Rawalpindi: The Punjab government has revised its earlier proposal to establish a Special Economic Zone (SEZ) along the Rawalpindi Ring Road, replacing it with an industrial estate model due to policy constraints linked to ongoing discussions with the International Monetary Fund (IMF), reliable sources said.
According to official developments, the Punjab Industrial Estates Development and Management Company has approved the establishment of an industrial estate instead of an SEZ in the corridor adjacent to the Ring Road project. The decision follows concerns that the tax exemptions and incentive packages typically associated with SEZs could not be extended under the current fiscal framework being discussed with international lenders.
Sources indicate that, following legislative approval by the Punjab Assembly, the land acquisition process for the industrial estate is expected to begin under the relevant legal provisions. The land will be acquired and later offered to industrial investors at comparatively affordable rates to encourage manufacturing and commercial activity in the region.
The 38.6-kilometre Rawalpindi Ring Road project, stretching from Banth Interchange on GT Road to Thalian Interchange on the motorway, is currently in its final stages of completion under a revised cost of PKR 51 billion. The project is expected to be completed by mid-June.
However, construction work on the Thalian Interchange, which has been designed as a broad-based interchange, has faced delays. Despite this, authorities are considering opening the Ring Road for traffic after its inauguration ceremony, while the National Highway Authority (NHA) will later complete the connecting link from Thalian to Sangjani.
Business stakeholders had long advocated for the development of an SEZ or economic zone along both sides of the Ring Road to attract investment and generate employment. Earlier announcements had also indicated support for such a plan during engagements with the business community.
However, officials confirmed that due to IMF-related policy constraints, the SEZ model requiring tax exemptions and broader incentives was not feasible at this stage. As a result, the focus has shifted toward an industrial estate framework that can proceed within existing fiscal limitations.
Representatives of the business community have noted that industrialists remain interested in the area, provided land is made available at reasonable prices and supporting infrastructure is developed effectively.
Four of the five interchanges on the Ring Road i.e. Banth, Chak Beli Khan, Adiala, and Chakr are nearing completion alongside the main carriageway, and the project is expected to open to traffic shortly after its inauguration.
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