Special Economic Zones, a key constituent of China Pakistan Economic Corridor (CPEC), are anticipated to guide a new era of industrial development and economic growth in the country for days forth.
As both the Pakistani and the Chinese authorities, at contemporary interactivity, had discussed the breakthrough in Special Economic Zones, they had a common conception that SEZs would help boost economic activity in the country, engender employment opportunities and earn foreign exchange.
Officials of Board of Investment (BoI) Pakistan and Chairman National Development and Reform Commission (NDRC), China, Ying Xiong, the Zhejiang, Shandong, and Guangdong provinces had recapitulated to invigorate their enterprises to develop linkages with Pakistan’s provincial BOI’s and invest in the SEZs.
Pakistan is currently developing five out of nine SEZs nominated under CPEC including Allama Iqbal Industrial City in Faisalabad, Punjab, Dhabeji SEZ in Sind, Rashakai SEZ in Khyber Pakhtunkhwa, and Boston SEZ in Balochistan. Another fast-track SEZ is in Gwadar namely Gwadar Free Zone is also under progress.
The first phase of Gwadar Free Zone at an area of 60 acres of land is already fully serviceable while the exceeding second phase spanning over 2200 acres of land is under construction.
According to the CPEC officials, dozens of Chinese firms were utilizing Pakistan’s copious economic zones as both the governments were constructively involved to carry forward the SEZ projects and make them functional at the earliest possible.
Pakistan is interested to relocate the Chinese industries to 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 substitute the country’s imports.
The Federal Government has spared Rs 49.39 Billion of custom duties and taxes on the import of plants and machinery for setting up of units in these zones.
Overall, the official said that all the notified SEZs together 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).
Authorities believe that China’s Pakistan Economic Corridor is a golden opportunity for Pakistan to boost its economy and overcome a deepening economic downturn. Since the country is facing trade slippage, diminishing reserves, decreasing rupee value, and several other provocations; this inventiveness can turn things around leading the country to economic stability.
They also expect the upcoming government to fully focus on these projects so the country could be able to reap the benefits of this historic project between China and Pakistan at the earliest possible.
