Senators urge tax clarity for EPZA revamp

Senate of Pakistan

Karachi, August 1, 2025 – The Senate Standing Committee on Industries and Production, led by Senator Aon Abbas, visited the headquarters of the Export Processing Zones Authority (EPZA) on Friday to review key challenges facing Pakistan’s industrial zones and to explore policy improvements that can enhance investor confidence.

The committee, comprising Senators Syed Masroor Ahsan, Danesh Kumar, Saleem Mandviwalla, Khalida Ateeb, and Husna Bano, engaged in extensive discussions with EPZA officials. Central to the meeting were unresolved taxation matters affecting businesses within the export processing zones. Senators voiced concern that ambiguity in tax policy has become a serious deterrent to both foreign and domestic investors.

EPZA Chairman A.D. Khawaja briefed the committee on the negative impact of inconsistent tax structures. He emphasized that the uncertainty surrounding fiscal incentives is undermining EPZA’s ability to attract and retain investment. He urged the need for cohesive coordination between EPZA, the Federal Board of Revenue (FBR), and the Ministry of Finance.

The senators agreed that a clear and consistent tax regime is essential. They recommended urgent collaboration among stakeholders to address the tax complications plaguing EPZA and suggested policy continuity as a long-term goal.

Beyond taxation, EPZA officials also highlighted several structural and operational concerns: lack of available land for expansion, absence of scanning facilities, delays in zone transfers, and outdated administrative systems. The committee also learned that 99 legal cases are currently pending—including 18 lawsuits filed by investors—many related to non-operational or closed units.

Senator Aon Abbas instructed EPZA to compile a detailed report on pending litigation related to land allotment. He emphasized the importance of transparent land ownership records to prevent future disputes and reaffirmed the committee’s full support in facilitating reforms to restore investor trust in EPZA.