BRI Factsheet Series – Infrastructure Development for Free Zone Gwadar

The Infrastructure Development for Free Zone Gwadar is part of a larger series of construction projects in Gwadar under the framework of the China-Pakistan Economic Corridor (CPEC). Three areas have been allocated free zone and export processing zones in the industrial locations of Gwadar and are aiming at creating a backup port industry for the Gwadar Port: 1,000 acres for the export processing zone which will be handled by the Export Processing Zones Authority, 3,000 acres for an industrial zone which will be handled by the Gwadar Industrial Estate Development Authority and 2,280 acres for the Gwadar Port Free Zone which will be operated by the China Overseas Port Holding Company.

Project Information

Project name
Infrastructure Development for Free Zone, Gwadar

Type
Free Zone

Location
Balochistan/Pakistan

BRI Corridor
China-Pakistan Economic Corridor (CPEC)

Current Status
The special economic zones are to be completed in three phases. The Gwadar Free Zone was inaugurated on 29. January 2018, this marked the completion of the first phase. Second phase: 2018-2023

Project Start
2015

Chinese Involvement
Financing, Operation

Projected Total Project Costs
USD 32 million

Operator
Gwadar Port Free Zone: China Overseas Port Holding Company

Industrial Zone: Gwadar Industrial Estate Development Authority

Export Processing Zone: Export Processing Zones Authority

Financing
The China Overseas Port Holding Company will finance the infrastructure development of the Gwadar Port Free Zone. Acess roads will be financed by the Gwadar Port Authority.

Ownership
The 2,280 acres of land for the Gwadar Port Free Zone was handed to the China Overseas Port Holding Company as part of the 43-year lease of the Gwadar Port.

Tax Exemptions
The China Overseas Port Holding Company enjoys a 20 year long tax exemptions for the following:

  • Corporate Income Tax
  • Income Tax on Interest Income on loans acquired
  • Sales Tax
  • Stamp Duties
  • Duties on ship bunker oils

Additionally it enjoys a 40 year long tax exemption on import duties on all imports.

Additional Project Information
The Free Zones include Warehouses, Manufactures, Transit and Distribution, Customs, Hotels, Restaurants, Entertainment etc. The creation of more than 2,000 jobs is expected.

Further Information
CEPEC – China Pakistan Economic Corridor
Long Term Plan for China-Pakistan Economic Corridor

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