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Event Title: Sub –Committee of the Senate Standing Committee on Industries and Production

Event Date: 2022-05-26

A Sub –Committee of the Senate Standing Committee on Industries and Production was held under the convener ship of Senator Fida Muhammad to examine the problems faced by the export processing zone of Khyber Pakhtunkhuwa. Senator Hidayatullah Khan and Senator Falak Naz also attended the meeting. Chairman Export Processing Zones Authority (EPZA) and Deputy Secretary, Ministry of Industries and Production were also in attendance.

 A brief was presented on Risalpur Export Processing Zone (REPZ) / Joint Venture project between EPZA and Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) / (Former SDA). The committee was informed of the physical progress of the zone. It was informed that 92 acres of area is REPZ with total 137 number of plots and 42 no of units sanctioned ( 08 functional and 34 nonfunctional).  The committee was also apprised that the total cumulative exports from REPZ since inception is US $ 26.366 ml and contributed US $ 0.264 ml to the national exchequer on account of 1 pc presumptive tax on exports . The committee was also briefed that the present Management has taken up the case of exemption of GST electricity with FBR and letter issued by FBR on 26th April 2022 to PESCO for issuance of Electricity bill to consumers of REPZ with zero rated against GST.

While discussing the Problems faced in colonization of Risalpur EPZ the committee was informed that FBR has convened two meetings to resolve the issue of restriction on export of trading good to Afghanistan and Central Asian Republic (CARs) via land route but till to date this facility has not been allowed for investors of EPZs. In the 2nd meeting it was decided that MOI&P will take up the issue with Ministry of Commerce he further informed. Other problems included non-availability of uninterrupted Power supply. The matter of uninterrupted power supply has been taken up with PESCO, but the matter remains unresolved, at their end. Dilapidated infrastructure of Risalpur EPZ is also one of problems faced. The issue has taken up several times with the management of KPEZDMC but still remains unresolved.     

The Chairman EPZA was of the view that despite issues of trading even manufacturing is not been initiated in the zone as per the potential in the area. Issues of manufacturing and trading via land route should be resolved and issue of supply of electricity to at least up to 5 megawatt be granted to meet the need of making units operational and productive the chairman EPZA further suggested.

The meeting was deferred with the directions to call representatives from the FBR, Ministry of Commerce, PESCO and KPEZDMC along with all the stake holders in the next meeting to resolve the issues faced by the export processing zone of Khyber Pakhtunkhuwa.