Senate Committee urges government to renegotiate IMF terms on EPZ/SEZ phase‑out
A Senate sub‑committee warned that the IMF‑mandated closure of Export Processing Zones and Special Economic Zones could hurt Pakistan’s export‑driven industries and called for a renegotiation of the agreement.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Phasing out EPZ/SEZ hurts export‑oriented sectors; investors should avoid related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- AutomobileNegatively affected
- PowerNegatively affected
- EconomyNegatively affected
Companies
Companies Mentioned
- ISL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Automobile, Power, Economy — Negative · Do not buy. PSX tickers: ISL. Phasing out EPZ/SEZ hurts export‑oriented sectors; investors should avoid related stocks.
Full Story
Open on Dawn## Senate committee meeting
On 1 September 2026, Senator Talha Mahmood chaired a meeting of the Senate Standing Committee on Finance and Revenue. The sub‑committee was briefed by the Ministry of Industries and Production on the IMF’s Extended Fund Facility condition that all Export Processing Zones (EPZs) and Special Economic Zones (SEZs) be phased out nationwide by 2035.
## Call for IMF renegotiation
The committee warned that the planned phase‑out would jeopardise industrial output and export earnings. It recommended that the government reopen talks with the IMF to seek an alternative that preserves EPZs and SEZs, thereby protecting the country’s industrial and investment base.
## Exporter and banking challenges
Members highlighted the difficulties exporters face in securing banking guarantees and suggested using insurance guarantees where permissible. The Federal Board of Revenue (FBR) pledged to examine the issue and provide practical solutions.
## Supporting measures
The committee also urged the FBR and NADRA to introduce facial‑recognition technology for taxpayers with unreadable fingerprints and to submit a list of FBR officials holding dual nationality. It discussed the National Auto Policy, noting that viability‑gap funding is available for the rollout of 3,000 electric‑vehicle charging stations.
## Power and market stability
A briefing noted that recent power‑supply disruptions, linked to RLNG consignment shortfalls, have forced load‑management measures that keep electricity prices low but affect business operations.
## SECP digitalisation
The Securities and Exchange Commission of Pakistan (SECP) reported progress on digitising share‑market transactions and cracking down on illegal share transfers and forged signatures.
## Overall outlook
The committee stressed the need for the FBR to enhance its engagement with the business community to improve the ease of doing business and mitigate the negative impact of the IMF‑driven reforms.