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Tuesday, July 4, 2023
Welcome to the official website of the 中国—阿拉伯国家博览会
Rashakai Special Economic Zone of Pakistan
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    Secretariat of the China-Arab Sates Expo

  • I. Introduction

    Pakistan is located in the northwest of the South Asian Subcontinent, bordering the Arabian Sea to the south and the Karakoram and Himalayas to the north. Bordering India, China, Afghanistan and Iran in its east, north and west, respectively, Pakistan occupies a significant geographical location.

    Being "all-weather strategic cooperative partnership", China and Pakistan enjoy remarkably robust trade ties and the China-Pakistan Economic Corridor (CPEC) was officially proposed in May 2013. Through all-round and multi-field promotion and cooperation between the two countries, the "1+4" cooperation layout has been developed, with the construction of the CPEC at its core, and Gwadar Port, energy, infrastructure construction, and industrial cooperation as four major subsections. Up to now, the CPEC has infused Pakistan with over $25 billion in direct investments, significantly boosting the country's economic advancement. Its monumental achievement has firmly established the CPEC as a flagship and pilot project of international cooperation under the Belt and Road Initiative.

    The Rashakai Special Economic Zone (RSEZ), located at the junction of the eastern, central and western lines of the CPEC, is a prioritized SEZ under CEPC industrial cooperation. As it plays an exemplary and leading role in China-Pakistan production capacity cooperation, the RSEZ has received high attention from both governments. On April 28, 2019, during the Second Belt and Road Forum for International Cooperation, the Concession Agreement for the RSEZ was successfully signed. Since the commencement of Phase-I’s construction in June 2021, the RSEZ has seen remarkable progress and the completion of Phase-I, attracting the allotment of 24 Chinese and foreign investors, achieving an impressive sale rate of 73%. Simultaneously, preparations for the construction of Phase-II are underway.

    The RSEZ is located next to the M1 Expressway, providing easy transport links within the country. Peshawar, the provincial capital of Khyber Pakhtunkhwa, is just 60km west of the zone, while 90km to the east is the capital Islamabad, and 800km to the north you’ll find the Khunjerab Pass. Meanwhile, it is just 5km from the ML-1 railway line, through which Karachi port can be reached directly, ensuring convenient and efficient transport to and from the RSEZ.


    Location of the project

    II. Planning and Industry Positioning

    The RSEZ is strategically designed to form a functional structure of "one axis, three belts, three cores and multiple corridors" constructed and operated by the China Road and Bridge Corporation under a concession period of 30 years. Covering an area of about 4 km², the RSEZ will be developed in three phases with an estimated total investment of 130 million US dollars. Taking advantage of local resources and market dynamics, the RSEZ is envisioned to become an integrated special economic zone with key components of an international trade city, a logistics park, a high-end industrial park, and a high-tech science park. Leading industries will include agricultural products processing, household appliances, home building materials, electric vehicles, automobiles and parts, new energy, textiles and clothing, and biomedicine.

    The picture shows the park rendering

    The picture shows the actual scene of the completion of the first phase of the park project

    III. Preferential Policies

    The RSEZ enjoys the following preferential policies:

    1. Allotted enterprises will receive a one-time exemption from all custom-duties and taxes on capital goods imported into Pakistan;

    2. Allotted enterprises are eligible for exemption from all taxes on income accruable in relation to its commercial production/operation for a period of 10 years;

    3. The land lease term in the RSEZ is 99 years;

    4. One-stop service center: The RSEZ will set up a one-stop service center to provide such services as industrial and commercial registration, taxation, customs, commodity inspection, administrative examination and approval, and other matters, greatly facilitating and shortening the review and approval process;

    The Government of China and Pakistan are exploring more preferential policies to facilitate the development of the RSEZ.


    The CPEC City

    IV. Infrastructure

    The construction of the project includes: civil engineering projects, such as water supply and drainage works; road works; power supply works (including a transformer substation and 11KV power transmission and distribution works); communication works; gas engineering; and supporting facilities, such as factory buildings, comprehensive office buildings, apartments, commercial buildings, and hotels.

    V. Supporting Services

    To cater to the operational and residential requirements of enterprises in the RSEZ, in addition to sufficient basic utilities, such as electricity (with a total capacity of not less than 200MVA), water, and gas, the RSEZ will also be equipped with executive apartments, premium hotels, shopping malls, hospitals, international schools, one-stop comprehensive service buildings and other supporting facilities.

    The Government of Khyber Pakhtunkhwa also outlines the building the "China-Pakistan Economic Corridor City" (hereafter referred to as "CPEC CITY") next to the M1 expressway and across from the Rashakai Special Economic Zone. The CPEC CITY will be able to accommodate 200,000 residents and will contain residential and commercial areas, apartments, golf courses, theme parks and sports facilities.

    VI. Contact Information

    Chinese Contact: Ms. Wang, Beijing HQ, China Road and Bridge Corporation

    Tel: 010-84267849                        


    Pakistani Contact: Mr. Zhang, Pakistan Office, China Road and Bridge Corporation


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