Islamabad (Commerce Desk): The federal government has decided to end permission for the local sale of products manufactured in Export Processing Zones from September 2026 under conditions set by the International Monetary Fund (IMF).
According to officials of the Ministry of Finance, under the new policy, Export Processing Zones will be required to export their entire production abroad, and the facility to sell products in the domestic market will no longer be available.
Officials stated that currently, Export Processing Zones are allowed to sell 20 percent of their production in the local market. However, the IMF has rejected Pakistan's request to continue this concession.
The Ministry of Finance said that the government had also requested permission to establish additional Export Processing Zones, but this request was not approved by the IMF.
Officials said that during the upcoming economic review, the government will again request that Export Processing Zones be allowed to sell a limited quantity of products in the domestic market.
According to the Ministry of Finance, a proposal regarding the withdrawal of the local sales facility is also being sent to the Federal Board of Revenue (FBR) for further action.