Proposed Incentives for Companies undertaking initiatives for

manufacturing of Medical Equipment in Pakistan.

The global pandemic caused by the rapid spread of the COVID-19 virus has created an urgent
need for masks, sanitizing chemicals, cleaning equipment, specific medicines, and medical
equipment across the world.

Although Pakistan is not currently the epicenter of the pandemic, as further clarity and
understanding of this disease develops, it is highly probable that our region and specifically
Pakistan is likely to experience a similar phenomenon of widespread and rapid increase in
COVID-19 cases in the coming days. Adequate medical facilities will be crucial to combating
the virus spread and helping those individuals who get severely affected by it.

Several institutions and companies have independently, jointly or in the form of consortiums
undertaken initiatives to design / develop / manufacture medical devices. To expedite the
process and to encourage further initiatives Alsons Group requests the Government of Pakistan
to incentivize these initiatives. In the initial stages design and development of the final product
and the shortest time to market for the same will be essential. Assistance in the areas of
technical support, financing and import of components, sub-assemblies and materials needs to
be facilitated. Details of proposed initiatives are provided below:

1. Import of Components / materials: Items earmarked for production of medical devices

should be zero rated for all duties, income tax and sales tax.

2. Clearance of imported items for medical equipment should be processed on priority with
minimum and simple requirements.

3. Sale of medical equipment should be exempt from sales tax.

4. A tax holiday scheme should be provided to companies manufacturing medical equipment.

5. Grants for design / development of medical equipment. should be available.

6. Financing for design / development / manufacture of medical equipment should be

available at zero rate from the government.

7. Technical support and consultation from government institutions should be available free
of cost and on top priority.

8. Processing of all transactions related to import for medical equipment manufacture

including TT / LC / Bank Contract / CAD should have:

a. No restrictions on quantum of TT
b. Zero margin requirement for establishment of LC or Bank Contract
c. executed with minimum or no processing charges

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