1. Where is Quaid-e-Azam Business Park (QABP) located?
- QABP is located in Sheikhupura, right on Lahore-Islamabad Motorway (M-2) at about 15 minutes’ drive from Ravi Toll Plaza, Lahore. The site is situated on west side of M-2 between Monosaranwala bridge and Sheikhupura Interchange.
- QABP is just next to the city of Sheikhupura and has access from both M2 motorway from the front side and Lahore – Sheikhupura Road (N60) from the city side.
- We are constructing a dedicated interchange at Monosaranwala bridge which will provide direct access to QABP from both Lahore and Islamabad side. We are also constructing a direct access to the park from Sheikhupura Interchange.
2. Is skilled and unskilled labor available nearby?
- QABP is located in Sheikhupura which is home to a large industrial base. The presence of industry in such large number creates lot of demand for both skilled and unskilled labour which is met by labour from Shiekhupura, Lahore and adjoining areas. The labour demand of QABP will also be met from nearby locations.
3. Will QABP have a labor colony?
- Yes. A 200 acre block has been reserved for labor colonies right next to the zone for establishing a labour colony. PIEDMC will start work on its development as soon as demand arises.
4. What utilities will be available in QABP?
- PIEDMC will make available all utilities like electricity, RLNG, water and telecommunication to the industrialists at the doorstep.
5. Will QABP have a dedicated grid station?
- Our electricity plan is comprehensive and caters to the needs of the industry on long term basis. QABP will have two 132/ 11 KV grid stations – one on the eastern edge and another on the western edge of QABP. LESCO has already commenced work on the grid station at eastern side of QABP (Grid Station-1).
- Initially both grid stations will have one 40 MVA transformer each and additional transformers will be added as demand increases.
6. How would PIEDMC ensure that sufficient power is available in QABP?
- National Transmission & Dispatch Company (NTDC) – a subsidiary of WAPDA, has designed a 220 KV grid station inside QABP premises for which PIEDMC has already allocated 25 acres. This NTDC 220 KV grid station will have two 250 MVA transformers (220/132KV) and thus would not only meet the ultimate energy requirements of QABP but also of the adjoining areas.
- The PC-I of this grid station has been submitted to the Planning Commission, Government of Pakistan and hopefully it will be included in the PSDP 2021-22. This grid station is planned to be commissioned by end FY 2024.
7. How would PIEDMC meet the energy requirements in QABP till commissioning of NTDC grid station in 2024?
- As per our planning, the NTDC grid station would be required only when the internal demand is more than 80 MW. Our experience tells that such demand would arise around 2028. Till then, the existing transmission network of LESCO is sufficient to meet the demand.
8. Is QABP a “Special Economic Zone” (SEZ)?
- QABP has been notified as Special Economic Zone in terms of SEZ Act, 2012 by the Government of Pakistan on 07-12-2020.
9. When will the development works start?
- Although supporting works have already commenced, the major development works inside QABP are planned to commence in April 2021 to be completed by July 2023.
10. Is gas available in QABP?
- Yes. PIEDMC has laid, through SNGPL, a 17 km long 16 inches’ diameter transmission pipe to the entry point of QABP at a huge cost of Rs. 690 million. This pipe brings gas from SNGPL’s main transmission network located in Qila Sattar Shah (district Sheikhupura). In addition, a dedicated SMS/CMS on one and a half acre has also been constructed inside the premises of QABP.
- The customers will be provided connections on account of Re-gasified LNG (RLNG).
11. Please tell us about Multi-Purpose Complex (MPC)?
- PIEDMC has planned and designed a 300,000 square feet, six story, multi-purpose complex right at the main entrance of QABP. The building complex will be constructed over 10-acre land and include offices, shops, display centers, business centres, bed & breakfast hotel, factory outlets, emergency Centre, etc.
- The work on Phase-I of MPC, comprising ground floor and mezzanine floor measuring 113,000 square feet, has commenced. The Phase-II comprising other floors would be undertaken once we have sufficient customers has commenced.
12. Will QABP have a Combined Effluent Treatment Plant (CETP)?
- Yes. QABP will have a CETP constructed at the western side. The treated effluents will be released to the newly remodeled Sheikhupura drain.
- Unlike previous projects, CETP in QABP will be constructed in earlier stages between 2021-2023. CETP will be constructed on modular basis and its capacity would be increased by constructing additional modules as flow of wastewater increases.
13. What parameters of wastewater will Combined Effluent Treatment Plant (CETP) treat?
- CETP shall treat the wastewater to bring the values of BOD, COD, and TSS of wastewater within the National Environmental Quality Standards (NEQS) limits.
14. Does this mean that the individual industry will not have to treat the wastewater?
- The industry will have to, as part of pre-treatment, bring the parameters of effluents to the levels specified in ‘Punjab Environmental Quality Standards for Municipal and Liquid Industrial Effluents’ prior to the discharge of wastewater into the sewerage system of QABP.
15. Will I have to pay any additional cost for getting electric connection?
- The internal 11 KV underground electrical distribution system has been designed on a design load of 200 KVA per acre. PIEDMC will charge standard charges (connection and security) for electric connection if the required load is within design load (i.e. 200 KVA per acre). However, if the required load exceeds the design load then additional charges will be levied.
16. Is the cost of transformer included in the plot price?
- No. The cost of transformer is not included in the plot price.
17. Will I have to buy my own pad-mounted transformer (PMT)?
- No. Just like in Sundar Industrial Estate, PIEDMC plans to buy and install pad mounted transformers (750- 2000 KVA capacities) in QABP. Industrialists will be provided connection from these PMTs and charged based upon their load. We have found this to be efficient and convenient method.
18. How will QABP be managed and maintained?
- PIEDMC shall develop and eventually hand over the day to day management of QABP to a private sector led Board of Management (BOM). This is usually done upon significant colonization of the QABP or as decided by the Board of Directors (BOD) of PIEDMC.
- The BOD of PIEDMC shall nominate president and members of the BOM from the resident owners of the QABP. The BOM shall function as per approved Rules of Business including levying and collection of monthly operations & management (O&M) charges.
19. When will plots be handed over for possession?
- The customers who have made full payment of the plot can take possession immediately if they desire to start construction.
- The customers who are on installment plan need to first pay and clear balance payment against plot. However, customers can make a special request for possession after only after 60 percent of the payment of the plot has been made. Such cases will be decided on case-to-case basis.
20. Can I start construction on my plot while development works are going on?
- Yes. PIEDMC will provide access to the plot and temporary electric connection to facilitate construction of industry concurrent with the development of QABP.
21. What is the building construction period?
- The customer must commence construction of the factory within 06 months from the date of execution of Agreement to Sell and complete it within 24 months from the date of execution of Agreement to Sell.
- There are fees/ penalties if the completion of construction is delayed. In case of transfer of plots, the customer must also pay extension fee in addition to the transfer fee.
22. Are there any penalties in case of delay in construction?
- Yes, there will be penalties/ fees etc
23. Are the plots transferable?
- Only plots that have been paid for in full (100%) can be transferred to any new owner through PIEDMC subject to payment of transfer fee and other fees if there is no other violation of terms and conditions of allotment policy/ SEZ Act 2012.
- Plots with outstanding dues/ installments cannot be transferred.
- *Plots are transferrable subject to policy.
24. Will the listed prices change?
- These prices are pre-launch prices and may change by the BOD of PIEDMC.
25. What is the applications closing date?
- There is no closing date as of today. The plots will be allotted on first-come-first-serve basis till the time BOD decides and in that case the date of closing will be announced on the website.
26. Are there any zones or sectors in QABP?
- Yes, we have earmarked zones for food, pharmaceutical, engineering, and textile sectors. The basic idea is that high energy consumers should be closer to the grid station, high water using closer to CETP, and pharmaceutical and food units be away from emissions.
27.How strictly will you follow this zoning while allotting a plot?
- We will try to follow this as far as possible. However, we believe that a customer who is paying for the plot must have a say in the choice and especially those ‘early birds’ who have reposed trust in PIEDMC in the prelaunch phase must be accommodated at the plot of their choice.
28. How to apply for a plot?
- You will have to create a profile on online portal of SEZs at https://sezmis.invest.gov.pk in order to apply for a plot in QABP.
- You can also request for an application kit which will be sent to you via courier or you can collect the same from any PIEDMC office located in Lahore, Rahim Yar Khan, Bhalwal, Vehari and Multan.
29. Can I buy a plot with less than 30 percent down payment?
- No, you have to pay 30 percent down payment to buy a plot through installment plan.
30. How can you help a customer who is unable to pay 30 percent down payment upfront?
- PIEDMC has started a facilitation policy, whereby a customer, who is member of an Association and come sponsored by the Association as part of the commitment between the Association and PIEDMC, can start the application process with 15 percent down payment. PIEDMC will accommodate all such customers but the plot number (or a choice of plot selection) will be given only after 30 percent of the plot price has been received by PIEDMC.
32. Do all applicants have 2 years to pay the installment or is there any relaxation?
- PIEDMC has proposed following relaxation in installment plan to the members of the Association who come sponsored as part of the commitment between the Association and PIEDMC:
- Down payment of 40% and 3-year instalment plan (4-monthly).
- Down payment of 45% and 4-year instalment plan (4-monthly).
- Down payment of 50% and 5-year instalment plan (4-monthly)
33. Are there any incentives for customers buying large areas like 25 acres?
- Yes; in addition to lower price slabs, PIEDMC will provide following relaxation in installment plan to customers buying 25 acres and above:
- Down payment of 40% and 3-year instalment plan (4-monthly).
- Down payment of 45% and 4-year instalment plan (4-monthly).
34. Is there any restriction on customers interested in buying 25 acres or larger plot?
- PIEDMC will try to accommodate such large size plots towards the back side or south side of QABP and that such customers will use 70 percent of the plot area for production/ construction.
35. Is QABP a Special Economic Zone (SEZ)?
- Government of Pakistan has on 07th December 2020 notified Quaid-e-Azam Business Park (QABP) as Special Economic Zone (SEZ) in terms of Special Economic Zones Act – 2012.
36. What are the benefits of SEZ status to an industrialist?
- Yes, such customers have 60 days to pay the balance 15 percent of the plot price.
31. Is there any time limit on applicants who would pay 15 percent down payment?
- Any enterprise that is officially admitted to QABP would be entitled to following benefits as per Clause 37 of the SEZ Act, 2012:
(a) one-time exemption from custom-duties and taxes on import of plant and machinery into SEZ except items listed under Chapter 87 of the Pakistan Customs Tariff, for installation in that zone enterprise subject to verification by the BOI; and
(b) exemption from all taxes on income for five years after commencing commercial production.
37. What is meant by ‘officially admitted’ into QABP?
- Since QABP is an SEZ, the Government of Pakistan desires that only bonafide industrialists avail the benefits. Therefore, a process has been devised whereby the applications for entry are evaluated by a Committee, called SEZ Committee, and the enterprises are officially admitted.
38. Does this mean that the industrialists will have to undergo a bureaucratic process of approval before getting ‘officially admitted’?
- Absolutely not. The process is led by Chairman, PIEDMC who by law is Chairperson of the SEZ Committee.
39. What would I need to do to be officially admitted?
- You will need to register at the web portal of Board of Investment at https://sezmis.invest.gov.pk and click “Register” and then click “Register as Zone Enterprise”. PIEDMC shall be fully assisting you during this process. Alternately if requested by you, PIEDMC can also undertake this registration on your behalf.
40. What documents do I need to complete the registration?
- You need Company SECP Number, CNIC, Email, and Mobile Number to register.
41. What if I do not have SECP Number for the Company?
- Getting registered with SECP is a simple process. Please contact us and we will help you with SECP registration and preparation of Article & Memorandum of Association. We have contacts of experts who can provide you this service professionally for a small fee.
42. What documents are required to complete the zone application?
- You need following documents to complete the zone application:
- The Business Plan
- Income Tax Returns (last 3 years)
- Certificate of Incorporation
- Financial Statements (last 3 years)
- Memorandum & Articles of Association
43. What should be included in the business plan?
- The business plan should preferably include:
- Executive Summary
- The Business
- The Market
- Operations Plan
- Financial Plan
44. Any other details that I have to enter in the online application?
- If one has prepared a complete business plan the details would be easy to enter. Therefore, we suggest that the business plan should include the following:
- Name and Contact Details of the Principal Officer of the Business (address, phone, Email etc.)
- Details of Owners and Key Managerial Staff.
- Total Project Cost (In Rupees or US$ as the case may be)
- Any Other source of funding
- Foreign Investment (Amount, Source, and Type).
- Details of Foreign Technical Collaboration, if any.
- Annual Production Capacity (Number & Quantity of Products).
- List of Products (to be produced).
- List of Similar Products (already produced in Pakistan).
- List of Similar Products (imported to Pakistan – preferably with HS codes).
- Value of Products to be Produced/ Annual Production Value (Rs.).
- Target Market (both local or foreign, if any).
- Quantity and Value of Exports (if any).
- Type and Quantity of Raw Materials.
- Quantity and Value of Raw Materials (both local and import – separately).
- Net Foreign Exchange Outflow/ Inflow (Exports – Imports) in US$
- Projected Income Statements (Or Profit-Loss Statements) for Next 5 Years.
- Employment Generation – a detailed section, including number and profile of local and foreign employees along with expected salaries.
- Total Requirement of Land in Square Feet (or Acres of 36,000 square feet)
- Space Required for Warehousing/ Storage (Square Feet)
- Space Required for Production and Operations (Square Feet)
- Electricity Requirement in KW
- Details of Own Generator or Generation (captive power), if any.
- Gas Requirement (in SCF/ Day or MBTU/ Day)
- Water Requirements (UK Gallons/ Day or Litres/ Day)
- Number of Landline Phones Required.
- Details of Drainage Water (i.e. Municipal Waste – in gallons/ litres)
- Details of Effluents (i.e. Industrial Liquid Waste – in gallons/ litres)
45. The above are too much details and I feel overwhelmed. How can PIEDMC assist me?
- These are basic information and can be easily worked out. If you like assistance, we can help you prepare the business plan by using our dedicated SEZ Cell in PIEDMC who are experts in the field.
46. I am hesitant and apprehensive about data security especially about putting too much details online. Will my information be available to everyone?
- The SEZ Rules and Regulations ensure data confidentiality. Your information shall only be shared with members of the SEZ Committee.
47. How much time would it take to be ‘officially admitted’?
- Upon completion of online application, which may take less than an hour - if business plan and other documents are ready - the Chairman PIEDMC being Chairperson of SEZ Committee can convene meeting of SEZ Committee on just 7-day notice or earlier if required.
48. How will I get SEZ benefits?
- The SEZ Committee, which is chaired by Chairman PIEDMC, will certify that you meet the criteria for SEZ benefits. Thereafter, we will help prepare a ‘case’, which will include your plan of production including the details of the machinery and plant that would be used in the production process and to be imported duty free. That ‘case’ would be approved by Board of Investment (BOI) and BOI will pass directions to Federal Board of Revenue (FBR) who will issue a letter. You will be able to import all plant and machinery, except those mentioned in Chapter 87 of Pakistan Customs Tariff, free of any duty and taxes.
49. Will I have to go from office to office to get my case approved?
- Absolutely not. Your case file will be prepared and processed by PIEDMC.
50. What is included in Chapter 87 of Pakistan Customs Tariff?
- Chapter 87 mainly deals with tractors, automobiles, motorcycles, bicycles, auto parts and accessories, trailers, etc. You can download latest customs tariff from FBR website by clicking https://www.fbr.gov.pk/categ/customs-tariff/51149/70853/131188 or you can download directly from https://download1.fbr.gov.pk/Docs/202011613115526330CustomsTariff(Ch01-97).pdf Chapter 87 starts at page 160 and finishes at page 185.
51. How much would I save from exemption on import of plant and machinery?
- You can avail exemption on all taxes, including sales tax, advance tax, federal excise duty, and custom duties on import of plant and machinery. This quantum of exemption comes on average to around 25% of the import value. The FED is usually between 3 to 5%, Sales Tax is about 17%, and Advance Tax is usually 1% of the import value.
52. My line of business is already ‘zero rated’. So, what additional benefit do I have with SEZ certification?
- With zero rated status, you will have to first pay the taxes and duties and then claim the refund. Our experience suggests that claiming refund usually is an arduous exercise. Moreover, with zero rated status, you may have to still pay some of the taxes and duties.
53. I can avail duty free imports only one-time but I want to set up my industry in phases and thus my imports will arrive over a period of time. How can I avail benefits on imports for later phases?
- You will have to specify the timelines and plans at the approval and certification phase. You can import the approved plant and machinery duty and tax free as long as the shipments correspond to the timelines and plans.
54. Will the raw material that I import be duty and tax free?
- The raw material or any import that is consumable is not exempt from taxes and duties.
54. All the machinery that I would be using is locally made. So, what benefits do I have of the SEZ status?
- You can still avail 10-years Income tax exemption from the day you come into production.