Signing of Development Agreement of Rashakai Special Economic Zone

Signing of Development Agreement of Rashakai Special Economic Zone

Pakistan and Chinese companies have signed Development Agreement (DA) for the purpose of preparing Special Economic Zone (SEZ) at Rashakai, reports Gwadar Pro App.

The Khyber Pakhtunkhwa Economic Zone Development Management Company (KPEZDMC) and China Road and Bridge Corporation (CRBC) have signed DA agreement for undertaking development work at Rashakai SEZ.

Federal Minister for Planning, Development and Special Initiatives Asad Umar confirmed that the development agreement was signed between Pakistan and Chinese side. “I want to share that the development agreement for establishing SEZ at Rashakai signed” he added.

He said that the government prioritized its federal development program through mid- year review and diverted Rs 6.8 billion for provision of electricity and gas at different SEZs under China Pakistan Economic Corridor (CPEC). He said that under the Early Harvest Program (EHP) around $29 billion were completed and nearing of completion and it was huge amount invested in the country under CPEC framework.He said that Chinese side would install power plant of 300 MW at Gawadar when the government would connect Gawadar with national grid because it would help the company to provide additional electricity to other parts of the country through national grid.

Earlier, the Chief Executive Officer (CEO) of Khyber Pakhtunkhwa (KP) Board of Investment and Trade (KP-BOIT) Hassan Daud told this scribe here in Islamabad that the development agreement signed that would now pave the way for kick-starting physical work on the ground.

Official sources said that Pakistani authorities were expecting relocation of industries from China and so far more than two dozen units from China showed their interest to invest in Rashakai economic zone in shape of standalone project or establishing joint venture with Pakistani counterpart.

The attraction of Chinese investors would depend upon state of the art infrastructure developed at Rashakai and other proposed Special Economic Zones. If right of connectivity, state of the art facilities, provision of utilities and best regulatory environment is ensured then potential investors could be attracted from China as well as from other parts of the world.

Pakistan’s Khyber Pakhtunkhwa province acquired 1,000 acres of land for Rashakai Economic Zone for the first phase and the provincial government wanted to acquire more 2000 acres of land to expand it for next phase.

The Khyber Pakhtunkhwa Economic Zone Development and Management Company established Rashakai Economic Zone in district Mardan which is 57km away from Peshawar airport, 1584km away from seaport of Karachi, 10km away from railway station, 19km away from dry port, 4km away from motorway at Col Sher Khan interchange at Motorway, 13km away from highway and 13.6km away from city center.

Although, Pakistan and China had signed Memorandum of Understanding (MoU) for industrial cooperation on eve of Joint Cooperation Committee meeting held at Beijing by end of 2018.

The establishment of SEZ with successful model and relocation of industries from China will be the most critical part for Pakistan’s economy in the wake of dwindling exports and capability of the country to generate the required exportable surplus to come out from the existing economic morass.