China and Pakistan have identified that provincial tax exemption in Balochistan and provision of fiber optical communication would remove the hurdles in the way of development of Gwadar Free Economic Zone and sea port under China-Pakistan Economic Corridor (CPEC).
According to official documents both countries realized during 9th JCC meeting of CPEC that active efforts such as local tax breaks in Balochistan province and the provision of fiber optical communication by the Pakistani side are needed to address development hurdles of the Gwadar Port and the Free Zone.
Both sides agreed that further efforts are needed for business attraction in economic zone.
It was told that to better attract investments of competent enterprises and facilitate integrated development of the Zone, on October 9, 2019, sales tax exemption for duration of 23 years and tax exemption of equipment and materials purchased in Pakistan locally have been extended.
Pakistan and China agreed that Pakistani side would be putting the legislation before the parliament for promulgation of legal Act.
They agreed that significant progress has been made regarding the work of Gwadar since the 8th JCC meeting and the year 2019 was a significant for the next stage of Gwadar development.
China appreciated the work done by Government of Pakistan to the port and will actively promote the construction and development of Gwadar Port and commencement of Afghan transit trade from the port.
While appreciating these achievements, JCC agreed to the need of fast execution of relevant Gwadar infrastructure and assistance projects; including the New Gwadar International Airport (NGIA), Gwadar Vocational and Training Centre, expansion of China-Pakistan Government Faqeer Colony Middle School and construction of the Pak- China Friendship Hospital and Eastbay Expressway.
To advance the integrated development of Gwadar Port and the Gwadar region, both sides expressed satisfaction on the progress of Gwadar Free Zone development. Phase-I of Gwadar Free Zone had been completed and all plots already leased out to more than 30 Pakistani and Chinese investors registered in the Free Zone.
The annual Gwadar Expo, Gwadar Marble and Mineral Exhibition and other business events have been promoting Gwadar as an emerging regional economic hub of Pakistan, documents showed.
Pakistan told China that Pakistani Ministry of Commerce and Federal Board of Revenue confirmed the condition of Gwadar Port as a capable entrepot of transshipment to Afghanistan in official letters and have sent management teams to the Gwadar Port.
Both sides agreed to give continued priority and active advancement to the development of the Gwadar Port.
Copyright Business Recorder, 2019
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