Ron Haque Sikder
Managing Director
PowerPac Economic Zone Pvt. Ltd.
Bangladesh is anemergingeconomic power housethat is classified as aNext Eleven emerging market and one of the Frontier Five. Its economy isgrowing at a sustained annual GDP growth of over 6% since FY 2010. The government of Bangladesh has taken initiatives to establish 100 Economic Zones on 30,000 hectares of land in the next 15 years with an employment generation for 10 million people. As response to the government, PowerPac Economic Zone (Pvt.) Ltd. (PEZ) (a concern of Sikder Group)established with the purpose of start- up and development of efficient industrial activities through absorption of domestic and foreign investment using modern technology and providing special service towards national quantitative and qualitative boom. PEZ is the first Economic Zone inMongla, Bagerhat, Bangladesh awarded on Public Private Partnership (PPP) basis under the Bangladesh Economic Zone Authority (BEZA).
PEZ’s Vision and Mission
Development of infrastructure facilities
Promotion of investment from domestic and foreign sources
Generation of additional economic activity
Promotional export goods and services
Creation of employment opportunities
Why Invest In PEZ?
Presence of Mongla Port adjacent to the PEZ and existing Export Processing Zone (EPZ) will provide most cost effective and timely logistic support resulting in sustainable logistic service, such as:
Captive Power Plant
International Management Team
Hassle free land
One stop service
Sewerage Treatment Plant
Effluent Treatment Plant
Water Treatment Plant
Waste Management Plant
Uninterrupted Utility Service
Key Information of PEZ
Access: Adjacent to Mongla Port, 40 km from Khulna City, 105 km to Jessore Airport and 230 km to Dhaka
Land: Gross area 205 acres
Facilities: Bank, Retail Shops, Administration Block, Training Center, Community Hospital, Filling Station, Mosque & Place for Religious activities, Day Care Center, Housing Facility, Residential Hotel.
Suitable Industries
Apparel / RMG
Paper Industry
Plastic Goods
Agro Products Industry
Metal Product Industry
Steel & Re-Rolling Mills
Pharmaceuticals
Furniture Factory
Footwear & Leather
Solar Energy
Cement Industry
Light Engineering
Chemical Industry
Food Processing
Ship Building
Automobile
Jute
Toy Industry
Incentives for Investors
Tax Holiday: Year 1 : 100%; Year 2 :100%; Year 3 :80%; Year 4 :70%;
(Of 35% Corporate Year 5 : 60%; Year 6 :50%;Year 7 :40%;Year 8 :40%;
Tax Rate) Year 9 : 20%; Year 10 : 10%
Duty free import of raw materials
Exemption from dividend Tax (after tax holiday elapsed)
Full repatriation of capital and Dividend
No ceiling of FDI
20% sale of finished product to DTA
Sub-contracting with DTA allowed
50% exemption of stamp duty
50% exemption of registration fee
Exemption of VAT on all utility services
Duty exemption on export
Exemption of income from IT for expatriates’
Foreign loan is allowed in compliance of existing laws
FC Account for non-residents
FC Account for both local & Joint Venture (JV) industry
Foreign investors are free to enter into JV
Tax exemption on royalties, technical fees etc
Resident visa for investment of USD 75,000
Citizenship for investment of USD 500,000 or more
100% backward linkage raw-materials and accessories to sell for E01 in DTA
Exemption of double taxation subject to Double taxation agreement
Consider Export Processing Area of Economic Zone as custom bonded area
Tax exemption on capital gains from transfer of shares
Provision of transfer shares by foreign shareholders to local shareholders and investors
Issuance of work permits to foreigners is allowed up to 5% of total officers / employees of a unit
Process to be adapted
The Unit Investor apply to PEZ for the Plot at Economic Zone
PEZ confirm the plot subject to the availability and sign the contract with the Unit InvestorThe Unit Investor setup the business and start the commercial operation.
