A Critical and Comparative Analysis of the Legal Framework of Special Economic Zones (SEZs) of Pakistan with the Legal Framework of the Special Economic Zones in Malaysia and Thailand - Proposing a Sustainable Legislative Framework for Effective Solutions
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Abstract
The study aims to analyze the laws related to Special Economic Zones (SEZs) in Pakistan in order to identify and address gaps, as well as to suggest improvement to the system. It proposes amendments to the legal framework and policy reforms to achieve both dynamic and static gains from SEZs. The study offers recommendations inspired by the incentives provided by the successful SEZ programs in Malaysia and Thailand Around the world, the SEZs have been game changers in terms of economic boosts. However, despite its sufficient natural resources and significant geographical position, Pakistan still encounters challenges in establishing a lucrative SEZs design. It still requires reforms in the legal framework of SEZs in order to establish successful SEZs in Pakistan. In addition, one of the major issues with the laws of SEZs laws in Pakistan is their inconsistency with other existing laws. Pakistan enacted the SEZ Act 2012 and SEZs (Amendment 2016) Act to foster an environment conducive to investment. Nonetheless, the Act contains various legal gaps. By comparing the SEZ models of Malaysia and Thailand, which have prosperous SEZs, this study identifies crucial amendments required in Pakistan’s legal framework to ensure efficient outcomes. The findings of this research paper contribute to a better understanding of the legal framework of SEZs in Pakistan and provide practical recommendations for legal and policy reforms by drawing comparisons with the SEZs of Thailand and Malaysia, which Pakistan can adopt to enhance its SEZ legal framework.
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