ISLAMABAD, Feb 23: Pakistan has offered Malaysian investors a dedicated economic zone on a ‘build, own and operate ‘basis.

Pakistan’s High Commissioner for Malaysia Lt Gen (retd) Tahir Mahmud Qazi told Malaysia’s national news agency Bernama that the offer was a formal follow-up to the proposal made by the Malaysian trade delegation that visited Pakistan last November.

He said the offer had several incentives, which include a five-year tax holiday for investors and 10 years for developers at the zone, says a press release issued by the Pakistan High Commission in Kuala Lumpur.

He said the incentives will also include duty free import of capital goods, minimum 50 acre land for factories on 50 to 100 years lease, one-stop approval and protection for investors through an Act of Parliament.

Tahir Qazi said there was no restriction on the type of industries, and it could be food processing, fisheries and manufacturing of capital goods.

He said since Pakistan had a big reservoir of human resources, it would be ideal to have industries that were labour intensive.

On trade ties between the two countries, Mr Tahir said Malaysian exports to Pakistan were recorded at $1.7 billion last year compared to $1.07 billion in 2007, registering a 59 per cent increase.

Malaysian imports from Pakistan also rose by 27 per cent to $103.8 million last year from $84.4 million the previous year.

The High Commissioner expressed the confidence that the Malaysian Pakistani Closer Economic Participation Agreement (MPCEPA), which came into effect on Jan 1, 2008, would immensely benefit trade between the two countries.

Under the agreement, both countries will gradually reduce tariff on each other’s goods, making them competitive in the world market, he added.—APP