Pakistan Special Economic Zones

[ghazi52]

The government has devised a comprehensive plan to set up 37 special economic zones (SEZs) across four provinces and special areas under the China-Pakistan Economic Corridor (CPEC) to boost industrial production.

SEZ Act 2012 provides the governing structure for these zones and allows both federal and provincial governments to set them up under various administrative frameworks.

The list of the proposed sites for establishing SEZs was shared with Chinese authorities in the last Joint Cooperation Committee (JCC) meeting held in Beijing recently.

For attracting Chinese enterprises, the government is working on an investment package, which is expected to be finalised before the end of March, the source added.

At the same time, the Board of Investment (BoI) will host potential investors from China, including the Tianjin region, for an exploratory visit. SEZs are believed to be critical for the industrial sector as they have played a key role in the industrial development in many Asian economies.

Four SEZ sites were identified in Punjab. Punjab-China Economic Zone and Quaid-i-Azam Apparel Park SEZ are in Sheikhupura while M-3 Industrial City and Value Addition City are in Faisalabad.

Out of these four SEZ sites, the JCC referred only two to the joint working group (JWG) on industrial cooperation for consideration: Punjab-China Economic Zone (priority) and M-3 Industrial City Faisalabad (alternative).

In Balochistan, nine places were identified for SEZs: Bostan Industrial Zone, Dasht Industrial Zone, Turbat Industrial Zone, Industrial Zone at the Junction of Qilla Saifullah, Zhoband Loralai, Gwadar Industrial Estate, Lasbela Industrial Estate, Dera Murad Jamali Industrial and Trading Estate and Winder Industrial and Trading Estate.

Only two of these requests were referred to the JWG for further action: Bostan Industrial Zone (priority) and Khuzdar Industrial Zone (alternative).

In Sindh, four sites were identified for SEZs. These are China Special Economic Zone at Dhabeji in Thatta, China Industrial Zone near Karachi, Textile City and Marble City. Two of these projects were considered in Thatta: China Special Economic Zone, Dhabeji (priority) and Keti Bandar (alternative).

The Khyber Pakhtunkhwa government requested the establishment of SEZs in 17 places under the CPEC. These include economic zone at Karak, Nowshera, Bannu, Jalozai, Rashakai, Risalpur, Chitral, Buner, Swat, Batagram, Jahangir, Mansehra and Gadoon Amazai. Others include Hattar Phase VII Industrial Zone, Ghazi Economic Zone and Gomal Economic Zone in Dera Ismail Khan.

Only two of the 17 sites were referred to the JWG for consideration: Rashakai Economic Zone (priority) and Hattar Phase VII Industrial Zone (alternative).

Moqpondass SEZ will be established in Gilgit-Baltistan.

In Azad Jammu and Kashmir, Bhimber Industrial Zone will be the priority project while Muzaffarabad SEZ will be the alternative.

In Fata, the only SEZ will be Mohmand Marble City.

ICT Model Industrial Zone will be established in Islamabad while an industrial park will be developed on Pakistan Steel Mills’ land in Port Qasim near Karachi.

According to the source, Pakistan agreed to provide gas, water, electricity and other facilities to factories in industrial parks. “Pakistan will also consider providing Chinese enterprises with a suitable policy package to attract potential investors,” the source said.

 

[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.

 

[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]

Chemical Factory in Gwadar Free Zone North under plan​

By Yasir Habib Khan
Oct 12, 2023

In a new development, a chemical factory is going to be established in Gwadar Free Zone North (Phase II).

According to Gwadar Port Authority (GPA) official, an Islamabad based firm named Acrez Mark Private Limited plans to establish a chemical factory in Gwadar Free Zone. “The firm has expressed its plan to construct a Phthalic Anhydride production plant in Gwadar Free Zone. The Industry would stretch to 218 acres,” GPA official told Gwadar Pro.

“The total project cost is a whopping $83 million. With a total production capacity of 40,000 tons per year. Acrez plans to export 4300 containers abroad,” he added.

To materialise the project, he said, the company requires 3 megawatts electricity. Future expansion plans include the production of plasticisers.

 

[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]

‘Ghazi Economic Zone’ launched commercially​

Recorder Report
December 23, 2023

PESHAWAR: Ghazi Economic Zone was formally launched on commercial basis with the laying of foundation stone of two industrial units on Friday.

In this connection an impressive ceremony was held at the economic zone with KP Minister for Industries, Commerce, Technical Education and Tribal Affairs, Dr. Syed Aamer Abdullah as chief guest on the occasion.

Besides, the Chief Executive Officer (CEO), Khyber Pakhtunkhwa Economic Zones Development & Management Company (KP-EZDMC), Javed Iqbal Khattak, other senior management of the company and local investors were also attended the launching ceremony.

Addressing the launching ceremony, KP Caretaker Minister for Industries, Commerce, Technical Education and Tribal Affairs, Dr Syed Aamer Abdullah said that though the time-period of the caretaker set-up is brief, but they will honor all commitments made with the investors and industrialists by the government and no stone would be left unturned in this regard.

On the request of the representative of the cement manufacturing industry, the minister directed the authorities concerned for arranging a meeting with the management of the cement manufacturing units. He especially welcomed Karachi based investors for doing investment in Khyber Pakhtunkhwa and assured them that the provincial government will play be their ambassador in making efforts for resolution of their problems.

The provincial minister urged the plot allottees of the zone to start work on the establishment of their enterprises as soon as possible. Otherwise, he said the policy of the government is very clear in this regard. He also distributed allotment letters of plots in investors of the zone and shields among the proprietors of the under-construction units.

The occasion also marked the groundbreaking of two enterprises i.e. Art Line Packaging Industry, investing PKR 400 million and creating 250 direct jobs, and Blanc Fixe Minerals, investing PKR 334 million and generating 25 direct job opportunities. Ghazi Economic Zone has successfully attracted a substantial investment, totaling approximately PKR 4 billion, showcasing a robust commitment to fostering economic development.

This noteworthy achievement underscores the region’s growing prominence as an attractive investment destination. Diversifying its economic portfolio, Ghazi Economic Zone encompasses key industrial sectors, including marble, pharmaceuticals, printing and packaging, as well as food and beverage industries.

Strategically positioned at the confluence of Khyber Pakhtunkhwa and Punjab, GEZ sprawls over 89 acres, having leasable area of 72 acres, all meticulously developed under the expert guidance of KP-EZDMC. Situated merely 15 kilometers away from the Chach/Hazro Interchange on the Peshawar-Islamabad Motorway M1, GEZ offers a distinct competitive advantage by minimizing transportation costs and providing seamless access to both provinces and the China-Pakistan Economic Corridor (CPEC) route.

GEZ’s strategic proximity to successful Economic Zones such as Gadoon and Hattar Economic and Special Economic Zone establishes it as a hub for collaborative growth. The economic impact generated by GEZ is poised to directly benefit the surrounding districts of Haripur, Swabi, Nowshera, and Attock, fostering regional development and prosperity.

Functioning as a dynamic economic catalyst, Ghazi –Economic Zone stands as another noteworthy achievement within the realm of KPEZDMC, underscores the Government of Khyber Pakhtunkhwa unwavering commitment to propelling economic development, generating employment opportunities, and elevating the overall business landscape.

Copyright Business Recorder, 2023

‘Ghazi Economic Zone’ launched commercially

PESHAWAR: Ghazi Economic Zone was formally launched on commercial basis with the laying of foundation stone of two...

www.brecorder.com

 

[ghazi52]

Solar Manufacturing Enterprise to invest Rs. 470.78 Million in Rashakai Special Economic Zone​

Tahir Ali | Gwadar Pro
Apr 17, 2024

PESHAWAR- Steller, a Pakistani solar manufacturing enterprise is set to invest Rs. 470.78 million in the Rashakai prioritized Special Economic Zone (pSEZ), a flagship project of the China-Pakistan Economic Corridor (CPEC).
The company was approved during the 8th SE Committee meeting of Rashakai pSEZ held on Tuesday.

The committee comprised representatives from the Board of Investment Pakistan (BOI), Rashakai Special Economic Zone Development and Operations Company (RSEZDOC), Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC), Khyber Pakhtunkhwa Special Economic Zone Authority (KP-SEZA), Deputy Commissioner Nowshera, and Khyber Pakhtunkhwa Board of Investment & Trade (KP-BOIT).

“After completion of formalities, the enterprise will be issued a formal letter of approval, entitling it to the fiscal benefits of SEZs,” according to an official statement from BOI.
According to BOI, in line with the government’s present-day vision to promote clean and sustainable energy solutions, BOI actively encourages and facilitates investments in the solar panel manufacturing sector. This strategic focus not only contributes to environmental sustainability but also enhances long-term revenue generation for the government.

BOI, as the secretariat of the SEZs, will provide all-out facilitation to enable the new enterprise to commence its construction activities within 6 months and commence production within 24 months of their approval.

Rashakai pSEZ, located in Nowshera KP, is spread over an area of approximately 1,000 acres of land. The zone holds the potential of US$ 4 billion in investments. Upon its completion, Rashakai pSEZ is expected to provide 200,000 direct and indirect employment opportunities for locals.

 

[ghazi52]

Chinese textile company secures 100 acres of land in Lahore for export-oriented SEZ​

Gwadar Pro
May 20, 2024

LAHORE - Challenge Fashion (Pvt) Ltd, a Chinese textile company, has acquired 100 acres of land in Lahore, Pakistan's emerging economic hub, in an aim to develop a Special Economic Zone (SEZ) for a textile park.

The company plans to commence the construction of an export-based garment factory after completing a 3-kilometer access road from the main highway to the proposed site of a textile park. "The factory infrastructure is expected to be built within 12 months," stated an official from Challenge Fashion in an interview with Gwadar Pro.

The garment factory is expected to help Pakistan earn 500 million US dollars in foreign exchange and create 30,000 jobs each year. Challenge Fashion (Pvt.) Ltd plans to invest 150 million US dollars over the next 3-5 years. If everything progresses as planned, it is expected to attract an additional investment of 100 million US dollars in supporting industries.

The official mentioned that acquiring high-quality fabrics is a significant challenge. Currently, more than 80% of the surface accessories are imported, which substantially hinders the company’s pace of expanding its industrial scale.

“The company plans to develop the park into the most innovative and sustainable textile industry base in South Asia, showcasing China’s park design concept and construction standards to Pakistani counterparts. This will promote the most efficient and environmentally friendly automated fabric production equipment and garment production systems, and spread modern production management science,” the official added.

The official also stated that the establishment of a supply chain cluster would help improve Pakistan’s labor structure and management. “We hope to demonstrate China’s industrial park standards to our Pakistani counterparts by creating a Chinese-regulated industrial park project,” the official said.

“We aim to enable Chinese enterprises interested in an overseas layout to see Pakistan’s investment potential and also provide project landing sites for SMEs so that they can fully benefit from the preferential investment policies provided by the Pakistani government,” the official asserted.

The official further explained that “the tariff-free treatment of textiles exported to the EU, combined with China’s Free Trade Agreement, can guarantee the price competitiveness of Pakistani products. Pakistani fabrics exported to Africa or Jordan can enter North America without tariffs, and the route is much shorter than from East Asia.”

 

[ghazi52]

Pharmaceutical enterprise to kickstart production at Rashakai pSEZ​

Gwadar Pro
Jun 26, 2024

Trucks unloaded at an enterprise site in Rashakai pSEZ. [photo/Kpezdmc]

PESHAWAR, Jun. 26 (Gwadar Pro) - The Rashakai prioritized Special Economic Zone (pSEZ), a flagship project under China-Pakistan Economic Corridor (CPEC) in Khyber Pakhtunkhwa (KP), has reached a significant milestone.

Trucks loaded with materials from Uzbekistan have arrived at the site of a pharmaceutical company within the zone, paving the way for commercial production soon.

According to an official statement from the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC), fourteen trucks, consisting of 22 wheelers and other vehicles, traveled from Uzbekistan via Afghanistan have arrived at the project site.

The materials are currently being unloaded at M/S Al-Chemist Private Limited.
“This pioneering enterprise is nearing completion and is expected to commence commercial production soon,” the statement reads which was released on Wednesday morning.

It further highlights that the Rashakai pSEZ is poised to revitalize industrial activities in the province and the country, further strengthening the bond between Pakistan and China.

Trucks coming from Uzbekistan arrive at Rashakai pSEZ. [Photo/Kpezdmc]

 

[FuturePAF]

Pharmaceutical enterprise to kickstart production at Rashakai pSEZ​

Gwadar Pro
Jun 26, 2024

Trucks unloaded at an enterprise site in Rashakai pSEZ. [photo/Kpezdmc]

PESHAWAR, Jun. 26 (Gwadar Pro) - The Rashakai prioritized Special Economic Zone (pSEZ), a flagship project under China-Pakistan Economic Corridor (CPEC) in Khyber Pakhtunkhwa (KP), has reached a significant milestone.

Trucks loaded with materials from Uzbekistan have arrived at the site of a pharmaceutical company within the zone, paving the way for commercial production soon.

According to an official statement from the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC), fourteen trucks, consisting of 22 wheelers and other vehicles, traveled from Uzbekistan via Afghanistan have arrived at the project site.

The materials are currently being unloaded at M/S Al-Chemist Private Limited.
“This pioneering enterprise is nearing completion and is expected to commence commercial production soon,” the statement reads which was released on Wednesday morning.

It further highlights that the Rashakai pSEZ is poised to revitalize industrial activities in the province and the country, further strengthening the bond between Pakistan and China.

Trucks coming from Uzbekistan arrive at Rashakai pSEZ. [Photo/Kpezdmc]

Pakistan should look at ways to work with Iraq and Turkey on linking Gwadar to the “Development Road Project” to connect to Central Asia and then to China. Perhaps even see Turkey and Iraq invest in Pakistan, specifically in Gwadar, but also the transit infrastructure such as ML-1 and a link between Gwadar and Karachi as well as the Trans-Afghan Railway, increasing the utility of their own route and the link to China and the rest of East Asia. Turkish efforts in Africa could also open up trade with the continent and more trans-shipment to Europe and Asia via these two routes.

Getting around Iran (and Chabahar) as well as Russia and their potential to block the Caspian may become important in a few years. Both Russia and Iran as global pariahs will limit their ability to be safe transit countries soon enough.

if we look at the port of Djibouti as another important port bringing trade from Africa, we could see large cargo ships go between the deep water port of Gwadar and deep water port of Djibouti and then cargo being offloaded at Gwadar to be put on smaller ships to be sent to the Iraqi port under construction of Al-Faw, with most like not as deep water (19 meters of depth in the first phase), possibly limiting it as a major deep water port, at least for a few years, and making Gwadar a good trans-shipment port for at least a few years, to gain some business.

Al-Faw was suppose to come online fully in 2041, but it seem the war in Palestine has cut the Suez route and made the Turks and Iraqis accelerate work on their route.

Pakistan needs to focus on this three way route, it could be a way to quickly make Gwadar relevant in regional trade immediately, and then very important in international trade soon enough.

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[ghazi52]

The Dhabeji SEZ in Sindh, spanning 1,530 acres, will be completed by May 2025. Proximity to Port Qasim ensures trade efficiency, and a $1 billion medical city is planned.

Under CPEC, China invested $26 billion, adding 8,800MW to Pakistan’s grid and creating 250,000 jobs.

The project signifies industrialisation progress and deepened economic ties.

For more details visit: https://bit.ly/3PxgUp5