Why QABP: What Investors need to know about QABP?

What are the main frequently asked questions on the minds of the potential investors when they think of investing in a new SEZ? Why and how QABP meets most business requirements. We offer a quick glance on its most relevant features from a businessman’s perspective.


When investors think why QABP may be a good investment they need to start from the magical word: PIEDMC. Punjab Industrial Estates Development Management Company (PIEDMC) has set continuous standards of excellence since its inception in 2002 as a public-private partnership.

The first Special Economic Zone assigned to PIEDMC was the Sundar Industrial Estate, comprising of 1750 acres of land. It did an exceptional job in inaugurating it in February 2007, facilitating prospective industrialists and providing them with a ‘One Window’ operation. Today, there are over 400 factories in production in Sundar Industrial Estate, generating employment of 70 to 80 thousand people – it is perhaps Pakistan’s best functioning industrial state.

Read more: Quaid-e-Azam Business Park: SEZ fit to be part of CPEC

PIEDMC’s success and its financial model of development in Sundar Industrial Estate gave way to the government assigning PIEDMC other projects, namely:

  • Multan Industrial Estate
  • Quaid-e-Azam Industrial Estate (QIE)
  • Rahim Yar Khan Industrial Estate
  • Bhalwal Industrial Estate
  • Vehari Industrial Estate
  • Bahawalpur Industrial Estate
  • Quaid-e-Azam Business Park (soft-launched, 18 July 2020)

PIEDMC’s success in industrial estates is well demonstrated. Yet, a potential investor may ask why should he or his group consider QABP? Here we borrow information from the PIEDMC’s site to respond to some of the commonly asked questions.

Where is Quaid-e-Azam Business Park located?

QABP is located adjacent to the city of Sheikhupura at 25 minutes’ drive from the Lahore M2 toll plaza. It has access from the M2 motorway from the front side and going forward it will be connected to the M2 motorway through an interchange and to the Sheikhupura-Lahore road through a dual carriageway, both of which are under construction.

Read more: SEZs and why Pakistan needs them

What is QABP’s designated status?

QABP, initially named Quaid-e-Azam Apparel Park (QAAP), is an officially designated “SEZ” as of September 2019. Investors will enjoy all SEZ perks and benefits, upon completion of formalities, such as a 10-year tax holiday and duty-free import of plant and equipment.

Will QABP accommodate any Industrial Clusters?

PIEDMC will stimulate Cluster developments directly in line with the interest of the Industrial Trade associations.

Read more: Why Pakistan’s SEZ law may need fixing?

What is the status of human resource availability?

There is a high availability of human resources, both skilled and unskilled, due to close proximity to the city of Sheikhupura with a population of half a million. Moreover, QABP is located in the vicinity of an already established industrial base parallel to the Lahore-Sargodha road.

How will QABP address the issues of Labour residence?

This issue is catered by the reservation of a 200-acre plot next to QABP’s zone, which will be developed into a labour colony upon demand.

What utilities will be made available to the investors?

The essential utilities of electricity, RLNG, water and telecommunication will be provided by PIEDMC and are covered in the price of the plot. For construction purposes a 2.2 MW connection is already on the ground, a 65 mmcf RLNG line has been deployed for QABP. Work is underway to install a 220 Grid of 350 MW capacity and a 132 kva Grid of 32 MW capacity for the immediate provision of electricity.

Read more: China and the history of its Special Economic Zones

What are other facilities covered in Plot price?

QABP is a SMART SEZ, which means it has facilities not otherwise provided in normal industrial estates. Necessary facilities of electricity, RLNG and water will be delivered within 96 hours once the infrastructure has been installed. A multipurpose facility will be provided, which will house a Trauma Center, Provision stores, Industrial hardware stores, Bed and Breakfast Hotel, Emergency services, and Factory outlets. Amusement and entertainment facilities will be set up for the resident owners for the duration of the construction period of their projects. CETP construction is also included in the QABP development program, although industries having treatable water discharge will be subjected to Pre-treatment terms and conditions.

Who will govern and supervise QABP?

Once developed by PIEDMC, QABP’s day to day administration and management will be the responsibility of the Private sector-led Board of Management (BOM). Resident owners will constitute the board. This BOM shall be brought into effect by PIEDMC’s Board of Directors. Businesses in QABP shall be subjected to Monthly operations and management charges.


How long will it take Owners to get possession of Plots?

Immediate possession will be offered to cash customers based on the access status. Instalment customers shall complete minimum 9/18 instalments, depending on the plan for the allotment. Plot possession, per the Development plan, will be subjected to the payment status of the applicant in the fourth quarter of 2021.

What will be the building period for QABP?

A 24-month building period will ensue once possession is granted which shall not be extended in case of Transfer of Ownership. In case of extension, an additional charge of Rs. 100,000 per acre per month will be applicable. The allottee will also be liable to pay an additional non-utilization charge upon exceeding the initial 24-month building period.


Will QABP Plots transferrable?

Wholly owned plots can be transferred after paying a transfer fee and fulfilling the conditions of Allotment policy. Plots under instalment plans are non-transferrable.

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