The Government of Pakistan via SEZ Act in 2012  started setting up Special Economic Zones (SEZ) across the country. The law mandates both the Federal and the respective provincial governments to set up these economic zones either themselves or in collaboration with private investors. Private investors have the option of either setting up an SEZ solely or they can opt for a public-private partnership with the respective government. 

At present there are 35 SEZs across the country in Punjab, Sindh, Khyber Pakhtunkhwa (KPK), Balochistan and Islamabad.

SEZs offer various financial incentives to potential investors which include a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for the development, operations and maintenance of a SEZ  and exemption from all taxes on income for a period of ten years for developers, co-developers and enterprises.