Govt yet to give Gwadar free port status: minister

KARACHI: A minister on Thursday said the government is yet to approve the status of Gwadar as a free port – a much-needed move that will allow duty and tax incentives to local and foreign investors. 

Minister for Ports and Shipping Kamran Michael, during a visit to the Federation of Pakistan Chambers of Commerce and Industry, said the ministries of ports, commerce and finance have completed the paperwork related to the rules and regulations of the proposed free port. “The approval from the finance division is awaited,” Michael said.

He said the government will adopt Hong Kong port as a model for Gwadar.

The port, situated on the Arabian Sea in Balochistan, is an integral part of the $46-billion China-Pakistan Economic Corridor projects. China Overseas Ports Holding Company Ltd. took over the control of Gwadar’s operations in 2013. The port has three multipurpose berths and its inner is dredged to 11.5 metres.

Earlier this week, the company’s chief Zhang Baozhong told Reuters that the port is all set to handle a million tons of cargo from the next year.

Michael said the government has already acquired 2,281 acres of lands to make free industrial zones at Gwadar.

The government has handed over 937 acres of land to various companies to set up free industrial zones, he added. The minister said some Chinese companies are arriving to start their projects at the zones.

The minister said the airport, to be established in Gwadar, will have duty free shops of international standards like Chicago and New York.

He said a deep sea container terminal will be inaugurated in July. The government planned four berths. One will be completed soon, he added. 

Further, talking about protest, against berth privatisation at the Port Qasim, by dock labours, he said the port has already been privatised and the government is facilitating the private sector. The port revenue increased to Rs2.5 billion from Rs80 to 90 million previously. 

The minister said a memorandum of understanding will be signed between Pakistan and Iran to start ferry service between the two countries. He said all the formalities have been completed. He added that an important meeting will be held between him and the Iranian ambassador on April 15 in Islamabad.