SIALKOT

The 16-year non-functionality of Sialkot Export Processing Zone (EPZ), a joint initiative of the Ministry of Industries, Punjab Small Industries Corporation (PSIC) and SCCI, speaks volumes about the prolonged neglect and apathy of authorities.
The EPZ could attract only eight exporters to establish their factories since its establishment. Most of the exporters said that though several trade and export related incentives were available at EPZ earlier, but it was still very hard for them to establish industrial units there.
They expressed grave concern over the sorry state of affairs at EPZ. They said that the government had allegedly left this mega project at the mercy of the circumstances. They urged the federal and provincial governments to de-notify or make it fully functional for promoting the exports from Pakistan’s first every Golden Export Triangle comprising Sialkot, Gujrat and Gujranwala districts.
It is located near Sambrial on Sialkot-Wazirabad Road in close proximity of Sialkot Dry Port Trust (SDPT) and Sialkot International Airport. There are a total of 881 plots in Sialkot Export Processing Zone (EPZ) covering an area of 238 acres. The government had given the responsibility for developing the EPZ to PSIC.
All the plots in EPZ have already been allotted to the exporters. PSIC is responsible for providing public health and estate management services, whereas EPZA provides the security services. It was inaugurated in June 2002 and became operational in 2005. Presently, only 8 industrial units of sports goods, sportswear, surgical instruments, light engineering, etc. are operational while 10 new units are under construction. The total export from EPZ during 2009-10 was $0.65 million.
According to officials of Export Processing Zones Authority (EPZA), EPZ provides incentives like developed land for 30 years, duty-free import of machinery, equipment and materials, freedom from national import regulations, exchange control regulations of Pakistan not applicable, repatriation of capital and profits, no sales tax on input goods including electricity/gas bills, duty-free vehicles allowed under certain conditions and domestic market available to the extent of 20%.
Moreover, only EPZA is authorized to collect presumptive tax at the time of export of goods which would be final tax liability, obsolete/old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes, defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up to 3 percent of total value and EPZ units are allowed to supply goods to Custom manufacturing bonds.
These incentives could not attract the Sialkot exporters to establish their industrial units at Sialkot EPZ, said the Sialkot exporters who have their plots in the EPZ. Then Caretaker Prime Minister of Pakistan Malik Meraj Khalid had inaugurated the groundbreaking ceremony of Sialkot EPZ in 1996 while then Punjab Governor Khalid Maqbool had laid its foundation stone on June 22, 2002.
Officials concerned said declaring the whole Sialkot as Export Processing Zone can be only justified if existing facilities are insufficient for establishing new units at the zone. The exporters including Dr Aslam Dar, Fazal Jillani, Mian Anwar, Iqbal, Khalid Mehmood, Abid Hussain, Arif Mehmood, Abdul Majeed, Allah Rakha, Naseer Ahmed, Bashir Hussain, Ghulam Rasul, Jehangir, Nawaz, Asif Ali Chaudhary, Umer Nawaz, Zeeshan Ali, Akbar Ali, Sultan Mehmood and Ikramullah demanded early activation and proper functioning of the Export Processing Zone (EPZ) at Sialkot by announcing more incentives. They also demanded that all the procedures should be simplified to motivate the Sialkot exporters to come to Sialkot EPZ. They added that all the stakeholders should be taken onboard to resolve the Sialkot exporters issues related to EPZ.