Special Economic Zone
In order to facilitate rapid commercial and economic development, Gwadar will be declared a Special Economic Zone for a certain period, The length of this period has not yet been determined. The SEZ is likely to cover the city of Gwadar and the industrial areas currently planned and foreseen. The specific incentives-regime is likely to include general tax-holidays, no VAT and generous incentives pertaining to business ownership and employment of foreigners. The main purpose of this concept is to accelerate economic development and investments, both foreign and local, in general. This in turn will spur industrial development and port traffic throughput demand. It would also contribute more rapidly to employment creation and uplifting of the Gwadar district and of Balochistan.