Minister informs that 1st of the 9 identified SEZs under CPEC likely to be opened by next month.
ISLAMABAD: Special Assistant to Chief Minister Khyber Pakhtunkhwa on the industry, commerce, and labor, Abdul Karim Khan has said the over $130 million of investment would be made in the Rashakai Special Economic Zone in the first phase.
The first of the nine identified SEZs under China Pakistan Economic Corridor (CPEC), Rashakai SEZ is likely to be inaugurated by next month.
“In this economic zone, 9 percent investment would be made by the KP government while the remaining 91 percent investment will be from the foreign sources-mainly Chinese side”, he said while talking to APP.
He hoped that China will soon extend approval for the Rashakai Economic Zone which would pave the way for the investment of US$128 million in the zone.
Talking to APP he said the Rashakai industrial zone would prove as the geographical center of the province and it would also integrate the whole region.
He said with the promotion of industrialization in the zone, thousands of new employment opportunities would be created for local people which would help to reduce the poverty rate in the area, besides bringing prosperity and development in the country.
Abdul Karim said the implementation on the agreed incentives between Pakistan and China under the country’s industrial policy would be fully insured.
Rashakai Economic Zone is a flagship project of Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC), which spans over a 1000 acre land.
The location is connected both through air and land routes via the airport in 50 kilometers, a dry port in 65 KM, a railway station in 25 KM, a highway in 5 KM and the city center in 15 KM.
Moreover, it is strategically, located on the M1 Motorway at the bridge between CPEC and Burhan interchange. Earlier, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Senior Vice President Dr. Mirza Ikhtiar Baig on Tuesday said that the trickle-down effects of CPEC will be achieved from Special Economic Zones (SEZs) and relocation of industries from China.
He was speaking to a seminar SEZs organized by FPCCI in collaboration with Embassy of Republic of China and Chinese Council for Promoting South-South Cooperation here on Tuesday.
Baig highlighted the special incentives allowed by the government to investors for the industries in SEZs which includes one-time exemption from duty and taxes on import of plant and machinery, five-year tax exemption during construction and development of projects, 10-year tax holidays during operation and production started by 30th June, 2020 and additional five-year tax holidays making total 20 years of tax exemption.
He stressed the benefits of the relocation of industries mainly textile from China in SEZs to benefit from Pakistan’s expertise in the textile sector and local availability of raw material.
Speaking on the occasion, Board of Investment (BOI) Chairman Haroon Sharif said that the forum is organized at an opportune time when there is a global shift in the investment planning and activities, as the developed world is facing huge uncertainty.
He appreciated the organizers of the Forum which was attended by Vice Presidents of FPCCI Sheikh Abdul Waheed, Ijaz Khan Abbasi, Qurban Ali and leaders of the business community in ICT region prominently Sohail Altaf, Zafar Bakhtawari, Zahid Latif and Sohail Malik.
There were about 60 Chinese companies represented by their Chairmen and CEO who met Pakistani counterparts from various sectors attended the Forum.
Ambassador of China Yao Jing and the Chairman of the Chinese Council for Promoting South-South Cooperation Lv. Xinhua also addressed the Forum and emphasized South-South Cooperation aimed to achieve shared economic and development goals between Pakistan and China.
They further emphasized that both countries promote joint venture projects to achieve export-led growth in SEZs under CPEC.