Gwadar development expedites as CPEC enters second phase.

AuthorFazl-E-Haider, Syed
PositionGwadar Port; China-Pakistan Economic Corridor

Byline: Syed Fazl-E-Haider

China-Pakistan Economic Corridor (CPEC) has entered the second phase of development. Gwadar Port, the soul of the CPEC, has already been granted various facilities enabling it to become a trade and logistical hub for the region. At the conclusion of Prime Minister Imran Khan's two-day visit to Beijing last week, the two countries in a joint statement maintained that the second phase of the CPEC will promote industrial and socio-economic development in Pakistan. The statement said, "the two sides expressed determination to speedily execute CPEC so that its growth potential can be fully realized making it a high-quality demonstration project for the Belt and Road Initiative."

A few days before Imran Khan's visit to China, the government removed a key bottleneck in the way of populating the industrial estate through approval of legislative changes to address a longstanding issue of tax concessions for Gwadar Port and Gwadar Free Zone. For the last three years, China wanted Pakistan to amend the Income Tax Ordinance, Sales Tax Act and Customs Act. The decision of amendment was recommended by the National Development Council (NDC), which is chaired by the Prime Minister Imran Khan with Army Chief and the team of members. The new tax concessions have only be granted to the Gwadar zone. China Overseas Port Holding Company Limited (COPHCL), the operator of Gwadar Port, has been granted tax exemption for 23 years to help establish industrial units at the Gwadar Port. This decision was a step towards rearrangement of the Chinese manufacturing industry in Gwadar, and busying the local labor.

In February 2013, the COPHCL took over operations of the port from a Singaporean firm. The concession agreement included a tax holiday for both the operators of Gwadar Port and the businesses being set up there. The country approved income tax exemption for Gwadar Free Zone on the income of operating companies from port operations. The income tax holiday was not only extended to COPHC but also to Pakistan Private Limited, Gwadar Marine Services, and Gwadar Free Zone Company. Gwadar Port has the potential to transform the Pakistan's economic status forever. It will enjoy prime importance because of its geo-strategic location marking the confluence of South Asia, West Asia and Central Asia. The Gwadar Free Trade Zone will open up many more possibilities for the region. Gwadar, after completion of port project is expected to become the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT