ISLAMABAD-Construction of first steel unit at Rashakai Special Economic Zone under CPEC, costing $79 million, is under way and plant and machinery for the unit will be imported soon.
A review meeting on Rashakai Special Economic Zone was informed that work on the first phase of establishing steel plant is under way and the company will invest $ 242.2 million in the three phases of the project.
Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting to review the progress on the development of Rashakai Special Economic Zone under CPEC Framework here on Friday. Chairman CPEC Authority, representatives from KP BOI and senior officials of the federal & provincial governments attended the meeting.
The representatives of the developers informed the meeting that the first unit of steel plant was under construction and would be soon importing its plant and machinery. In the first phase, they plan to set up their first unit with an investment of $79 million to produce 500000 tons of rebar/construction steel. Whereas in the second phase, they intend to set up their second unit for production of industrial steel with an investment of $77 million and the total investment for three phases will be $242.2 million.
The meeting was apprised of the progress of work in SEZ, especially regarding supply of gas and electricity to the zone. It was informed that 10MW electricity is available for Rashakai SEZ while the transmission line for another 160MW is under construction and will be completed by November 2021. A further addition is also planned for 2022. SNGPL representatives informed that work on the gas supply of 30 MMCFD to Rashakai SEZ is underway and scheduled to be completed by the end of December.
Representatives from FBR and BOI said that all the incentives under the SEZ Act are available to the potential investors in the Zone.
Minister directed the relevant ministries to ensure completion of their respective tasks within timelines. He also directed Planning Division to carry out implementation monitoring of the various activities related to the SEZs.
Meanwhile, Sun Yaoguo, vice president of China Road & Bridge Corporation, and his delegation called on chairman of Board of Investment Atif Bokhari and discussed the development progress and marketing plans for Rashakai Special Economic Zone and other matters of mutual interest.
Sun informed that development work of Rashakai SEZ is being carried out at a fast pace and to that end respective teams have already been mobilized. He highlighted that aggressive marketing of the SEZ to local and foreign investors is crucial for its speedy occupation and operationalization. Rashakai SEZ is the flagship project of CPEC & its success will further strengthen industrial cooperation between Pakistan & China.
In his remarks, Atif Bokhari welcomed the delegation and praised CRBC’s impressive work in the Rashakai SEZ. He concurred with Sun for perusal of an aggressive marketing campaign that effectively highlights the monetary benefits for investors. In this regard MOS/chairman apprised the delegation about approval of two major incentives for SEZs i.e. custom & duty exemption on capital goods & elimination of 1.5% turnover tax. He also shared that domestic
companies have shown keen interest in setting up enterprises in the Rashakai SEZ & desired that this should be looked into.
Both sides also discussed the interest of Chinese enterprises in Rashakai. On a suggestion from CRBC to effectively communicate with the Chinese business community about incentives & sectors for investment, Bokhari agreed & further suggested that he will be part of a webinar on the issue. He emphasized that both sides need to focus and work towards expediting the relocation of Chinese industry in the Special Economic Zones.
During the meeting, Sun also briefed about CRBC’s mega project in Karachi. The Karachi Coastal Comprehensive Development Zone in collaboration with Ministry of Maritime Affairs aims at developing Karachi as regional hub for economic activity while simultaneously generating employment opportunities for millions & bringing in sizeable FDI.
Chairman BOI applauded the work being carried out by CRBC in Pakistan. He assured the delegation that BOI will support CRBC in coordination with relevant departments and Ministries as well as offering assistance within BOI’s mandate. BOI looks forward to closely working with CRBC to not only facilitate their progress in Pakistan but also to jointly work towards Pakistan’s fast paced industrialization.
Sun thanked chairman BOI for his time and also assured of CBRC’s dedication for successful execution of the ongoing projects.