Senate Body visits EPZA Headquarters, calls for tax reforms, infrastructure upgrades

KARACHI, Aug 01 (APP): The Senate Standing Committee on Industries and Production headed by Senator Aon Abbas, visited the Export Processing Zones Authority (EPZA) headquarters on Friday to assess existing challenges and discuss measures to boost industrial productivity and investor facilitation.
The committee — comprising Senator Syed Masroor Ahsan, Senator Danesh Kumar, Senator Saleem Mandviwalla, Senator Khalida Ateeb, and Senator Husna Bano — held in-depth consultations with EPZA officials on operational, legal, and fiscal hurdles, with a particular focus on recent taxation issues that have dampened investor confidence and hindered industrial expansion.
During a detailed briefing, EPZA Chairman A.D. Khawaja highlighted the impact of inconsistent taxation policies on businesses operating within export processing zones. He said the uncertainty surrounding fiscal treatment has undermined the incentives originally designed to attract investment.
Committee members expressed concern over the unresolved tax matters, noting that taxation instability remains one of the major deterrents to both foreign and domestic investment in the zones. They called for immediate coordination between EPZA, the Federal Board of Revenue (FBR), and the Ministry of Finance to streamline tax structures and ensure policy continuity.
The committee was also briefed on a range of operational challenges, including lack of land for expansion, inadequate infrastructure, absence of scanning facilities, and delays in the administrative transfer of Sialkot and Gujranwala zones.
Additional concerns included frequent fire incidents, slow digitization of business processes, shortage of professional staff, and a growing number of legal disputes. Officials revealed that 99 legal cases are currently pending, including 18 lawsuits filed by investors, many related to non-operational or closed units.
The committee was informed that due to the Sindh Civil Courts Amendment Act 2025, many of these cases are now being shifted from the High Court to district courts, which could further delay their resolution.
In response, the Senate panel directed EPZA to submit a comprehensive report on all pending land allotment-related litigation and emphasized the importance of maintaining transparent land ownership records to prevent future legal complications.
Senator Aon Abbas lauded EPZA’s ongoing efforts and assured the full support of the committee in addressing the legislative and administrative reforms required to revitalize export processing zones and attract sustainable industrial investment.