Ahmed Khan Malik

The Balochistan government is providing special incentives for investment in the special economic zones (SEZs) to promote industrialization, reports WealthPK.

The industrial sector offers excellent opportunities for investment, and the investors are being encouraged to come to Balochistan and invest in the SEZs, Bilal Khan Kakar, Vice Chairman of Board of Investment, told WealthPK. He said all necessary facilities and support will be provided, adding that in the SEZs, including the Gwadar Free Trade Zone and Export Processing Zone, the government was offering incentives such as 25 percent relief on import duties for plants, machinery, and equipment.

Balochistan, the largest province in Pakistan by land area, is strategically positioned at the crossroads of Central Asia, South Asia, and the Middle East. Recognizing the region’s strategic importance and economic potential, the government has introduced a range of incentives to attract both domestic and foreign investors to develop the SEZs.  The investors can benefit from exemptions or reductions in income tax, sales tax, and other forms of taxation.

This is particularly attractive to the manufacturing industries, tech firms, and exporters. The tax exemptions typically extend for several years, with varying terms depending on the type of industry and the amount of investment. As part of infrastructure development support, the provincial government is addressing this issue head-on by ensuring that the SEZs are developed with the world-class infrastructure. This includes reliable power supply, efficient transportation networks, telecommunications, and water facilities.

In addition, there are plans to link the SEZs with the regional and international markets through the upgraded port facilities like the deep-sea port of Gwadar. The development of such infrastructure reduces the operational costs for businesses and enhances their competitiveness. Also, the government of Balochistan, in collaboration with the financial institutions, is providing access to affordable financing options for the investors.

The entrepreneurs can benefit from subsidized loans and soft financing programs aimed at lowering the barriers to entry for new businesses. This financial support is particularly crucial for the small and medium-sized enterprises (SMEs) that may struggle to secure capital through traditional routes. The provincial government is making land available for the investors at competitive lease rates. The investors can acquire land in the SEZs at a fraction of the cost of land in major urban centers.

This, combined with streamlined land acquisition processes, makes it easier for businesses to set up operations without facing lengthy delays or inflated costs. To strengthen the workforce available to the businesses in the SEZs, the provincial government has also introduced training programs and skills development initiatives. This is aimed at equipping the local labor force with the skills required for modern industries, thereby creating a more sustainable and self-reliant economic environment.

The development of SEZs could have far-reaching positive effects on the province’s economy. By attracting both local and international investors, these zones have the potential to transform Balochistan into a hub of industrial growth and innovation. One of the most significant benefits of SEZs is job creation. As businesses set up their operations, new employment opportunities will emerge, reducing poverty and improving the livelihoods of the local population.

Credit: INP-WealthPk