Pakistan government unveils unprecedented tax exemption to China Overseas Ports Holding Company in Gwadar
ISLAMABAD - Pakistan government unveils unprecedented tax exemption to China Overseas Ports Holding Company in Gwadar.
The government has granted a tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to help them establish their industrial units at Gwadar Port.
This was announced by the Federal Minister for Maritime Affairs Ali Haider Zaidi.
Accompanied by COPHC’s Chief Executive Officer Zhang Baozhong and Minister for Economic Affairs Hammad Azhar, Mr. Zaidi told a press conference on Tuesday that COPHC will get a tax exemption for installation of machinery and other equipment at the port.
The initiative is a step towards the relocation of the Chinese manufacturing industry to Gwadar and engaging the local labor, he said, adding that the move will boost Pakistan’s economy.
The minister said COPHC will also set up a desalination plant at a cost of Rs. 1.95 billion to provide 5,000 gallons of water per day to the people.
He announced that China will build a Pak-China Technical and Vocational Training Institute in Gwadar at a cost of around $10 million, which will open job opportunities for locals. “About 360 students equipped with technical skills will pass out from the institute every year,” he said.
Mr. Zaidi said that Pak-China Friendship Hospital will also be established on a 68-acre land at an estimated cost of $100 million. Also, he added, a coal power plant for generating 300MW electricity will be set up in Gwadar.
On the issue of Gwadar port’s connectivity with Makran Coastal Highway, he said the Executive Committee of the National Economic Council (ECNEC) has approved the construction of three bridges on the Eastbay Expressway to resolve the grievances of local fisherman.
Around 40 percent of construction work on the Eastbay Expressway has been completed while the rest will be completed by December 2020, he added.