Gwadar to be declared SEZ (Special Economic Zone) for 20-30 years

[Kabira]

GDP contribution grew from 14pc to 44pc since 1979: Gwadar to be declared SEZ for 20-30 years
Reported by: `Customs Today Report January 26, 2015

KARACHI – Data provided by the Ports and Shipping Division revealed that Gwadar will be declared a Special Economic Zone (SEZ) covering city of Gwadar and industrial areas soon for a period of 20 to 30 years in order to facilitate rapid commercial and economic uplift.

The data showed the specific incentive-regime is expected to include general tax-holidays, no VAT and generous incentives pertaining to business ownership. The government has already started working on this proposal.

The data said Gwadar Port was completed in 2006 at a total cost of US $ 288 million and in 2007 the port operations were handed over to PSA International, a subsidiary of Port of Singapore Authority. Since designation as China’s first SEZ in 1979, Gross Domestic Product (GDP) contribution from industry sector grew from 14pc to 44pc, over a period 26 years.

The plan is aimed to accelerate economic development and investments, both foreign and local, in general. This in turn will spur industrial development and port traffic throughput demand. The data further revealed that the concept of SEZ had yielded positive results around the world (particularly in China and other South East Asian and Gulf countries) with respect to accelerating local broad-based economic development.

GDP contribution grew from 14pc to 44pc since 1979: Gwadar to be declared SEZ for 20-30 years | Customs Today

 

[Kabira]

ISLAMABAD: The government has purchased 586 acres from Pakistan Navy, Coastal Guards and private individuals for establishing Gwadar Free Zone under China-Pakistan Economic Corridor (CPEC), The News has learnt.


Official documents available with The News disclosed on Friday that in order to finalise projects related to strategically located Gwadar area, National Development and Reform Commission (NDRC) of the People’s Republic of China’s delegation led by Lin Dajjan paid a visit to Pakistan on December 8, 2014, and reached a consensus in respect of industrial cooperation, infrastructure, social welfare and security projects for Gwadar zone.

To accelerate the process of construction of Gwadar port, China’s Communication Construction Co Ltd General Manager of Overseas Department’s delegation, led by Wang Jingchun, paid the visit to Pakistan from January 19 to 22, 2015, and reviewed progress on Gwadar projects.

Pakistani side informed the Chinese delegation that the government made progress on land lease agreement for Gwadar Free Zone.

Official sources confirmed to The News here on Friday that the government provided alternate land to the Pakistan Navy to the tune of 1,100 acres for establishing Free Zone at Gwadar, which will be hovering in the range of 30 kilometre radius.

The 586 acres, the sources said, will be meant for Free Zone only, and land for Gwadar airport will be obtained separately.

The Executive Committee of National Economic Council (Ecnec), under chairmanship of Finance Minister Ishaq Dar, directed the authorities concerned to raise the cost of Gwadar airport by Rs4 billion, increasing from Rs22 billion to Rs26 billion, in order to build this modernize airport which would enable Air Boeing 777 and 380 Airbus to operate from this airport. For this purpose, the runway for Gwadar airport will be increased by 1000 metre and some modernized buildings will be constructed. Now the authorities concerned after revising feasibility plan would again submit the cost of Rs26 billion before the next Ecnec meeting.

For infrastructure, the government has approved projects such as construction of East Bay Expressway and power plant to generate 300MW electricity in the Gwadar area. The government will also construct water plant at Gwadar with estimated cost of Rs12 billion.

The tender for Gwadar Upgrade Planning was published in print media on January 23, 2015. To implement the idea of free zone, the government has decided that although the Gwadar’s Airport would be located outside the Free Zone but the consignments coming through air would enjoy exemption from payment of duties and taxes.

Gwadar Free Zone under CPEC on the anvil - thenews.com.pk