Exportprocessingzonespak (1)
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This document discusses export processing zones in Pakistan and the benefits of investing in them. It notes that Pakistan has a strategic location between Central Asia, the Gulf, and South/Southeast Asia. Export processing zones offer incentives like duty-free imports/exports, tax exemptions, and developed infrastructure. Major existing zones are located in Karachi, Sialkot, Gujranwala, and Risalpur, hosting industries like textiles, sports goods, surgical equipment. Future zones planned for Faisalabad and Gwadar will further promote foreign investment and exports.
Exportprocessingzonespak (1)
- 1. Export Processing Zones Pakistan An Entity with Global Footmarks
- 2. Why Invest in Pakistan • Pakistan is ideally located for export oriented industries and businesses. It has a pivotal position, as it is flanked by energy rich Central Asian States and Gulf Countries on one side, and South and East Asian states on the other. • Pakistan has a liberal foreign exchange regime. There are no limits on the inflow or outflow of funds for remittances of profits, debts services, capital gains or payments for imported inputs.
- 3. Why Invest in Pakistan • Pakistan has in place well-established infrastructure and legal system, which is important to attract investment. This includes comprehensive roads, rail, sea links, state of the art telecommunications and IT services, modern company laws. • Skilled human resources available at very low cost. • All these factors are kept in mind by the local and foreign investors while making investments, decisions in any country.
- 4. Export Processing Zones Pakistan • EPZA was established through an Ordinance IV of 1980 with the mandate to plan, develop and operate Export Processing Zones in Pakistan • EPZA is an autonomous body working under the administrative control of Ministry of Industries.
- 5. Why Invest in Export Processing Zones Pakistan • Export Processing Zones have been established around the world in 60’s. Pakistan adopted the concept in its letter and spirit in 1980 and since then has been able to expand the zones all over the country. • First project of Export Processing Zones Authority (EPZA) was established at Karachi over an area of 210 acres which was later expanded to another 94 acres. All these areas have been colonized. • For better facilitation, EPZA has established one window concept to facilitate its investors. Some of the incentives and facilities.
- 6. Incentives Offered by EPZs Pakistan • Developed land on competitive rates for 30 years • Duty-free import on machinery, equipment and materials • Freedom from national import regulations • Exchange control regulations of Pakistan not applicable • Repatriation of capital and profits • No sales tax on input goods including electricity / gas bills • Duty-free vehicles allowed under certain conditions
- 7. Incentives Offered by EPZs Pakistan • Domestic market available to the extent of 20%. Exceptions may be available. • Presumptive tax @ 1% • Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability • Obsolete / old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes • Defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up to 3% of total values
- 8. Facilities Offered by EPZs Pakistan • One Window operation with simplified procedures • All facilities electricity , gas and water are made available • Peaceful, secure and environmentally protected pollution –free work area • Easy access to sea (Karachi EPZ) and airports
- 9. Facilities Offered by EPZs Pakistan • Abundance of skilled and educated workforce • GSP PLUS concessions given by various countries to import from Pakistan are available to the manufacturers in the zone
- 10. EPZs Locations in Pakistan • Here is a brief introduction of cities of Pakistan where EPZs are located and their economic contributions. • The list of industries functioning in these cities gives a fair idea of investment potential and availability of particular human resources.
- 11. Karachi Karachi is the largest and most populous metropolitan city of Pakistan and its main seaport and financial centre. Karachi is the 3rd-largest city in the world by population and the largest city in the Muslim world. It is Pakistan's centre of banking, industry, economic activity and trade and is home to Pakistan's largest corporations, including those involved in textiles, shipping, automotive industry, entertainment, the arts, fashion, advertising, publishing, software development and medical research.
- 12. Sialkot • Sialkot is the world's largest producer of hand-sewed footballs, with local factories manufacturing 40~60 million footballs a year, amounting to roughly 70% of world production. • Sialkot is Also providing Dental Instruments, Surgical Instruments, Beauty Instruments and other all sorts of Hospital Equipments. • Other important industries in Sialkot include Leather Tanneries, Leather Garments, Musical Instruments, Surgical and Dental Instruments, Sportswear including Martial arts wear, Gloves, Badges, Seat and Walking Sticks, Cutlery, Hunting Knives, Air guns and Shotguns. These are all export-oriented businesses and earn billions of dollars every year in foreign exchange. • There are several other allied industries which are working day and night as vendors for the automobile industry of Pakistan. Sialkot has also a rich tradition of producing wooden and steel furniture, rubber products, cooking utensils, bicycles, their tyres and tubes and shoes
- 13. Gujranwala • Gujranwala is a commercial and industrial center, playing a major role in the Pakistan economy. • It has a number of textile mills, a cutlery industry and large agricultural-processing plants. • Major exports include rice, sanitary fittings, textiles, plastic furniture, pots, room coolers and heaters, gas stoves, agricultural tools and equipment, electrical equipment, carpets, glass goods, surgical equipment, leather products, metal utensils, auto parts, military machinery, transformers, hosiery, washing machines, rice huskers, agricultural implements, motorcycles, food products and industrial motors.
- 14. Risalpur • Risalpur is a city in Khyber-Pakhtunkhwa province of Pakistan. • The city is mainly known for its Marble industries and rich mineral resources in the nearby areas.
- 15. KARACHI EPZ (PORT CITY) Zone area : 305 acres Type of Industries : High value garments, Gems & Jewelry Key Attractions : Bounded Secured Area Green environment Uninterrupted Power is provided by the EPZ’s own Grid Station 15
- 16. TUWAIRQI STEEL MILL EPZ Zone area : 220 acres Leased to : M/s Tuwairqi Steel Product Project Capacity (Annual) Employment : : : Direct Reduced Iron (DRI) Pellet 1.28 millions / tons 500 16
- 17. SAINDAK EPZ Location : District Chagai Balochistan Zone area : 1284 acres Project Operation : Ministry PNR, Govt. of Balochistan on behalf and for Saindak Metal Corporation alongwith MRDL /MCC Product : Extraction of Blister Copper & Gold Employment : 1000 Foreigners 500 locals 17
- 18. DUDDAR EPZ Location : District Lasbella, Balochistan Zone area : 1500 acres Project Operation : Ministry PNR, Govt. of Balochistan alongwith MDMD / MCC Product : Extraction of Zinc & Lead Employment : 250 Foreigners 250 local 18
- 19. SIALKOT EPZ Zone area : 238 acres Joint Venture: : PSIC(Punjab Small Industries Co.) Type of Industries : Surgical, Sports and Leather Goods 19
- 20. GUJRANWALA EPZ Zone area : 113 acres Joint Venture: : PSIC(Punjab small Industries co.) Industries: : Sanitary Fittings , Cutlery , Garments and Light Engineering 20
- 21. RISALPUR EPZ Zone area : 92 acres Joint Venture: : SDA - Sarhad Development Authority Type of Industries : Trading & Warehousing, Furniture 21
- 22. EPZA LAND LEASE RATES ZONE License Basis Security Deposit @US $ Annual Ground Rent @US $ Karachi Export Processing Zone Industrial Plots 10 per sq.meter 2.50 per sq.meter Trading/Warehouse 30 per sq.meter 3.50 per sq.meter Risalpur Export Processing Zone Industrial Plots 6.5 per sq.meter 0.50 per sq.meter Trading/Warehouse 16 per sq.meter 1.25 per sq.meter Sialkot Export Processing Zone Ownership Basis 5.21 per sq.meter No AGR Gujranwala Export Processing Zone Ownership Basis 12.71 per sq.meter No AGR
- 23. PRODUCTS MANUFACTURED & EXPORTED FROM EXPORT PROCESSING ZONES PAKISTAN
- 24. Solar Panels: Solar Panels
- 25. Sports Goods
- 26. LED Lights
- 27. Stuffed Toys
- 28. Gems & Jewelry
- 29. Denim Apparels
- 30. Aviation Parts
- 31. Zippers
- 32. Apparels
- 34. Frozen Food
- 35. FUTURE PROJECTS
- 36. Faisalabad Export Processing Zone • Faisalabad is the third largest metropolis in Pakistan after Karachi and Lahore and a major industrial center in the heart of Pakistan. • A PricewaterhouseCoopers study surveying the GDP of the top cities in the world, calculated Faisalabad's GDP at $14 billion. Faisalabad's GDP is projected to rise to $87 billion in 2025 at a growth rate of 5.7%, higher than the growth rates of 5.5% and 5.6% predicted for Karachi and Lahore. • The textile industry of Faisalabad constitutes more than 65% of the textile export market of Pakistan, which itself forms 58% of total exports from Pakistan. This makes Faisalabad’s share of total exports from Pakistan more than 40%
- 37. Faisalabad Export Processing Zone • Largest & First Industrial City on Trade Corridor of Pakistan on Motorway M-3 • Faisalabad ranked 1st for Ease of Doing Business in Pakistan by World bank Report 2010. • Hub of Thriving Middle Class • Area 5856 sq. km • Population 6.6 million • GDP US$ 14.0 billion • Exports US$ 7.0 billion • Literacy rate 60%
- 38. Faisalabad Export Processing Zone • A 500 acre free export processing zone plot in M3 Industrial City Faisalabad has been negotiated by EPZA with Faisalabad Industrial Estate Development and Management Company (FIEDMC). • Detailed talks are underway to finalize strategy for expediting set up of a new export processing zone in the Faisalabad vicinity.
- 40. Gwadar Export Processing Zone • Gwadar Port is a warm-water, deep-sea port situated on the Arabian Sea at Gwadar in Balochistan province of Pakistan. • Gwadar is strategically located on the western end of Baluchistan coast on the opposite end of the Gulf of Oman which is an important route for ships bound for Japan and western countries out of Gulf. • Since outflow of goods from western China and Central Asia reaching Gwadar will pass through this overland trade route, Pakistan could earn millions of dollars a year in terms of port and cargo handling charges and also as freight charges for import cargoes and export goods. • Gwadar has the potential to acquire the status of a center piece as a gate to Strait of Hormuz; it can compete with the United Arab Emirates and can provide a better trade route to the land locked Caspian Region.
- 41. Gawadr Port
- 42. Gwadar Export Processing Zone • EPZA has been allotted 1000 acres Land in Gwadar which is approximately 45 K.M from Port. EPZA has hired the Services of M/S Techno Consultant Int’l for planning designing and preparation of PC-I/ PC-II for development of EPZ at Gwadar. Consultant has already carried out soil investigation topographical survey, preliminary master planning and PC-II. • Government of Pakistan has constituted an Advisory Committee on development of Gwadar. The 2nd meeting of advisory committee recently took place and agreed to expedite the pace of work on this project.
- 43. Karachi Export Processing Zone Phase3. • Karachi Export Processing Zone is the one of the biggest success story in Pakistan’s economic development, mainly due to its location in the port city of Pakistan. • Currently we are in the process of developing Phase 3 of KEPZ on 200 acres of land which will offer more opportunities to local and foreign investors.
- 44. Karachi Export Processing Zone
- 45. ENDS