Gwadar to be de­clared SEZ to fa­cil­i­tate eco­nomic up­lift

The Pak Banker - - NATIONAL -

Gwadar will soon be de­clared a Spe­cial Eco­nomic Zone (SEZ) for a pe­riod of 20 to 30 years in or­der to fa­cil­i­tate rapid com­mer­cial and eco­nomic de­vel­op­ment. The SEZ is likely to cover city of Gwadar and in­dus­trial ar­eas cur­rently planned and fore­seen. As per data pro­vided by Ports and Shipping Di­vi­sion here on Wed­nes­day, the spe­cific in­cen­tive-regime is likely to in­clude gen­eral tax-hol­i­days, no VAT and gen­er­ous in­cen­tives per­tain­ing to business own­er­ship. The gov­ern­ment has al­ready started work­ing on this pro­posal.

The main pur­pose of this con­cept is 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. Since des­ig­na­tion as China's first SEZ in 1979, Gross Do­mes­tic Prod­uct (GDP) con­tri­bu­tion from in­dus­try sec­tor grew from 14% to 44%, over a pe­riod 26 years. Gwadar Port draws 9% of the gross in­come from marine and port op­er­a­tions each and on de­vel­op­ment of Free Zone fur­ther 15% of the gross in­come will ac­crue to the Port. More­over, un­der Chi­naPak­istan Eco­nomic Cor­ri­dor Pro­gramme, Gwadar Port City is agreed by the two coun­tries as a Gate­way and fun­da­men­tal mode of the Cor­ri­dor. The op­ti­mal use of Gwadar Port un­der this pro­gramme will bring a big eco­nomic, com­mer­cial, and so­cial change in Gwadar re­gion and all along with the Cor­ri­dor in Pak­istan.

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