Bill proposes creation of ‘sustainable townships’ under SEZ Act

The SEZ Act currently lists eight types of zones, However, under the proposed amendment, a new category called “sustainable township” will be added.

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Baarah MP Ibrahim Shujau

Malika Shahid

2025-10-21 11:10:37

The government has proposed an amendment to the Special Economic Zone (SEZ) Act to allow the creation of townships within SEZs where people can live and work.

The amendment to the SEZ Act, submitted to Parliament by PNC Baarah MP Ibrahim Shujau on behalf of the government, introduces major changes to the scope of SEZs, expanding them beyond solely industrial purposes.

Currently, Section 20 of the SEZ Act only allows for the establishment of industrial zones. However, under Shujau’s proposed amendment, a new category called “sustainable township” will be added.

According to the bill, these sustainable townships would be developed as integrated areas combining tourism, real estate, and residential facilities, managed under a single administrative body.

The SEZ Act currently lists eight types of zones:

  1. Industrial Estate
  2. Export Processing Zone
  3. Free Trade Zone
  4. Enterprise Zone
  5. Free Port
  6. Single Factory Export Processing Zone
  7. Offshore Financial Service
  8. High Technology Park

The amendment would introduce a ninth type; “Sustainable Township.”

The bill also sets specific conditions for establishing such townships:

  • A minimum investment of USD 500 million is required.
  • The township must include an international-class healthcare center.
  • At least 60 percent of the energy used within the area must come from renewable sources.