According to the newly appointed chairman of China Overseas Port Holding Company (COPHC). The Gwadar Free Zones that have been under construction. For the past ten years as part of the China Pakistan Economic Corridor are transitioning. Into Export Industrial Parks. In the initial interview that we had with him. He mentioned that the Gwadar Port and Free Zones present tremendous investment potential. For companies not only. From Pakistan but also from other countries. The geo-economic significance of Gwadar Port and Free Zones taken. Into consideration during the process of developing and putting. Into practice the policy framework as well as the guiding principles.
China Overseas Port Holding Company:
That govern the area. The new chairman of China Overseas Port Holding Company (COPHC), stated. Investors, particularly those with the intention of engaging in manufacturing, provided. With favorable incentives to capitalise on as a result of the fact that the Gwadar Free Zones. That the Gwadar Free Zones are moving in the direction of becoming Export Industrial Park. As a result of the multifaceted dividends generated. By the China Pakistan Economic Corridor’s ten-year story of development. According to what he indicated in his first interview. The Gwadar Port and the Gwadar Free Zones. Both present enormous potential investment prospects. For investors from Pakistan and beyond.
He stated that the policy structure and guiding principles. That manage the Gwadar Port and Free Zones established and put into place. With the geo-economic significance of the port in mind. According to China Economic Net. Because Gwadar Free Zones are exempt from all types of provincial taxes, federal taxes, and customs fees, investors, especially. Those who aim to run manufacturing enterprises That will be in an excellent position. To capitalise on such benefits. This is especially true for investors who plan to export their goods.
Opportunities for business:
The cost of production in the zones is significantly lower. Than the cost in the tariff area because there are no additional charges in the zones. As a consequence of this, the prices of the items will drop, making. Them more affordable and more competitive on the global market. It is imperative that prospective investors take advantage of these opportunities for business. In addition, the Pakistani business community receives. An essential impetus from these commercial encouragements. Which allows them to increase their exports and bolster their foreign exchange reserves.
Free Economic Zone functional:
It equipped with full capacity to handle bulk cargo, containerized, and LPG vessels.” “Now it is completely functional. The three multi-purpose docks have the capacity. To process hundreds of metric tones of fertilizer wheat, and urea combined. When asked what kinds of challenges are being encountered. In the process of making Gwadar Port and Free Economic Zone functional and profitable. He responded that the most significant. The challenge is the unstable state of the region’s security. Even while it has enhanced over the course of the many months. That have passed since then. He said that there is still more room to overcome security vulnerabilities.
Chinese ownership operating:
The high cost of electricity. That is diesel generators is the second bothersome factor that exists. The pace of development will pick up significantly once. They start receiving power from the grid. Companies with Chinese ownership operating in Gwadar have been vocal about. Their desire to settle financial transactions. In the Chinese currency of yuan rather than dollars. Companies will be able to breathe a sigh of relief if the government decides to approve it,” he added. In response to a different question, he stated. That the Gwadar Free Zone Company, which is in charge of operating. The free zones, ensures. That its investors have access to all of the available utility amenities.
Supply of water:
It including water and electricity. As a result, the COPHC involved in a wide variety of projects involving water and power. In order to provide an uninterrupted supply of water. For consumption, COPHC built two desalination plants. In the Free Zone and the Port sectors. Each having a production capacity of 0.1 million gallons per day and 0.2 million gallons per day respectively. Desalination facility with a capacity of 1.2 million gallons per day (MGD). That is being funded. By the Chinese government is currently in its last stage of construction.
Port facilities require:
In a similar vein, the allied industries and port facilities require. A certain amount of power in order to function properly. As a result, the port and free zones rely on the 8.5 MW diesel generator. To supply them with electricity so that. Their operations can continue unabatedly around the clock. By the time summer rolls around. it will have finished and put into action. completed by September 2023. “In order to provide an uninterrupted supply of water for consumption, COPHC built two desalination plants in the Free Zone and the Port sectors, each having a production capacity of 0.1 million gallons per day and 0.2 million gallons per day respectively. Desalination facility with a capacity of 1.2 million gallons per day (MGD) that is being funded by the Chinese government is currently in its last stage of construction.