ISLAMABAD – For the establishment of a ‘free trade zone’ in Gwadar, a lease agreement is being processed under which over 2,281 acres of land will be handed over to the China Overseas Port Holding Company for 40 years while the Ministry of Ports and Shipping has paid over Rs6.69bn to acquire the land through the deputy commissioner of Gwadar.
The lease agreement is currently being reviewed by the law division, said a senior official of the Ministry of Ports and Shipping. After the government’s formal approval, the land will be leased out to the Chinese company. The free trade zone is seen indispensable for the success of the Gwadar port, as they are an integral part of all modern ports.
It is expected to ensure optimal use of the deep sea port. In Gwadar port’s master plan, prepared by foreign consultants, the mouza Dor Gatti area had been earmarked for the free trade zone. A free trade zone is a designated area that eliminates traditional trade barriers such as tariffs, and minimises bureaucratic regulations. Its goal is to enhance global market presence by attracting new businesses and foreign investment.
