This also applies to businesses that will operate in the Gwadar Free Zone for up to 40 years to make the Arabian Sea port an important node in Beijing’s One Belt, One Road initiative.
The decision came from the Economic Coordination Committee (ECC) of the Cabinet as Iran, India and Afghanistan all signed a trilateral transit agreement to counter the China-Pakistan Economic Corridor (CPEC).
ECC approved a complete income tax exemption for 23 years to all businesses that will be established in the Gwadar Free Zone.
This concession extends to contractors and subcontractors and China Overseas Ports Holding Company Limited (COPHCL) companies for 20 years.
Pakistan also agreed on custom duty exception for the COPHCL, its operating companies, contractors and subcontractors for a period of 40 years on import of equipment, materials, plants, machinery, appliances and accessories for construction of the Gwadar Port and the Free Zone.