No turnover tax on SEZ enterprises in Gwadar: Ahsan

ISLAMABAD: Federal Minister for Planning Ahsan Iqbal on Friday chaired progress review meetings on the CPEC.

According to an official announcement, made by the planning ministry on Friday, Federal Minister for Planning, Development & Special Initiatives Ahsan Iqbal chaired a progress review meeting on CPEC in Islamabad. The meeting was attended by Special Assistant to the Prime Minister (SAPM) on Foreign Affairs Tariq Fatemi, Additional Secretary of the Ministry of Planning, members of the Planning Commission, secretaries of various ministries and divisions, and senior officials from relevant departments.

The meeting reviewed progress in key sectors, including energy, infrastructure, food & agriculture, and special economic zones (SEZs).

The Ministry of Railways and Communications updated the meeting participants on the recent progress of the ML-1 and KKH projects and outlined their future course of action. Discussing the ML-1 project, the minister noted the commitment made by the Chinese premier for the visit of a team of Chinese technical experts to Pakistan.

During a recent meeting with the Chinese ambassador, it was also agreed that a team of financial experts would accompany them to ensure simultaneous and efficient resolution of all matters related to the project. Regarding KKH, the minister directed the National Highway Authority (NHA) to expedite progress in coordination with the Chinese side to ensure its timely completion, as it is a strategic project under CPEC Phase-II.

While addressing the development of industrial zones, the minister stressed China’s extensive expertise in this area. He highlighted that Pakistan had requested China to develop two model industrial zones, which would be done in turn-key basis. These model zones would serve as benchmarks for other industrial zones across the country. He also directed the Board of Investment (BoI) to finalise the availability of land for an SEZ development in Islamabad.

The minister directed the Power Division and PESCO to immediately energise the internal network of Rashakai SEZ and provide electricity to meet its current requirements.

Regarding Gwadar’s tax exemption policy, officials clarified that under the Finance Act, the China Overseas Port Holding Company (COPHC) and other Free Zone businesses are entitled to tax holidays and related incentives. Notifications have already been issued to relevant departments, confirming there is no turnover tax on SEZ enterprises operating in Gwadar.

The meeting also reviewed progress on the training of 1,000 agriculture graduates in China. The Minister directed that experts traveling for agricultural training should be fully facilitated. These trainees, to be selected from public and private sector on merit, will learn latest technology and farm mechanisation techniques from China and help in modernising Pakistan’s agriculture. Special arrangements for halal food, including sehri and iftar during Ramazan, were also instructed. The minister reiterated the vital role of the agriculture sector in Pakistan’s development and noted that the PM will soon announce the 5Es National Economic Transformation Plan Framework, which is home-grown. This framework will be integrated into the five-year development plan, followed by formulation of a comprehensive National Agriculture and Industrial Policy to advance the agriculture sector under a structured policy framework.

The meeting concluded with a reaffirmation of commitment to ensuring timely implementation of CPEC projects for the country’s economic growth and development.

Meanwhile, sources said that China might be ready for a piecemeal approach for funding the ML-1 [Mainline-1] and KKH [Karakoram Highway] projects by adopting a phased-wise approach, but it all depends on improvement in security of Chinese nationals working in Pakistan.