Panchakanya SS Export has been removed from the Special Economic Zone (SEZ) after failing to meet the required export target. According to the authority, the company could not export its metal tank products at the required level.

Industries operating within the SEZ are required to export 70% of their total production. Panchakanya SS Export was reportedly unable to meet this mandatory requirement, resulting in its removal from the zone.

The Bhairahawa Special Economic Zone covers around 52 bighas of land and has 69 industrial plots ranging from 1,400 to 3,700 square meters. Industries operating there receive infrastructure support along with various tax and customs-related incentives.

Established nearly two decades ago, Bhairahawa SEZ is Nepal's first export-oriented industrial zone. Industries established within the zone are subject to restrictions on domestic sales, and companies that cease operations or are removed may have to dismantle and take away their industrial structures.

The Special Economic Zone Authority under the Ministry of Industry has been conducting pre-feasibility and feasibility studies for establishing SEZs in different parts of the country. It is also working on infrastructure development and attracting investment into such zones.

SEZs provide businesses with incentives such as tax benefits, customs duty exemptions and streamlined regulatory procedures. The government has also sought to attract domestic and foreign investors through tax incentives and lower fees for manufacturing and service industries.

Special Economic Zones are currently operating in Bhairahawa and Simara, while further studies and efforts to attract investors are underway for infrastructure development in Panchkhal.