Islamabad, Oct 9 (IANS): Pakistan has decided to give tax exemption of 23 years to a Chinese firm working at Gwadar Port.

This was announced by Pakistan Federal Minister for Maritime Affairs Ali Haider Zaidi on Tuesday. He said that the government has granted tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to facilitate establishment of its industrial units at Gwadar Port, reported Dawn news.

COPHC CEO Zhang Baozhong said the present government had resolved the tax exemption issue that had been pending for the past seven years. He expressed the hope that due to the business-friendly policies of the government, more foreign investment would come to the country.

Zaidi said that the project had already been operating at Gwadar Port and now would get tax exemption for installation of machinery and other equipment at the port. The initiative was a step towards relocation of the Chinese manufacturing industry in Gwadar and engaging the local labour, he said, adding that the move would ultimately boost Pakistan's economy.

The Minister said the COPHC would also set up a desalination plant, Pak-China Technical and Vocational Training Institute and Pak-China Friendship Hospital in Gwadar.