Senate body for revising draft of SEZs Bill 2010

Senate Standing Committee on Law, Justice, Human Rights and Parliamentary Affairs has directed the Board of Investment to revise the draft of Special Economic Zones (SEZs) Bill 2010 in the light of recommendations made by the participants of a meeting. The committee met on Saturday with Senator Kazim Khan in the chair. The meeting lasted for well over three hours.
The meeting discussed in detail the draft of Special Economic Zones Bill 2010, designed to encourage domestic and international investors by setting up new economic hubs in the country. Expressing his views, President Lahore Chamber of Commerce and Industry (LCCI), Irfan Qaiser Sheikh said the Special Economic Zones Draft Bill does not contain substantial attraction to attract new investments. He said that Special Economic Zones in Bangladesh, India and Sri Lanka are providing far more incentive to attract new investments and important lessons can be learnt from these models before finalising the proposed special economic zones bill.
He further said that if we make a comparison with India, Bangladesh and Sri Lanka than the foreign investor would prefer to make investments in these countries compared to Pakistan because the mark-up in these countries is around 5-11 percent where as in Pakistan it is at 16.5 percent. Similarly, rate of electricity in these countries is 10 to 11 cents per kilowatts as compared to 16-17 cent in Pakistan. Therefore, unless and until we offer any attraction to the investors in line with these countries, Pakistan would not be able to attract foreign investment in special economic zones, he maintained.
LCCI president suggested introducing changes in the proposed legislation for promotion of industrial infrastructure. The draft law encompasses an incentive package and policy framework for establishment of special economic zones (SEZs). He said that the proposed bill does not serve the purpose of generating more jobs for people.
The participants of the meeting Senators Zafar Iqbal Shah, Azam Sawati, Nayyar Bukhari, Professor Iqbal, Wasim Sajjad and Jehangir Badr, Chairman Board of Investment, Saleem Mandviwala and presidents of various chambers fully appreciated and endorsed the viewpoint of the LCCI president.