Pakistan and China to sign development agreement of first CPEC SEZ on Monday

Pakistan and China plan on signing the first development agreement for China Pakistan Economic Corridor’s (CPEC) Rashakai Special Economic Zone (SEZ) at the Prime Minister House on Monday.

Stakeholders, line, and federal ministers, along with the KP government, are all invited to the event.

In an official statement, the State Minister and Board of Investment (BOI) Chairman Atif R. Bokhari said that the arrangement would appreciate the prophecy of SEZs’ progress, eventually leading to a thriving and industrialized Pakistan

He emphasized the SEZ’s progress under CPEC by stating that the required headway has been constructed and the zone now prepares for business. He further added that “Pakistan’s proximity with China will allow these SEZs to foster economic interdependence for mutual economic advantage.’’

Development Agreement

The Section-13 of SEZ Act 2012 binds the province, federation (BOI), and the developers of SEZ by way of an agreement for positive instituting and development of an SEZ, pertinently labeled as ‘‘Development Agreement’’.

This agreement provides a structure of SEZ’s establishment while it holds the provincial and federal governments along with the developer mutually accountable for all the development and effective execution.

Public-Private Partnership (PPP)

The Rashakai SEZ would be administered under a Public-Private Partnership (PPP) model through the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) in association with China Road & Bridge Corporation, a Chinese national enterprise.

An SPV corporation of the two firms called Rashakai Special Economic Zone Development and Operations Company (RSEZDOC) has been formed to ensure the proper execution of this agreement, with one of the parties being China itself.

Rashakai Special Economic Zone: A way forward!

A $128 Million project was launched on August 6, 2019, which spanned over 1000 acres of land, which was presented with the SEZ prominence while the signing of the Concession agreement took place in April 2019.

The BOI endorsed the SEZ establishment intending to benefit from the investment influx below CPEC, comprehensive economic development of the Khyber Pakhtunkhwa Province, the formation of job vacancies, growth in the industrial sector, and increase in exports by Pakistan.

Bokhari stated that the BOI has effectively accelerated the procedure of delivering assured utilities apart from simplifying the distribution of fiscal inducements and enterprise to the co-developer of SEZ’s.

“To enable successful operations of this SEZ, the federal government has committed Rs1.8 bn for provision of 210 MWs of electricity, and Rs1.2 bn for the provision of 30 million cubic feet per day (MMcfd) gas from the Federal PSDP. Provision of required utilities at the SEZ’s doorstep as per the required timelines will allow on-time construction and development,” he settled.

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