Special Economic Zones (SEZ), under CPEC

[ghazi52]

,..,

Pakistan currently developing five SEZs under CPEC, says SEZA chief​

Recorder Report

LAHORE: S M Naveed, Chairman Special Economic Zones Authority (SEZA) shared during a meeting held on Monday at his office that Pakistan is currently developing five out of nine SEZs nominated under CPEC including Allama Iqbal Industrial City in Faisalabad, Punjab, Dhabeji SEZ in Sindh, Rashakai SEZ in Khyber Pakhtunkhwa and Boston SEZ in Balochistan. Another fast-track SEZ is in Gwadar namely Gwadar Free Zone which is also under progress.

He added that the first phase of Gwadar Free Zone at an area of 60 acre land is already fully functional while the mighty second phase spanning over 2200 acres of land is under construction.

Both Pakistani and the Chinese authorities reviewed progress on Special Economic Zones; they had a common notion that SEZs would help boost economic activity in the country, generate employment opportunities and earn foreign exchange.


S M Naveed, added that numerous Chinese companies’ representatives had visited Pakistan to discuss some outstanding issues and were informed that all issues on way to make these projects a success, would be resolved on priority. Pakistan is interested to relocate the Chinese industries in the CPEC SEZs to benefit from the expertise of the companies.

Textile, information technology, agriculture, science and technology sectors, and mining sectors are the key areas in which Pakistan is keen to bring foreign direct investment in a bid to boost exports and to substitute the country’s imports. The upcoming projects in CPEC would mainly be in these sectors which would act as dual-beneficial tool, cutting down the country’s imports and increasing the exports.

S M Naveed, Chairman SEZs shared that all the notified SEZs together in across the country, account for approximately 10,029.64 acres of industrial land out of which 5,220.62 acres (52%) have been allotted to investors for setting up of industry with planned investments of Rs 633.9 billion, 43.6% of this comprises of FDI component (USD 1.73 billion).

He added that I believe China-Pakistan Economic Corridor is a rare opportunity for Pakistan to boost its economy and overcome deepening economic recession. Since, the country is facing trade deficit, depleting reserves, a declining rupee value and number of other challenges; this initiative can turn things around leading the country to economic stability.

Copyright Business Recorder, 2022

 

[ghazi52]

KPK ............
Rashakai SEZ to start operation in March as construction advances and phase 1 is nearing completion...

 

[ghazi52]

,..,.,.

Rashakai SEZ set to commence operations next month​

February 13, 2023




PESHAWAR: Chief Executive Officer (CEO) of Khyber Pakhtunkhwa Economic Zones Development & Management Company (KP-EZDMC), Javed Iqbal Khattak has said that 98% of work on infrastructure development in Rashakai prioritized Special Economic Zone (pSEZ) has been completed and will become operational in March 2023.

Talking to APP here on Sunday, he said that spread over an area of 1000 acres, pSEZ is a flagship project of the KP government under the industrial cooperation of China Pakistan Economic Corridor (CPEC) framework that serves as CPEC Special Economic Zone.

It is one of the four prioritized SEZs that would be the first SEZ to become operational next month.

He said that power transmission and transformation were crucial parts of the project, which are near completion. He said that a special focus of this project is to set up export-oriented industrial units in it. Besides the investment of US $ 400 million, they are also expecting the generation of 250,000 to 300,000 direct and indirect employment, he said, adding that 80% of the labour force in the zone would be local, particularly natives of the area.

Regarding investment in the project, the CEO of KP-EZDMC said that so far 18 Pakistani and Chinese companies have agreed on making joint ventures in it. The project not only will play a crucial role in the economic growth of KP, but also in strengthening the national economy, he said and added that a large number of investors have started construction work on their industrial units.

He said that the company is giving priority to the establishment of export-oriented manufacturing units in the zone to create alternatives to imports.

He said that foreign investment in the zone not only will pave way for the transfer of modern technology to KP but also bring expertise and other good practices to Pakistan. “Trainers and master trainers arrive along with these modern pieces of machinery will also prove beneficial for our coming generations.”

 

[ghazi52]

Hattar Special zone, Haripur, KPK ...

Infrastructure Development Works including roads and drainage at Hattar Special Economic Zone are progressing on fast track and are 70% completed.

The development works are expected to be completed in May 2023.

 

[airhead]

encouraging to hear some good news coming from Pakistan. I hope it is not just Chinese firms that use these facilities but also that Pakistani firms get spawned from here

 

[ghazi52]

,.,.,...

Dhabeji granted the status of Special Economic Zone​

By Tahir Ali
Jun 29, 2023

ISLAMABAD - To promote the value addition component in exports, generate employment, encourage the import situation, and mobilize foreign exchange for the balance of payments support, Dhabeji Special Economic Zones (DSEZ) in Thatta Sindh is another mega project designed within the framework of China-Pakistan Economic Corridor (CPEC)─ a core component of Belt and Road Initiate (BRI).

In a major development last week, Federal Minister for Board of Investment (BOI) Choudhary Salik Hussain chaired the 8th meeting of the Approvals Committee which approved the establishment of eight SEZs including the DSEZ Thatta.

“Dhabeji Special Economic Zone has been granted SEZ status after much anticipation; DSEZ will pave a new era of industrialization for Karachi and Pakistan; the groundbreaking is to be held in mid-July 2023,” reads an official statement of Sindh Economic Zones Management Company (SEZMC). DSEZ will facilitate the potential investors of China and other countries to either start new enterprises or transfer their facilities to Pakistan.

In 2021, a technical issue emerged regarding the awarding of the contract of Dhabeji Industrial Zone (DIZ) when a petitioner raised questions that the rules of SEZ were not followed during awarding of the contract. SEZMC stated DIZ is not a special economic zone and later will be declared as SEZ. Now, the government has officially declared DIZ as DSEZ.

According to CPEC’s official website, 1530 acres of land have been allocated to establish DSEZ which will be developed in two phases. DSEZ has been proposed to be constructed in two phases comprising 750 acres for Phase I and 780 acres for Phase II.

DSEZ has easy access to Port Qasim, enabling raw material import and finished goods export without incurring major inland transportation costs and saving time. A direct access road (8km) connecting Port Qasim to Dhabeji Zone is being developed.

A dedicated cargo deck connecting the zone with ML-1 from Dhabeji Junction and a jetty connecting Port Qasim alongside the Dhabeji zone from the creek side are envisaged to facilitate export-oriented industries. Karachi Airport (35 Km) via National Highway enables safe travel of foreign workers and management personnel, National Highway enables the transportation of goods to upcountry and Central Asian nations, utilizing the National Trade Corridor.

 

[ghazi52]

,.,.,.

 

[ghazi52]

,..,,.
Dhabeji Special Economic Zone

The Dhabeji Special Economic Zone project is a significant component of the China-Pakistan Economic Corridor (CPEC) and will be linked to the historic Keti Bandar, which connects to the Gwadar Port. Keti Bandar was constructed following the closure of the historic Shah Bandar, which was a significant trading hub at the time.

In Dada Sindhi’s book “Ports and Bazaars of Sindh,” it is stated that Ghulam Shah Kalhoro constructed Shah Bandar in order to engage in trade with Mughal emperor Aurangzeb Alamgir. This facilitated business activities starting from 1659 AD. Subsequently, Keti Bander was established.

During the early years of British rule, the port mentioned was highly profitable and served as a shipping point for the East India Company’s goods to Shah Bandar. Both Shaheed Bhutto and Shaheed Benazir Bhutto initiated various projects for the rehabilitation of Keti Bandar and Shah Bandar.

Now, as Keti Bandar is part of the China-Pakistan Economic Corridor (CPEC), a special economic zone has been established for the successful implementation of this project. The economic zone, known as Dhabeji Special Economic Zone, covers 1500 acres of land and aims to connect Karachi to the entire country through the Malir Expressway.

The development work of the Dhabeji Special Economic Zone is planned to be completed within 18 months. Situated approximately nine and a half kilometers from Port Qasim, this proximity adds to the value and usefulness of the project. The economic zone can serve as a storage hub for Port Qasim, facilitating efficient logistics.

Furthermore, the economic zone will be well-connected through road and railway networks, enabling the transportation of goods and materials. The zone will accommodate a range of industries, including light, medium, and heavy industries.

Additionally, it will provide warehouse and logistics facilities, as well as commercial and residential plots for people seeking residences or business opportunities.

The Dhabeji Special Economic Zone aims to provide a peaceful environment for residents and businesses alike. To ensure a smooth functioning of the economic zone, an allocation of 878.5 million has been made for water supply, ensuring an uninterrupted water supply through the Dhabeji Pumping Station.

Additionally, an MoU (Memorandum of Understanding) has already been signed with Sui Southern Gas for the supply of gas to the economic zone.

Furthermore, a grid station with a capacity of 250 MW will be established through a line from the National Transmission and Dispatch Company (NTDC) to provide electricity to the project.

The cost of setting up this grid station is estimated to be around Rs 6.15 billion. These measures are aimed at providing essential utilities to support the smooth functioning and development of the Dhabeji Special Economic Zone.

The Dhabeji Special Economic Zone has allocated 13.5 million cubic feet per day (mmcfd) of gas supply, which will be provided at a cost of Rs 429 million. This gas supply is essential to supporting the industrial activities within the economic zone.

Furthermore, as part of the annual development plan, a dedicated road connecting the economic zone directly to Port Qasim is scheduled to be completed by 2024. This road project has a budget of Rs 2.7 billion and will be linked to the National Highway through an interchange, enhancing connectivity and facilitating the movement of goods and people.

Special packages have also been announced to incentivize people working in the economic zone. These include a one-time exemption from tax and customs duty on the import of capital goods, as well as income tax exemption for a period of ten years. These measures are designed to promote investment, boost economic activity, and attract businesses to the Dhabeji Special Economic Zone.

The Dhabeji Special Economic Zone is regarded as a flagship project of the Government of Sindh and is planned to be executed through a Public-Private Partnership (PPP) model.

The feasibility study and transaction advisory for the project were completed by IBE Karachi, EA Consulting, and Rhea Barker Gilt, indicating a comprehensive planning process.

Zayed KB Builders has been selected as the successful bidder for the project, and a concession agreement has been established with them. EF Ferguson has been appointed as the project’s auditor to ensure transparency and accountability.

The economic zone is expected to attract significant investment, estimated to be around $5 billion. With such substantial investment, the project holds the potential to provide employment opportunities to approximately one lakh (100,000) individuals.

In a 2016 CPEC (China-Pakistan Economic Corridor) meeting, approval was granted for six economic zones, one of which is the Dhabeji Special Economic Zone. Today, work is commencing on this project.

The Dhabeji Special Economic Zone is strategically located, with 1500 acres of land allocated for it on a 50-year lease. Additional land will also be assigned for the zone’s expansion, contributing to the economic development of Pakistan, particularly in Karachi.

The Dhabeji Special Economic Zone holds a central position and is in close proximity to Karachi Port, Karachi Airport, Port Qasim, and the National Highway.

It is expected to be a game-changer in terms of industrial development, introducing a new concept not only in Sindh but throughout Pakistan.

 

[ghazi52]

,.,.,.

CM inaugurates Phase I of Rashakai economic zone​

APP
July 22, 2023

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Mohammad Azam Khan on Friday inaugurated Phase I of the Rashakai Special Economic Zone marking a significant milestone in the development of the China-Pakistan Economic Corridor.

The ceremony was attended by the secretary of the Federal Board of Investment, provincial chief secretary, CRBC general manager, CEO of the KPEZDMC and other dignitaries.

The zone strategically located at the nexus of economic growth stands as a testament to the strong partnership between Pakistan and China, according to officials.

They said the CPEC had become a symbol of friendship between the countries and a model for cooperation between developing countries.

The chief minister appreciated the “exceptional efforts and unwavering commitment of China Road and Bridge Corporation and Khyber Pakhtunkhwa Economic Zones Development and Management Company for successfully completing Phase I of the project six months before the deadline.”

He thanked the Chinese government, companies and public sector entities for their “unflinching support to the project as well as all those who contributed to the completion of Phase I of the Rashakai SEZ.”

The officials said the project’s Phase I encompassed 247 acres of modern facilities designed to attract domestic and foreign investors promising to spur economic growth and job creation and thus, strengthening Sino-Pak cooperation and relations under the umbrella of the CPEC.

They said Phase I housed 18 zone enterprises with seven being under construction mobilising an estimated investment of Rs85 billion.

The officials said as the Rashakai SEZ would become a catalyst for regional prosperity, employment creation for the local population, and foreign direct investment, plans were in the works for the project’s second phase.

They said authorities were committed to “expanding infrastructure, streamlining business processes, attracting key industries and unlocking the SEZ’s full potential as part of the ongoing CPEC decade.”

 

[ghazi52]

,.,.
Chinese enterprises in FTZ bring Gwadar Port into bloom

By Saira Iqbal
Aug 4, 2023

LINYI - "The Pakistani government is very supportive of Chinese enterprises investing in Gwadar Port and has given multiple preferential policies including tax-free incentives. Free Zone is now booming," said Liu Hui, deputy general manager of China Linyi Trade City Co, a Chinese enterprise that has been operating in Gwadar Port Free Zone（FTZ） for many years.

Before 2015, the FTZ was just an idea. Now the FTZ has attracted some 20 companies in banking, insurance, logistics and food processing with a combined investment of USD420 million, from China and Pakistan, and it has generated 1,200 jobs.

Inside the FTZ, China Linyi Trade City Co, a merchandising firm, invested in warehousing facilities."We have fully undertaken warehousing service of the Gwadar Port - Afghanistan fertilizer transit trade since September 2020. It has completed the storage services of 800,000 tons of fertilizer by March 2023. In 2021, our warehousing service promoted the re-export trade by USD 60 million, highlighting the role that Gwadar Port has played in connecting surrounding landlocked countries." Liu Hui introduced. The company’s project in FTZ consists of a commodity exhibition center and bonded warehouse with multiple functions of exhibition, bonded storage and transit trade.

"This December, we will host the third Gwadar Expo, which will reach out to 15 surrounding countries, including Middle East countries, the Gulf states and neighboring Muslim countries." She added.

With the improvement of Gwadar and the surrounding infrastructure, the permanent resident population grew from 80,000 in 2013 to 220,000 in 2023. The port operator aims to build Gwadar into a smart port city by 2050 with a total population of more than 1.7 million and an annual GDP of $30 billion.

"Every day the Chinese in Gwadar bathed in the friendship and care of the local people, they see Chinese companies as the only hope for Gwadar's future," said Zhang Baozhong, former chairman of China Overseas Ports Holding Co, the operator of the Gwadar Port. "By fostering a secure environment for development in some areas, and using these areas as economic locomotives, it is believed that we can help, in a gradual fashion, increase the national strength of Pakistan."

 

[ghazi52]

.,.,.
Rashakai economic zone, KPK , ...