BoI approves two economic zones for Sindh

Published July 23, 2014
The committee approved the Bin Qasim Special Economic Zone and Korangi Creek Special Economic Zone, which had been proposed by the Sindh government. — File photo
The committee approved the Bin Qasim Special Economic Zone and Korangi Creek Special Economic Zone, which had been proposed by the Sindh government. — File photo

ISLAMABAD: The federal government on Tuesday approved a proposal to float two special economic zones in Sindh, which will provide guarantees to investors under the Special Economic Zones Act of 2012.

Under the law, any incentives extended to investors cannot be withdrawn without an act of parliament.

The decision to set up the two special economic zones was taken at a meeting of the approval committee of the Board of Investment (BOI), chaired by the board’s Chairman Dr Miftah Ismail. Representatives of the Sindh government participated via video link.

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The committee approved the Bin Qasim Special Economic Zone and Korangi Creek Special Economic Zone, which had been proposed by the Sindh government. The implementation of the committee’s decision now requires a formal assent from the Board of Approvals, which is headed by the prime minister.

The Bin Qasim Industrial Park, spread over an area of 930 acres, will cost an estimated Rs9.8 billion and is expected to bring in direct investment nearly Rs50 billion, contributing Rs100 billion to GDP growth and generating direct employment for at least 50,000 individuals.

The project has been designed to cater to the needs of medium and large-scale entrepreneurs aspiring to invest especially in the engineering sector and the steel industry of Pakistan. The proposed industrial clusters under the zone include engineering and equipment, chemicals and food, logistics and consumer goods.

The engineering and equipment cluster includes auto vendors, foundries and steel fabricating units; the chemicals and food cluster consists of pharmaceuticals, food and beverages and chemicals, while consumer goods include plastics, electrics and consumer electronics.

The Korangi Creek Industrial Park, to be developed on 240 acres at an estimated cost of Rs3.8 billion, is located in the Korangi Industrial Area. This will bring a projected Rs20 billion in direct investment, contributing Rs40 billion to the national economy and creating employment for 30,000 individuals.

The park is divided into two zones: a low density zone for industries and a high density zone for commercial sectors.

The low density zone will include industrial units of food and pharmaceuticals, garments and textiles, light engineering, packaging and printing, warehousing and logistics.

The high density zone will exclusively promote information technology, gems and jewellery and other ancillary and allied sectors.

The incentives under the Special Economic Zones Act of 2012 ensure a corporate tax holiday of 10 years for investors and developers as well as duty-free import of capital goods.

The normal incentives for exports as available to projects established anywhere in the country would be applicable to exports from the projects located inside the zone.

Published in Dawn, July 23rd , 2014

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