed through the Punjab Assembly, the land acquisition process for the industrial estate will begin. The acquired land will later be offered to investors at competitive rates to promote industrial and commercial activity in the region.
Ring Road Project Near Completion
The 38.6-kilometre Rawalpindi Ring Road, stretching from Banth Interchange on GT Road to Thalian Interchange on the motorway, is now in its final stages of completion at a revised cost of Rs51 billion. The project is expected to be completed by mid-June.
However, work on the Thalian Interchange has experienced delays. Despite this, authorities are considering opening the Ring Road for traffic soon after its inauguration, while the National Highway Authority (NHA) is expected to complete the connecting link from Thalian to Sangjani later.
Shift from SEZ to Industrial Estate Model
Business stakeholders had long demanded the establishment of a Special Economic Zone along the Ring Road to attract investment and create employment opportunities. Earlier discussions with the business community also supported the idea.
However, officials confirmed that due to IMF-related fiscal constraints, the SEZ model—requiring tax exemptions and special incentives—was not feasible at this stage. The focus has therefore shifted to an industrial estate model that can be implemented within existing financial limitations.
Investor Interest Remains Strong
Despite the policy change, industrial stakeholders continue to show interest in the region, provided land is made available at reasonable prices and supporting infrastructure is properly developed.
Four of the five interchanges on the Ring Road, including Banth, Chak Beli Khan, Adiala, and Chakri, are nearing completion along with the main carriageway. The project is expected to open to traffic shortly after its official inauguration.
