The National Assembly has approved new legislation to attract investment and create business friendly environment in the country. The Economic Zones (Amendment), Bill 2016 is aimed at setting up Special Economic Zones across the country, providing industrial infrastructure and facilitating domestic and foreign investors to participate in the manufacturing sector of Pakistan. The offer entails special exemptions and incentives leading to reduced cost of doing business with efficient infrastructure. The amended law will allow investors to import duty free plants, machinery and equipment as well as enjoy income tax holidays of 10 years in the zones. The experts believe the new SEZ regime will not only encourage rapid industrialisation of the country, but will also lead to creation of more jobs, transfer of technology and development of industrial infrastructure in the country. At least 29 Special Economic Zones will be set up across the country under China-Pakistan Economic Corridor, including three in Punjab. Three SEZs have already been notified in Sindh, two in Karachi and one in Khairpur while work on a number of industrial zones is in process in other provinces.
The Board of Investment has been entrusted with the job to set up economic zones and encourage Pakistani diaspora across the world to invest in the country.The Investment Facilitation Centres have been set up in the federal and provincial capitals to encourage small medium enterprises to set up their businesses in the zones while the Board of Investment will also set up one window facility to provide all kind of help to foreign investors. The government is also working on a new visa regime for foreign workers who will be required for technical assistance. However, it will be plausible to involve Pakistani experts living in the country and abroad in the industrialization process and they should be offered good salaries and perks at par with foreign workers. Pakistani experts are working in scientific and technical fields in various countries of the world and they should be encouraged to apply for jobs in Pakistan.
According to experts, the recent hue and cry of the offshore companies is a tip of the iceberg and most of those who own the companies have also acquired highest posts in the current government. They should have moral courage to change the current investment and tax laws to stop capital flight from the country in future.The factual position is that it is in their hands to make Pakistan an attractive destination for business and investment. The foreign and local investors will not be ready to risk their money in the economic zones unless they are ensured that their money will be safe and they will make profit in the business.
