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Govt renders financial support for establishing ROZs
Jun '08
The Federal Government of Pakistan has decide to allocate Rs160 million under the Public Sector Development Program 2008-09 towards development of infrastructure for establishing Reconstruction Opportunity Zone (ROZs) in NWFP.

A total of nine locations have been identified for the proposed ROZs in the province which include Peshawar Industrial Estate, Mallagari Industrial Estate, Mardan Industrial Estate, Gadoon Aamazai Industrial Estate, Nowshera Industrial Estate, Risalpur Economic Zones, Yaka Industrial Estate, Shakas Industrial Estate and Kohat Industrial Estate.

The proposal is still under consideration before the US congress for formal approval. These ROZs will get benefit of duty free transaction of goods at the time of their exports to US.

Experts believe that if Pakistan is allowed a US $1 billion market access, the country will be in a position to generate 200,000 job opportunities.

In fact, the country has the potential to export about 41 textile and clothing items and 30 non-textile items by utilizing these facilities and it therefore demands a duty free access for various markets.

Besides, the Government also has plans to extend the existing incentives and regulatory structure available for Export Processing Zones to ROZs which include full ownership rights, full repatriation of capital and profits. Moreover, no minimum or maximum limit would be fixed for investment in ROZs and duty free import of machinery will be facilitated.

One of the primary objectives for setting up these ROZs is to promote investment in the economically weaker sections in Pakistan and Afghanistan. This in turn will provide an incentive to the government in both the countries to cooperate for economic goals and other mutual benefits.

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