GWADAR ECONOMIC SCOPE
2300 ACRE SPECIAL ECONOMIC ZONE [FREEZONE]
A state-of-the-art Free Zone Area will be built on reclaimed land in the Northern side of the harbour covering 923 hectares immediately west of existing multi-purpose terminal and the planned container terminal. The idea is to turn this ‘freezone’ into a platform for global connectivity through implementation of attractive policies like tax exemptions and pro-business conditions that fulfil investor’s needs and support activities that promote international commerce.
The Gwadar Freezone shall bring extensive economic benefits like a 23 year income tax holiday, exemptions of sales tax and customs duties and extended land leases up to 99 years for new businesses with an aim to boost global market presence by attracting new businesses and foreign investments in general trade, services, manufacturing, logistics, trans-shipment and bunkering business.
The Zone is an integral part of the port and is designed to ensure the optimum utilization of port infrastructure. It’s included in Phase I developments with the key function being commodity exhibition, transit and distribution. Partial work on this area is complete as it hosted the Gwadar Expo in 2018.
ADVANTAGES OF THE FREEZONE AREA INCLUDE
– 100 % ownership for foreign investors
– Tax holiday for 23 years
– 100 % exemption on customs duties for construction and operation
– Leasing of plots up to 99 years
– Flexible visa regulations
– Ready to use offices, light industrial units, warehouses
– World class infrastructure and security arrangement
– One Stop Shop – one window facility for clearances
– Fast track start up and licensing procedure
Promoted business sectors include; agriculture processing, fish processing, marble processing, manufacturing, food processing, refrigerated storage, financial services, technical & vocational training, container yards, warehousing, international purchasing, transit / distribution, packaging / labelling, transhipment, assembly, value added exports, retail outlets, hotels, restaurants, entertainment amenities, medical facilities and other related businesses
ESTIMATED GROWTH AND REVENUE
CPEC’s strategic economic project is increasing regional connectivity for the economic development of Pakistan and China. More than $46 billion will be invested in Pakistan’s power, infrastructure, industrial and agriculture sectors under the CPEC. With the reduction in power outages due to enhancement in electricity generation capacity and investment in other production sectors of the economy,
Pakistan’s ‘Vision 2025’ projects rapid urbanisation and GDP growth rate of 8% by 2025. GDP growth rate of Pakistan is estimated to average at 7.5% by 2030 with the addition of about two million jobs in the job market.
[Figures quoted by: Planning Commission Pakistan – 2025 One Nation – One Vision]
THE ANNUAL REVENUE FROM PORT TOLL COLLECTION IS PROJECTED AT AROUND $5BN BY 2022