lying non-functional for last sixteen years
SIALKOT: The mega project of Sialkot Export Processing Zone (EPZ) has been waiting for the government attention as it had been neglected and left unattended for the last 16 years.
The Export Processing Zone had been lying non-functional and could attract only eight Sialkot exporters to establish their factories there since its establishment.
Most of the Sialkot exporters said that though several trade and export related incentives were available there at Sialkot EPZ earlier, but it was still very hard for them to establish their industrial units despite commercial plots have been allotted to them at the site. The Sialkot exporters have expressed grave concern over the sorry state of affairs at the EPZ.
They said that the government had allegedly left this mega project on the mercy of circumstances, besides, remaining unable to decide the future and fate of the zone.
They have urged the federal and provincial governments to de-notify or abolish the EPZ Status of Sialkot EPZ or make it fully functional for promoting the exports from Pakistan’s first ever Golden Export Triangle comprising Sialkot, Gujrat and Gujranwala districts.
Export Processing Zone (EPZ) Sialkot is a joint initiative of Export Processing Zones Authority (EPZA) Ministry of Industries, Punjab Small Industries Corporation (PSIC) and Sialkot Chamber of Commerce and Industry (SCCI).
It is located near Sambrial on Sialkot-Wazirabad Road in close proximity of Sialkot Dry Port Trust (SDPT) and Sialkot International Airport.
There were total 881 plots in Sialkot Export Processing Zone (EPZ) covering an area of 238 acres. The government had given the responsibility for developing the EPZ to PSIC after its establishment.
All the plots in Sialkot EPZ have already been allotted to the Sialkot exporters. PSIC is responsible for providing public health and estate management services, whereas EPZA provides the security services. The Sialkot EPZ was inaugurated in June 2002 and became operational in 2005.
Presently, only 8 industrial units were in operations comprising of sports goods, sportswear, surgical instruments, light engineering, etc. 10 new units are under construction. The total export from EPZ during 2009-10 was US$ 0.65 million.
According to the concerned officials of Export Processing Zones Authority (EPZA) , following incentives are available at Sialkot EPZ: Developed land for 30 years, Duty-free import of machinery, equipment and materials, Freedom from national import regulations, Exchange control regulations of Pakistan not applicable, Repatriation of capital and profits, No sales tax on input goods including electricity/gas bills, duty-free vehicles allowed under certain conditions, Domestic market available to the extent of 20%.
Exceptions may be available, Presumptive tax at the rate of 1 percent, Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability, Obsolete/old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes, Defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up to 3 percent of total value, EPZ units allowed to supply goods to Custom manufacturing bonds.
Amazingly, these incentives could not attract the Sialkot exporters to establish their industrial units at Sialkot EPZ, said the Sialkot exporters who have their plots in this EPZ.
The then caretaker prime minister of Pakistan Malik Meraj Khalid had inaugurated the groundbreaking ceremony of Sialkot EPZ in 1996, while, the then Governor Punjab Lt-Gen(Rtd) Khalid Maqbool had laid the foundation stone of construction of Sialkot EPZ on June 22, 2002.
In Sialkot EPZ, only 8 industrial units were operational despite the passage of 16 consecutive years, while a large area at EPZ (though fully allotted) was still lying vacant.
Declaring the whole Sialkot as Export Processing Zone can be only justified if existing facilities are insufficient for establishing new units which doesn’t seem to be, the concerned officials added, who commented following the pressing demand of Sialkot exporters to declare the whole of the Sialkot city as Export Processing Zone (EPZ).