Chairman of the committee Sher Ali Arabab told this correspondent after the in-camera meeting of the parliamentary committee of the CPEC that the committee also asked the gas companies to come up with a plan within two weeks and inform how long it would take to provide gas to early harvest SEZs.
The committee also proposed to the Ministry of Planning, Development and Reforms to set aside block allocation for undertaking infrastructure development activities at SEZs whose early operationalizaion is critical to attract investment and increase the country's exports, he further stated.
The chairman of the committee further stated that absence of coordination among difference departments of the government was seen as a major challenge for the operationalizaion of the SEZs.
He said that the government is optimistic that Rashakai Zone and Allama Iqbal Industrial Zone Faisalabad would be made operational by the end of current fiscal year as most of the things including agreement and other modalities have been completed. The meeting was told that a 9.2-kilometer road is also required to be constructed for Rashakai SEZ.
The committee was given a briefing by the Federal Board of Revenue on tax exemption and concessions given to the SEZs and members of the committee suggested to the FBR to provide tax exemptions while extending its dates in advance to protect the interests of industrialists investing in SEZs and provide an environment of ease of doing business. The chairman of the committee stated that the committee is of the view that exemption of sales tax on purchases made for those SEZs should be extended beyond 2020.
He added that there is a need to provide gas, electricity and water facilities in SEZs and this necessitates coordination among the different agencies for making up estimates and requirement of funds needed for them.
The committee has recommended to the government to improve coordination at provincial level because provision of gas and electricity is a federal subject while construction of roads for the SEZs comes under provincial domain or NHA.
He said that there was an agreement among committee members that ML-I project is very strategic and viable but there is need to have a third party assessment with regard to design so that there is no issue in the design. He added that project is of great magnitude of around $8.5 billion; therefore, extra caution in design is needed to be taken to avoid any complication.