Plan to set up 46 SEZs along CPEC route

[Kabira]

ISLAMABAD - Board of Investment (BoI) Chairman Dr Miftah Ismail on Thursday said that the government is planning to establish 46 Special Economic Zones (SEZs) alongside the China Pakistan Economic Corridor (CPEC) route in the long run.


“Nine zones have already been declared prioritised during the 6th JCC meeting held in December, 2016”, he said at the concluding session of Pakistan China Industrial Cooperation dialogue. He further said that Chinese companies are working on a number of projects relating to energy, railways and road infrastructure.

He expressed the commitment of the government to nominate a working group to deliberate on how to build the zone. He expressed the views that either Pakistani or Chinese companies can build the zone or the same can be built jointly by both sides. The BoI chairman highlighted that products manufactured in these zones can not only to be exported but these can also be sold in the local Pakistani market, where they are not required to pay any customs duty. This makes the zone ideal for investors as Pakistan has a big market of 200 million plus people, he added.

Ismail pointed out that each zone has its special features for investors in terms of its location, raw material, skilled work force and linkages with other parts of the country and outside the country. China has rich experience in developing zones particularly from 1985 to 1995 and from 2009 till 2015 and Pakistan can learn much from Chinese experience.

Earlier, BoI Secretary Azher Ali Choudhry, in his opening remarks, expressed the hope that Chinese Experts Group must had a very successful site visit of Rashakai Special Economic Zone and bilateral meetings with the authorities concerned in Khyber Pakhtunkhwa. He also requested Chinese side to share the composition and Terms of Reference of Chinese Experts Group to have the matchmaking with the proposed Expert Group from Pakistan side.

He highlighted the main features of incentive package devised for the identified priority SEZs and invited Chinese side to convey their view point if any for further discussion. He emphasized that Chinese companies have huge opportunities to relocate their businesses to these priority SEZs. Li Yuan informed that four SEZs were started in China in the initial phase and then 14 Coastal Cities were developed and subsequently 14 Industrial Zones were developed by China. Industrial development takes a long time and planning to consider all relevant factors, he added. Proposed Pakistani priority SEZs are needed to be reviewed by Expert Group from each side to decide exact number and types of zones to be developed in the first phase, he added. He said that Chinese side has already notified its Experts Group while Pakistan side need to expedite composition of the Expert Group. Li also emphasized on devising of long term cooperation mechanism to select priority sectors and to synergise policies for SEZs.

During the session, two presentations were made by the representative of government of AJ&K and Gilgit-Baltistan. The representatives of AJ&K highlighted the potential of AJ&K in terms of water and mineral resources. The incentives being provided by the government of AJ&K to the foreign investors were also highlighted in the presentation. The potential of proposed Mirpur Zone in terms of its connectivity with highway, railway and airport as well as the expected industries to be parked in this zone based on local endowment was also deliberated through the presentation.

Representative of Gilgit-Baltistan underscored the strategic location, scenic beauty and hospitality of the people Gilgit-Baltistan. He highlighted the mineral potential and locational advantages being gate way for Central, East and South Asia. He also appraised the house that this zone is situated exactly on the CPEC route which is ancient Silk Route.
http://nation.com.pk/business/14-Jul-2017/plan-to-set-up-46-sezs-along-cpec-route

 

[ashok321]

We’ll make CPEC a success, come what may: COAS

Urges all national institutions to play their role for economic corridor

tribune.com.pk

 

[Muhammad Omar]

Motorways Under Construction = Check
Highways Upgradation = Check
Power Plants = Check
Infrastructure of Railway and track Upgradation = Check

Next step SPECIAL ECONOMIC ZONES

 

[CAD]

Govt planning to establish 46 SEZs along CPEC route

Concluding session of Pak-China Industrial Cooperation Dialogue
Muhammad Arshad

Islamabad

The concluding session of Pakistan China Industrial Cooperation dialogue was held here on Thursday. Dr. Miftah Ismail, Chairman, Board of Investment, while addressing the concluding session stated that leaderships from both sides have taken Pak-China relations into a new horizon.
He said Chinese companies are working on a number of projects relating to Energy, Railways and Road infrastructure. The Government of Pakistan is planning to establish forty Six (46) SEZs alongside the CPEC route in the long run. Nine (09) Zones have already been declared prioritized during the 06th JCC meeting held in December, 2016. He expressed the commitment of Government of Pakistan to nominate a working group to deliberate on how to build the zone.
The Chairman BoI expressed the views that either Chinese or Pakistani companies can build the zone or the same can be built jointly by both sides. Chairman BOI, highlighted that products manufactured in these zones can not only to be exported but these can also be sold in the local Pakistani market, where they are not required to pay any customs duty. This makes the zone ideal for investors as Pakistan has a big market of 200 million plus people. The model can be primarily export oriented. But in case of China import substitution also has a lot of potential. The Government has already given its commitment to provide all utilities and security to the investors in these zones. Mr. Ismail, pointed out that each zone has its special features for investors in terms of its location, raw material, skilled work force and linkages with other parts of the country and outside the country. China has rich experience in developing zones particularly from 1985 to 1995 and from 2009 till 2015 and Pakistan can learn much from Chinese experience.
Earlier, Azher Ali Choudhry, Secretary, Board of Investment, in his opening remarks expressed the hope that Chinese Experts Group must had a very successful site visit of Rashakai Special Economic Zone and bilateral meetings with the authorities concerned in KP Province. He also requested Chinese side to share the composition and Terms of Reference of Chinese Experts Group to have the matchmaking with the proposed Expert Group from Pakistan side. Secretary, Board of Investment, highlighted the main features of incentive package devised for the identified priority SEZs and invited Chinese side to convey their view point if any for further discussion. He emphasized that Chinese companies have huge opportunities to relocate their businesses to these priority SEZs. Pakistan side is also expecting feedback of Chinese Experts on this visit.
Li Yuan informed that they started with four (04) SEZs were started in China in the initial phase and then 14 Coastal Cities were developed and subsequently 14 Industrial Zones were developed by China. Industrial development takes a long time and planning to consider all relevant factors. Proposed Pakistani priority SEZs are needed to be reviewed by Expert Group from each side to decide exact number and types of zones to be developed in the first phase. Chinese side has already notified its Experts Group while Pakistan side need to expedite composition of the Expert Group. Mr. Li also emphasized on devising of long term cooperation mechanism to select priority sectors and to synergize policies for SEZs.
During the session two presentations were made by the representative of Government of AJ&K and Gilgit Baltistan. The representatives of AJ&K highlighted the potential of AJ&K in terms of water and mineral resources. The incentives being provided by the Government of AJ&K to the foreign investors were also highlighted in the presentation. The potential of proposed Mirpur Zone in terms of its connectivity with Highway, Railway and Airport as well as the expected industries to be parked in this zone based on local endowment was also deliberated through the presentation.
Representative of Gilgit Baltistan underscored the strategic location, scenic beauty and hospitality of the people Gilgit Baltistan. He highlighted the mineral potential and locational advantages being gate way for Central, East and South Asia. He also appraised the house that this zone is situated exactly on the CPEC route which is ancient Silk Route. The zone has huge comparative advantage for manufacturing and processing of mineral fresh fruits and vegetables, wood, herbs and trout fish. Maqpoon Dass SEZ can also acts as logistic hub of the North.

https://pakobserver.net/govt-planning-establish-46-sezs-along-cpec-route/

 

[Hakikat ve Hikmet]

And, I call it "YYUUUGGGEEEEEEEEEEEEEEEE.............

 

[Clutch]

China pushes Pakistan on Special Economic Zones
Amin AhmedUpdated July 14, 2017
396
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ISLAMABAD: While Pakistan is yet to form a group of experts to decide setting up of the exact number and types of special economic zones (SEZs) along the CPEC route in the first phase, China has notified the government of forming the group.

During the last meeting of the Pak-China Joint Cooperation Committee (PCJCC) held in Beijing, setting up of nine SEZs had been prioritised. It had been decided that the two countries would set up expert groups to deliberate how to build the priority zones.

Participating in the concluding session of Pakistan-China industrial dialogue on Thursday, head of the Chinese Industrial Experts Group, Mr Li Yuan, asked Pakistan to expedite forming the experts’ group, and emphasised on devising long-term cooperation mechanism to select priority sector and synergise policies for SEZs.

Where is the experts group, asks Chinese delegation

Mr Yuan informed the Pakistani side that China has already built four special economic zones followed by developing 14 coastal cities, and subsequently, 14 industrial zones were developed. The proposed prioritised SEZs by Pakistan are to be reviewed by expert groups of the two countries for development in the initial phase, he said, addig that these SEZs may follow either Chinese or Pakistani standards to attract investment.

ARTICLE CONTINUES AFTER AD
Speaking on the occasion, Board of Investment Chairman Dr Miftah Ismail informed the Chinese side that Pakistan plans to establish a total of 46 SEZs, and the experts’ group will soon be nominated to deliberate on how to build the zones.

China has rich experience in developing zones and Pakistan can learn much from Chinese experience, he said.

During the concluding session, presentations were made by the governments of Gilgit-Baltistan and Azad Kashmir, highlighting the potential of agricultural and horticultural products for exports.

Representatives of Gilgit-Baltistan highlighted the mineral potential and location advantages sitting exactly on the ancient ‘Silk Route’ being gateway for central, east and South Asia.

Additionally, the zone has huge comparative advantage for manufacturing and processing of minerals, fresh fruits and vegetables, wood, herbs and trout fish. The ‘Maqpoon Dass’ SEZ can also act as logistic hub of the North, he said.

The representatives of Azad Jammu and Kashmir highlighted their territory’s potential in water and mineral resources and incentives being provided to foreign investors. The potential of proposed Mirpur SEZ in terms of its connectivity with highway, railways and airport as well as the expected industries to be set up in this zone based on local endowment was also deliberated through the presentation.

BoI Secretary, Azher Ali Choudhry enumerated the main features of the incentive package for the identified priority SEZs and invited the Chinese to convey their viewpoint, if any, for further discussion. He emphasised that Chinese companies have huge opportunities to relocate their businesses to these priority SEZs. Pakistan is expecting feedback of Chinese experts on this visit.

Published in Dawn, July 14th, 2017

 

[Clutch]

CPEC and SEZs: What's so special in Economic Zones?
07/22/2017 | 08:22pm



Industrial revolution had initiated in the 18th century but the world had to wait till 1959 to witness the establishment of first modern SEZ in Shannon, Ireland. As of 2006, International Labour Organization's (ILO) database reported 3,500 zones in 130 countries and today one can find more than 4300 SEZs around the globe and the number is increasing rapidly. The reason behind this growth is the substantial development that comes with the establishment and successful operation of a SEZ. There is no specific definition of a SEZ; some call it a place where foreign companies enjoy tax benefits, other know it as an area near port for export purpose while remaining consider it as a vehicle to attract FDI; all these descriptions are correct. Countries use SEZs as a tool for industrialization. A number of examples exist in the world from Asia to Latin America that illustrate how SEZs play a vital role in economic growth; however not all the SEZs get miracles like Shenzhen in China. Out of all the countries developing SEZs, China has been the most successful. China has gained immense progress through SEZ ventures. According to an estimate, SEZs, all over the world, have created approximately 66 million jobs out of which 30 million are exclusively located in China.

Now-a-days, a high level delegation from National Development and Reform Commission (NDRC), China is in Pakistan to discuss the future fate of our 9 SEZs. The Board of Investment and Ministry of Planning, Development and Reform are playing a very crucial role to populate those SEZs. It is very fortunate for Pakistan to have collaboration with a country like China. Under the umbrella of China-Pakistan Economic Corridor (CPEC) industrial cooperation, experience as well as technology will flow from China into Pakistan. Pakistan has never experienced anything like this in the past but there has always been a desire. This is that one opportunity where Pakistan can utilize its maximum potential and show the world what it is capable of. Nevertheless, the road to success is a long journey that requires strategically planned execution. Planning Commission of Pakistan has initially proposed 9 SEZs in consultation with provincial governments and development of Gwadar SEZ has already started. The total number of SEZs expected is 27. Pakistan does not need to go very far to find an exemplary model for its SEZs. China has developed some of the best models. China's Suzhou Industrial Park is considered a model of inter-governmental cooperation in the world. Developed with China Singapore collaboration, the park produced 90 billion yuan worth of international trade in 2016. China arranged a visit for Pakistani officials to get a view of the largely successful venture. Pakistan should try to gain maximum benefit from experience of Chinese developers. There can be a possibility of handing over the development to China for the initial phase while the Pakistan may hold the ownership itself.

A study of SEZ models throughout the world shows that SEZs are cities in their own. They have all the modern facilities within a closed environment. With the establishment of economic zones, there will be new industries installed in Pakistan which would increase country's production capacity. These industries would range from mining to manufacturing and food processing. World Integrated Trade Solution (WITS) reports that Pakistan is currently exporting raw materials to Afghanistan, United Arab Emirates, China, Vietnam and India since Pakistan lacks processing plants for those raw materials. Special attention is being given to the development of manufacturing and processing plants. With the establishment of SEZs, Pakistan will become capable of converting raw materials into refined products and then export it to other countries.

CPEC is that one opportunity that can be a real game changer for Pakistan. Unfortunately Pakistan has a history that is filled with bad governance and political revenge. Governments have discontinued projects of pervious governments just over political matters. This needs to be changed now. Pakistan cannot afford such activities any more. Now is the time for all the political parties to join hands to make CPEC a great success. Opportunities like theses do not come very often in a country's history. Instead of finding odds and negativity, all the stakeholders shall put their best efforts to maximize the potential benefits as other countries archived like Mauritius, the Republic of Korea, and Taiwan, China; in Honduras, El Salvador, Madagascar; and more recently in Bangladesh and Myanmar. As a developing country with comparative advantage of low labor cost, the focus should be on multinational assembly activities within global production network for instance light manufacturing sectors like electronics, automotive components, and especially apparel.

Industrial cooperation under CPEC will help us to attract those labour intensive industries and jobs that will definitely change the destiny of Pakistan. This looks difficult but is not something impossible to achieve. In 1979 before economic reforms in China, China's GDP per capita was lower than Pakistan. However, presently China stood at US $ 8069 while Pakistan is still stuck between US $ 1400 to 1500. As mentioned earlier China's support in the CPEC is the key to Pakistan's success. China has all the experience that Pakistan needs at the moment. The need of the hour is to keep all the differences aside and leave no stone unturned to make CPEC as an exemplary economic between China and Pakistan for the rest to follow.

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[m haris khan]

A Brief Introduction About CPEC