KARACHI: The trickle-down effects of China Pakistan Economic Corridor (CPEC) will be achieved from special economic zones (SEZs) and relocation of industries from China, an official said
Dr Mirza Ikhtiar Baig, senior vice president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) stated this during a forum on SEZs, organised by the FPCCI in collaboration with the Embassy of Republic of China and Chinese Council for Promoting South-South Cooperation in Islamabad.
Dr. Baig highlighted the special incentives allowed by the government to investors for the industries in SEZs, which includes one-time exemption from duty and taxes on import of plant and machinery, five-year tax exemption during construction and development of projects, 10-year tax holiday during operation and production started by June 30, 2020 and additional five-year tax holiday, making total 20 years of tax exemption.
He stressed on the benefits of relocation of industries mainly textile from China in SEZs to benefit from Pakistan’s expertise in textile sector and local availability of raw material.