KARACHI: As Pakistan moves to declare its deep-sea port of Gwadar a duty-free zone along the lines of the Dubai and Singapore models, officials and shipping gurus rule out any direct competition with regional free ports, but say those setting up industries will have most to gain from the tax exemption.
For well over a decade, Pakistan’s government has dreamed of transforming the small, strategically located fishing port of Gwadar in southwestern Balochistan province into Pakistan’s Dubai, with a duty-free port and free economic zone.
“The exemption will be exactly on the paradigm of Dubai free port or Singapore,” Mahmood Moulvi, adviser to the maritime affairs ministry, told Arab News.
Finally, on Wednesday, the government body responsible for finalizing executive economic decisions, the Economic Coordination Committee (ECC), approved a proposal for amendments to various laws that would provide exemptions from income tax, sales tax and custom duties to the Gwadar port for 20 years- until 2039.
The proposal was submitted by Pakistan’s Ministry of Maritime Affairs and sought changes in the country’s tax laws in line with the concession agreement between the Gwadar Port Authority and China Overseas Ports Holding Company Pakistan.
“Those who will set up industries in Gwadar will have the major advantage,” he said.
The ECC now seeks legal cover for the amendments, and has asked Pakistan’s law ministry for a legal way out.
The aim is for Gwadar – located on the Arabian Sea near Iran and the mouth of the Arabian Gulf – to become a regional commercial, industrial and shipping hub, as part of the ambitious $61 billion China Pakistan Economic Corridor (CPEC) project.
Officials now hope that business activities in Gwadar will pick up from next year.
“The extent of growth will be gauged when operations start,” Moulvi said, and added, “Growth momentum will pick up after the current economic slowdown, which is a global phenomena.”
As it currently stands, a one-time import of duty-free machinery is allowed into the port, but after the newly approved tax exemptions, raw material can also be imported free of tax.
“As long as they are not selling in Pakistan, it is a good idea,” Aasim Siddiqui, Chairman of the All Pakistan Shipping Association told Arab News.
“The intention of the current government is to allow raw material free of duty...on the style of Dubai’s free port. In the Gwadar Free Zone, there will be no tax on processing,” he said.
Siddiqui, who is also a member of Pakistan’s Board of Investment, said the move would lure investment and create jobs in Pakistan’s Special Economic Zones (SEZ’s) which currently suffer from low investment.
On Saturday, Pakistan and China agreed to fast-track the pace of their industrial cooperation under the CPEC by utilising Chinese experience to ensure the speedy development of SEZs in the country.
“If duty and taxes (in SEZs) are the same as everywhere else in Pakistan, then why would someone invest in the SEZs?” he said.
So far however, the Dubai-Gwadar comparison was far too premature, Siddiqui said, with Gwadar’s current infrastructure barely supportive of “a single factory.”
But if the Pakistani port was developed as a manufacturing base, he added, Gwadar would have an important advantage over other regional free ports: cheap and available labor.
“If you want to set up manufacturing industry in Pakistan, you will have labor availability here because Pakistani labor goes to Dubai, Oman and other gulf countries” Siddiqui said.
“They (other countries) have stringent labor laws and higher costs. The manufacturing cost would be lowest in Pakistan, that is for sure,” he said.
The Gwadar port touches key shipping routes in and outside of the Arabian Gulf, with recent high-profile spats in and around the Strait of Hormuz, the world’s most important oil artery, further highlighting the port’s importance.
“Pakistan must develop the port as an alternative to the Strait of Hormuz by constructing oil storage and fueling facilities,” Captain Anwar Shah, a former Chairman of the Gawadar Port Authority, Port Qasim and Karachi Port Trust, told Arab News.
“In case of any untoward incident, Gwadar being a safe zone, can be used as a supply oil route,” Shah said.
Though almost all stakeholders have welcomed the exemption of taxes as a positive development, some believe the concessions should have come sooner.
“This... should have been done much earlier. There should have been straight orders from the government,” said Shaukat Populzai, President of the Balochistan Economic Forum.
“I have doubts about the intentions of the concerned departments... their delay tactics have almost eliminated the importance of the free zone,” he said.
Fishing was Gwadar’s main economic activity before it became the CPEC linchpin, and according to some media reports, locals say they so far see little benefit for themselves in the government’s grand plans for the duty-free port.
Tax holiday brings Pakistan Gwadar Port at par with Dubai, Singapore
Tax holiday brings Pakistan Gwadar Port at par with Dubai, Singapore
- After new tax exemptions, raw materials can be imported into Gwadar duty-free
- Experts say Gwadar will have an edge over other regional free ports due to lower labour costs
Pakistani, US officials discuss ways to enhance bilateral trade and investment
- Pakistani, American officials hold inter-sessional meeting under Trade and Investment Framework Agreement
- Both sides discussed regulatory practices, digital trade, textiles and investments, says US Embassy in Pakistan
KARACHI: Pakistani and American officials held an inter-sessional meeting under the Trade and Investment Framework Agreement (TIFA) on Thursday, with both sides discussing options to enhance bilateral trade and investment, the US Embassy in Islamabad said in a statement.
TIFA serves as a platform for Pakistan and the US to improve market access, promote bilateral trade and investment, resolve trade disputes, and work on trade-related issues between the two countries.
Pakistan and the US took part in high-level trade talks in Feb. 2023 when both countries participated in the 9th Pakistan-United States Trade and Investment Framework Agreement (TIFA) Council meeting. That meeting took place after seven years.
As per a statement by Acting US Mission Spokesperson Thomas Montgomery, both sides discussed a “broad range of areas” to enhance bilateral trade and investment on Thursday.
“The dialogue focused on good regulatory practices, digital trade, the protection of intellectual property, women’s economic empowerment, labor, textiles, investment, and agricultural issues,” Montgomery said.
He added the discussions also included progress on access for US biotechnology products and beef.
The US official said that the meeting was key for both countries to move forward on shared goals of deepening their economic relationship.
“The United States has long been Pakistan’s largest export market, with potential for further growth,” he said, adding that the US has been a leading investor in Pakistan for the past 20 years.
Pakistan’s relationship with Washington has experienced fluctuations over the decades, characterized by periods of close partnership and notable estrangement.
Despite Islamabad’s recent initiatives to enhance and deepen its ties with Washington, until recently, President Joe Biden’s administration had remained reluctant to engage with Pakistan’s top leadership.
Ties between the two countries have improved since former prime minister Imran Khan’s government was ousted via a parliamentary vote on Apr. 2022. Khan had accused Washington of colluding with his political rivals to oust him from power via a “foreign conspiracy.” Washington has consistently denied the allegations.
Pakistan’s defense minister rejects claim ex-PM Khan being pressurized to accept ‘deal’
- Chairman of Khan’s party this week said cricketer-turned-politician was being kept in jail so he would agree to a “deal” with the government
- Khan, who has been in jail since August last year after multiple convictions, has vowed not to agree to a “deal” with his political adversaries
ISLAMABAD: Pakistan’s Defense Minister Khawaja Muhammad Asif on Thursday rejected claims that former prime minister Imran Khan was being pressurized to accept a “deal” and come to the negotiating table with the government.
Khan, who was prime minister from 2018-2022, remains jailed in multiple cases, including a 14-year jail sentence for him and his wife for the illegal sale of state gifts. Khan fell out with Pakistan’s powerful military after he was ousted from office via a parliamentary vote in Apr. 2022.
Asif was responding to PTI Chairman Barrister Gohar Khan’s interaction with reporters on Tuesday when he said that the way the former prime minister and his wife were being kept in jail, “these are all [forms of] pressure that Khan somehow agrees to a deal.”
Speaking exclusively to Independent Urdu, Asif rejected claims Khan was being pressurized to come to the negotiating table.
“There is no such thing,” Asif said, claiming that PTI leaders were issuing such statements to stay relevant. “That is why these statements are being issued. There is no truth to them.”
Asif said senior members of the PTI had given statements recently rejecting the possibility of a deal with the government.
“Now if their leadership is issuing contradictory statements themselves, then what comment do we give on it,” he said. “I think their contradictory statements are validating our point.”
Khan’s multiple convictions mean he is banned from holding public office and ruled the 71-year-old out of general elections earlier this year. Arguably Pakistan’s most popular politician, Khan says all cases against him are motivated to keep him out of politics.
Elephant Madhubala to be shifted to Karachi’s Safari Park in May— state media
- Madhubala has been in solitary confinement since April 2023 when her companion, elephant Noor Jehan, died
- International animal rights organization warns solitary confinement has taken a toll on Madhubala’s mental health
ISLAMABAD: Pakistani elephant Madhubala, who has been in solitary confinement at Karachi Zoo since last year, will be shifted to Karachi’s Safari Park in May where she will be in the company of two other elephants, state-run media Associated Press of Pakistan reported on Thursday.
Madhubala, one of only three captive elephants alive in Pakistan, was brought to the South Asian country with three other elephants from Tanzania in 2009. However, has been in solitary confinement at Karachi Zoo since April 2023 after her companion, elephant Noor Jehan passed away from illness.
International animal rights organization FOUR PAWS, which has been involved in efforts to have Madhubala relocated to Karachi Safari Park, said last week the solitary confinement has taken a strong toll on her mental condition, with boredom being her biggest stressor.
Animal rights activists have long campaigned against the plight of animals in Pakistan, especially elephants, and demanded they be shifted to “species-appropriate” locations such as the Safari Park.
“According to Zoo administration, the arrangements for the transfer have been completed,” APP said. “Madhubala will join two other elephants, Sonia and Malika after relocation to Safari Park.”
A FOUR PAWS spokesperson said the organization was thrilled to see Madhubala finally getting the treatment she deserves.
“Her story is a testament to the power of collaboration and the importance of animal welfare,” the spokesperson was quoted as saying by APP.
FOUR PAWS says the elephant enclosures at Safari Park would have water elements for bathing, skincare and thermoregulation. Enrichments such as hay nets, varying substrates like soil, sand, clay, and sawdust will be provided for Madhubala to dust bathe while the area is secured by elephant-proof fencing.
Madhubala will be carried from the Karachi Zoo to the Safari Park in a huge transport crate. The elephant is currently being trained to enter and exit the crate by herself and sit inside it.
‘Politically motivated’: Pakistan rejects US State Department report on rights abuses
- Annual assessment identified arbitrary detentions, extrajudicial killings, enforced disappearances
- Pakistan government and state agencies deny involvement in missing persons cases, other rights abuses
ISLAMABAD: Pakistan said on Thursday it “categorically” rejected the 2023 country report on human rights practices issued by the US State Department, saying the report was politically motivated, lacking in objective evidence and followed an agenda of “politicization of international human rights.”
The annual human rights assessment released earlier this week identified arbitrary killings, extrajudicial killings, enforced disappearance, torture and “cases of cruel, inhuman, or degrading treatment or punishment by the government or its agents” in Pakistan last year.
The report also said the government “rarely took credible steps” to identify and punish officials who may have committed rights abuses.
“The contents of the report are unfair, based on inaccurate information and are completely divorced from the ground reality,” the Pakistani foreign office said in a statement, adding that the assessment used a “domestic social lens to judge human rights in other countries in a politically biased manner.”
“This year’s report is once again conspicuous by its lack of objectivity and politicization of the international human rights agenda. It clearly demonstrates double standards thus undermining the international human rights discourse.”
The foreign office said it was “deeply concerning” that a report purported to highlight human rights issues around the world was ignoring or downplaying the “most urgent hotspots of gross human rights violations” like Gaza and Kashmir. It also called on the US demonstrate the “requisite moral courage” to speak the truth about all situations and play a constructive role in supporting international efforts to end human rights violations.
“In line with its constitutional framework and democratic ethos, Pakistan remains steadfast in its commitment to strengthen its own human rights framework, constructively engage to promote international human rights agenda, and uphold fairness and objectivity in the international human rights discourse,” the FO added.
Political leaders, rights groups and families of victims have long accused the government, the army and intelligence agencies of being behind cases of arbitrary detentions, extrajudicial killings and enforced disappearances, among other rights abuses. Families say people picked up by security forces on the pretext of fighting militancy or crime often disappear for years, and are sometimes found dead, with no official explanation. Pakistani state agencies deny involvement in such cases.
On Tuesday, Pakistan’s law minister said the government would reconstitute a committee to address enforced disappearances, hours after the release of the US report.
“Now the work is being initiated on this again on the directives of the prime minister. A committee is going to be reconstituted, there will be parliamentary presence in that committee,” Law Minister Azam Nazeer Tarar said.
“There is no lack of seriousness on the government’s part to resolve this issue.”
Pakistani court bars ex-PM Khan, wife from issuing statements against state institutions
- Accountability court directs media personnel to confine reporting to proceedings of the trial only
- Khan widely believed to have fell out with army, leading to ouster from PM office in 2022
ISLAMABAD: A Pakistani accountability court judge recently barred former prime minister Imran Khan and his wife, Bushra Bibi, from issuing “derogatory” or “inflammatory” statements against state institutions and their officials.
Khan, who was PM from 2018-2022, remains jailed in multiple cases, including a 14-year jail sentence for him and his wife for the illegal sale of state gifts. Khan was first imprisoned after being handed a three-year prison sentence in August 2023 by the Election Commission for not declaring assets earned from selling gifts worth more than 140 million rupees ($501,000) in state possession and received during his premiership. In January, Khan and wife Bushra Bibi were handed 14-year jail terms following a separate investigation by the country’s top anti-graft body into the same charges involving state gifts.
Khan blames Pakistan’s powerful military, which has ruled the country directly for over 30 years, for colluding with his rivals to remove him from office via a parliamentary vote in April 2022 and subsequently cracking down on his supporters. The military denies his accusations and has repeatedly said it does not interfere in political matters.
On Friday, accountability court judge Nasir Javed Rana heard Khan’s petition requesting a fair trial. The PTI founder had sought the removal of glass and wooden structures erected at the Central Prison in Rawalpindi, where an appeal against his conviction is being heard. He had also alleged that reporters were not being allowed to attend proceedings, saying that the actions violated the principles of an open trial ordered by the court.
“The accused persons shall refrain from making any political, inflammatory and/or derogatory statements vis-a-vis state institutions and the officials insinuating anything to them,” a copy of the order, seen by Arab News that emerged on Thursday, read.
“The media personnel shall confine their reporting to the proceedings of the trial and shall not publish/report any statements in the trial proceedings, as witness or as counsel,” it added.
Khan’s convictions mean he is banned from holding public office and ruled the 71-year-old out of general elections earlier this year. Arguably Pakistan’s most popular politician, Khan says all cases against him are motivated to keep him out of politics.
Tensions between Khan and the military escalated in May 2023, when angry supporters of his party took to the streets in response to his brief detention, and torched government buildings and ransacked military installations in many parts of the country.
The army cracked down on Khan’s supporters and leaders following the attacks. Khan denied he had incited his supporters to protest violently, saying he was in detention when they erupted.
