SIALKOT: Following the pressing demand of Sialkot business community , the Federal Minister for Finance Asad Umer has formulated a special committee to find out possibilities and ground realities with effective recommendations within next two months to ensure the early re-functioning of the Export Processing Zone (EPZ) Sialkot , as the re-functioning of Sialkot EPZ could be helpful to jazz up the pace of the trade activities in Sialkot region. State Minister for Revenue Hammad Azhar will head this “facts finding” committee.
Asad Umer has expressed grave concern over this very miserably situation of Sialkot EPZ. He has asked the Committee to find out all the impediments, possibilities and ground realities for the early re-functioning of Sialkot EPZ.
During his recently held meeting with Sialkot exporters held at Sialkot Chamber of Commerce and Industry(SCCI), the Sialkot exporters had urged the Federal Minister for Finance Asad Umer to ensure the early functioning of Sialkot EPZ.
President SCCI Khawaja Masud said that government should announce some trade and export-related incentives for the Sialkot exporters at this EPZ.
In Sialkot, Export Processing Zone (EPZ) had been lying non-functional for the last about two decades as this EPZ had yet could attract only nine Sialkot exporters to establish their factories there in this EPZ since its establishment. Most of the Sialkot exporters said that though several trade and export related incentives were available at Sialkot EPZ, bust it was still very hard for them to establish their industrial units at Sialkot EPZ, despite having their commercial plots allotted there.
Export oriented Sialkot city’s all the main trade bodies including Sialkot Chamber of Commerce and Industry (SCCI) have expressed grave concern over the sorry state of affairs at Sialkot EPZ.
Meanwhile, President Sialkot Chamber of Commerce and Industry (SCCI) Khawaja Masud Akhtar has urged the federal and provincial governments to or make it fully functional for promoting the exports from Pakistan’s first every Golden Export Triangle comprising Sialkot, Gujrat and Gujranwala districts.
Export Processing Zone (EPZ) Sialkot, a joint initiative of Export Processing Zones Authority (EPZA) Ministry of Industries, Punjab Small Industries Corporation (PSIC) and Sialkot Chamber of Commerce and Industry (SCCI). It is located near Sambrial on Sialkot-Wazirabad Road in close proximity of Sialkot Dry Port and Sialkot International Airport.
There were total 881 plots in Sialkot Export Processing Zone (EPZ) covering an area of 238 acres. The government had given the responsibility for developing the EPZ to PSIC. All the plots in EPZ have already been allotted. PSIC is responsible for providing public health and estate management services, whereas EPZA provides the security services. The Sialkot EPZ was inaugurated in June 2002 and became operational in 2005.
Presently, only nine industrial units were in operations comprising of sports goods, sportswear, surgical instruments, light engineering, etc. 10 new units are under construction.
According to the concerned officials, following incentives are available at Sialkot EPZ: Developed land 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 profits, 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 at the rate of 1 percent, Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability, Obsolete/old machinery 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 percent of total value, EPZ units allowed to supply goods to Custom manufacturing bonds.
Amazingly, these incentives could not attract the Sialkot exporters to establish their industrial units at Sialkot EPZ.
The then Caretaker Prime Minister of Pakistan Malik Meraj Khalid had inaugurated the groundbreaking ceremony of Sialkot EPZ in 1996, while, the then Governor Punjab Lt-Gen(Rtd) Khalid Maqbool had laid the foundation stone of construction of Sialkot EPZ on June 22, 2002.
In Sialkot EPZ, only nine industrial units were operational, while a large area at EPZ (though fully allotted) was still lying vacant. Declaring the whole Sialkot as Export Processing Zone can be only justified if existing facilities are insufficient for establishing new units which doesn’t seem to be, the concerned officials added, who commented following the pressing demand of Sialkot exporters to declare the whole of the Sialkot city as Export Processing Zone (EPZ).
With a range of facilities available for export oriented units at Sialkot EPZ, there was hardly any need for declaring the whole of Sialkot as Export Processing Zone, the officials revealed…#