- Pakistan fails to show progress on other identified zones
- 740 MW, 170 MMCFD required for only 3 SEZs
ISLAMABAD: China has reportedly agreed to facilitate making operational at least one Special Economic Zone (SEZ) out of the identified nine SEZs under China Pakistan Economic Corridor (CPEC) as Pakistan is yet to show progress on the remaining zones.
Among the Memorandum of Understandings (MoUs)/ agreements signed by Pakistan and China at the conclusion of Prime Minister Imran Khan’s second visit to China on Sunday, Joint Venture and License agreement was also signed between Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) and China Road and Bridge Corporation (CRBC) for cooperation in operationalizing Rashakai SEZ in KP.
A formal ground breaking ceremony of Rashakai SEZ, after the agreement in Beijing will be held next month, officials said. According to the officials during a meeting with Minister of Planning and Development Khusro Bakhtyar in China Chief Executive Officer of CRBC, Du Fei has also acknowledged that Rashakai would be a model for other SEZs.
According to official documents the Feasibility studies of SEZs was already shared with Chinese side. Besides, the MoU and Engagement Agreement for the development joint undertaking of the zone project was also signed between KPEZDMC and CRBC in January 2018. Subsequently, the two parties set out to negotiate the terms of Joint Venture Agreement, which has already been signed in November 2018. Recently, the two parties were in end stages of finalizing and signing the Concession Agreement, following which the Ground Breaking of the project will take place. Though, the concession agreement has been finalized but, according to sources, the utility services to the zone were yet to be provided. A request for 209 MW was made to NTDC and PESCO while request for 30 MMCFD was also made to SNGPL.
However, according to sources, other SEZs are yet to attract Chinese companies and investors for lack of facilities and progress on required services. Earlier Pakistan had requested China for cooperating in developing at least one SEZ.
As per fresh documents related to progress report on the nine agreed SEZs, which included Rashakai Economic Zone , M-1, Nowshera, China Special Economic Zone Dhabeji, Bostan Industrial Zone, Allama Iqbal Industrial City (M3), Faisalabad, ICT Model Industrial Zone, Islamabad, Jinnah Industrial Park on Pakistan Steel Mills Land at Port Qasim, Karachi, Special Economic Zone at Mirpur,AJK, Mohmand Marble City and Moqpondass SEZ Gilgit-Baltistan,
As per the documents, even allocation of land was yet to be made for ICT Model Industrial Zone, Islamabad. Though Capital Development Authority (CDA) has identified three sites in G-11 sector measuring an area of 3-5 acres on the request of Board of Investment (BoI) but the authority has informed that the sites were to allotted only for offices and not for establishment of SEZ.
Regarding the Bostan Industrial Zone, the industries department in Balochistan is yet to response to a formal request of BoI for notification of the zone. A feasibility study however was submitted to the department so far. Similarly the declaration of Maqpondass as SEZ by GB government was also still awaited. Besides, as per the documents, land acquisition process at SEZ, Mirpur,AJK, was yet to be completed and the feasibility study was also under revision.
Regarding the Jinnah Industrial Park on Pakistan Steel Mills Land at Port Qasim, the issue related to 1500 acre land and its pricing was yet to be resolved between National Industrial Park (NIP) and Pakistan Steel Mills. Besides, even the feasibility study was yet to be completed about Mohmand Marble City.
The land acquisition and master planning of Allama Iqbal Industrial City (M3), Faisalabad, was also yet to be completed. The process was expected to who progress by June 2019.
After the Rashakai SEZ, Dhabeji Thatta SEZ has shown some progress as feasibility studies, master plan, acquisition of land were completed and committed interest of Chinese industry was also secured for project execution. The draft concession agreement and request for proposals (RFP) were expected to be ready by end of this month.
Apart from allocation of land to SEZs, according to sources, the key issues for these zones were provision of requisite infrastructure, power, gas, and security. According to the documents three SEZs including Rashakai, Dhabheji and Allama Iqbal industrial city were needed 740 megawatt electricity and at least 170 MMCFD gas to be operational. It does not include other priority zones under CPEC.
Earlier Economic Coordination Committee (ECC) had also observed that provision of utilities i.e. electricity and gas, was responsibility of the federal government. Without gas and electricity no SEZ can be developed. The ECC had directed power and petroleum divisions to prepare plans for uninterrupted electricity and gas supplies to the SEZs in consultation with the provincial governments. The expenditure on provision of utilities like grid stations shall be met through PSDP. The ECC also observed that the provincial governments are required to speed up work on the establishment of SEZs and provision of requisite infrastructure for establishment of industry.
