Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum and in other significant roles, has urged the Pakistani government to maintain the 80/20 facility for industries in Export Processing Zones (EPZs).

He expressed concern about the IMF’s plans to prohibit domestic sales from EPZs by 2026 and phase out existing zones by 2035. Hussain warned that such restrictions could harm investor confidence, disrupt international trade, and lead to factory closures.

He emphasized that EPZs, established in 1981 to attract foreign investment, contribute roughly USD 1 billion annually and provide jobs for about 50,000 workers. The existing framework allows local sales of B-grade materials after strict customs procedures, thereby protecting revenue.

Hussain noted that many EPZ enterprises are foreign-owned and operate in dollars, thereby supporting national foreign exchange reserves. He stressed the importance of policy continuity to maintain investor confidence and protect the livelihoods of affected families.

He called on the Prime Minister and the economic ministries to support the continuation of the current EPZ framework and suggested providing the Export Finance Scheme (EFS) to existing stakeholders if the 80/20 facility must be withdrawn.