In order to facilitate stakeholders and investors in all CPEC & Special Economic Zone (SEZ) related affairs, Board of Investment (BoI) has set up a special unit: CPEC-SEZ Cell. The national investment promotion body is responsible for attracting, facilitating and promoting both local and foreign investment in the country.
Equipped with cutting-edge advanced Industrial Technology, CPEC-SEZ Cell has been inaugurated on February 7, 2017 by the Chairman of Board of Investment (BoI), Dr. Miftah Ismail.
BoI works to promote coordination between private enterprise and the state by making Pakistan’s regulatory environment more feasible for domestic and foreign parties. It streamlines and regulates the flow of Foreign Direct Investment (FDI) in the country. Furthermore, it provides a professional one-window interface for all investors local and international. The BoI Chairman serves as a convener of the Pakistan’s Joint Working Group (JWG) for CPEC.
The China–Pakistan Economic Corridor (CPEC) has long been cited as great economic beacons of hope for Pakistan. The development of CPEC-SEZ Cell is seen as crucial to CPEC’s future development plans and its long-term success.
Establishment of Special Economic Zones (SEZs)
Under the Special Economic Zones 2012 Act, BOI will offer one-window-facilitation- services to investors.
As per the guidelines of 2013 Investment Policy, BoI would be focused on creation of new industrial clusters and Special Economic Zones to attract foreign direct investment, while reducing the cost of doing business in Pakistan.
In terms of the provisions of SEZ Act of Pakistan:
“Special Economic Zone (SEZ) is a blanket term for various types of specialized zones with specific types of enterprises operating in a well-defined geographic area where certain economic activities are promoted by a set of policy measures that are not generally applicable to the rest of the country. Successful SEZs offer immediate access to high-quality infrastructure, uninterruptible power supply, clearly titled land, public facilities, and support services.
The fiscal benefits under the SEZ law include a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for the development, operations and maintenance of a SEZ (both for the developer as well as for the zone enterprise) and exemption from all taxes on income for a period of ten years.”
It is pertinent to mention that seven SEZs have already been established by the government of Pakistan. Seven SEZs included in the list are:
Khairpur Special Economic Zone;
Korangi Creek Industrial Park;
Bin Qasim Industrial Park;
Quaid-e-Azam Apparel Park, Sheikhupura;
M-3 Industrial City, Faisalabad;
Value Added City, Faisalabad; and
Hattar Economic Zone, Haripur, K-P.