• Tuesday, October 22, 2019

Pakistan grants 23-year tax break to Chinese operator of Gwadar port

Discussion in 'CPEC' started by AZADPAKISTAN2009, Oct 10, 2019.

  1. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    https://www.dawn.com/news/1509855
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    ISLAMABAD: Federal Minister for Maritime Affairs Ali Haider Zaidi has announced that the government has granted tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to facilitate establishment of its industrial units at Gwadar Port.

    Accompanied by COPHC Chief Executive Officer Zhang Baozhong and Minister for Economic Affairs Hammad Azhar, Mr Zaidi told a press conference on Tuesday that the COPHC that had already been operating at Gwadar Port would get tax exemption for installation of machinery and other equipment at the port.

    The initiative was a step towards relocation of the Chinese manufacturing industry in Gwadar and engaging the local labour, he said, adding that the move would ultimately boost Pakistan’s economy.

    The minister said the COPHC would also set up a desalination plant with the cost of Rs1.95 billion to provide 5,000 gallons of water per day to the people.

    He announced that China would build Pak-China Technical and Vocational Training Institute in Gwadar at a cost of around $10 million, which would open job opportunities for locals. “About 360 students equipped with technical skills would pass out from the institute every year,” he said.

    Mr Zaidi said Pak-China Friendship Hospital would also be established on 68-acre land at an estimated cost of $100 million. Besides, he added, a coal power plant for generating 300MW electricity would also be set up in Gwadar.

    On the issue of Gwadar Port’s connectivity with Makran Coastal Highway, he said the Executive Committee of the National Economic Council (ECNEC) had approved construction of three bridges on the Eastbay Expressway to resolve the grievances of local fisherman.

    Around 40 per cent construction work on the Eastbay Expressway had been completed while the rest would be completed by December 2020, he added.

    COPHC CEO Zhang Baozhong said the present government had resolved the tax exemption issue that had been pending for the past seven years. He expressed the hope that due to the business-friendly policies of the government, more foreign investment would come to the country.

    Published in Dawn, October 9th, 2019
     
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  2. W.11

    W.11 ELITE MEMBER

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    :cheesy::cheesy:

    what is anything Pakistan getting from Gwadar deal to be very honest?

    regards
     
  3. S.Y.A

    S.Y.A SENIOR MEMBER

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    nothing. just a crushing debt.
     
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  4. W.11

    W.11 ELITE MEMBER

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    probably the debt was provided in exchange for gwadar in the first place. Gwadar has been leased to china for 45 years probably much more with no advantage and opportunity for pakistanis themselves, media is totally silent about this issue as well that what are pakistanis gaining from development of gwadar? probably few contractors from pakistan but thats about it.

    regards
     
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  5. 313ghazi

    313ghazi SENIOR MEMBER

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    CPEC is what you make of it. Pakistani businessmen and entrepreneurs must take advantage of these opportunities. Right now we have the business community lobbying not to have to pay proper income tax - why aren't people lobbying to ensure local companies are given priority on construction projects over foreign ones? (if they can meet requirements).

    Why are unions and labour bodies not campaigning demanding that for every Chinese working in Pakistan, the companies must first evidence they couldn't find a Pakistani equivalent? Kenya has a deal where the Chinese had to train 2 locals for every job a Chinese did.

    Gwadar is a new port, it's linked to new road/rail, why use it over other ports? There need to be incentives, these tax breaks are to drive business towards it. It's up to us Pakistani's what portion of the pie we get. Will out transporters be moving the goods, or will Chinese companies be sending trucks and hiring drivers to make money? It's up to transporters to make the business case for themselves, then lobby the politicians to ensure they get a fair crack at it.

    Govt is blinded by investors offering to do everything, but it's up to our locals to become the winners in this. Nothing is given, everything is earnt.

    Think realistically, what did you expect? The Chinese will come build a port, build roads, make companies, put Pakistani's into these companies, teach the Pakistani's to run the businesses, then leave and expect the government to pay back the loan, but not take advantage of the opportunity to make profits?
     
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  6. W.11

    W.11 ELITE MEMBER

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    heard it years ago that chinese products flooding pakistani market is making the pakistani business lose their own business. The establishment to be honest as i just stated is an idiot, they just want their monopoly on pakistan, they install puppet policy makers who are idiots as well, they would rather destroy the country then lose their monopoly to competent people.

    regards
     
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  7. شاھین میزایل

    شاھین میزایل BANNED

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    Rubbish...
    What advantage Pakistan will get from Gwadar?
     
  8. W.11

    W.11 ELITE MEMBER

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    The whole leasing gwadar to china has been a very shady deal, i dont think pakistanis even know pakistan has given part of its valuable land which is closest to persian gulf to china for its strategic needs like what has happened to hambantuta in srilanka.

    regards
     
  9. 313ghazi

    313ghazi SENIOR MEMBER

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    If the market is protected, consumer choice is limited, prices are artificially rigged and quality does not improve.

    If the market is open, it is flooded with cheap goods, the consumer gets cheaper prices but often sacrifices quality in the processes.

    To succeed in such a scenario your product needs to be affordable, it needs to be recognised as quality and needs to be appealing.

    Nike trainers are the best selling in the world. They're not much better than Puma or Reebok, but people pay more for a similar product because Nike have the brand appeal and the suggestion of quality.

    Pakistan needs to up it's game to compete in the market, or it can be happy with a closed off, expensive, low quality, uncompetitive market.
     
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  10. W.11

    W.11 ELITE MEMBER

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    that is what im saying, cheap chinese goods have quantity and no quality, its their cheap price which beats more reliable domestically manufactured pakistani products.

    for instance, Pakistani leather industry faces delimma of cheap chinese artificial leather, not same quality so not level playing flied as well.

    regards
     
  11. Sine Nomine

    Sine Nomine ELITE MEMBER

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    Babus have no idea,what's going on.
     
  12. Goenitz

    Goenitz SENIOR MEMBER

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    Toll tax at roads when these go to China.. But no on port as those can stored for next shipment to say South America (Duty Free).
     
  13. 313ghazi

    313ghazi SENIOR MEMBER

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    I think it's shady too. I think considering nobody else was willing to invest in us, the CPEC deal is likely to be uncompetitive and terms very favourable for the Chinese. The phrase beggars can't be choosers comes to mind.

    The trick is, that we need to maximise our efforts to milk every penny of money and every opportunity it will create. There is no doubt about it, it will create opportunity and there is potential to make billions and billions, but we need to work extra hard to do that.

    Right now our business community is only interested in buying land and property.
     
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  14. Kabira

    Kabira ELITE MEMBER

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    Development despite low level insurgency still going on in Balochistan. Not long ago Gwadar only 5 star hotel was attacked by terrorists.
     
  15. Goenitz

    Goenitz SENIOR MEMBER

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    They have quality too.. May be not that leather won't last but quality is good. All we need is to export Chinese expertise and sell it to 3rd market so pak industrialist won't worry. but in reality, we need to exploit those areas where China lack like farming but dilemma is we import Chinese carrots :(:undecided:...
    I have said multiple times, China consume meat, rice, cheese, soyabeans etc and we can give them all (but tehy don't like basmati rice) if we cna develop capacity,

    We even import crockery and jewellery from Vietnam etc..Dog/Cat/Pet food from EU.. Cereals and other stuff too... Ok hair products and other cosmetics we cannot develop but we can try. The other thing we need is local pharma industry or like Bhutto regime generic medicine.
     
    Last edited: Oct 10, 2019
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