INP-WealthPk

China formally launches its work in Pak's SEZs: Report

February 16, 2020

BEIJING, Feb. 16 (INP): Enterprises and investors are welcome to invest in Pakistan’s Rashakai Special Economic Zone (SEZ) as its developer China Road and Bridge Corporation(CRBC) has launched the work recently, says a report carried by Gowadar Pro. According to CRBC’s introduction, the leading industries of Rashakai SEZ in Khyber Pakhtunkhwa province include the processing of farm produce, automobile, home appliances, textile, consumer electronics, construction materials and logistics. Enterprises to operate in this SEZ will be entitled to all the favorable policies in accordance with the Special Economic Zones Act 2016. So far, Rashakai SEZ has been the only one industrial park that can enjoy the preferential policies in Khyber Pakhtunkhwa province. Rashakai SEZ is one of the nine SEZs prioritized under the China-Pakistan Economic Corridor (CPEC) framework. This SEZ has got a series of preferential policies and supporting conditions given by the Pakistani government. Rashakai SEZ aims to become a role model for other SEZs under CPEC, trade transfer station as well as base of industrial capacity cooperation between China and Central Asia and Western Asia. The total planned area in Rashakai is about four square kilometers, and will be developed in three phases, with about one square kilometer for Phase I. Adequate water, power and gas will be supplied to the zone’s enterprises for their production and daily consumption. Auxiliary facilities such as complex administration building, exhibition center, apartment, commercial area and hotels will be also established. “One Stop” services including business registration, license issuance, work permits, custom clearance and declaration, inspection and quarantine, issuance of certificate of origin and building permits will be provided for enterprises in the zone. Both the import tariff and tax for all the imported machinery will be exempted from enterprises in the zone except for the items (such as motorbikes and tractors) listed in Chapter 87 by Pakistan Customs; Corporate income tax will be exempted for 10 years counting from the commercial production. The lease term of the land in the zone is 99 years; Installments are available for the plot (50% down payment and the rest 50% payment is allowed in four installments next year), the report added INP/J/AJ