An Evaluation of Karachi Export Processing Zone: A Preliminary Investigation (Trade, INDUSTRY, AND EMPLOYMENT‪)‬

Given the significance of export processing zones (EPZs) internationally, it is worth exploring the contribution of such zones in terms of scale and structure of employment, configuration of production, labour productivity, and export-augmentation. The present research highlights the significance and need for such zones in Pakistan. It evaluates the performance of Karachi Export Processing Zone (KEPZ) on various fronts. The research was conducted through structured interviews, based on a pre-tested questionnaire, with the managers of both foreign and local finns operating at KEPZ. Results of the survey reveal the fact that KEPZ has not been a true performer in the context of its objectives. Most of the variables reflecting investment climate in Pakistan were rated as low, showing that Pakistan does not have the right type of environment to attract investments from abroad. There appears to be a lack of infrastructural facilities and the linkages required for industrial activities. An assessment of the KEPZ in Pakistan is expected to assist policy-makers in identifying the policy biases as well as the causes of underperformance of KEPZ. This also helps in comprehending the need to expand and improve the number and quality of such zones for increasing exports as well as projecting the country as a competitive location for export-oriented FDI in relation to its counterparts in the region. 1. INTRODUCTION