Chinese firm investing in Gwadar gets 23-year tax exemption – Newspaper

ISLAMABAD: The Federal Minister of Maritime Affairs, Ali Haider Zaidi, announced that the government has granted a tax exemption to the China Holding Company of Overseas Ports (COPHC) for 23 years to facilitate the establishment of its industrial units in the Port from Gwadar.

Accompanied by COPHC Executive President Zhang Baozhong and Economic Affairs Minister Hammad Azhar, Zaidi said at a press conference on Tuesday that COPHC that had already been operating in the port of Gwadar would obtain a tax exemption for the installation of machinery and other equipment in the port.

The initiative was a step towards the relocation of the Chinese manufacturing industry in Gwadar and the participation of local labor, he said, adding that the move would eventually boost Pakistan's economy.

The minister said COPHC would also establish a desalination plant with a cost of Rs1.95 billion to provide 5,000 gallons of water per day to people.

He announced that China would build the Pak-China Technical and Vocational Training Institute in Gwadar at a cost of around $ 10 million, which would open job opportunities for locals. "About 360 students equipped with technical skills would pass the institute every year," he said.

Zaidi said Pak-China Friendship Hospital would also be established on 68-acre land at an estimated cost of $ 100 million. In addition, he added, a coal power plant would also be established to generate 300MW of electricity in Gwadar.

On the issue of the connectivity of the port of Gwadar with the Makran coastal highway, he said that the Executive Committee of the National Economic Council (ECNEC) had approved the construction of three bridges on the Eastbay highway to resolve complaints from local fishermen.

40 percent of the construction work on the Eastbay highway was completed, while the rest will be completed in December 2020, he added.

COPHC CEO Zhang Baozhong said the current government had resolved the tax exemption issue that had been pending for the past seven years. He expressed the hope that due to favorable policies for government business, more foreign investment would come to the country.

Posted on Dawn, October 9, 2019