1. Facilitating Doing Business and Special Economic Zones in Pakistan Pakistan Investment Conference 4-5 November, 2015

2. 1: Mandate of Board of Investment 3: Strategic Vision 4: Major Initiative to Provide Ease of Doing Business 2: Guiding Principles of Investment Policy 2013 6: Encouraging Investment Trends 5: Establishment of Special Economic Zones

3. MANDATE OF BOI To promote, encourage and facilitate local and foreign investment, and matters connected therewith and ancillary thereto

4. GUIDING PRINCIPLES OF INVESTMENT POLICY  Reducing the cost of doing business  Simplification of the processes & procedures of doing business  Removing unnecessary regulations  Convergence of economic policies The Policy provides a comprehensive framework for ease of doing business and improved business climate

5. 5 INVESTMENT POLICY u Ownership Linkages Profits & Taxes All sectors open to investments Up to 100% foreign ownership Same treatment for local and foreign investments Visa on arrival for 69 friendly countries Establishment of Branch & Liaison offices are allowed Establishment of Industrial Clusters (SEZs) Protection of FDI via acts of parliament (Acts 1976 & ‘92) Bilateral Investment Treaties Double Taxation treaties No restriction on remitting capital, profits & dividends 25% tax relief on initial depreciation on machinery Exemption on import of Plant, Machinery & Equipment Linkages Investment Policy Protection Well developed Regulatory Framework facilitating the investors

6. STRATEGIC VISION  Policy reforms through Public-Private Dialogue  One Window Operations  Coordination amongst stake holders  Automation of processess  Development of Special Economic Zones (SEZs) Resolve is to align strategic vision of BOI with the National Vision to make Pakistan an investment hub

7. MAJOR INITIATIVE TO PROVIDE EASE OF DOING BUSINESS

8. KEY REFORM AREAS Simplifying Business Registration Digitalizing Registering Property Streamlining Construction Permits Simplifying Work Visa & Branch Office procedures Promoting ADRs Simplifying Tax Regime

9. PROGRESS ACHIEVED  After research, on provincial tax regime, BOI requested provincial authorities to consider abolishing, or merger of taxes having less than 1% revenue contribution and to reduce the number of agencies and installments  FBR has identified 39 processes for streamlining and has launched integrated end-to-end IT solution  Land record in all provinces has been digitalized  Provincial Governments have developed On-line and One Window System for issuance of Construction Permits

10. SPECIAL ECONOMIC ZONES  Provide ease of doing business  Create efficient and competitive industrial clusters  Creation of excellent infrastructure to meet the global competitiveness  One window facility to reduce the overhead costs  Ensured availability of utilities and security at the door step of the Zone  Provision of skilled and trained human resource  Boosting international competitiveness ranking  Mainstreaming of marginalized/backward areas 10

11. MODES OF ENTRY  SEZs can be developed as: Public sector Private sector Public-Private Partnership basis  SEZ Act provides for the establishment of SEZ anywhere in the country with minimum 50 acres of land  Any Existing Zone can also apply to the SEZ Authority in which they are located to become eligible for SEZ 11

12. BOI-SECRETARIAT OF SEZS  As Secretariat, BOI  Co-ordinate all activities pertaining to SEZs, developers and zone enterprises  Process zone application submitted by SEZ authorities for consideration of BOA  Recommend applications for additional benefits  Review development agreements  Facilitate developers and enterprises during the whole business cycle

13. Fiscal Incentives  Corporate Income Tax Holiday of 10 years for Investors and 10 years for Developers of the Zone  Duty free import of capital goods for Developers and Zone Enterprises General Incentives  Gas, electricity and other utilities will be provided at the zero- point of the Zones  Captive power generation permissible to Developers of the Zones  Security INCENTIVES REGIME

14. APPROVED SEZs 1.Khairpur SEZ, 140 acres, Govt. of Sindh [Agro based Industry and date processing] 2.Bin Qasim SEZ, 930 acres, Pakistan Steel [Light Engineering, auto vendors, steel fabricating units chemical & food, pharmaceuticals, electrical & consumer goods and furniture & wood working] 3.Korangi Creek SEZ, 240 acres, Govt. of Sindh [Consumer goods, food & pharmaceuticals, garments, value added textile, light engineering, packaging & printing, warehouses / logistics] 14

15. SEZ Khairpur SEZ  140 acre  Cost Rs 1.4 Bn  Agro Industry & Date Processing  75% infrastructure developed Khairpur SEZ  140 acre  Cost Rs 1.4 Bn  Agro Industry & Date Processing  75% infrastructure developed Korangi Creek SEZ  240 acre  Cost Rs 3.8 Bn  Food & Pharmaceuticals, Garment etc  Infrastructure being developed Korangi Creek SEZ  240 acre  Cost Rs 3.8 Bn  Food & Pharmaceuticals, Garment etc  Infrastructure being developed Bin Qasim SEZ  930 acre  Cost Rs 9.8 Bn  Light Engineering, Auto Vendors etc. Bin Qasim SEZ  930 acre  Cost Rs 9.8 Bn  Light Engineering, Auto Vendors etc. APPROVED SEZs IN SINDH PROVINCE 15

16. 16  China-Pakistan Economic Corridor is a fusion of multiple corridors/ Projects  BOI sensitized Chinese investors with all information and data in materialization of their projects at each stage of their project cycle  33 potential sites alongside the corridor for SEZs in consultation with provinces have been proposed  Establishment of these zones will boost economic activity, expedite industrialization and generate huge employment opportunities  Chinese Groups shown interest to invest more than US$ 15 billion in early harvest projects  BOI in coordination with Ministry of Ports & Shipping and GDA / GPA is assisting in establishment of SEZ at Gwadar CHINA PAKISTAN ECONOMIC CORRIDOR

17. GWADAR GATEWAY TO GLOBAL MARKET  Connectivity - Pakistan – China – Middle East – Africa  Mobility - Cut 13,000 Km route from Middle East to China  Activity – Trade – Investment – Opportunities  Gwadar Port started operations for commercial export on May 11,2015  BOI has setup a facilitation center at Gwadar 17 STRAITS OF MALACCA

18. 18 Source: SBP & Economic Survey 2014-15 ENCOURAGING INVESTMENT TRENDS (BILLION US$) 18

19. www.boi.gov.pk