Special Economic Zone
In order to facilitate rapid commercial and economic development, Gwadar will be declared a Special Economic Zone for a certain period, The length of this period has not yet been determined. The SEZ is likely to cover the city of Gwadar and the industrial areas currently planned and foreseen. The specific incentives-regime is likely to include general tax-holidays, no VAT and generous incentives pertaining to business ownership and employment of foreigners. The main purpose of this concept is to accelerate economic development and investments, both foreign and local, in general. This in turn will spur industrial development and port traffic throughput demand. It would also contribute more rapidly to employment creation and uplifting of the Gwadar district and of Balochistan.
Gwadar Industrial park
The Government of Balochistan is developing an industrial estate in Gwadar to meet the demand for industrial plots in the port city, which is expected to have substantial potential for industrial investment in view of the opportunities offered by the establishment of deep sea port and construction of major highways linking Gwadar with Karachi, Quetta, Iran and Central Asian countries. There are also plans to extend railway to Gwadar.
Gwadar Industrial park will be developed for Small and Medium Enterprises (SME) mostly based on value added industries. No large manufacturing industries would be expected, except those feasible on imported raw materials with final product to be exported. The major areas of business will be: import and export, construction, transportation, shipping, clearing and forwarding, warehousing, building material, value added processing, textile and leather made-up garments, repackaging and trans-shipment.
For development and management of Gwadar Industrial Estate, an autonomous body Gwadar Industrial Estate Development Authority (GIEDA) has been established by the Government of Balochistan, which is headed by its Chairman, the Secretary Industries & Commerce, Balochistan, while other Directors of the board include Secretary Finance, Balochistan, Director Industries, Balochistan and Managing Director GIEDA. This will provide substantial executive and financial authority to GIEDA and facilitate accelerated development.