The three SEZs are among nine zones that were approved, in principle, by the 6th JCC held in December 2016 in Beijing. However, the progress on other six sites is not satisfactory and in some cases the provincial governments have not yet submitted the feasibility studies.
The Chinese side showed satisfaction over the SEZ law and favorable incentives for investors. A number of Chinese investors have shown great interest in investing in M3 Industrial City in Faisalabad, Chinese SEZ Dhabeji, Sindh, and Hattar SEZ in KP province, said the BoI.
The issue of the development of these SEZs will be discussed during senior officials meeting that will be held a day prior to the JCC meeting.
The meeting of the Cabinet Committee on China-Pakistan Economic Corridor was held on November 17 with Prime Minister Shahid Khaqan Abbasi in the chair. Briefing the media persons about the proceedings of the meeting, Special Assistant and Spokesperson to Prime Minister Mussadik Malik stated that nine SEZs would be established representing all federating units and Gilgit-Baltistan and AJK.
The spokesperson said the government has announced five-year exemption from customs duty for the parties developing the SEZs and ten year exemption for the industries which will start functioning before June 2020.
So far nine SEZs have been identified to be established soon. One each in Punjab, Khyber Pakhtunkhwa, Balochistan and Islamabad, two in Sindh and one each in FATA, Azad Kashmir and Gilgit-Baltistan. Governing structure for these zones is provided in the SEZ Act 2012 and the Board of Investment (BoI) has established CPEC-SEZ Cell for facilitating stakeholders on the matters relating to CPEC and special economic zones.
Pakistan is eventually set to embrace around 37 SEZs under CPEC. Four SEZ sites are identified in Punjab; Punjab-China Economic Zone and Quaid-i-Azam Apparel Park SEZ are in Sheikhupura while M-3 Industrial City and Value Addition City are in Faisalabad. In Balochistan, nine places were identified for SEZs; Bostan Industrial Zone, Dasht Industrial Zone, Turbat Industrial Zone, Industrial Zone at the Junction of Killa Saifullah, Zhob and Loralai, Gwadar Industrial Estate, Lasbela Industrial Estate, Dera Murad Jamali Industrial and Trading Estate and Winder Industrial and Trading Estate. In Sindh, four sites were identified for SEZs. These are China Special Economic Zone at Dhabeji in Thatta, China Industrial Zone near Karachi, Textile City and Marble City. Two of these projects were considered in Thatta: China Special Economic Zone, Dhabeji (priority) and Keti Bandar. The Khyber Pakhtunkhwa government requested the establishment of SEZs at 17 places under the CPEC. These include economic zone at Karak, Nowshera, Bannu, Jalozai, Rashakai, Risalpur, Chitral, Buner, Swat, Batagram, Jahangir, Mansehra and Gadoon Amazai. Others include Hattar Phase VII Industrial Zone, Ghazi Economic Zone and Gomal Economic Zone in Dera Ismail Khan. Moqpondass SEZ will be established in Gilgit-Baltistan. In Azad Jammu and Kashmir, Bhimber Industrial Zone will be the priority project while Muzaffarabad SEZ will be the alternative. In FATA, the only SEZ will be Mohmand Marble City. ICT Model Industrial Zone will be established in Islamabad while an industrial park will be developed on Pakistan Steel Mills'' land in Port Qasim near Karachi.
Copyright Business Recorder, 2017