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Thursday, March 28, 2024

Textile City seeks 10-year tax holiday

Pakistan Textile City Limited has applied for Special Economic Zone (SEZ) status to secure 10-year tax holiday for foreign and local investors. Sources told that several local and foreign investors are interested in setting up industries in the dedicated Textile City. Some Chinese investors are already negotiating for investment.

However, Chinese and other foreign investors have linked investment in the Textile City with SEZ status, under which local and foreign investors can get an income tax exemption for 10 years, besides duty-free import of machinery. Pakistan Textile City Ltd (Textile City) was incorporated on May 18, 2004, under section 32 of the Companies Ordinance 1984 as a public unlisted company to implement and manage an exclusive production area at Port Qasim that specialises in the large-scale production of value added textile products. In order to facilitate local and foreign investors and fulfil their demand, recently the Textile City formally submitted its application.

Economic impact analysis of the Textile City shows that it will provide thousands of new jobs, besides massive increase in value added textile export. Infrastructure commitments for road, electricity, gas, water, sewerage/drainage, waste water treatment and communication have already been done by the management. In order to get maximum benefits of the GSP Plus status, the management of the Textile City has decided to launch the much-awaited investment oriented project as soon as possible. Earlier, it was planned to launch the project in May this year, however due to non-availability of gas, it has been further delayed.

Under the revised business plan, the board of directors of the Textile City has decided to launch this mega project in different phases. Initially, the project will be launched on 106 acres land instead of previous 1,250 acres. The management has completed the arrangements for uninterrupted power supply from K-Electric, water from Karachi Water and Sewerage Board. The Textile City management is striving for 9mmcfd gas from Sui Southern Gas Company (SSGC) for the industries. This project will have complete chain of textile industry including weaving, dyeing, towels, knitwear, bed linen and denim along with industries such as printing, thread, zips, buttons, engineering workshops and packaging.

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