A project of Rs 3075 million to establish Special Economic Zones (SEZ) in interior Sindh is about to commence as the Sindh government has selected the National Industrial Park (NIP) to conduct feasibility study of the project. Sources in Planning and Development (P&D) Department told Business Recorder on Tuesday that the department has finished all legal procedures in this regard and the Sindh government would sign an agreement with NIP shortly.
They said an amount of Rs 50 million, allocated for feasibility study, would be handed over to NIP by the end of the current month and it is hoped that NIP would complete the study in the stipulated period of four months. The civil works of the project would be expected to commence in July. The project would be accomplished in three years, they added.
Sources said that the SEZ is aimed at promoting rapid industrialisation to attract foreign direct investment (FDI), especially by Chinese companies, in the areas of manufacturing, high technology, vendor industry and other export-oriented industries.
They said that the zones would be developed under public-private partnership where public sector would provide some level of support (provision of off-site infrastructure, equity investment, soft loans, bond issues, etc) to enable private sector developers to obtain a reasonable rate of return on the project.
According to sources, the government would also provide income tax exemption for a period of five years from the start of commercial operations, and 100 percent depreciation allowance. The federal government would ensure provision of gas, electricity, and other utilities in these zones.
Sources said that these zones would ensure access of foreign investors to 160 million Pakistani consumers, besides regional markets of Central Asian States, Afghanistan, Iran and India by road-link, sea and air. They said the zones would be set up in the districts of Larkana, Benazir Bhutto, Tharparkar, Hala, Thatta and Badin, as priority to escalate foreign investments.