SEZMC Sindh Economic Zone Management Company – Ensuring industrial development and economic stability
A Jeeveypakistan Report.
The development of industries is like the backbone of the economy of any country. In the economic development of Pakistan, Sindh province has the most prominent place in driving the economy and providing employment. Sindh, especially Karachi, has been an economic engine in the country’s economic development since the establishment of Pakistan till date. The government of Sindh has taken concrete and far-reaching measures in this regard, keeping in view the economic and commercial challenges in the future. Decided under which Sindh Economic Zones Management Company SEZMC was established for the development of industries.
Overview
The Government of Sindh has established Sindh Economic Zones Management Company (SEZMC) under the Company’s Act (2017) to institutionally facilitate, promote, encourage and enhance the industrial base in the province.
Objectives
The objective of SEZMC as body corporate is to facilitate domestic and foreign investors to invest in the manufacturing sector by offering special exemptions and incentives leading to reduced cost of doing business with efficient infrastructure.
To work for orderly and planned industrial growth by establishing Special Economic Zones/Economic Zone(s) such as IT, Media, Internet, Marble Cities or any other business cluster subject to the approval of Government of Sindh. To identify support services required by each economic zone(s)/special economic zone(s) and/or industrial estate(s) and/or industrial park(s) and facilitate to provide/establish a linking mechanism for industries to increase productivity and to undertake and execute which may promote directly or indirectly objects of the company.
Vision Statement
The company aims to develop new industrial zones and facilitate existing zones to strengthen the industrial base in the province of Sindh.
The SEZ act 2012 declares that the SEZs can be developed either by the public sector, or the private sector exclusively or it can be on public-private partnership basis (PPP), irrespective of foreign or domestic investors. SEZ Act 2012 provides the authority of establishing SEZ with a minimum of 50 acres of land. However, 70 percent of the area should be used for processing while remaining 30 percent should be kept as non-processing area, such as hospitals, residence, vocational training institutes.
For Developers
Exemption from all custom duties and taxes on plant and machinery imported into Pakistan for the development, operation and maintenance of the KSEZ.
Exemption from all taxes on income accruable in relation to the development and operation of the SEZ for a period of five years, starting from the date of signing of the Development Agreement.
Availability of gas and electricity by federal government and water by provincial government at the door step of zone.
For Zone Enterprises
One time exemption from all custom duties and taxes on imports of plant and machinery into the SEZ for installation therein;
Exemption from all taxes on income for a period of ten years to units starting production by 30 June 2020 and five years for those doing so after 30th June 2020.
Developed Infrastructure at the doorstep of enterprises.
Availability of utility services at the door step of each enterprise.
LSEZ shall have a minimum size of at least fifty acres.
The SEZ, upon development, shall generate economic activity in terms of exports, employment and other performance indicators.
SEZ will provide import substitution and generate direct and indirect exports.
SEZ will not target any industry or product which is being banned in the world.
SEZ will not target any industry material/input of which is being protected by other countries in the larger national interest.
Zone Application shall be in conformity with the provisions of the Act, any applicable regulations issued under the Act and other applicable provisions of law.
70% of the SEZ land area will be used for purpose of operations of zone enterprises.
Developer will be obliged to undertake to comply with all the environmental, labour and other applicable legislation in force in Pakistan.
Developer will be obliged to undertake to take all necessary approvals to start construction activities within six months of signing of development agreement.
Developer to be engaged for the particular SEZ shall be a body incorporated under the laws of Pakistan.
Articles of Association of the developer shall be approved by the Provincial SEZ entity.
Developer shall ensure that the zone enterprises start construction of facilities within six months and assume regular production within twenty four months after receipt of all required licenses and permits.
There shall be no real estate activities in the zone.
About Sindh
Sindh – the harbinger of Indus civilization has come a long way to become an economic hub of Pakistan. With its glorious past, strong industrial base, developed infrastructure, two international ports and strong financial institutions, it provides an ideal investment opportunity to local and foreign investors.
Sindh has approx. 350 km of coastline with thick mangrove forests. 48% of all fish export from Pakistan is from Sindh. Moreover, 71% of marine fish resources, 65% of fresh fish resources, and 100% of brackish water fish resources are located in Sindh.
Core Values
Social Responsibility
We are committed to making a positive impact on the community through our Corporate Social Responsibility Program. In this, we work hand in hand with community service organizations and charitable institutions. Our social consciousness strategy also includes an active obligation to preserve and protect the natural environment.
Employee Development
Employees are our primary assets and we have a proactive approach to the development and retention of talented individuals through Awareness Leaflets / campaigns, comprehensive training programs, effective reward systems based on performance, focused educational initiatives and succession planning.
Innovation Commitment
Innovation is a core value in our operation, and each stakeholder is encouraged to think as well as act creatively in order to achieve business excellence. This allows us to grow and evolve through positive change, and to remain competitive.
Emotional Intelligence
SEZMC believes that its Managers require a high rate of “emotional intelligence”. We encourage the leadership within the organization to recognize one’s own and others emotions to differentiate between different feelings, label them appropriately, and to use emotional information to guide thinking and behavior. This ensures multiplying performance, builds stronger relationships between managers and employees and more importantly raises the bar in customer service through happy employee engagement.
Investment Policies
World Bank report on Ease of Doing Business 2010 ranked Pakistan amongst the top South Asian countries in its EODB Index. Pakistan subscribes to a liberal investment policy which offers an extensive opportunity to local and foreign investors in all sectors of the economy. There is no requirement for obtaining permission from the Federal and Provincial Government for setting up an industry in any sector or location except for arms and ammunition, high explosives, radioactive substance, security, printing currency & mint and manufacturing of alcohol.
Key objectives of Sindh investment policy are:
Self Reliance
Development of Value added exports
Development of skills to improve efficiency, productivity and quality
Encouragement of high tech and labor-oriented industries
Development of infrastructure facilities through establishment of planned industrial estates, areas and zones
Promotion of the dispersal investment at various locations
Dispersal of investment to all parts of the country
Competitive Advantages
Karachi – Financial Capital of Pakistan
Karachi being the financial and commercial capital of Pakistan and capital of Sindh, is a vital entreport and the country’s largest metropolis. It contributes the largest share to Pakistan’s revenue collection
Nucleus of Headquarters of major Banks, Financial Institutions & Business Houses
Pakistan Stock Exchange is the biggest and most liquid exchange. As of Feb. 23 2018, 559 companies were listed with a market capitalization of $ 84 billion
Strategic Location as a Regional Hub
Karachi is a potential gateway to the Central Asian Republics. It also provides strong and long-standing links with China, Middle East and South Asia
Comprehensive duty-free facilities for investors
Coastline – 350 KMs
Sindh has a 350-km long coastline with a large potential for coastal tourism and aqua-culture
There are two all-weather ports; Karachi Port and Port Qasim. Both the ports have Multipurpose Terminal, Container Terminal, Liquid Chemical Terminal, Oil Terminal, Bulk Cargo Terminals, Oil Piers, Ship Repair Jetties and Shipyard & Engineering Facility
Regional Power House of the Future
Sindh is on the path to become the major contributor for energy for the country. Sindh endowed with the potential to generate a healthy mix of energy sources. Sindh’s wind corridor has an exploitable potential to generate 50,000 MW of electricity
Thar Coal – one of the largest coal reserve in the world having a total reserve of 185 billion Tons, with the potential for 200,000 MW for 300 Years, which can produce enough electricity to power the whole of Pakistan
Sindh with high solar radiation, has the significant potential for generating solar energy
Sindh produces 56% of Oil and 71% gas production of Pakistan
Wide Network of Industrial Estates
Sindh government has established a wide network of Industrial Estates, to promote industrialization and create attractive conditions for industrialists in Sukkur, Benazirabad, Nooriabad, Hyderabad, Kotri & Karachi
State-of-the-art National Industrial Parks (Bin Qasim & Korangi Industrial Parks)
Port Qasim Industrial Area – unique in character having 12,200 acres of land above high water mark for development of industries / commercial complexes
Karachi Export Processing Zone (KEPZ) – ideally located in close proximity to the Gulf, the Middle East and African markets, with good prospects for the markets of EEC & USA
Airports
Modern International Airport in Karachi, and Three domestic airports in Benazirabad, Sukkur and Larkana
Air strips at several locations to ensure accessibility for development and transportation
Large Agricultural, Natural Resources & Industrial baseLarge Agricultural, Natural Resources & Industrial base
Sindh is the second largest province of Pakistan on the basis of its contribution to agricultural produce of the country. It contributes 23% of country’s production in agriculture. It has tremendous potential for investment particularly in value addition and foreign trade
34% of Total Large-Scale Manufacturing (LSM) units are in Sindh
Year-round crop production of wheat, cotton, rice, sugarcane, fruits and vegetables
Huge mineral reserves of coal, granite, silica sand, alum, limestone, salt, gypsum, etc.
Human Resource
Trained, Educated and Competitive Human Resources
Internationally Compatible Workforce
Sindh comprises of 50% of the labor force of Pakistan
Large and Growing Domestic Market
Around 40 million consumers with increasing incomes
An emerging middle-class with growing consumption habit
Well-Established Infrastructure and Legal System
Well-established and business-friendly Infrastructure and Legal System
Sophisticated telecommunications and IT infrastructure
Comprehensive road and rail network
Ease of Doing Business
A conducive investment climate is instrumental in attracting both domestic and foreign investment by providing a more facilitative institutional policy and regulatory environment for businesses to operate. World Bank’s Report on Doing Business (DB) ranks economies across the world annually on the basis of 10 comprehensive areas in the life cycle of a business. In the DB report 2020 Pakistan has improved 28 ranks. Since the launch of DB report in 2002, it is the first time that Pakistan has jumped 28 points in one year with 06 reforms. This report measures the performance in ease of doing business in 190 countries. The six (06) reforms that have been approved are as under:
Starting a Business: Pakistan made starting a business easier by expanding procedures available through the online one-stop shop. This reform applies to both Karachi and Lahore. Furthermore, Pakistan (Lahore) abolished the Labor Department registration fee.
Dealing with Construction Permits: Pakistan (Karachi) made obtaining a construction permit easier and faster by streamlining the approval process and also made construction safer by ensuring that building quality inspections take place regularly. Pakistan (Lahore) also made obtaining a construction permit easier and faster by streamlining the approval process and by improving the operational efficiency of its one-stop shop for construction permitting.
Getting Electricity: Pakistan made getting electricity easier by enforcing service delivery time frames and by launching an online portal for new applications. Pakistan also increased the transparency of electricity tariff changes. This reform applies to both Karachi and Lahore.
Registering Property: Pakistan (Karachi) made property registration faster by making it easier to execute and register a deed at the Office of the Sub-Registrar. Pakistan (Lahore) made registering property easier by increasing the transparency of the land administration system.
Paying Taxes: Pakistan made paying taxes easier by introducing online payment modules for value added tax and corporate income tax, and less costly by reducing the corporate income tax rate. This reform applies to both Karachi and Lahore.
Trading across Borders: Pakistan made trading across borders easier by enhancing the integration of various agencies in the Web-Based One Customs (WEBOC) electronic system and coordinating joint physical inspections at the port. This reform applies to both Karachi and Lahore.
Other positive data corrections also contributed to the unprecedented improvement in the ranking of Pakistan. This has been made possible with the efforts of the dedicated teams of Securities and Exchange Commission of Pakistan (SECP), Federal Board of Revenue (FBR), State Bank of Pakistan, Governments of Punjab and Sindh. World Bank’s assistance is critical to the reform process and the achievements. The improvement is a result of combined efforts under the Prime Minister’s Steering Committee on Doing Business Reforms.
Projects.
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Dhabeji Special Economic Zone (DSEZ)
The Government of Sindh has allotted 1530 acres of land to be developed as Dhabeji Special Economic Zone (DSEZ) in Thatta.
It is a Priority Project under China-Pakistan Economic Corridor (CPEC), which will facilitate the potential investors of China and other countries to either start new enterprises or transfer their facilities to Pakistan.
The location has the following advantages:
Easy access to Port Qasim enabling raw material import and finished goods export without incurring major inland transportation costs and saving time.
Easy access to Karachi Airport (35 Km) via national highway enabling safe travel of foreign workers and management personnel.
Direct access to the National Highway enabling the transportation of goods to upcountry and Central Asian nations utilizing the National Trade Corridor..
Dhabeji Special Economic Zone (DSEZ) to be transformed into an Expatriate Enclave with modern infrastructure and tax incentive package.
For Further Details Kindly visit Website : https://dhabejisez.com/
The Joint Ventures (JVs) with Pakistani Companies will be encouraged.
Export Oriented Industries will be prioritized.
Sectors have been chosen in consultation with Chinese and Pakistani Investors/companies and are in alignment with Pakistani Resource Base.
Project to be developed under Public Private Partnership Mode.
Steel Foundries
Automotive and Auto parts
Chemical and Pharmaceuticals
Consumer Electronics Engineering
Textile & Garments
Warehousing
Building Material
FMCG
Technical & Vocational Training Centre
Captive Power Plant
Warehouse/Logistics Park
Waste Water Treatment Plant
5 Star Hotel
Trauma Centre/Hospital
Restaurants
Business center
Auditorium/Expo Center
Fire Station/ Emergency Response Centre
Residential Zone
Common Machinery Pool
Railway Cargo Terminal
Mosque
Banks
50 km Karachi |4b Customer+
30m Population | 25% to GDP National Highway – 0.5 km, Karachi- Hyderabad M-9 35 km , Port Qasim – 22 km, Landhi Industrial Area 20km, Hyderabad 140 km ,Thatta 40 km, Gwadar – 700 km Central Asian Republics, Middle East, Europe, & Africa.
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Khairpur Special Economic Zone (KSEZ)
“Strengthen the Industrial Base of Sindh”
“PAKISTAN’S 1ST INDUSTRIAL PARK WHICH HAS BEEN AWARDED SEZ STATUS UNDER SEZ ACT 2012
Khairpur Special Economic Zone (KSEZ) has been established by the Government of Sindh to facilitate industrialization in Pakistan. The KSEZ is envisioned to provide best in class infrastructure and facilities & services to local & foreign entrepreneurs. The project is ideally located near Tando Nazar Ali on main National Highway new Khairpur Town and is set to emerge splendor of opportunity in the province of Sindh.
Khairpur – The City of Dates
Spread over an area of 15.910 square kilometer, Khairpur – “The City of Dates” – is the headquarter of Khairpur District, the second largest district of Sindh. Having a population of nearly 1,546,587, the district is located in the northern part of Sindh.
History: Once ruled by the Mirs of Talpur dynasty, the district is bounded on the north by Shikarpur and Sukkur districts, on the east by India, on the south by Sanghar and Nawabshah districts and on the west by Nawabshah and Larkana districts. Comprising of Khairpur, Ghambat, Kot Diji, Thari Mirwah and Faiz Ganj talukas, Khairpur District extensively benefits from the canal irrigation system, originating from the mighty Indus River. While this densely populated region has an ample workforce to meet all the requirements of upcoming industries, a full-fledged airport, highways and effective telecommunication network give a definite edge to it. Already numerous leading national and multinational companies are operating in the region, such as “OMV, British Petroleum, Engro, LU Biscuits, Khairpur & Nau Dero Sugar Mills etc”.
“KSEZ is being developed on 140 Acres in Khairpur as a future hub for agro-processing and other related industries on a location strategically positioned for proximity to date-growing areas, transportation links, and access to labour. The Zone provides inherent benefits of essential supporting amenities to small and medium enterprises with state of the art infrastructure, uninterrupted electricity supply, natural gas for industrial use, water at the door step of each enterprise.”
INVESTMENT OPPORTUNITIES AT KSEZ:
Agro Food Processing: Dates dehydration, Fruits and Vegetable Processing (Pulp, Nectar, Juices, Pickles), Packaging and Dairy Processing. Seed Processing, Composite and Organic Fertilizers, Medical herb Processing, Chip Board Manufacturing, Cotton ginning.
Non-Food Processing: Seed Processing, Composite and Organic Fertilizers, Medical herb Processing, Chip Board Manufacturing, Cotton ginning.
Light Engineering & Manufacturing: Farm Equipment and Implements, Packaging, Electric Water Motors, Electric fans.
05 Megawatt uninterrupted power supply available at KSEZ.
Effluent treatment plant for the treatment of discharge from industries.
20 Megawatt Power plant. (Proposed).
3.5 MMCFD Gas for KSEZ was formerly approved by P.M Pakistan.
Technical Training Center & Food Certification Center.
Perimeter Wall with controlled Entry and Exit gate.
Provision of Utilities, Estate Management & Security.
Round the Clock Security via Rangers Picket, KSEZ Police Station, Watch towers.
Availability of skill skilled labor.
Convenience & Proximity to other important cities across the country.
Availability of Sukkur, larkana Airports, Khairpur Railway station.
Other Services such as: Vocational Training Centre, Common facilities, Trauma Centre, Truck Terminal etc
Total No. of plots: 88, Sizes:4 ,2,1,0.75,0.5,0.25 Acre
Modern and well-developed road network and infrastructure, water supply, natural gas for industrial use.
Retail outlets, Restaurants, Auditorium, Exhibition hall, Business Center, Conference Arena, Banks, Warehousing and cold storages.
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Marble-City Karachi
(Proposed)
The Government of Sindh is developing a state of the art industrial enclave spread over 300 acres to uplift the marble and granite sector in Sindh. The Marble City project shall have tremendous investment and growth potential for entrepreneurs as it will be based on cutting-edge stone technology, innovation and services.
The concept is based on stone technology and custom facilities to create the largest and most technologically advanced industrial park for Dimension Stone (Marble & Granite) in Karachi.
Value addition of stone and mineral resources of Sindh and Balochistan.
Attract Foreign Direct Investment for production and processing.
Better Jobs in terms of working conditions
Increased income resulting from improved skills imparted by the training.
Increased direct and secondary job creation; supporting poverty alleviation.
Enhance exports of marble, granite and others stones.
Waste reduction and increased productivity in the stone sector.
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Common Facility & Training Center (CFTC)
Warehouse
Waste Water Treatment Plants/Slurry Management
Mechanical & Electrical Workshops/Services
Support facilities
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Infrastructure Development
Captive Power Plant
Quarrying (Mining)
Training Centre
Warehousing
Warehousing
Water Treatment Facility
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Approach to Market
– Railway track at Risalpur
– Adjacent to Motorway (M1)
– 40 minutes drive from Islamabad
– 20 minutes drive from Peshawar
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Shaheed Benazirabad Enclave
Sindh Economic Management Company porposed to establish New Industrial enclave in Shaheed Benazirabad under PPP mode which is approved by SEZMC Board.
Consultant has been selected for feasibility studies and TAS.
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Sukkur Industrial Area
Sindh Economic Management Company porposed to establish New Industrial enclave in Sukkur under PPP mode which is approved by SEZMC Board.
Consultant has been selected for feasibility studies and TAS. Key points as of now are below;
Prospect land parcel of 400 acres has been identified in District Sukkur. It is situated along the left bank of the Indus River, directly across from the historic city of Rohri.
There are two industrial estates in Sukkur i.e. Sindh Industrial Trading Estate (SITE) and Small Industries Estate (SIE). The former was established in 1963 over an area of about 1060 Acres. The Small Industries Estate (SIE) Sukkur was set up over an area of 110 acres. The Estate is being managed by the Sindh Small Industries Corporation. However, both of them have faced severe management issues and have created a vacuum of a state of the art industrial Enclave.
The proposed new project will provide the much needed impetus to industrialization in the region and is being established to house medium industrial clusters such as Gem Processing, Apparel/Garments and Halal Food Processing Industries etc. The establishment of the Industrial Enclave in Sukkur has positive implications on the socio-economic outlook of the entire region. The project is expected to attract investment of more than PKR 10 billion and create opportunities for more than 8,000 jobs.
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Hyderabad Industrial Enclave
Sindh Economic Management Company porposed to establish New Industrial enclave in Hyderabad under PPP mode which is approved by SEZMC Board.
Consultant has been selected for feasibility studies and TAS. Key points as of now are below;
Prospect land parcel of 951-37 acres (451-37 + 500) has been identified near Hyderabad. It is located on the east bank of the Indus River and is roughly 150 kilometers away from Karachi, the provincial capital.
The Hyderabad Business Chamber has 200 direct members and 1,200 associate members. The Hyderabad Chamber has members that cover 40% of the motor cycle industry of country and the second largest industry of Khadi (Textile). In addition, this city houses various small and medium scale manufacturing clusters.
The project will provide the industries readily available trained human resource due to its locality in the center of a settled area, which also has a long-established industrial tradition.
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https://ksez.com.pk/