Dhabeji gains attention of Chinese investors

KARACHI: The Sindh Board of Investment (SBI) has received an expression of interest from Chinese investors to set up industries at the Dhabeji Special Economic Zone.

Dhabeji is a part of Thatta district and is near the suburbs of Karachi.

While the zone still awaits formal approval before it becomes part of the $62 billion China-Pakistan Economic Corridor (CPEC) projects, SBI Chairperson Naheed Memon said that the uniqueness of the 1,000-acre land has made it lucrative for multiple sectors such as steel, cement, chemical, and pharmaceutical.



According to Memon, joint ventures would allow local partners to avail tax holidays and other incentives to be given to the Chinese investors under CPEC. The incentives may also include provision of land for industrial units for free or at discount.

“If not 100%, then 60-70% of the businesses in the zone will be set up through joint ventures,” she told The Express Tribune.

“These ventures will provide the much needed protection to local industries and allow the Chinese to relocate their surplus industries. This will be a win-win situation for both countries’ investors and will allow transfer of technology, create job opportunity and attract foreign exchange,” she added.

Memon also said that the joint ventures would better help Chinese investors understand Pakistan’s culture.

“Some four-five Chinese investors have already submitted their business plans to the SBI,” she said. “Some of them want us to allow them developing the zone for industrial investors, while a few of them are direct investors.”

Estimating the size of the foreign investment in the zone, Memon said that the figure may be around $2 billion, depending upon the nature of the industries.

The SBI has tendered for a feasibility report which would be ready ahead of the next Joint Coordination Committee scheduled in July. The committee has representation on board of the governments of Pakistan and China, ie the National Development Reform Commission of China.

Meanwhile, the federal government and the Federal Board of Revenue have the authority to approve the Dhabeji Sepcial Economic Zone.



Memon, who is also the vice chairperson of the Special Economic Zone Authority, said Dhabeji has a great strategic importance of being close to the seaport, the airport and the railways and roads network. “This strategic importance would win the Chinese backing for Dhabeji as part of CPEC projects.”

Published in The Express Tribune, May 4^th, 2017.

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