Special Economic Zone status given to three automobile enterprises
In an interesting turn of events, the Government of Sindh has given Special Economic Zone (SEZ) status to nine business enterprises in a bid to attract more investment. According to the news, total nine new businesses will invest more than PKR 30billion in various fields. Three of these are automobile related. It is indeed a promising sum for not only for the Sindh province but for the overall economy of the country.
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The enterprises related to auto industry, which have been granted SEZ status involves:
- Mehran Commercial Enterprises is setting up a plant in Korangi Creek Industrial Park (KCIP) with an investment of PKR 200mn. The enterprise will make new technology for the supply of auto parts of car makers such as Hyundai and KIA.
- Tecno Auto Glass will be investing PKR 2.5 billion in the auto industry. The company will make car windscreen, rear glass, and side glass for Suzuki Pakistan. It would be worth mentioning here that Tecno Auto Glass and Pak Suzuki are shareholders in this project.
- KIA Lucky Motors Pakistan has signed an agreement with KIA Motors Corporation, as we have also reported last year, as a foreign technical collaborator. The venture between the two companies is excellent as they will be investing a hefty sum of PKR 15 billion by manufacturing assembly plant with the capacity of vending thousands of vehicle per year.
Moreover, these businesses still have to get approval from FBR and Board of Investment to avail tax exemptions and other perks which come under SEZ status.
Special Economic Zones are areas where business laws are different from other parts of country and companies made in those regions enjoy many perks such as tax exemptions etc.