Gwadar Free Zone Provides 23-Year Tax Incentives for Investors
The government has informed the Senate that Gwadar is offering investors a 23-year tax holiday as part of a broader strategy to accelerate economic development and trade activity in the region. The update was shared during the Question Hour in the Upper House, highlighting the operational status of the New Gwadar International Airport and the Gwadar Free Zone.
Responding on behalf of Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Minister for Parliamentary Affairs Tariq Fazal Chaudhry said the New Gwadar International Airport, operational since January 20, 2025, along with improved highway connectivity, is expected to significantly enhance access for Balochistan’s agricultural, mineral and fisheries sectors to domestic and global markets.
The fully developed Gwadar Free Zone, spread over approximately 2,281 acres at Gwadar Port, is now operational and designed to support a wide range of commercial activities. These include trade, re-export operations, warehousing, distribution services and industrial production. The Free Zone is positioned as a central hub for regional logistics and investment under Pakistan’s long-term development strategy.
According to the minister, investors operating within the Free Zone are being offered substantial incentives to attract foreign direct investment and stimulate industrial expansion. These incentives include a 23-year exemption from federal, provincial and local taxes, lease options extending up to 99 years, and exemptions from import duties and sales tax on machinery and equipment.
The government views these measures as part of an integrated effort to strengthen Gwadar’s role as a strategic trade and logistics gateway. With modern airport infrastructure, improved road connectivity and long-term fiscal incentives, Gwadar is being positioned as a competitive destination for industrial development and export-oriented businesses.