3. Our Vision is to establish vertical production chain to create
horizontal spaces/ opportunities for specialized garment
production through conversion of fabric and accessories into
world standard garment manufactured by cluster of stitching
units with complete ancillary support and services in a modern
physical institutional infrastructure facilities. Further, bringing
about substantial addition to our value added export and
providing significant employment opportunities.
3
Updated on 11-06-2013
4. To set up state of the art garment city to give a boost to
export of value added textile products and playing our due role in
achieving the goals set-out in first ever Textile Policy 2009-14
announced by Government of Pakistan.
With this Project we intend to bring in local and foreign
Investment, hence boost " industrial development in Sindh and
creating work opportunities especially for women. With the
completion and execution of the plan, we envision booming exports
by approximately US$400.00 Million per annum.
4
Updated on 11-06-2013
5. In Trade Policy 2003-04, Government of Pakistan decided
to setup three Garment Cities In Karachi, Lahore and Faisalabad.
The Provincial Governments were to allocate land to set up Garment
Cities.
Cost of land is increasing tremendously. Even then the
industrialists are showing keen interest to establish business and
become a part of garment city. The Prime Minister and President of
Islamic Republic of Pakistan are both looking forward to
establishment of Karachi Garment City Project work, at earliest.
The project would provide great opportunity for Investment
by local and foreign entrepreneurs In the value added garments
sector and would generate a number of additional jobs and enhance
export earnings for the country.
5
Updated on 11-06-2013
6. The concept behind Karachi Garment City is to develop an exclusive
industrial estate dedicated to value-added textile products. With the installation of
world class infrastructure, guaranteed supply of sufficient industrial quality water,
stable electricity facilities and gas, productivity will be enhanced, increasing cost
effectiveness.
Development and modernization is vital for the economic growth and
prosperity of Pakistan. One of the principal objectives of our company is to
effectively oversee and guide the expansion and modernization of infrastructure in
the textile sector, thus greatly enhancing Pakistan's earning potential, creating
significant employment opportunities and encouraging skill development at all
levels.
I am confident that upon completion, this project will attract foreign and
local investors to look favorably at Pakistan as a destination for enhanced
investments in the industrial sector.
Let us synergize and align our focus for achieving industrial excellence
with Karachi Garment City.
6
Updated on 11-06-2013
7. Value Added Garments:
The project (Phase 1) would provide great opportunity
for investment by local and foreign entrepreneurs in the value
added garments sector and would generate a number of
additional jobs and enhance export earnings for the
country.
Estimates
Production 90 Million Garments/ annum approx.
New Jobs 12,742 (Direct Labour)
20,000 (In-Direct Labour)
Exports US$ 400 Million/annum (Entire Project)
7
Updated on 11-06-2013
8. COMPOSITION: BOARD OF DIRECTORSCOMPOSITION: BOARD OF DIRECTORS
8
Updated on 11-06-2013
01. Mr. Aziz Memon, Chairman/CEO
GOVERNMENT NOMINEESGOVERNMENT NOMINEES
02. Mr. Nasir Mehmood Khan Khosa
Secretary, Ministry of Textile Industry,
Government of Pakistan
03. Mr. Muneer Qureshi
Secretary, Ministry of Commerce,
Government of Pakistan
04. Mr. Mohsin S. Haqqani
Secretary, Industries & Commerce,
Government of Sindh
9. 9
Updated on 11-06-2013
PRIVATE SECTOR NOMINEESPRIVATE SECTOR NOMINEES
05. Mr. Wajid Jawad 11. Mr. M. A Qayum Saeed
06. Mr. Mahmood Mandviwala 12. Mr. Javaid Akhter
07. Mr. Shabir Ahmed 13. Mr. Muhammad Iqbal
08 .Mr. Maqsood Ismail 14. Mr. Liaquat Y. Jangda
09. Mr. Aftab Karimjee. 15. Mr. Atif Salman
10. Mr. Jehangir Anwar
COMPANY SECRETARYCOMPANY SECRETARY
01. Mr. Pervez Akhtar
COMPOSITION: BOARD OF DIRECTORSCOMPOSITION: BOARD OF DIRECTORS
10. 1. Joint Stock Company Incorporated (15.11.2005)
2. KGC Project is fully funded and owned by Government of Pakistan.
Following amounts have been received until now from Export
Development Fund (EDF);
i. Rs. 5.00 Million …… Seed Money.
ii. Rs. 300.00 Million …… Purchase of land.
iii. Rs. 50.00 Million …… Development, Govt.
Fee, Stamp Duty etc.
3. Board of Admin. of EDF in its 61st
Meeting held on 31-01-2013 has
approved following additional funds release of which is still awaited.
i. Construction of Boundary Wall Rs. 21.78 Million
ii. Lease and Mutation of 300 Acres Rs. 51.15 Million.
3. M/s. Yousuf Adil Saleem & Co.(Deloitte) are External Auditors of the
company for the year 2012-13.
10
STATUSSTATUS
Updated on 11-06-2013
11. Karachi Garment City Company was registered with SECP
under the Companies Ordinance 1984 on November 15, 2005 to run
the affairs of Karachi Garment City. We are in process of
establishing a state of the art industry of exclusive garment
manufacturing units having modem physical and institutional
infrastructure facilities to boost the export of value added textile
products The project is entirely export oriented and aim to meet
world standard of quality garments
NASPAK is providing consultancy services on planning,
design and development of the project in six phases of about 50
acres each, over an area of 300 acres The 1st
phase comprises of 12
factory plots only and will take 18 months to complete.
11
Updated on 11-06-2013
12. The Karachi Garment City Project is planned to
accommodate modem infrastructure facilities such as:
• Road Networks and Communication Systems
• Security and Fire Fighting Systems
• Sewage and Storm Drainage System
• Independent and dependable Industrial Power Generation Plant
• Uninterrupted and stable supply of power, water and gas
• Internationally Standardized Buildings and Industrial Plots
• ISO 9000 compliant clothing and manufacturing factories
• Effluent Water Treatment Plant
• Administration Blocks, Offices, Warehouses and a Container Yard
12
Updated on 11-06-2013
13. 1. M/s NESPAK, consultant of KGCC has already
completed following assignments:
a) Jungle Cutting & Clearance from the land.
b) Topographic Survey of land.
c) Fixing of Pillars on demarcated 300 acres of Land.
2. Land Utilization Dept. has handed over the possession
of land to KGCC on 06 August 2009.
13
Updated on 11-06-2013
14. 3. Draft lease agreement with Govt. of Sindh
approved in 22nd
BOD meeting held on 16-07-
2012.
4. NESPAK has prepared Master Plan and
development plan of 52.25 acres of project in the
first phase, while planning infrastructure facilities
and utilities etc. for the total area of 300 Acres.
14
Updated on 11-06-2013
15. 1. Mutation and registration of 300 acres land
Subject to timely receipt of full amount of Rs.51.15 million from EDF Board and
payment of stamp duty, registration fee & CVT etc. to Govt. of Sindh, lease agreement and
Mutation of 300 acres of project land will be executed in the name of Ministry of Textile Industry,
Government of Pakistan (Karachi Garment City Limited).
2. Construction of Boundary Wall
i)Expression of Interest for Pre-Qualification of Constructors for the construction of boundary wall,
gate house and watch towers as per bidding documents were invited in April 2013.
ii) Tender documents for the works specified in (i) above inviting bids from Pre-qualified
Constructors are planned to be issued and awarded by June 2013
iii) Construction of boundary wall gate house and watch towers is planned to commence in
July 2013 and likely to be completed in 12 calendar months, provided approved funds of Rs.28 M
are released on time and remaining Rs.30.00 M. are also approved and released by EDF Board to
KGCC, as soon as possible.
Updated on 11-06-2013
15
16. 3. Allocation of funds for the project under PSDP/ADP 2013-14
i. Revised PC-I of the first phase (52.25 acres) of the project estimated at Rs.719,369,495/-
has been forwarded to Ministry of Textile Industry on 26.03.2013 for approval and onward
dispatch to Planning and Development Division, Government of Pakistan for allocation of
required funds under PSDP/ADP 2013-14.
ii. In case full funds are approved for the 1st phase and released to KGCC,
remaining development works of phase -1 will be undertaken.
Updated on 11-06-2013
16
17. Availing of Tax exemption from Tax Authority comprises into two
following steps:
Step 1 : Necessary alteration in Memorandum and Articles of
Association of KGCC before applying for tax exemption have already
carried out with the approval SECP and application being submitted with
the concerned Tax Authorities.
Step 2: Recognition of KGCC’s status as Non-Profit Organization
u/s 2(36) and or under clause 58(3) of 2nd
Schedule of Income Tax
Ordinance, 2001 and claiming refunds of withholding tax, which already
deducted from Income and collection of payment of utilities will be taken
up with Tax Authorities, after attaining NPO status.
17
TAX EXEMPTION STATUSTAX EXEMPTION STATUS
Updated on 11-06-2013
18. EXPRESSION OF INTEREST (EOI) FOR PRE-EXPRESSION OF INTEREST (EOI) FOR PRE-
QUALIFICATION OF CONSTRUCTORSQUALIFICATION OF CONSTRUCTORS
In April 2013 “Expression of Interest (EOI) for Pre-Qualification of Constructors”
for construction of boundary wall, watch towers and gate house was published in
national daily newspaper, while PPRA, Islamabad also uploaded the EOI on its
website. NESPAK after evaluating 37 offers received in response have
recommended pre- qualification of 17 companies. Recommendation of NESPAK
will be put up in next meeting of BOD-KGCC for consideration/decision.
EXEMPTION FROM PAYMENT OF STAMP DUTY,EXEMPTION FROM PAYMENT OF STAMP DUTY,
REGISTRATION FEE AND CVT ON 300 ACRES OFREGISTRATION FEE AND CVT ON 300 ACRES OF
PROJECT LANDPROJECT LAND
KGC being wholly owned and funded by Government of Pakistan, Chief
Secretary, Govt. of Sindh has been requested by Federal Secretary, MINTEX on
23.04.2013 to grant exemption from payment of Stamp Duty, Registration Fee and
CVT on 300 acres of project land.
18
Updated on 11-06-2013
19. i) Lease and Mutation of Project Land
Although the allocation of 300 acres of land for project was made on 29.03.2007
and full cost of land was also paid to Govt. of Sindh on 23.01.2008, title of land has not yet
been transferred in the name of Ministry of Textile Industry (Now Textile Industry Division,
Ministry of Commerce & Textile Industry), as signing of lease agreement and mutation of
land was put on hold, due to constitution of Review Committee by Government of Sindh, on
16 July 2008 to review all allotments made six months prior to announcements of national
elections of 2008 by Election Commission and case of allotment of land for KGC project was
also referred to Review Committee.
Review Committee lingered on the matter and after more than 31/2
years, KGC’s
case was finally taken out of its ambit by LUD in May 2012.
Meanwhile, Ministry of Textile Industry was requested to approach Board of Administrators
of EDF to provide funds for construction of boundary wall for securing the land and to meet
expenses on lease & mutation of 300 acres of land. Our case was considered in the 61st
meeting of the Board of Administrators of EDF held on 31.01.2013 and an amount of
Rs.28.602 Million for construction of boundary wall and Rs. 51.51 million to meet expenses
on lease & mutation was approved. However, no money has been remitted to KGCC, until
now.
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Updated on 11-06-2013
20. ii) Cancellation of Notice of LUD.
On 16.4.2013 a Notice was received from Secretary/Member Land Utilization
Department, Govt. of Sindh in compliance of the order dated 16.4.2013 of the Hble Supreme
Court passed in Suo Moto case No. 16 of 2011.
LUD sought progress report of the project and mentioned that as per terms and conditions of
the allotment letter if the allottees failed to use the land during the period of 2 years from the
date of allotment, allotment of lease of the land shall automatically stand cancelled and the
amount paid stand forfeited.
LUD was furnished a progress report and reasons for delay in the establishment of
project, which they did not accept and sent a notice stating that reportedly KGC has failed to
use the land for the purpose for which it was granted and the period of two years from the date
of allotment has expired and the land automatically stand cancelled and amount deposited
stand forfeited under sub-section 5 of section 10 of the Colonization of Govt. Lands Act, 1912
and where as action had to be taken by reversing the entry of record of rights in allottees
name.
LUD also forwarded order dated 16.4.2013, wherein H’ble Supreme Court of Pakistan has
directed to issue notice to put up case before the H’able Supreme Court.
20
Updated on 11-06-2013
21. 21
Matter was brought to the notice of Ministry of
Textile Industry on 3 May 2013, who directed that in the
first instance Chairman – KGCC may appear in the
Supreme Court and seek reasonable time for filing of
written statement and 1st hearing. Thereafter, the case
against the order be prepared and sent to this Ministry
along with relevant papers/documents to process the case
with Law and Justice Division for nomination of an
Advocate to defend this case.
Next date of hearing has not been notified by the
H’ble Supreme Court for the case, until now.
Updated on 11-06-2013
22. 1. Cancellation of Project Land
To seek legal protection, it is proposed that a stay order may be obtained
urgently from the Sindh High Court to stop Land Utilization Department,
Sindh from;
i. Forfeiture of Rs. 300 million and Rs. 4. 356 million already paid
on account of cost of land and annual ground rent, respectively.
ii. Cancellation of allotted 300 acres of project land.
2. Release of Approved Funds
Funds of Rs 51.15 million approved in 61st
meeting of Board of
Administrators of EDF for lease and mutation of land in the name of
ministry and Rs. 28.60 million for construction of boundary wall, gate
house etc. on the project land may be released urgently.
22
Updated on 11-06-2013
23. As the project has not yet taken off due to
issues/problems stated above and non availability
of required funds, no action plan with time lines
can be prepared for the present.
Updated on 11-06-2013
23
25. 25
PHASE 1 - MASTER PLANPHASE 1 - MASTER PLAN
Updated on 11-06-2013
26. 26
S.No. Description Unit Area No. Rate (Rs.) Amount (Rs.)
A Building Cost
1 Admin Block Sq.ft 7,860 1 3,000 23,580,000
2 Gate House Sq.ft - 1 21,184,795 21,184,795
3 Watch Tower Sq.ft - 8 313,908 2,511,264
3 Sub-Station Sq.ft 1,500 1 1,500 2,250,000
Sub-Total- Building Cost - A 49,526,059
B Cost of other amenities
4 Electrical/Water Supply/ Services and Gas @ 30% of building Cost 522,500,000
5 HVAC for Multipurpose Hall Sq.ft - - -
5 Elevator - Cat A Building Nos. - - -
6 Elevator - Admin Block Nos. - - -
6 External Development @ 10% of building Cost % 10% 4,952,606
7 Boundry Wall RFT 21,771 1,500 32,656,500
8 Cost of Land * -
Sub-total other amenities - B 560,109,106
Sub-Total- Base Cost: A+B 609,635,165
C Other Costs
10 Department Charges 5% of Base Cost excluding land % 5% 30,481,758
9 Contigencies 3% of Base Cost excluding land % 3% 18,289,055
10 Department Charges 5% of Base Cost excluding land % 5% 30,481,758
11 Escalation Cost 5% of Base Cost excluding land % 5% 30,481,758
Total Cost A + B + C 719,369,495
* Cost of land of PKR 300,000,000 (Pak Rupees Three hundred million only) has already been paid by the Federal Government (from the
Export Development Fund) to Sindh Board of Revenue, Government of Sindh in January 2008, therefore, the same has not been included
in the above computation for the additional funding requirement.
Updated on 11-06-2013
28. Phase 1 is planned to accommodate infrastructure facilities
such as:
• 18.86 acres saleable land
• Administrative Building
SUPPORTING INFRASTRUCTURESUPPORTING INFRASTRUCTURE
• Roads • Effluent Treatment
• Sewerage and Water Supply • Power Generation
• Drainage • Car Parking
28
PHASE 1 INTEGRATIONPHASE 1 INTEGRATION
Updated on 11-06-2013