ECONOMIC Coordination Committee at its meeting on Tues
day took some very important decisions that will go a long way in complete operationalization of Gwadar port and its free zone. The Committee in principle approved the pending tax concessions for the port and the free zone.
As the path of SRO was not pursued, therefore, the government will have to amend the relevant laws either through a presidential ordinance or introducing a supplementary finance bill in Parliament in order to implement these tax concessions. As the matter is lingering on for almost four years now, we expect that this process will also be completed at the earliest in order to make the Gwadar free zone and ultimately the port fully functional – the economic benefits of which will be enormous for the country currently faced with immense challenges on the economic front. Earlier this month, the National Development Council (NDC) – a joint military and civilian body – also had given directives for granting tax concessions to the business units that would be set up in the Gwadar Free Zone under the China-Pakistan Economic Corridor (CPEC). Gwadar port indeed is the main component of the multibillion corridor project and we cannot reap the benefits of connectivity until and unless the port becomes a source of attraction for traders and businessmen, and this can be done by fully facilitating them including through tax concessions. Sales tax and federal excise duty exemptions on the import of machinery, equipment and materials either for use in Gwadar Free zone or for exports are something that will lure the investors. We are confident that with the implementation of tax concessions, Chinese entrepreneurs will be more forthcoming to establish their businesses in Gwadar free trade zone. Then emphasis also needs to be given to other delayed projects of CPEC. Especially the construction work on Eastbay Express, which is the main artery of Gwadar port through which the entire traffic of port will flow and link with the network of national highways, needs to be accelerated as it will ensure smooth logistic transportation of import, export and transit goods.
