CPEC trade prospects: government plans to assign management of Sust Dry Port to NLC

The government is planning to assign management of Sust Dry Port to National Logistic Cell (NLC) through Federal Board of Revenue (FBR) in light of future prospective and anticipation of enhanced trade under China-Pakistan Economic Corridor (CPEC).
Sources told Business Recorder here on Saturday that the decision was taken in the last meeting on CPEC at Ministry of Kashmir Affairs & Gilgit-Baltistan under the chairmanship of secretary-in-charge Gilgit-Baltistan Council to discuss the existing infrastructure of the Sust Port and its expansion considering the future trade prospects between Pakistan and China and other related matters to the project.
It has been decided that a summary will be moved to the chairman Gilgit-Baltistan Council/prime minister of Pakistan to assign the management of Sust Port to NLC through FBR. It has also been decided that the revenue collected from management of Sust Border would be divided between the Gilgit-Baltistan government and Gilgit-Baltistan Council at the rate of 80:20.
Details of the meeting revealed that secretary-in-charge Gilgit-Baltistan Council (GBC) asked Ahmad Khan, Administrator Sust Dry Port, GB, to start presentation on Sust Dry Port. He gave the detailed presentation on the Sust Dry Port Gilgit-Baltistan. He stated that customs check post was established at Sust Border in 1982, and a joint venture of Pak-China Sust Port Company Pvt Ltd (PCSPC) was registered in 2004 between the following companies: M/s XinJiang Sino-trans Regional Warehousing & Transportation Company Ltd China (holding 60 percent share of the total issued capital) and M/s Silk Route Dry Port Trust Pakistan (holding 40 percent share of the total issued capital).
The PCSPC was registered in July 2004 for an initial period of 10 years, later on seven-and-a-half years extension was given in 2014 by the then board of directors. The company has seven-member board of directors, four from China and three from Pakistan. Unfortunately, a dispute between the two shareholders started and M/s XinJiang Sino-trans Regional Warehousing & Transportation Company Ltd filed a writ petition against the M/s Silk Route Dry Port Trust in Chief Court, Gilgit. The Chief Court Gilgit had given a judgement in favour of MIS Silk Route Dry Port Trust. M/S Xinjiang has now filed an appeal in Supreme Appellate Court, Gilgit against the judgement of Chief Court, Gilgit.
Due to dispute between two parties, the government of Gilgit-Baltistan was compelled to appoint an administrator, by using powers delegated to registrar Joint Stock Companies GB under the Companies Ordinance 1984, to look after the affairs of PCSPC since 10th July, 2014. The progress of the company in the last three years under the administrative control of the government of Gilgit-Baltistan (through appointed administrators) is productive and disciplined. The government of Gilgit-Baltistan is trying to safeguard the interests of both countries and promote bilateral trade ties between the Republic of China and Pakistan.
The secretary-in-charge GBC asked Collector Customs GB Ali Raza, representative of FBR, to present FBR''s viewpoints. He stated that expansion of Sust Dry Port in light of future prospective is very much important. Due to shortage of land availability at Sust area, he suggested that export port can be separated and its location can be selected near to Gilgit. He highlighted the missing facilities at Sust Dry Port ie connectivity, storage area for imports/exports goods, weighing machine, cargo handling machinery, office accommodations, security arrangements, water supply system, power supply system, central heating system, sanitation system, vehicles for port usage green belts and plantation, office automation etc.
Brigadier Syed Kausar Hussain (Retd), Dir OPS & Plans, being representative of NLC appreciated the efforts being taken by the Gilgit-Baltistan Council regarding infrastructure development in light of the future potential of the Sust Port. He highlighted the pending case in Supreme Appellate Court Gilgit-Baltistan. He further stated that, presently NLC has been assigned the management of Wagah Border, Torkham Border, Charnan Border etc, and has capacity to build infrastructure of Sust Port, according to international standards if the management of the Sust Port is handed over to NLC. The work in this regard could be started within a month time.
Representative of NHA Rahil Khan stated that the government is planning to have the alternate route of CPEC through Chitral. He stated that as per NHA''s policy, toll plaza to collect toll tax may be established near Sust Port, GB. The secretary-in-charge GBC asked the representative of Planning Division Khawar Tanveer, deputy director, to brief the meeting on the project. He stated that the project Director (CPEC) could not attend the meeting due to other pressing arrangements with the minister. However, he will share the proceedings of the meeting and Planning Division''s viewpoint would be provided within short time.
Joint Secretary GBC Sher Alam Mahsud stated that Gilgit-Baltistan is the gateway of CPEC project. International standard infrastructure is required at Sust Port. He appreciated the presentation of the administrator and expansion proposals at Sust Port. He stated that Court case will be pursued vigorously so that decision in this regard could be got at the earliest. Commissioner Inland Revenue Gilgit-Baltistan, Qaiser Iqbal stated that sales tax and income tax are the domain of Inland Revenue. He stated that every company including NLC will pay taxes on getting earning from Sust Port and shall be remitted with department of Inland Revenue Gilgit-Baltistan. All the participants endorsed the viewpoint of commissioner Inland Revenue.
The secretary-in-charge Gilgit-Baltistan Council asked Khawar Tanveer and Ahmad Khan, Administrator GB government, that stance of the Planning Division and Gilgit-Baltistan government respectively shall be shared with Gilgit-Baltistan Council Secretariat so that summary to the chairman Gilgit-Baltistan Council/prime minister of Pakistan could be moved accordingly. It was decided that a summary will be moved to the chairman Gilgit-Baltistan Council/prime minister of Pakistan to assign the management of Sust Port to NLC through FBR. The revenue collected from management of Sust Border would be divided between the Gilgit-Baltistan government and Gilgit-Baltistan Council at the rate of 80:20.