From UAE To EPZ

[Windjammer]

Investors from UAE shifting to EPZ

KARACHI: Investors from UAE have started shifting their business to Export Processing Zones in Pakistan due to higher cost of doing business in Dubai and Sharjah’s free zones.

Chairman, Export Processing Zones Authority (EPZA), Tariq Hasan said a number of Pakistani investors, who had set up units at Jebel Ali Free Zone Dubai and Hamriyah Free Zone, Sharjah, have either planned to return to their own country due to ever-increasing cost of land and other expenses or have shifted to Export Processing Zone Karachi.

He said around four to five Pakistani investors based in two above zones have recently set up their units in Export Processing Zone Karachi in sectors, like water and food.

He added that two more local investors based in UAE zones have purchased plots at Karachi’s EPZ.

He said the EPZA from its own resources is planning to hold road-shows in UAE to lure more local investors.

The Export Processing Zone of Karachi has 130-140 operational units; out of total 200 units while 70-80 units are closed.

He said that EPZ earned $575 million in 2011 through export earning which he considered not satisfactory and vowed to fetch more in future.

Addressing members of the Korangi Association of Trade and Industry (KATI) on Wednesday, he said that EPZ Karachi perhaps is the cheapest free zone in the world as it costs only Rs350 per day to the investor.

He informed investors in UAE have intimated him that free zones in UAE are about 45 per cent costlier than
EPZ Karachi and they intend to return to their own country.

According to KATI press release, Tariq said that import of machinery to EPZ has become zero-rated and now investors can import machinery without any customs duties.

He further informed that EPZA is also trying to get relaxation of business ratio at 50-50 to the tariff and non-tariff areas to attract more investment to the zones.

He said that the EPZ is providing one-window facility to investors, including all utilities, infrastructure and security. He told the KATI members that Mehran Highway is now being constructed and would be completed in March this year. He agreed to the proposal by the former Chairman KATI, Mian Zahid Hussain, that representatives from private sector should be taken on board in advisory committee of EPZA.

He said that EPZ charges only 1.5 per cent tax while import is totally free, but unfortunately very few people know about EPZ in Pakistan due to sheer negligence by commercial counselors.

Mian Zahid Hussain pointed out that despite massive facilities to the investors export from EPZ is not even five per cent of the country’s exports which is a point of concern, and effective measures be taken to match the export performance of EPZ with the facilities and exemptions given to investors.

Investors from UAE shifting to EPZ | Business | DAWN.COM

 

[Sinnerman108]

This is wonderful news, and just about the right time we should fuel up Gawadar.

It is high time that FC seals Balochistan's border with Afghanistan and the Federal government starts delivering on their promises to the Balochistan people.

If they want to keep the mineral resources, LET them keep them, Nooo problem with that.
Just let their be peace.

 

[Windjammer]

Read the news, no international investor is coming its just 5 pakistani investor coming back due to higher cost in UAE.

And as there was a news about UAE supporting Baluchistan movement they will further feel panic if they see its a threat to them as a rival in the region.

And where did he exactly claim of foreign investors coming in. ??
No body knows about Pakistan better than it's own Nationals, and if they have the confidence to shift back their business than they must see the potential of investing there.

 

[Al Bhatti]

Good news, only if the authorities in Pakistan learn from the free zones in Dubai and Sharjah and implement measures which can make the EPZ a competitor for UAE in Free Zone activity.

A competition between the two countries in Free Zones is good, but all this depends how the authorities in Pakistan provide services to the investors in the first place.

 

[Windjammer]

Doing business with Pakistan

Pakistan is suffering horrendous flooding again – and the world has been once more been accused of ignoring her plight. Meanwhile allegations of dastardly involvement in terrorism in Afghanistan make it to the world’s front-pages, ensuring that one side to Pakistan is not forgotten.

Against the context of flooding, terrorism and corruption, it might seem a strange and somewhat misplaced time to be writing about the benefits of economic investment in Pakistan. But those who know me as a writer, will know my attempts to wring out inspiring news stories and splash a spotlight on a side to life that is uplifting, but no less real.

I was recently sitting amongst a sea of suited businessmen in a swanky club in the heart of London, when an American-Pakistani friend shared the news that Forbes Magazine has produced an article saying that Pakistan was a good place to invest. She delivered the revelation in an excited whisper, and I watched the jaw of another friend drop to the floor. As a British-Pakistani businessman, he of course knew this to be true – but the fact that one of the most respected business magazines in the USA was saying it was an utter delight. What the media says does matter – especially in business.

The writer of the article, Helen Coster, talks much about Lahore, the Indus Entrepreneurs and an internet mogul named Monis Rahman. Coster doesn’t shy away from some of the obvious challenges about doing business in Pakistan, but ultimately insists that “the promise of doing business in Pakistan outweighs the frustration”.

I’m right with Rahman when he says: “You tend to hear the worst 5 per cent of the Pakistan story 95 per cent of the time,” but Coster’s story was so focused on the successful entrepreneur that I wonder whether his experience of the business landscape was unique to him, or at least unique to Lahore.

On closer inspection, I discovered many others are saying the same. In an article in Blue Chip Magazine, another businessman from Karachi claims that Pakistan is “entrepreneurial to the core” – something others I spoke to agree on. The Invest in Pakistan website lists the top five reasons for foreign investment in Pakistan as being: abundant land and natural resources; human resources (huge English speaking population); a large and growing domestic market (a growing middle class); well-established infrastructure and legal systems (road, rail, sea, IT); and geographic location – as principal gateway to the Central Asia Republics and connections to the Middle East and South Asia.

Putting it crudely, the labour and raw materials are cheap, the population is 6th biggest in the world and growing fast with over 50 per cent of the 180 million under the age of 20, and tax and set-up incentives for foreign investment are good.

Business giants, like GlaxoSmithKline Consumer Healthcare are increasing investment in what it considers a “high growth market”. Rs2 billion will be invested in Pakistan over the next five years. And it’s not just inward investment that holds potential. Last week the Federation of Pakistan Chambers of Commerce and Industry announced that despite economic challenges, Pakistani exports had reached $25 billion (against the government target of $20 billion). One export, which may surprise my fellow British countrymen, is bagpipes – in fact Pakistan is the world’s biggest producer of the Scottish instrument (worth $6.8 million in 2010).

I am not ignoring the floods, or the allegations of terror-funding, my Pakistani friends in London wouldn’t let that happen. I have my eye on the tides of disaster, but as I commit professionally to exploring Business with Britain, I can’t help but think that Business with Pakistan should certainly not be forgotten.

Doing business with Pakistan | Blog | DAWN.COM

 

[farhan_9909]

Still i dont understand why we still dnt setup gwadar and make a road leading to central asia..

we can earns billions

just need to invest 5 billions on road infrastructure to connect it with tajiskistan and gwadar port..

 

[Al Bhatti]

Still i dont understand why we still dnt setup gwadar and make a road leading to central asia..

we can earns billions

just need to invest 5 billions on road infrastructure to connect it with tajiskistan and gwadar port..

"Investment in transport infrastructure is a dead investment"

"Countries without railways are running so why do we need it"

If these are what is said by government officials what else can you expect?

 

[nomi007]

just govt create peace in the country
investor will automatically come

 

[Rafi]

Ignore the troll guys, by the way - Over seas Pakistani's alone - hold hundreds of billions of dollars - if we can get them to come back and invest - we will be going a long way to recovery.

 

[fd24]

I went to a conference last week of successful Asian businesses in the UK. The general consensus of opinion is nothing would give them more pleasure than investing in Pakistan. The funds held in Pakistani nationals abroad is phenomenal. Alone in the UK this could run into billions. It would be a wise idea for the next government bend over backwards to attract this $$ into the country. We would certainly be a different country overnight.

 

[Kaniska]

This is a good news for Pak. Apart from that if your port Gwadar is operational in full scope, then the economic scenario of NW of Pakistan will be poised for a big change..
Off topic: What is the status of GWADAR port? Is it operational?