CPEC trickle down effects to be achieved from SEZs

ISLAMABAD: The trickle-down effects of CPEC will be achieved from the Special Economic Zones (SEZs) and relocation of industries from China. This was stated by Dr. Mirza Ikhtiar Baig, Senior Vice President FPCCI during Pak-China Investment and Trade Forum organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in collaboration with Embassy of Republic of China and Chinese Council for Promoting South-South Cooperation at Islamabad.

Dr. Baig highlighted the special incentives allowed by the government to investors for the industries in the 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, ten-year tax holiday during operation and production starting by 30th June, 2020 and additional five-year tax holidays making a total 20 years of tax exemption. He stressed on the benefits of relocation of industries and mainly of textile from China in the SEZs to benefit from Pakistan’s expertise in textile sector and local availability of raw material.

On the occasion, the Chief Guest of the Forum Haroon Sharif, Chairman Board of Investment (BOI) said the forum was organized at opportune time when there is a global shift in the investment planning and activities, as the developed world is facing huge uncertainty. He appreciated the organizers of the Forum which was attended by Vice Presidents of FPCCI Sheikh Abdul Waheed, Ijaz Khan Abbasi, Qurban Ali and leaders of the business community in the ICT region prominently Shoail Altaf, Zafar Bakhtawari, Zahid Latif and Sohail Malik. There are about 60 Chinese companies represented by their Chairmen and CEO who met their Pakistani counterparts from various sectors at the Forum.

The Ambassador of China H. E. Yao Jing and the Chairman of Chinese Council for Promoting South-South Cooperation Lv. Xinhua also addressed the Forum and emphasized on South-South Cooperation aimed at achieving shared economic and development goals between Pakistan and China. They further emphasized both countries to promote joint venture projects to achieve export-led growth in SEZs under CPEC.