News
Government Announces 30-Year Renewable Leases for 6,409-Acre Karachi Industrial Zone
By Mariam Khan
Real Estate Analyst
3 min read
The federal government has announced new investment terms for the special economic zone (SEZ) planned on about 6,409 acres of land belonging to Pakistan Steel Mills in Karachi. The terms were announced on October 28, 2026, by Special Assistant to the Prime Minister Haroon Akhtar Khan at a joint federal-provincial press conference in Karachi. The announcement does not establish that plots are available to apply for. Detailed lease agreements, eligibility rules and implementation arrangements still need to be checked.
The Announced Terms
Investors will be offered renewable 30-year land leases. No advance payment will be required under the leasing arrangement as announced. Industries established in the zone will be required to export 50 percent of their production. The reports we have seen do not say what rent will be charged, how renewal works or what happens to a firm that misses the export target, so we do not describe those terms. Special economic zones are promoted by the Board of Investment.
What Is New and What Is Not
The zone's approval was reported earlier. The new development is the announcement of the leasing and export conditions. The reports do not say when allocations will begin or how plots will be offered.
What Is Not Known
The reports do not say how much of the 6,409 acres will be offered, how it will be divided into plots or what infrastructure will be provided. They also do not say how the lease terms fit with the land's ownership by the steel mills. Provincial support is expected from the Government of Sindh, but the reports do not describe its role.
Why This Matters for Industrial Property
The leasing framework could make industrial land more accessible to manufacturers by reducing initial land-acquisition costs. If implemented, it may encourage industrial construction, warehousing and logistics investment around the Port Qasim industrial corridor. The export condition limits who benefits to firms that can sell abroad. The reports do not link the terms to land prices or lease rates in Karachi, and we do not claim any effect.
What This Means for Manufacturers and Investors
Manufacturers should wait for the lease agreement and eligibility rules before committing, and should check whether the 50 percent export requirement suits their business. Investors should not treat the announcement as an offer. The signals to watch are the notification of the zone, the lease document, the allocation process, utility and road development and the first allotments.