ISLAMABAD: The Board of Investment (BoI) has directed relevant entities to address the issues faced by investors in Special Economic Zones (SEZs).
According to well-informed sources, the BoI held a meeting of the Working Group on SEZs in response to a request from the Special Investment Facilitation Council (SIFC). The meeting was convened to discuss issues reported by Challenge SEZ to SIFC regarding the draft development agreement.
These issues had already been discussed extensively in a meeting between SEZA Punjab and PBIT, where it was suggested that Challenge Fashion (Pvt) Ltd could negotiate the terms of the agreement directly with SEZA Punjab.
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The CEO of Challenge Fashion (Pvt) Ltd confirmed this, stating that the company had written to BoI following the meeting, but it appeared that the letter did not reach BoI. It was emphasized that negotiations with SEZA Punjab should proceed first, after which BoI would address the matter accordingly.
The CEO also mentioned that the company would begin construction once the access road is completed. The road construction, which started in September 2024, is expected to be finished by February 2025. Additionally, the SEZ requires provision of utilities at zero point to commence the allotment process.
The Chair/Director General (SEZ & Projects), BoI, asked SEZA Punjab to clarify the situation. A representative from SEZA Punjab responded that SNGPL had issued a demand notice to the company, which must be paid before further actions can be taken.
The CEO of Challenge Fashion (Pvt) Ltd. pointed out that it is the government’s responsibility to ensure utilities up to zero point. The company is committed to developing the internal infrastructure as planned. SEZA Punjab then requested guidance from BoI on how to proceed.
Regarding the issues of Hub SEZ, the Chair invited the Managing Director (MD) of LIEDA to provide an update. The MD informed the meeting that Hub SEZ is facing funding challenges for its development.
The approval of the PC-1 (Second Revision) is pending with PDWP and CDWP, as it has been revised due to cost escalation and the addition of new components. Funding is needed for two 4MW feeders in addition to the funds already allocated for core infrastructure. There is also a lack of external infrastructure, including gas, electricity, and a waterline to the SEZ’s zero point.
The MD stated that he had requested the Secretary of the Ministry of Industries & Production for allocation of funds but had yet to receive a response.
A representative from the Ministry of Planning, Development & Special Initiatives clarified that there are no pending actions on their part. Once the PC-1 is received, it will be placed before the CDWP for consideration without delay.
However, no representatives from the Ministry of Industries & Production, SEZA Balochistan, or the Government of Balochistan were present to provide their input.
Copyright Business Recorder, 2024