Islamabad: President Arif Alvi recently promulgated several ordinances to facilitate the establishment of the China-Pakistan Economic Corridor (CPEC) Authority and to grant tax concessions to the Gwadar port and its free zone, a news source reported. The ordinances were issued ahead of Prime Minister Imran Khan’s visit to China.
The ordinances, titled ‘The CPEC Authority Ordinance 2019’ and ‘The Tax Laws (Amendment) Ordinance 2019’ are aimed at setting up a new body to oversee the implementation of the CPEC projects – as well as give income tax, sales tax and custom duties exemptions to the Gwadar port and Gwadar Free Zone.
Previously, the National Development Council had approved the formation of the CPEC Authority and tax concessions for Gwadar port.
The ordinance gives vast financial and administrative powers to the CPEC Authority; including immunity from legal prosecution for its executive and ability to devise its own budget.
The CPEC Authority will build on the tasks performed by the CPEC secretariat. The authority has been placed under the Planning, Development and Reform Division under the Rules of Business of 1973.
It will have the powers to enter into contracts, acquire and hold property — both movable and immovable — and it can sue and be sued in its name, according to Section 3(2) of the ordinance.
