The government of Balochistan has proclaimed the port city of Gwadar a tax-free zone, exempting industries in the economic zone from services and excise taxes.
Gwadar’s proximity to the Strait of Hormuz and Arabian Sea makes it a region of immense economic and geopolitical significance. Pakistan has continued to convert Gwadar into a major trade hub and energy corridor, linking China’s western regions to the Arabian Sea.
Baloch leaders and industrialists applauded the government’s recent action and demanded a reduction in federal taxes.
Senator Kauda Babar lauded the government’s decision to designate Gwadar as a tax-free zone, which he believes will revitalise the true spirit of the flagship CPEC project, increase activity at the Gwadar port, and attract additional investment.
Further industrialization of Balochistan city would generate employment opportunities for Pakistani youth and bring foreign currency into the cash-strapped nation.
The development of industrial and special economic zones in the port city is poised to attract foreign investment and spur industrial expansion, while construction is ongoing to improve its connectivity and facilitate the movement of goods and people.