Azad Jammu & Kashmir

Introduction
Azad Kashmir is part of the State of Jammu and Kashmir which was liberated in 1947. It is located in North-East of Pakistan with most highly mountains and a part with plain areas in Mirpur & Bhimber districts. The total area of Azad Jammu & Kashmir is 13,279 Sq Kms. Administratively; it is divided into 8 Districts, namely Muzaffarabad, Bagh, Poonch, Kotli, Sudhnoti, Bhimber, Neelum and Mirpur. A new districts of Havaile(Kahuta) and Hattian(Athmuqam) have also been declared in the north. According to recent census total population of Azad Jammu & Kashmir is estimated to be 3.30 million.

There are seven main entry points into Azad Jammu & Kashmir from Pakistan. These are Kohala, Azad Pattan, Mangla, Dhalkot, Karote and Bhimber. All roads networks to district & Tehsil headquarters are metalled and are equipped with telecommunication facilities. There are is 95% electrified and sufficient electric load is available for industrial projects. Potential underground water recourses are available and distributed through networks in the towns.

Industrial Activities
Investment in the field of industries started in early 70s in public sector which was later geared up by the interest of the private sector. At present, more than Rs.16400 million investments has been made and 350 industrial units of different types has been setup. 10,000 labors are employed in the above mentioned industries. To accelerate the development of industrialization, the government has setup industrial estates at Mirpur, Bhimber, Dudyal, Kotli, Rawalakot and Muzaffarabad. In addition to above, a large industrial are in Mirpur comprising over 6,000 kanals of land has been setup where 13 medium size industries are in production. All the above industrial estates have been provided with infrastructure facilities of roads, water and electricity etc. The industrial plots are provided on 99 years lease basis. Nearly 2500 kanal s land is available for allotment to industries. Plots of various sizes ranging from 1 kanal to 100 kanals are available.The establishment of Dry Port and Export Processing Zone with railway link is under process.

Incentives
Following incentives are provided to investors

• No foreign industrial or commercial enterprise establishment or owned on any form by a foreign or Pakistani investor shall be compulsorily taken over by the government (Ref: Protection of Economic Reforms Act 1992).
• Exemption of Sales Tax for a period of 5 years on industrial products from the date of production.
  Provision of industrial plots o subsidized rates and easy installments.Provision of loan facilities in local as well as foreign exchange form commercial banks and DFIs.
• Free transaction of principle amount and profits with our prior permission of the government for foreign/non-resident Pakistani investors.
• Conductive environment for investment.

Industrial Financing Facilities
All Pakistani Development Financial Institutions (DFIs)/Commercial banking institutions are setup in Azad Kashmir and they provide loan for setting up industry. List of a few DFIs and commercial banks is as follows:

• Industrial Development Bank of Pakistan (IDBP)
• Pakistan industrial credit and investment corporation (PICIC)
• Small Business Finance Corporation (SBFC)
• United Bank Limited (UBL)
• Habib Bank Limited (HBL)
• Allied Bank Limited (ABL)
• Muslim Commercial Bank (MCB)
• National Bank of Pakistan (NBP)

All AJ&K citizen residing in foreign countries, citizen of Pakistan and foreign companies are allowed to setup industrial units in Azad Kashmir.

Procedure for Allotment of Plots/Land within Industrial Estates
The following documents are to be submitted to the Director Industries Muzaffarabad for establishing an industrial unit.

• A simple application
• Form B and C (dully filled)
• Four copies of feasibility report
• A single line plan of the proposed building
• NOC from Environmental Protection Agency
• Bank statements of detail of already established units

After the principle approval, registration of company under the Companies Act, 1984 is necessary for non-state subject.