ISLAMABAD: Pakistan will phase out Export Processing Zones (EPZs) and Special Economic Zones (SEZs) nationwide by 2035, under the IMF’s Extended Fund Facility conditionality, to bring all sectors under a uniform tax regime, a parliamentary committee was told on Tuesday. The subcommittee of the Senate Standing Committee on Finance and Revenue directed the government to renegotiate with the IMF to prevent the potential closure of EPZs and SEZs, stressing the need to safeguard Pakistan’s industrial and investment interests. Talha Mahmood convened the meeting, which was attended by Dr Afnan Ullah Khan, Bilal Khan and Jam Saifullah Khan. The Ministry of Industries and Production briefed the committee on issues concerning EPZs and SEZs. After detailed deliberations, the convenor recommended that EPZs and SEZs should not be adversely affected and called for renegotiation of the matter with the IMF. Senate panel warns phasing out EPZ and SEZ will hurt exports The subcommittee also discussed difficulties being faced by exporters and businesses in banking transactions and emphasised the need for practical alternatives, including the use of insurance guarantees in place of bank guarantees or
