This report offers insights into the rationale for SEZs under CPEC, the positioning of proposed CPEC related SEZs under different models of Special Economic Zones around the world, perspectives from various stakeholders on the need and implementation challenges of such SEZs. On the other hand, emergence of several extremely successful trading and industrial hubs in China over the last few decades has partly been attributed to developing sophisticated SEZs in those areas.

The question of whether such experiences can be replicated in Pakistan is complex and is required careful analysis and planning. The country faces challenges and offers opportunities which the Chinese were not exposed to during inception and growth of economic zones in China. The planning authorities in Pakistan can also benefit from lessons learnt from successes and failures of other countries in implementing and sustaining SEZs.

This report considers these opportunities and challenges in order to offer rich
analysis of what lies ahead in the road to successful implementation of the
proposed SEZs in Pakistan under CPEC and what future course of direction should be taken.

A long history of policy relevant and impactful inquiries from the Association of Chartered Certified Accountants (ACCA) and Lahore University of Management Sciences (LUMS) has helped shape this timely and informative report.

Generally, a Special Economic Zone (SEZ) is defined as an area in which the rules and regulations
for business, trade, and commerce are different from those in the rest of the country, with the aim
of promoting industrialisation, job creation and investment. Any region that obtains SEZ status
to further its industrialisation will be run according to these special economic rules and policies.

The purposes of this are:

• to attract investors by creating an environment conducive to doing business
• to promote trade
• to develop new job opportunities
• to speed up administrativeprocedures relating to investment, industry and trade.