The government has granted a tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to help them establish their industrial units at Gwadar Port.
This was announced by the Federal Minister for Maritime Affairs Ali Haider Zaidi.
Accompanied by COPHC’s Chief Executive Officer Zhang Baozhong and Minister for Economic Affairs Hammad Azhar, Mr. Zaidi told a press conference on Tuesday that COPHC will get a tax exemption for installation of machinery and other equipment at the port.
The initiative is a step towards the relocation of the Chinese manufacturing industry to Gwadar and engaging the local labor, he said, adding that the move will boost Pakistan’s economy.
The minister said COPHC will also set up a desalination plant at a cost of Rs. 1.95 billion to provide 5,000 gallons of water per day to the people.
He announced that China will build a Pak-China Technical and Vocational Training Institute in Gwadar at a cost of around $10 million, which will open job opportunities for locals. “About 360 students equipped with technical skills will pass out from the institute every year,” he said.
Mr. Zaidi said that Pak-China Friendship Hospital will also be established on a 68-acre land at an estimated cost of $100 million. Also, he added, a coal power plant for generating 300MW electricity will be set up in Gwadar.
On the issue of Gwadar port’s connectivity with Makran Coastal Highway, he said the Executive Committee of the National Economic Council (ECNEC) has approved the construction of three bridges on the Eastbay Expressway to resolve the grievances of local fisherman.
Around 40 percent of construction work on the Eastbay Expressway has been completed while the rest will be completed by December 2020, he added.
COPHC CEO Zhang Baozhong said the present government has resolved the tax exemption issue that had been pending for the past seven years. He hopes that due to the business-friendly policies of the government, more foreign investment will come to the country and Gwadar will become a new economic hub.
Lucky Chinese. BTW have Chinese given any tax exemptions to any Pakistani firms (or even products) in China?
Why china should give tax exception to Pakistan? Pakistan need someone to boost economy. This is the one way to give some relief to investment party, and you ll get benefit for long term. Did you even opened any financial book?
This is an exceptional initiative by pakistani government to make Gwadar and Pakistan more prosperous
Pakistan” hey it’s free real estate for Chinese.
Chinese r v smart, fooling pakistani gov and people on the name of friendship
Lucky Chines getting every thing free from Pakistan
A very positive step which has finally reached fruition. Pak govt should have made Gwadar a free port so as to accelerate growth and inward investment. We would reap the benefits 30-40 years later, then gradual taxation. Let it flourish and achieve its true potential once, then see. Gwadar’s and Chinese investments’ destiny will be intertwined. Inshallah.
It is my opinion 23 years exemption from the tax is very long period,is this included on Chinese export from Gowadar port or in and out all taxes,I mean the containers get into Pakistan and out from Gowardar port and there will be no Tax at all? There must some clarification for the knowledge of the common man.