The decision by Balochistan government to grant Special Economic District Status (SED) to Gwadar marks a significant milestone to unleash true potential of this strategically located deep-sea port. According to provincial government’s handout on Saturday, Gwadar will now be exempted from services and excise tax, and any tax on property transfers. This is the fulfilment of long standing demand that will surely revive true spirit of the CPEC and stimulate activity at the port city.
If one looks at the progress of other successful port cities like Dubai and Singapore, this was made possible due to their status as tax free zones. Hence we believe that Balochistan government has taken a step in the right direction that undoubtedly will encourage multinational corporations and investors to set up operations in Gwadar, leading to surge in economic activity and job creation. With reduced tax burdens, local enterprises will also have a competitive edge leading to increased productivity and innovation. Small and medium sized businesses will flourish, benefiting from availability of skilled labour, improved infrastructure and enhanced access to international markets. This in turn will reduce unemployment rates and uplift living standards of the local population.
Situated at the crossroads of international trade routes, Gwadar holds immense potential to become a global trade and logistics hub. Gwadar’s strategic geographic location is one of its most valuable assets. The port city sits at the intersection of major regional trade corridors including the CPEC, making it an ideal gateway for trade between China, Pakistan and the Middle East. The tax free zone amplifies its attractiveness, propelling it to the forefront of global commerce. By leveraging its strategic advantage, Gwadar has the potential to reshape regional trade dynamics and bolster Pakistan’s standing in global economy. We have no doubt in saying that enhanced activity in Gwadar will immensely contribute to GDP growth and also enhance resilience of our economy, making it less vulnerable to external shocks. However, for full realisation of this vision, it is crucial that both federal and provincial governments continue to extend all possible facilitation to investors and foreign businessmen and at the same time continues to invest in infrastructure and connectivity.
