Strategy For Developing an Effective SEZ In Gilgit-Baltistan

For economic prosperity, countries experiment with various approaches. Among these, Special Economic Zone (SEZ) – enclaves with specified laws and incentives within a country to achieve various economic objectives – is one such approach that has brought wonders especially for the emerging economies. Similarly,Pakistan under its China-
Pakistan-Economic-Corridor (CPEC) initiative has conceived a number of SEZs linked together via road and rail network to achieve the dream of developing a growth corridor. One SEZ that has been defined as a priority is: Moqpondass in Gilgit-Baltistan (GB), Pakistan. As every SEZ is established under unique circumstances (opportunities and
threats), countries always face this challenge of defining various unique facets of an SEZ’s design, operation and continuous improvement. This study aims to define the factors that make the SEZ in GB effective along with providing direction towards the right strategy for developing it. Five stakeholders were identified and subsequently interviewed to achieve these objectives. As per secondary research, factors for effective SEZs are categorized under three themes; subsequently, new factors were identified after interviews for SEZ in GB. These factors were categorized under a new theme: ‘the role of LSOs’. This study has found service-focused SEZ to be more fitting for GB. The report has further analyzed various principles, found in literature, used for developing strategies for SEZs’ establishment. The key principles around which the SEZ of GB should be established were identified: policy framework, infrastructure development, and;attracting FDI. Policy makers, trade bodies, SEZ consultants, academia and local representatives will find the results of this report helpful in taking decisions regarding SEZs under CPEC.