June 01, 2008	Sunday	Jamadi-ul-Awwal 26, 1429

KARACHI, May 31: The Sindh government has allotted 70 per cent of plots to growers in the country’s first agro-export processing zone on Super Highway while 30 per cent have been given to exporters.

The 50-acre zone, being set up by the ministry of agriculture, has plots of 2,000 square yards allotted at a rate of Rs2,726 per square yard. In addition to this, there would be 30 commercial shops for spot sale and five cold stores.

The allotment was not made through balloting, and instead a technical committee, headed by a director-general scrutinised about 80 to 90 applications and selected 41 cases for allotment of plots of 2,000 sq yard size.

Elaborating on eligibility, the zone management said growers, who had 25 acre land-holdings, were chosen for allotment whereas exporters were required to submit proof of exports. It was further informed that no allotment quota was fixed for each district in the province.

The Sindh Abadgar Board has expressed reservations on allotment of plots in the first agro-export zone as many growers were issued allotment orders but were not given challans to confirm their ownership. This created doubts about transparency in allotment.

When asked why growers have been preferred over exporters in the zone, a board officials said many growers were engaged in export of fruits, especially mango and vegetables to Europe and Gulf states.

Work on infrastructure for the zone which is expected to become operational from fiscal year 2009 would start shortly for building roads, sewerage electricity and water supply.

Exporters who bought plots in the zone do not know what tax incentives would be given to them by the Federal Board of Revenue.

A committee has been set up to formulate recommendations on tax incentives from the federal government.

Kahlid Ejaz, a leading fruit exporter, told Dawn on Saturday that the most important thing was environment control which was a must for food safety. International buyers would not accept fruits and vegetables unless hygienic environment is ensured in the zone.

He also wants tax holiday for export-oriented units, especially duty-free import of machinery and packing material in the zone. He said exporters have to pay sales tax on purchases made from outside of the zone but they are not allowed refund or adjustment of input tax.

He said that first agro-export zone would not be a real success if it was allowed tax exemption as enjoyed by the Karachi Export Processing Zone in Karachi or other such zones in the country.

Exporters would be required to set up hydration plants, cold stores and grading arrangements.

Allotment would be cancelled if allottees failed to set up businesses within two years of the commissioning of the zone.

The management of the zone has requested for another chunk of 25 acres from the government because it claims that many overseas investors were interested in setting up units.

To go with the zone, there will be 10 collection centres, to be built in the interior, for collection and storage of fruits and vegetable for the safe passage to the main zone for onward shipment.