The Export Processing Zones Authority (EPZA), Pakistan was established in 1980 with the mandate to plan, develop and operate Export Processing Zones in Pakistan.

The objectives of the establishment of Export Processing Zones in Pakistan are primarily to boost industrialization and augment country's export by creating facilities for investors to enable them to setup export oriented units which would, as a consequence, create job opportunities, bring in new technology and know-how, and attract foreign investment.

INCENTIVES FOR INVESTORS TO SET UP A UNIT IN EPZs OF PAKISTAN

1. 100% ownership rights.
2. 100% Repatriation of capital & profits.
3. No minimum or maximum limit for investment.
4. Duty free imports of machinery, equipment & material
5. No sales tax on input goods including electricity & gas bills
6. Obsolete/old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes.
7. No excise duty, no Custom duty on cement, steel & any other material used in construction of buildings.
8. Freedom from National import restrictions.
9. Foreign Exchange control regulations of Pakistan not applicable.
10. Defective goods/waste can be sold in domestic market after payment of applicable duties, maximum upto 3% of total value of export.
11. Duty free vehicles allowed under certain conditions. After 5 years of use, vehicles can be disposed off in domestic market on payment of duty.
12. Domestic market of Pakistan available on same conditions as for imports from other countries.
13. Units operating in EPZs can undertake sub-contracting for units of tariff area subject to payment of duty and taxes on value addition only.
14. Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability.
15. EPZ units allowed to supply goods to Custom manufacturing bonds.
16. Production Oriented labour laws to be solely regulated by the Authority.
17. EPZ manufacturers be treated as par with bonded manufacturers in tariff area for any future incentives to be announced for exporters.
18. Relief from double taxation subject to bilateral agreement.

All investment in the Zone is made in convertible foreign currency. A foreign investor and a non-resident Pakistani can invest up to 100% of the equity. A Joint venture between a foreigner or foreign company and a non-resident or resident Pakistani is possible in any proportion. However, not more than 40% of equity of a resident Pakistani would be covered by State Bank of Pakistan for providing foreign exchange.

For more information, please visit

www.epza.gov.pk