Prime Comment #45

EPZ Reform: Correcting Distortions Without Creating New Ones

The government has proposed an amendment to prohibit industries in export processing zones from selling 20% of their production in the domestic market. The facility has been available since 2001 under Rule 228(5), of the customs rules. Cabinet approval is expected in September 2026 as a part of the IMF’s Extended Fund Facility. However, abolition of the domestic sales facility...