Date: 3.7.2009 23:51 

Another area of heavy Chinese investment is Gwadar Port, where Tianjin Zhongbei Harbor Engineering is working on a $1.6 billion project. Next to the port, the China Harbor Engineering Co. is building an international airport. In the same region, China's Great United Petroleum Holdings is developing a $13 billion oil refinery.

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Date: 2.7.2009 23:29 

Sales tax zero rating facility for EPZ construction material likely

RECORDER REPORT

ISLAMABAD (July 03 2009): The government is likely to announce sales tax zero rating facility on the import and supply of construction material by investors of Export Processing Zone (EPZ) Gwadar or development of the infrastructure through amendment in the zero rating SRO.549(I)/2008. The Federal Board of Revenue (FBR) has also given permission to export upto 50 percent of the production from zone to tariff area of the country on payment of normal duties rates.

Sources told Business Recorder on Wednesday that the amendment in the SRO.549(I)/2008 would be made after vetting by the Law and Justice Division to allow sales tax zero rating on import and supply of construction material by EPZ investors. The construction materials may be incorporated in the SRO.549(I)/2008, which deals with the goods on which sales tax shall be charged at the rate of zero per cent.

Details revealed that the government has granted a number of incentives to the EPZ, Gwadar. Firstly, the Cabinet decision of June 3, 2009 regarding "Package of Incentives for Export Processing Zone Gwadar" has been implemented vide SRO No 606(I)/2009. Through this notification, tax holiday for 10 years from the commencement of commercial operation of the project has been granted to EPZ Gwadar.

Secondly, the FBR has also granted permission to export upto 50% of the production from zone to tariff area of the country on payment of usual duties. The summary for the Cabinet dated June 2, 2009 submitted by Ministry of Industries & Productions regarding package of incentives for EPZ Gwadar relating to Export Wing has been implemented by issuing SRO.600(I)/2009 amending the Customs Rules, 2001.

Thirdly, all exports from Pakistan are zero-rated for the purpose of sales tax under section 4 of the Sales Tax Act, 1990 and this facility is available to all including projects established in Export Processing Zones without any discrimination. Fourthly, presently SRO.11(I)/2008 of February 06, 2008 provides exemption from sales tax for a period of 40 years on the import and supply of materials and equipment for construction and operation of Gwadar Port and Development of Free Zone for Gwadar Port and Ship Bunker Oils bought and sold to the ships calling on/visiting Gwadar Port.

Similarly, supply of raw materials, components and goods for further manufacturer of goods in the Export -Processing Zones and import or supply made to Gwadar Economic Zones excluding vehicles are zero-rated vide S.No 5 and 8 of Fifth Schedule of the Sales Tax Act, 1990 respectively. Moreover, SRO 551(I)/2008 provides exemption on import of machinery, equipment and materials either for exclusive use within the limits of Export Processing Zone or for making exports there from and goods imported for warehousing purpose in Export Processing Zone.

Copyright Business Recorder, 2009

Date: 2.7.2009 23:10 

Tajikistan seeks access to Gwadar port for exports

Staff Report

ISLAMABAD: Ambassador of Tajikistan, Zubaydov Zubaydullo Najotovich on Thursday said that his country is in a dire need of access to the world through Gwadar port of Pakistan.

The ambassador expressed these views during a meeting with the Federal Minister for Industries and Production, Mian Manzoor Ahmad Wattoo here today. During discussion he also pointed out that Pakistan was also looking to import Tajik power to its Northern Areas as Tajikistan has the huge hydropower potentials and cheapest electricity in the world.

Easy and smooth of energy supply has become mantra of every government around the globe. The ministers of four countries, Pakistan, Tajikistan, Kyrgyzstan and Afghanistan signed a resolution to proceed further with the Central Asia/South Asia Regional Electricity Market (Casarem) project envisaging transmission of 1300MW from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan; but further commitment to the project will be linked to the availability of financing. A consortium of three financial institutions i.e. Islamic Development Bank, Asian Development Bank and World Bank has recently agreed to provide $1 billion to Pakistan to import electricity from Central Asian Republics (CARs).

Together with the government of Tajikistan and Kyrgyzstan an inter-governmental council was established in 2007 and a secretariat in 2008 with the objective of developing the electricity market and the CASA 1000 project.

According to the ambassador the government of Tajikistan would be able to assure its electricity requirements by 2009 and would export to the other countries. For the advancement of the communication projects, the government had adopted strategy to construct new highways and bridges to link Tajikistan with neighboring countries.

“From Pakistan’s point of view it would provide opportunities for Central Asian states such as Tajikistan, to boost exports,” the ambassador said and added that both the countries have signed about 20 agreements, protocols and memorandums of understanding (MoU’s) to extend cooperation in energy, communications, insurance, investments and industry, air transport, banking and financial, agricultural and food industry, transport and constructions of roads, science and technology, education, health, tourism, culture on the basis of mutual equality and to increase the current level of trade.

Cherishing brotherly relations between the two nations the Federal Minister took pride in the fact that Pakistan was one of the first countries, which recognised the independence of Tajikistan and established diplomatic ties.

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