Cards by Country PAKISTAN

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PAKISTAN EXPORT PROCESSING ZONES, SPECIAL ECONOMIC ZONES

Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Pakistan

Oicial Terms for Free Zones Year of promulgation of the irst text of law concerning the Free Zones Export Processing Zones, Special Economic Zones 1980

Possibility to be established as Exact number of Free Zones Free Points 12 No

TABLE OF CONTENTS

General information ...... 4 List of operating Export Processing Zones ...... 6 List of Special Economic Zones (SEZ) ...... 9 Contacts ...... 10 Free Zones Web sites selection ...... 11

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Mary UZBEKISTAN TAJIKISTAN Termez TURKMENISTAN Konduz

Mashhad Mazar-E Sharif Baghlan CHINA

Kabul Jalabad 07

AFGHANISTAN Ghazni Peshawar Gardez Islamabad

08 04 Kandahar Lahore Faisalabad Amritsar Simla 12

IRAN Chandigarh Quetta PAKISTAN Zahedan 10 06 New Delhi

INDIA 11 Jaipur

Hyderabad 05 09 Karachi

01 02

OMAN Ahmadabad Bhopal FREE ZONES IN PAKISTAN 100 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones

01 - Karachi Export Processing Zones (KEPZ) 07 - Risalpur EPZ 02 - Al-Tuwairqi Steel EPZ 08 - Sialkot EPZ 03 - Duddar EPZ 09 - Khalifa Coastal Oil Refinery 04 - Gujranwala EPZ 10 - Reko Diq Export Processing Zone 05 - Gwadar Port EPZ 11 - Khairpur Special Economic Zone 06 - Saindak EPZ 12 - RUBA Economic Zone

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GENERAL INFORMATION

Number of free 12: 10 EPZ and 2 SEZ zones http://www.epza.gov.pk/location.html

Main sectors of The Authority has devised an Action Plan, which has been put implementation. Each activity Zone categorized as a Product and it has been decided to promote each Zone viz Karachi Phase-I, Phase-II, Sialkot, Risalpur, Grjranwala as “Separate Product” and to promote as under: -Karachi EPZ: IT / Precision Engineering / High-Value Garments / Gems & Jewelry -KEPZ–To reserve available land in KEPZ Phase-II and major focus on large projects i.e. I.T. Tower, high-value. • Sialkot EPZ: Surgical / Sports Goods / Leather Goods. • Risalpur EPZ:Trading-Warehousing / Furniture / Engineering. • Gujranwala EPZA: Light Engineering / Consumer Durables.

Only four type of industries are not allowed to set up in the Zone i.e 1. Manufacturing of Narcotics 2. Manufacturing of Alcoholic drinks 3. Manufacturing of Arms and Armaments 4. Industries causing serious pollution

Number of No information active comp. in Free Zones

Total job num- No information bers

Distribution of UAE, Europe, USA, China, etc. investors

Exports and The exports from export processing zones, established in diferent cities of the country, to sales increase Industrial production have reached $ 1.02 Bn during last two years. https://www.kcci.com.pk/Rnd/EB/Sep16/KCCI_E-Bulletin(Sep8-2016).pdf

Free zones No information contribution to the nat. eco.

Corporate Tax Incentives: and Incentives • Developed land on competitive rates for 30 years • Duty-free import of machinery, equipment and materials • Freedom from national import regulations • Exchange control regulations of Pakistan not applicable • Repatriation of capital and proits • No sales tax on input goods including electricity/gas bills • Duty-free vehicles allowed under certain conditions • Domestic market available to the extent of 20%. Exceptions may be available • Presumptive tax of 1% • Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be inal tax liability • Obsolete/old machiner 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 value

Facilities: • One-window operation with simpliied procedures

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• All facilities like water, electricity, gas and telecommunications made available • Peaceful, secure, environmentally protected, and pollution-free work area • Inter-unit transfer

Facilitation Desk: All authorization documents of entry and exit of goods from the zones are issued by EPZA free of cost on the same day disposal basis. These documents include: • Import gate pass • Incoming gate pass for subcontracting items • Entry gate pass for items of repair & maintenance • Gate passes for petty items • Authentication for export NOC • Export gate pass • Export gate pass for sample consignments • Out-going gate pass for subcontracting items • Exit gate pass for items of repair & maintenance • Exit/entry gate passes for same day return • Late shipment authorization • Authentication of documents of reverse subcontracting • Authentication for disposal of waste material in tarif area • Authentication of documents under Generalized System of Preferences (GSP)

Clearing/Forwarding Services: The EPZA has approved a panel of clearing/forwarding agents holding valid Custom House Licenses and against deposit of EPZA fee. A list of agents can be obtained from the EPZA oice. They ofer a choice of selection to the investors.

Water, Electricity, Gas, Telephone Facilities at Site: The Authority processes all applications for utilities’ connections at the factory premises. The Authority facilitates in obtaining electricity, gas, telephone and water connections by coordinating with utility agencies and keeps a follow-up on all matters relating to billing or any other issue.

Construction Bye-laws: The factories in the required zones are to be constructed in accor- dance with approved construction bye-laws. The investors may hire their own contractors or can avail the services of contractors already working in the EPZs.

Issuance of VIP Cards/Car Stickers to Investors: The VIP identiication will ensure to the investors a hassle-free movement in the zone.

Generalized System of Preference Certiicate: This certiication is issued by the Authority to eligible categories of units.

Authentication of Identity Cards to Labour: The EPZA authenticates the ID Cards issued to the labour by zone units. Unauthorized entry is strictly prohibited into the zone.

Ofshore Banking Units: The Zone is exempted from all provisions of the Foreign Exchange Regulations Act, 1947 (VII of 1947), State Bank of Pakistan Act, 1956 (XXXIII of 1956) and Banking Companies Ordinance, 1962 (LVII of 1962).

Sources: http://www.epza.gov.pk/facilities.html https://www.google.fr/?gws_rd=ssl#q=pakistan+free+zones&*

Production Oriented Labour Laws EPZA is vested with the responsibility to the administer labour laws for all enterprises of the Zone. Law forbids formation of nay labour union in EPZs. Strike within the zones prohibited. An EPZA emergency medical centre is functioning in KEPZ to provide medical care to zone labour.

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Labour cost: Unskilled US$ 87 per month Skilled US$ 145 per month approximate Managerial US$ 500 above per month

Working hours: 8 hours per day/48 hours a week Short breaks for tea, lunch and prayers shall be allowed.

Source : http://www.epza.gov.pk/laborLaws.html

SEZ: The iscal beneits under the SEZ law include a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for the development, operations and maintenance of a SEZ (both for the developer as well as for the zone enterprise) and exemption from all taxes on income for a period of ten years.

Free Zone law The SEZ Act September 13, 2012. - http://boi.gov.pk/UploadedDocs/Downloads/GazetteNo- tiicationSEZAct.pdf / http://www.epza.gov.pk/epzaRules.html -Modiied & Amended Special Economic Zones Act, 2012. As amended up to 31st De- cember 2015 - http://boi.gov.pk/UploadedDocs/Downloads/Modiied%20SEZ%20Act%20 2012.pdf -Export Processing Zones Authority Ordinance (IV of 1980) -Export Processing Zones Authority Rules, 1981 -Customs Export Processing Zones Rules, 1982 and Allied Notiication / Orders. -Notiications under the Foreign Exchange Act, 1947 (VII of 1947), State Bank of Pakistan Act, 1956 (XXII of 1956), the Banking Companies Ordinance 1962 (LVII of 1962), the Pakis- tan Insurance Corporation Act 1952 (XXXVII of 1952), Import and Export Regulation and Exemption from the provisions of various labor laws relation to Export processing Zones.

http://www.epza.gov.pk/epzaord.pdf http://www.epza.gov.pk/sro1.pdf

LIST OF OPERATING EXPORT PROCESSING ZONES 1 - Karachi Export Processing Zones (KEPZ) Located adjacent to the Landhi Industrial Area (Extension).

Map: http://www.epza.gov.pk/karachi.html Location -18 Kilometers from the modern Quaid-e-Azam International Airport, -20 Kilometers from Port Qasim -35 Kilometers from Karachi Seaport.

KEPZ has been planned on 500 acres of land, out of which 311 acres have been developed. 300 acres are being acquired from the Government of Sindh for KEPZ for future expansion: Surface Area • Karachi EPZ Phase 1: 211 acres (operational) • Karachi EPZ Phase 2: 94 acres (operational) • Karachi EPZ Phase 3: 200 acres (in progress)

Karachi Export Processing Zone (KEPZ), Landhi Industrial Area Extension - Mehran Highway - Karachi-75150 – Pakistan Contacts Dr. Muhammad Khawar Jameel Chairman (EPZA) Tel.: (92-21) 99208003 - Fax: (92-21) 99208005 Email: [email protected]

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Set up in 1981. Business priorities: IT / Precision Engineering / High-Value Garments / Gems & Jewelry

Karachi Export Processing Zone, the irst project of EPZ in Pakistan, is fully developed. The Zone is linked with the National Highway network. It ofers efective and convenient Observations approach to the markets of the Middle East, Far East, Africa, Europe, America and to the new markets of Central Asian Republics. Infrastructure facilities providing all necessary utility services like electricity, gas, water and telephone etc.

https://www.google.fr/?gws_rd=ssl#q=pakistan+free+zones&*

2 - Al-Tuwairqi Steel EPZ Location Spreads over 220 acres at Muhammad Bin Qasim Port Zone, Karachi, Pakistan.

Surface Area 220 Acres.

Tuwairqi Steel Mills Contacts FTC, Block D, Shahrah-e-Faisal, Karachi, 74400, Paksitan [email protected]

Observations Leased to M/s. Tuwairqi Group of Saudi Arabia Bin Qasim, Karachi.

3 - Duddar EPZ Location District Lasbella, Balochistan

Surface Area 1 500 Acres.

Contacts Lasbela District, Balochistan, Pakistan

Leased to Chinese irm MCC Duddar Minerals Development Co.(Pvt.) Ltd. Observations Business priorities : Extraction of Zinc & Lead

4 - Gujranwala EPZ Location About 3 Km on main Gujranwala-Lahore, G.T. Road.

Surface Area 113 Acres (Number of plots : 162)

Contacts Small Industrial Estate-III, Attawa, G.T. Road, Gujranwala

Infrastructure being developed. Observations Business priorities: Light Engineering / Consumer Durables. Joint Venture with Punjab Small Industries Corporation (PSIC).

5 - Gwadar Port EPZ Located on the shores of the Arabian Sea (western province of Balochistan). 533 km from Karachi and 120 km from the Iranian border. Location Gwadar Port is located at the mouth of the Persian Gulf, just outside the Straits of Hor- muz, near the key shipping routes in and out of the Persian Gulf.

Surface Area 923 ha.

Gwadar Port Authority Contacts Gwadar Ph. Tel.: 086-4210073.

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It is expected that the port city will be able to create about 40,000 jobs. Gwadar Port Authority (GPA) said that the construction of Gwadar Free Zone is underway at a cost of US $2 billion. Observations Chinese irm is spending US $2 billion for construction of roads, provision of electricity, gas and water in Gwadar Free Zone https://tribune.com.pk/story/1126021/gwadar-development-industrial-free-zone-construction-be- gins/ https://www.dawn.com/news/1160849

6 - Saindak EPZ Location District Chagai, Balochistan

Surface Area 1 284 Acres.

Saindak Export Processing Zone Contacts Chagai District, Balochistan

Opened in 2003 for extraction of Blister Copper & Gold. Observations Leased to Chinese irm M/s. MCC Resource Development Co., Ltd. District Chagai, Balochistan

7 - Risalpur EPZ Location Risalpur on Nowshera-Mardan Road

Surface Area 92 acres (Number of plots 137)

Bara Banda Stop Mardan Road, Risalpur Contacts Project Manager / DGM Tel: (0931) 780097 - Fax: (0931) 780098

Business priorities: Trading-Warehousing / Furniture / Engineering. Observations Joint Venture with Sarhad Development Authority (SDA).

8 - Sialkot EPZ Location At Sambrial on Sialkot Wazirabad Road

Surface Area 238 Acres (Nunber of plots 881)

Wazirabad Road, Contacts Sambrial, District Sialkot

Business priorities: Surgical / Sports Goods / Leather Goods. Observations Joint Venture with Punjab Small Industries Corporation (PSIC).

9 - Khalifa Coastal Oil Reinery Location District Lasbella sub Tehsil Gaddani, Balochistan.

Surface Area 1.811 acres (7,3 km²)

Export Processing Zones Authority : Contacts E-mail: [email protected] Website: http://epza.gov.pk/

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Infrastructure being developed. Business priorities: Petroleum Products Since 2016, “ Pakistan Arab Reinery Limited (Parco) will start work on the Khalifa rei- Observations nery with a reining capacity of 250,000 barrels per day. In Parco, UAE holds 40% shares whereas the government of Pakistan has a 60% stake”. https://tribune.com.pk/story/1134403/parco-resume-work-6b-khalifa-reinery/

10 - Reko Diq Export Processing Zone Location District Chagai, Balochistan

Surface Area 15 sq. Km

Export Processing Zones Authority : Contacts E-mail: [email protected] Website: http://epza.gov.pk/

Infrastructure being developed Observations Leased to Tethyan Copper Company Ltd of Australia Business products: Copper and Gold

LIST OF SPECIAL ECONOMIC ZONES (SEZ) Oicial deinition of Special Economic Zone (SEZ) in Pakistan: “Special Economic Zone (SEZ) is a blanket term for various types of specialized zones with speciic types of enterprises operating in a well-deined geographic area where certain economic activities are promoted by a set of policy mea- sures that are not generally applicable to the rest of the country. Successful SEZs ofer immediate access to high-quality infrastructure, uninterruptible power supply, clearly titled land, public facilities, and support services .In addition, streamlined regulatory enforcement, simpler business and establishment rules, expedited customs administration, and other special administrative and approval procedures are also ofered in such zones”. http://boi.gov.pk/InvestmentGuide/SEZ.aspx

11 - Khairpur Special Economic Zone Location Khairpur District

Surface Area 140 acres

Khairpur District Council Oice, Near Radio Pakistan Khairpur, Old National Highway, District Khairpur Contacts Tel: 0243-9280398-400, 554449 - Fax: 0234-9280396 E-Mail: [email protected] / [email protected]

“Khairpur Special Economic Zone is being developed in Khairpur District as a future hub of agro-processing and other related industries, KSEZ is located on 140 acres land in the proximity of date growing areas, ideal for setting up date processing and packaging plant for exporting diferent varieties of date to get high price for this value added pro- Observations duct in the international markets. This special zone will have state-of-the-art infrastructure, eicient design, easy access to labor and training facilities and quality logistic services. The zone will provide inherent beneits of essential supporting amenities to small, medium, and large enterprises to grow and lourish in a global market place”. http://boi.gov.pk/InvestmentGuide/SEZ.aspx

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12 - RUBA Economic Zone Location Lahore

Surface Area -

Ruba Sez Group Oice# 322, 8th Floor, Mega Tower, Main Boulevard, Gulberg III Lahore. Contacts Tel.: 042-3577-7522 [email protected] https://www.ruba-sez.com.pk/

Joint venture between Ruba Group of Pakistan and Haier Group of China. The Haier-Ru- ba group is one of the largest manufacturers of polyester yarn and home appliances in Pakistan. SEZ project is the irst in the country in the private sector. A multi-purpose industrial Observations and living complex, the Zone is ideal for local and foreign investors to operate business. Pakistan is one of 8 countries throughout the world where the Chinese government plans to help its investors set up and operate SEZs, to use the country as a major base for manufacturing and exporting goods to the rest of the world.

CONTACTS Ministry of Industries & Production, Government of Pakistan, Landhi, Industrial Area Extension Mehran Highway, Landhi, Karachi-75150. (Pakistan) UAN: 111-777-222 Tel: (92-21) 5082010,5082001 - Fax: (92-91) 5082009-5082005 E-mail: [email protected] Website: http://www.epza.com.pk

Export Processing Zone (KEPZ), Landhi Industrial Area Extension, Mehran Highway, Karachi-75150 – Pakistan Tel.: (92-21) 99208039-41-44 Email: [email protected]

Export Processing Zones Authority : E-mail: [email protected] Website: http://www.epza.com.pk

Mr. Mumtaz Ali Shah, Chairman, (EPZA) Fax: (92-21) 99208005 - Phone: (92-21) 99208003 & 4 Email: [email protected]

Mr. Miran Mohiyuddin, Secretary (EPZA) / Director (Fin) Phone: (92-21) 99208010 - Fax: (92-21) 99208011 Email: [email protected]

Export Processing Zones Authority Regional Oice: 5th Floor, LDA Plaza, Egerton Road, Lahore. Tel: (92-42) 6310671 - Fax: (92-42) 6310670 E-mail: [email protected]

Sindh Board of Investment Government of Sindh 1st Floor, Tower B, Finance & Trade Center Shahra-e-Faisal Karachi, Pakistan. Tel: +92-21-99207512-4 - Fax:+92-21-99207515 Email: [email protected] 10 WFZO Index cards - Pakistan

Board of investment (BOI) Ataturk Avenue , G 5/1, Islamabad. Tel: +92-51-922 4101 / +92-51-922 4101 / +92 51 111 776 348 Fax: +92-51-921 5554

FREE ZONES WEB SITES SELECTION • http://boi.gov.pk/InvestmentGuide/SEZ.aspx • https://www.google.fr/?gws_rd=ssl#q=pakistan+free+zones&* • http://www.epza.gov.pk/faqs.html#2 • http://sda.org.pk/content.php?page_id=27 • http://www.epza.gov.pk/gujranwala.html • http://www.epza.gov.pk/karachi.html • http://boi.gov.pk/UploadedDocs/Downloads/GazetteNotiicationSEZAct.pdf • http://boi.gov.pk/UploadedDocs/Downloads/SEZ_RULES.pdf • http://www.sbi.gos.pk/seza.php • http://paktradeinvest.com/investment/economic.html • http://www.gwadarport.gov.pk/ • http://www.ksez.com.pk/ • http://www.ruba-sez.com.pk/ • http://icci.com.pk/data/downloads/65/1146759599_1.pdf