Government mulling setting up new SEZ in Sindh

Federal Government is considering a proposal for establishing a new Japan Specific Special Economic Zone (SEZ) in Sindh for the facilitation of Japanese investors. The proposal was discussed during a meeting between Chairman BOI Saleem Mandviwalla and Ambassador of Japan Hiroshi Oe on Tuesday.
Chairman BOI informed the Ambassador that one million acres of government land in Sindh are available for the proposed SEZ. The advantage of the location for industries in the proposed area and vicinity is that it is in the direct access to Port Qasim enabling import of raw material and export of finished goods and time saving without incurring major inland transportation costs and the vicinity to the water reservoir is also included in the SEZ plan.
Japanese Ambassador also informed BOI that serious concerns have been shown by the Japanese investors' regarding security of their staff and problems faced by them vis-à-vis inconsistencies in the policies of government regarding foreign investment. The ambassador asked for bringing changes in the new entrance policy for auto sector so that the investment of $150 million by Yamaha Company would be matured.
Chairman, BOI, said that the government has taken up the matter of modification in new entrance policy and subsequent land had already been allocated to Yamaha in Port Qasim. Pakistan also invited Japan International Co-operation Agency (JICA) to construct a separate road worth Rs 1.2 billion to link Karachi directly with other industrial areas to remove the security concerns of the foreign investors. In this regard, tender will soon be floated in international market.
Keeping in view the security issues in Pakistan, a high priority meeting is scheduled with Chief Minister Sindh and Chief Secretary Sindh, security departments and Japanese investors to counter the security lapses with mutual understandings. The meeting will be held next month. The BOI has also proposed various steps for removing problems impeding FDI inflows from Japan.