Govt plans one-stop service for SEZs

Bill will be presented in parliament to facilitate investors by doing away with lengthy processes

ISLAMABAD:

The government has decided to introduce a “one-stop service” for developing industrial infrastructure in the Special Economic Zones (SEZs) being set up under the China-Pakistan Economic Corridor (CPEC) by passing the One Stop Service Act.

The idea behind the legislation is to facilitate domestic and foreign investors desiring to set up industrial units in the SEZs by ending lengthy processes like obtaining no-objection certifications (NOCs), clearances, licences and permits as well as waiting for essential services.

Sources told The Express Tribune that the federal cabinet, in a recent meeting chaired by Prime Minister Shehbaz Sharif, gave the go-ahead to the draft One Stop Service Bill, which was forwarded to the Cabinet Committee on Legislative Cases (CCLC) for approval. The bill will also be presented in parliament for a formal approval.

At present, the process of setting up industrial units is so cumbersome that the investors require around 28 NOCs for building industrial infrastructure in the SEZs. However, if approved, the new law will lead to time-bound accelerated processing of applications.

Sources said that a major bottleneck to the achievement of CPEC goals was that Pakistan and China had not been able to establish industrial concerns in the SEZs, as envisaged in the CPEC plan.

Accelerated industrialisation is required to enhance and diversify Pakistan’s exports, which have been stagnant for the past many years.

According to a Board of Investment (BOI) summary presented in the cabinet meeting, the Special Economic Zones Act 2012 has been passed for the establishment, development and efficient operations of SEZs by providing a legal and regulatory framework to encourage domestic and international investors for the promotion and establishment of industrial infrastructure and other related matters.

The Act provides certain fiscal and allied incentives to the zone enterprises and developers. However, the benefits can be reaped by setting up businesses within the stipulated timelines.

“The provision of required permits, certifications and NOCs as well as provision of public services in a timely manner plays a key role in enabling timely ‘colonisation’ of an SEZ,” the summary said.

In this regard, the single-window service in a time-bound manner was globally acknowledged as a critical component to foster investment in economic zones, it added.

This facility is required to attract and retain investors that ensures accelerated processing of applications and requests for all essential services, clearances, licences and permits, with the aim of simplifying procedures and removing redundancies.

During the meeting the cabinet was told that many attempts had been made in the past at the federal and provincial levels to facilitate investment through such a service.

However, those attempts could not bear fruit in the absence of a legal cover and administrative coordination that could enable a special regime to override the general provisions in the existing legal statutes.

BOI, being the premier investment promotion agency, had formulated an all-inclusive one-stop service that could enable end-to-end services to the investors in SEZs through the use of digital means, the meeting was told.