| Pak-China joint venture consortium to be formed in Gwadar |
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| Thursday,September 14,2006 Posted: 15:10 BJT(0710 GMT) Pakistan ECCO |
ISLAMABAD (September 13 2006): Pakistan and China will set up a joint venture consortium to finalise the preferential policy and tax incentives package for the establishment of 'Gwadar Economic and Energy Zone' comprising an oil refinery, LNG terminals and petrochemical industry.
Sources said on Tuesday that the Central Board of Revenue (CBR) is examining a proposal of Economic Affairs Division for possible exemption of duties and taxes for the 'Zone'. They said that Pakistan and China would ink a Memorandum of Understanding (MoU) for establishment of the zone, which would allow setting up a joint venture consortium for designing, developing, constructing and managing the Zone.
Under the proposed MoU, both governments would establish a 'working group' to identify appropriate sites and work out the incentives package to facilitate the setting up of the joint venture consortium, sources added. The two countries would jointly conduct technical and financial studies on setting up of an oil refinery, LNG terminal and petrochemical industry to be located in the Zone.
Sources said that Pakistan government would provide land and an incentives package to ensure that the enterprises based in the Zone are commercially viable. The Pakistan government would also ensure safety and security of Chinese experts working on these projects. In this connection, Pakistan's Ambassador in Beijing has conveyed to the government to work out the concessions for the Zone, sources added.
The governments of Pakistan and China had signed a declaration on bilateral trade development as well as a Treaty of Friendship Co-operation and Goods-neighbourly Relations in April 2005.
Both countries are determined to promote mutually beneficial co-operation in the field of energy in accordance with the framework agreement on energy co-operation signed in Beijing in February 2006. Pakistan and China recognise the importance of establishing an Economic Energy Zone by setting up storage sites, oil refinery and LNG terminals as well as related petrochemical industry at Gwadar.
Copyright Business Recorder, 2006
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