Cut in power tariff for SEZs: SIFC directs PD to take concrete measures
- PM presides over Apex Committee meeting attended by army chief, Chief Ministers and high level civil and army officials
ISLAMABAD: The Special Investment Facilitation Council (SIFC) has directed Power Division to undertake concrete measures for reducing industrial electricity tariff for Special Economic Zones (SEZs) to regionally competitive rates i.e. Cents 9 per unit, well informed sources told Business Recorder.
These directions were issued at a recent meeting of the Apex Committee of the SIFC, presided over by the Prime Minister and attended by Army Chief, Chief Ministers and high level civil and army officials wherein it was decided to shift SEZs from a ‘Real Estate model’ to a ‘Classic SEZ model’.
According to sources, Power Division was also directed that shortlisted/ matured projects for ensuring grid stability with essential safeguards against unplanned outages be initiated at priority.
Special Economic Zones: Entities asked to address issues facing investors
To ensure secure working environment, customized accommodation for foreigners in the form of Foreigner’s Enclave with all amenities (minimizing undue exposure) to be developed inside / proximate facility by the developer in a sustainable mode.
Provincial Governments have been directed to consider the possibility of establishing a pool of bullet-proof vehicles, which should be available to interested private parties on a rental basis.
Board of Investment/ Provincial SEZAs to ensure obligatory inclusion of accommodation in development plan with financial allocations by Federal/ Provincial Governments to public sector developers.
Dedicated security apparatus from SFU/ Police will be ensured to respective provinces for all to optimize SEZs.
It was also decided that required amendments in the master plans of SEZs be completed by March 31, 2025.
Considering the importance of Gilgit Baltistan(GB) in overall ambit of CPEC, notification of Moqpondass SEZ on 250 allocated + 150 (aval) we’re directed to ne issued and Chinese investors/deve-lopers be engaged immediately for initiating development process/planning of Moqpondass SEZ including innovative energy solution.
Amendment in SEZ Act: The forum also decided to remove bottlenecks and simplify complex judicial impasses (including establishment of SEZ tribunal/ investment ombudsman in province), amendments in SEZ Act be undertaken by BoI in consultation with SIFC and Ministry of Law and Justice. These amendments must cover broad spectrum including but not limited to protection of existing incentives and legal jurisdiction.
Board of Investment in consultation with SEZAs was tasked to undertake actions for cancellation of vacant/non- performing ZE, where amenities have been provided or those enterprises be given a grace period of one year for Commercial Operation Date (COD) with payment of fine.
The forum further decided that future focus of industries be planned in clusters, considering availability of HR, raw material, skilled workforce, connectivity etc. Some of the safeguard clusters are as follows: (i) textile;(ii) electronic/ IT;(iii) pharma/ surgical ;(iv) construction ;(v) agro processing including dry fruits;(vi) sports ;(vii) marble ; and (viii) warehousing etc.
Integrated federal and provincial Business Facilitation Centre/ OSS( one stop shop) will also be established by the BoI, Ministry of IT&T, provincial government in consultation with SEZAs.
BQIP, M3IC, QABP, AIIC, Hattar, Bostan SEZS : All external & internal utilities of these SEZS to be completed by June 30, 2025. Due to reduction in land cost remaining development works in BQIP be undertaken through available funding with PIDC and gap, if any, be filled with PSDP. PC-1 for remaining development work be processed for approval from relevant forums.
Dhabeji SEZ : completion of development including all utilities by December 31, 2026 with maximum possible PSDP support. Sindh Government may consider the existing PPP model of Dhabeji for making it more expeditious, efficient, attractive and cost effective to the investors.
Rashakai SEZ (phase 2 & 3): Power Division to pursue priority approval of bulk supply at competitive tariff by developers. The initiative facilitates reduced land cost in PPP model SEZs besides provision of affordable electricity supply to industries.
It was also decided that an invisible, intelligent, surveillance -based balanced security plan for SEZs be prepared to reassure the investors.
Earlier, Secretary to Apex Committee-SIFC delineated the agenda of the 11th AC meeting, and delivered a wholesome presentation on SIFC’s strategic focus, initiatives and expectations.
He briefed that SIFC aims to align the National Economic Transformation Plan (2024-2029) ‘Uraan Pakistan’ with the Grand Vision of positioning the country among the G20 Nations by 2037, and the G10 by 2047.
In this regard, he urged the provincial chief ministers to partner with SIFC, and to nominate dedicated and proficient subject matter experts / focal persons from provinces, not below BPS 20-21, to be housed in respective CM Secretariats for close coordination with SIFC.
Director General-SIFC (Army) presented a comprehensive action plan for the optimization of SEZS in Pakistan. It would be spearheaded by the Board of Investment, being the Secretariat of SEZs, in collaboration with SIFC. He informed that to reach the depth of the matter, SIFC initially conducted a comprehensive study consultation with BoI and relevant stakeholders.
A holistic 360 degree view of the issues in SEZs has been obtained. The findings reveal that Pakistan’s SEZ have every single ingredient of corporate appeal available. These have the potential to play the role of a catalyst to propel speedy export-led industrialization to reap real dividends and attract billion- dollar enterprises into the country.
Since the establishment of SEZ regime in 2012, and initiation of CPEC in 2013, desired outcomes could not materialize owing to policy inconsistencies marred with weak implementation and monitoring.
There is need for a paradigm shift of SEZs from a ‘Real Estate model’ to a ‘Classic SEZ model’ embodying a harmonized adoption of national framework by all federating units with high-end corporate management ensuring plug and play (ideally turnkey), initially through PSDP funding.
DG-SIFC specifically stressed that ownership and direct patronage of SEZ development by all chief ministers will act as game changer to materialize the dream of rapid industrialization with financial dividends, export surplus and socio-economic development.
Copyright Business Recorder, 2025
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