Incentive package likely for Gwadar EPZ to attract investment: ECC meets today

[Naveed Yaseen]

ARIF RANA
ISLAMABAD (September 23 2008): The Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve an incentives-laden package for Gwadar Export Processing Zone (GEPZ) when it meets here on Tuesday (September 23). Prime Minister Yousuf Raza Gilani would be in the chair. The Ministry of Industries and Production has submitted a summary to the ECC for grant of a lucrative package of incentives to attract investment for the GEPZ.

Sources said the incentive package included 10-year tax holiday for the GEPZ, and added the tax holiday would be applicable to the investors from the date of start of commercial operation of the project, permission for export of production from the zone to tariff area of the country up to 80 percent on the payment of normal duties.

According the sources, the package also promises normal incentives for exports from the GEPZ as available to projects, established anywhere in the country, would be applicable to exports from the projects in the zone. As an incentive, the plots in the GEPZ would be provided to investors on lease (as per the existing EPZA procedure) at a reasonable rate to be determined in consultation with the government of Balochistan, said the sources.

The package also includes zero-rated sales tax on supply of construction materials to the GEPZ investors or development of zone infrastructure. It also includes exemption from stamp duty and exemption from import policy orders issued from time to time.

The sources said the presentation on national economy was another important item of the ECC agenda, and added the Finance Division would brief the ECC on the latest economic condition of the country and the challenges it was facing due to slow down of its major sectors and widening gap of the current account deficit. The committee would be also apprised of the measures taken to overcome financial crisis and the negotiations held with an International Monetary Fund (IMF) mission.

The presentation will cover the impact of international credit cards crisis on Pakistan's economy, the sources, and added the Finance Division would apprise the committee about Economic Monitoring Committee's (EMC) decisions. Trading Corporation Pakistan (TCP) Chairman would brief the committee on availability of sugar, wheat and urea fertiliser. He would also inform the committee on the latest status of import of urea from Saudi Arabia, said the sources.

According to the sources, the Utility Store Corporation (USC) Managing Director would inform the committee on the steps taken by his department to sell items of daily use on subsidised rates and availability on its outlets. The committee would also review key indicators of the economy and their performance to support the ailing economy. The ECC would also consider for approval a textile industry's summary for tariff structure of polyester chain and magnetisation of tariff, said the sources.

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