Road-Links
The district has metalled road-length of 1413 Kilometres. The
district is linked with Sialkot, Gujrat, Sheikhupura, Narowal,
Hafizabad and Mandi Bahauddin districts through metalled
roads. |
Rail-Links
The main Peshawar-Karachi railway line passes through
Gujranwala district. The district is linked with Sialkot,
Hafizabad and Gujrat districts through railway network |
GENERAL QUALITY AND AVAILABILITY OF SUB-SOIL WATER.
The sub-soil water in the district is generally suitable for
industrial utilization except in some areas where under ground
water needs pre-treatment for industrial consumption. |
EFFLUENT DISPOSAL FACILITIES.
Nullahs in the district are available for disposal of
industrial effluent. However, effluent can be discharged into
these nullahs after pre-treatment and permission from
Irrigation and Power Department, Government of Punjab |
POWER SUPPLY.
There are 13 grid stations in the district (ranging in
capacity from 66 KV to 220 KV). Two Grid stations at
Gujranwala-Lahore Road and Gujranwala Pasrur Road having a
capacity of 132 KV each are under installation. |
NATUNATURAL
GAS AVAILABILITY.
Natural gas is available in the city and towns. |
TELEPHONE FACILITIES.
There are 59 telephone exchanges operating
in the district (ranging in capacity from 400 lines to 17000
lines). Cellular phone services are available in the district. |
SOCIAL INFRA-STRUCTURAL FACILITIES
Social infra-structural facilities (Public Sector) available
in the district are given in Table 7 on Tehsil Wise basis.
SOCIAL INFRA-STRUCTURAL FACILITIES
TEHSIL |
Primary /
Middle / High
School |
college |
HOSPITAL |
POLICE
STATION |
RAILWAY
STATIONS |
POST OFFICE |
BANKS |
|
472 |
12 |
11 |
12 |
7 |
111 |
|
Wazirabad |
546 |
4 |
2 |
6 |
7 |
80 |
|
Kamoke |
418 |
2 |
1 |
3 |
2 |
36 |
|
Nowshera Virkan |
386 |
1 |
N.A. |
3 |
- |
18 |
|
|
INDUSTRIAL ESTATE.
Punjab Small Industries Corporation established an Industrial
Estate at G.T. Road, Gujranwala during the year 1961. The
Estate was completed in 1967 and is presently fully colonized.
A second Industrial Estate has recently been developed at
Lahore-Sheikhupura Bye Pass Road. The detail regarding the
size and status of plots is given in Table
Name of Industrial Estate |
Size of Plots |
Total No. of Plots |
Allotted Plots |
Vacant Plots |
Industrial Estate Gujranwala-I |
4 Kanals |
86 |
86 |
Nil |
2 Kanals |
104 |
104 |
Nil |
1 Kanals |
116 |
116 |
Nil |
Industrial Estate Gujranwala-II |
4 Kanals |
67 |
67 |
Nil |
2 Kanals |
82 |
82 |
Nil |
1 Kanals |
146 |
146 |
Nil |
10 Marlas |
148 |
148 |
Nil |
7 Marlas |
108 |
108 |
Nil |
|
Punjab Small Industries Corporation has
planned to establish Export Processing Zone in Gujranwala in
collaboration with EPZA. |
INDUSTRIAL POLICY
Foreign investors are permitted to hold 100% of the equity of
industrial projects without any permission of the Government.
No prior Government sanction is required for establishment of
an industry outside Ex-Municipal Territorial Limit of Town
Committee / Municipal Corporation irrespective of its cost and
size except the following:-
a. Arms & Ammunition.
b. Security Printing Currency & Mint.
c. High Explosives.
d. Radio Active Substances.
e. Alcoholic Beverages or Liquors.
f. Cotton Ginning Industry.
g. Flour Mills.
No sugar mill shall be set up in
the district.
No industry shall be
established within the territorial limits of Ex-Municipal
Corporation, Municipal Committee and Town Committees without
prior approval of the Government.
NOC from Environment
Protection Department, Government of Punjab is required.
Tourism has been given the
status of industry in accordance with Ministry of Industries &
Production Circular No. 1-129/99-INV-IV dated
2nd August 1999.
The Housing and
Construction Sector has also been declared as industry
(Finance Division Notification No. 10(10)/IF-II/98, dated
07.4.1999 and 4.6.1999.
In accordance with Government notification No. 3(2)/97-INV-IV
dated 05.5.1997, Computer Software and Information Technology
(IT) have been declared as Industry |
4.2
INCENTIVES. |
According to the latest investment policy of the Government,
major existing tariff and fiscal incentives for manufacturing
sector are as follows |
- |
Maximum Tariff Rate: |
30% |
- |
Number of Slabs: |
4 (Four) |
- |
With Rates of: |
5%, 10%, 20%, 30% |
- |
|
10% |
- |
|
|
- |
|
Duty free |
- |
|
Zero |
- |
|
Zero Rated |
- |
|
Zero Rated |
- |
|
Zero Rated |
- |
|
Exempted |
- |
|
Zero Rated |
INDIRECT TAXES |
- |
|
10% to 25% (except Automobile) |
- |
|
15% to 18% |
- |
|
5% to 90% |
- |
|
5% |
- |
|
7% upto Rs. 3000/- or if salary
exceeds Rs. 3000/- Rs. 210/- |
- |
|
Rs. 100/- per worker |
- |
|
Variable |
- |
|
Rs. 360/- on industrial Rs. 720 on
Consumer if bill exceeds Rs. 5000/- |
- |
|
o
Fifty Paisa
for every Rs. 100/- or part thereof of the amount of
bill of entry.
o
Fifty paisa
for every Rs. 100/- or part thereof of the amount of
letter of credit. |
FISCAL |
Normal Tax Rate.
Personal Income Tax Rates.
- |
Up to Rs. 80,000: |
No Tax |
- |
Rs. 80,001 to Rs. 150,000: |
7.5% of Income |
- |
Rs.150,001 to 300,000: |
Rs. 6,750 + 12.5% of excess over Rs.
150,000 |
- |
Rs. 300,001to Rs. 400,000: |
Rs. 25,500 + 25% of excess over Rs.
300,000 |
- |
Rs. 400,001 to Rs. 700,000: |
Rs. 40,500 + 30% of excess over Rs.
400,000 |
- |
Over Rs. 700,000: |
Rs. 120,000 + 35% of excess over Rs.
700,000 |
Depreciation Allowance (Schedule-III) |
a)
Depreciation Allowance (DA) on Plant & Machinery @ 10% on
written down value
b)
DA @ 5% is available on office building & 10% on factory
building
c)
The rate of initial allowance under section 23 shall be 50%.
d)
The rate of amortization of pre-commencement expenditure under
section 25 shall be 20%. |
Initial Depreciation Allowance |
Under the provision of sub-section (5) of section 23 of the
New Ordinance, Initial Depreciation Allowance at the rate of
5% is permissible on an eligible depreciable asset placed into
service in Pakistan for the first time in a tax year. For the
purpose of such allowance eligible depreciable asset means
plant and machinery excluding the following: -
a)
Any road transport vehicle unless the vehicle is plying for
hire.
b)
Any furniture, including
fittings.
c) Any plant or machinery that is acquired second hand.
d)
Any plant or machinery in
relation to which a deduction has been allowed under another
section of this Ordinance for the entire cost of the assets in
the tax year in which the asset is required.
It should be noted that the classes of allowances by way of
First Year Allowance (FYA), Reinvestment Allowance (RA) and
Industrial Building Allowance (IBA) as were introduced through
the Finance Act, 1998, at varying rate ranging from 20% to 80%
have now been withdrawn under the New Ordinance |
Fiscal Incentives for Capital Market.
- |
|
Exempted up to June 2004 |
- |
|
Exempted |
- |
|
Exempted |
- |
|
Exempted |
- |
|
Exempted |
- |
|
Exempted |
Transfer of Technology |
a)
There is no restriction on payment of royalty and / or
technical service fees for the manufacturing sector. However,
such agreements shall be registered with the State Bank of
Pakistan.
b)
The payments of royalties and
technical service fees to foreign companies will be taxed at
15%. However, reduced rates under the treaties with different
countries remain applicable..
c)
The payment of franchise, royalty
or technical fee in case of non-manufacturing sectors is
allowed subject to following conditions :--
|
-
In case of foreign
investment in non-manufacturing sectors including food sector,
the initial / lump sump fee should not exceed US$ 100,000
irrespective of number of outlets under one franchise.
-
A maximum 5% of net sales
(excluding 15% Sales Tax) in the food sector may be allowed as
franchised fee only for these items which are core items of
the franchised and are the specialities of the trade name. The
payment of such fees be allowed on monthly basis. No item will
be eligible for twice payment of royalty / franchised fee,
e.g. soft drinks, etc
-
Percentage / amount of
fees etc. for other non-manufacturing projects is also be upto
the maximum of 5% of net sales (excluding 15% Sales Tax).
-
Initial period for which
such fees may be allowed to projects in non-manufacturing
sectors should not exceed five years. Subsequent extension in
time period may be considered provided these projects also
make investment in alive upstream projects.
The agreements conforming to above guidelines will be sent
by the sponsors to State Bank of Pakistan for its
information. However, any relaxation or deviation from the
guidelines, will require prior approval of the
CabinetCommittee On Investment
|
INDUSTRIAL FINANCING
FACILITIES. |
Following Financial Institutions in the country are providing
various types of fixed investment industrial financing in the
foreign and local currency to the industrial sector for
establishment of new industrial units as well as for
Expansion, Balancing, Modernization and Replacement (BMR) of
existing industrial units within the frame-work of
industrial/financial policies of the Government of Pakistan |
i)
Agricultural
Development Bank of Pakistan (ADBP).
ii)
Allied Bank
of Pakistan Limited (ABP).
iii)
Habib Bank
Limited (HBL).
iv)
Industrial
Development Bank of Pakistan (IDBP).
v)
Muslim
Commercial Bank (MCB).
vi)
National Bank
of Pakistan (NBP).
vii)
Pakistan
Industrial Credit & Investment Corporation (PICIC).
viii)
Pak-Libya
Holding Company (PLHC).
ix)
Pak-Kuwait
Investment Company (PKIC).
x)
Saudi-Pak
Industrial & Agricultural Investment Company (SAPICO).
xi)
Askari Commercial
Bank.
xii)
United Bank Limited
(UBL).
xiii)
PICIC Commercial
Bank.
xiv)
Alflah Bank.
xv)
Union Bank.
xvi)
SME Bank Ltd.
xvii)
Soneri Bank Ltd |
Besides the financial institutions
mentioned above a number of Leasing Companies, Modaraba
Companies, Private Investment Banks are also providing
financing facilities to the industrial sector.
Punjab Small Industries Corporation has launched a Soft Loan
Credit Scheme to provide credit to Small Industrial Sector.
The main priority sectors will be as under:- |
Service Industries
Agro / Agro Support Industries
Food Processing Industries
Export Oriented Industries
Import Substitution Industries
Information Technology (IT)
Projects
Handi Crafts Industry
Women
Enterprises
|
The maximum loan limit will be up to three (3) million with
debt equity ratio 60 : 40 for new units and 50 : 50 for
existing projects. The mark up ratio will be 8% for new
projects, 9% for BMR/Expansion and 12% for working capital
loans. The repayment period will be 6 years for new projects,
5 years for BMR/Expansion and one year for working capital
including grace period as detailed below |
|
New Projects: |
One year / 1 year from the date of
disbursement of last instalment / first instalment which
ever is earlier. |
|
BMR/Expansion: |
Six months / one year from the date
of disbursement of last instalment / first instalment
which ever is earlier. |
|
Working Capital: |
Two months from the date of
disbursement. |
|
In order to promote the traditional crafts
in Punjab the PSIC is also launching a Soft Loan Scheme to
provide loan upto Rs. 40,000/- at the mark up rate of 7% per
annum with repayment period of two years including a grace
period of 4 months to individuals / units with fixed
investment upto Rs. 2 lac. 50% beneficiaries would be the
women.Other details if any, could be ascertained from the
Regional / Local Offices or the Headquarters Office of Punjab
Small Industries Corporation, Egerton Road, Lahore.Small
& Medium Enterprise Development Authority (SMEDA) has also
been established to develop small and medium enterprises in
Pakistan through aggressive sector development programs,
formulation of policy guidelines for the Government and
facilitate the small & medium enterprises by providing a
variety of support services |