Pakistan has agreed to a significant condition set by the International Monetary Fund (IMF) that prohibits the establishment of new Special Economic Zones (SEZs) and Export Processing Zones (EPZs), as it seeks a $7 billion bailout package. This decision complicates the government's plans for an EPZ on the land of the defunct Pakistan Steel Mills and halts any extensions of tax incentives for existing zones. The IMF's stringent conditions highlight its substantial influence over Pakistan's economic policies, which could hinder future growth and the attraction of industries, particularly from China. Notably, the province of Khyber Pakhtunkhwa has voiced its refusal to comply with this condition, arguing that industrial expansion is a provincial matter. Despite imposing severe fiscal measures, including raising Rs. 1.8 trillion in taxes and increasing electricity prices by 51%, Pakistan has yet to secure approval for the bailout package. The ongoing negotiations have raised concerns about the long-term implications of these restrictions on economic development in the country.