Gwadar to be declared SEZ to facilitate economic uplift
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.