EPZA aims to attract more foreign investment

Wednesday, December 23, 2009
By our correspondent

KARACHI: The Export Processing Zone Authority (EPZA) seeks long-term planning to bring diversity to the special economic zone for exporters in a bid to expand foreign investment.

Federal Minister for Industries and Production Mir Hazar Khan Bijarani visited the Karachi Export Processing Zone (KEPZ), here on Tuesday, where EPZA Chairman Aftab Memon and other senior officials briefed him on issues about functioning of the authority.

Memon said 66 per cent units in KEPZ consist of garment industry whereas the remaining 44 per cent are in different sectors. He said the authority is now targeting diversity by encouraging exporters of non-traditional items in the zone.

“We are getting good response of our efforts; recently we attracted investors in the sectors of jewellery and other commercial goods,” expatiated Saboor Ahmed, General Manager Facilities at EPZA. The EPZA chairman said in the preceding year, the EPZA showed a decline where the KEPZ exports have declined by 6 per cent. Overall exports also had a general declining trend in real terms, which slumped to 18 per cent in FY08-09, said he.

“In the real terms taking the dollar-rupee parity the decline will be more than that,” he added. Pointing to reasons of that shortfall he said it was not only the international recessionary trends but also the tariff regime and withdrawal of concessions from the EPZA which has caused the decline.

He said the concessionary regime offered for Gwadar EPZA had to be more open. Some of the suggestions given by chairman EPZA included 100 per cent export facility abroad as well as for tariff area instead of the present 50:50 ratio for exports abroad and tariff area, and opening of trading facilities at Gwadar.

The minister assured that the government is reviewing the reasons for the decline in the country’s exports and will soon adopt practical measures like revisiting the customs tariff for exports and removing the impediments to the export regime.

He also directed the EPZA chairman to present more workable proposals with a view to boosting exports and make the EPZA more attractive for investors within 15 days.

Morever, rising prices of sugar in the country, he said the government will soon import the planned one million ton of the sweetener to make it available in all corners of the city.