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Special Economic Zones




Special Economic Zone

Keeping in view the great success of SEZs around the globe, the Government of Pakistan passed Special Economic Zone (SEZ) Act 2012.
It was promulgated to attract the investment and promote better infrastructure and to provide a platform to help grow the economy, create social cohesion, enhance the environment and deliver better public services.
Some of the advantages of Special Economic Zones are as follows:

Advantages of Special Economic Zones

  •     Anchor for attracting FDI Growth Contribution
  •     Industrial Development
  •     Employment generation
  •     Technology Transfer and Productivity enhancement
  •     Increase in Exports
  •     Skill Development & Capacity Building
  •     Development of Pakistani Brands
  •     Development of Vendor Industry & Supply Chain
  •     Logistics Development
  •     Import Substitution
  •     Increase in Indirect Taxation
  •     GDP Growth Contribution

Incentives
SEZ Act offers the following incentives to the Developers & Zone Enterprises:-

Benefits to Developers

  •     One time exemption from all custom duties and taxes for all capital goods imported into Pakistan for development, operation and maintenance
  •     Exemption from all taxes on income accruable in relation to the development and operation of SEZ for a period of 5 years

Benefits to New Zone Enterprises

  •     One time Exemption from custom duties and taxes on import of capital goods into the SEZ for installation therein
  •     Exemption from all taxes on income for a period of 10 year if started commercial operations by 30th June, 2020 and for a period of 5 years after the aforesaid date

Functions
Enlisted below are the prime functions of our organozation

  •     Playing an active role as a liaison between Federal BOI (Board of Approvals) and Industrial Estate Development Companies in Punjab
  •     Assisting private developers to complete their application/proposal of Industrial Parks for the declaration as SEZ. In doing so, PBIT provides them full guidance for completion of documentation as well securitize the same as per the SEZ Rules & Act
  •     Supported by a panel of Senior Economists & Engineering Experts from Urban Unit, to evaluate each application of SEZ. As such, preliminary assessment is first hand conducted by the PBIT & Urban Unit and later on by Federal BOI
  •     Assists Developers of Special Economic Zones for the finalization and approval of their Draft Development Agreements, to be negotiated and endorsed between Developer and Board of Approvals (Federal BOI)
  •     Assists the Developers of Special Economic Zones to draft the Zone Regulations (Regulatory Framework) to govern their Industrial Estates
  •     Providing services to the Zone Enterprises, looking to avail special tax breaks/incentives for the import of plant and machinery into Pakistan
  •     For the provision of utilities to the SEZs, PBIT is in liaison with Federal BOI to expedite supply of gas, electricity and other utilities to the zero point
  •     Assists Developers of SEZs for the constitution of SEZ Committees to administer the management of SEZs as per the SEZ Rules/Act