Present government is earnestly trying to restore the confidence of foreign investors Persistent efforts of the present government, personal efforts of the Chief Executive in particular, spread over the past one year, has certainly improved the prospects of foreign investment in Pakistan.

During the last few months trade and business delegations from various countries visited Pakistan and Gen. Musharraf met almost all of them and missed no opportunity to explain to them the numerous measures his government had taken to protect the interests of foreign investors in Pakistan while, at the same time, identifying the different sectors of economy which offered lucrative business opportunities. Besides, he himself visited a number of countries both, in east and west and always made it point to meet their business and investors communities. The nearly 40 months long HUBCO-WAPDA row which had marred the foreign investment climate in Pakistan was resolved in Dec. last through personal efforts of the Chief Executive. This proved to be an eminently welcome development and certainly paved the way to restart the inflow of foreign investment in Pakistan.

The month of Feb. proved to be a month of significant development from this point of view. Delegations of businessmen and potential investors from many countries such as Japan, China, Malaysia, Indonesia, Saudi Arabia, Romania, visited Pakistan and showed keen interest to invest in different sectors of Pakistan's economy. Addressing the representatives of the pharmaceutical industry at an international conference held in Lahore last month the Board of Investment (BoI) Chairman, Waseem Haqqi, outlined the policies of the present government aimed at improving the industrial climate in so far as fixed capital investment is concerned. The policy, according to him, is based on the principle of deregulation, fiscal incentives, liberal remittance of profits and capital, debt

servicing, payments of royalties, technical fee etc. He emphasised the need for promoting investment in sophisticated, high-tech and export oriented industries while almost the entire economic activity in other fields, encompassing agriculture, services, infrastructure social sectors etc. have been thrown open for foreign investment with identical fiscal incentives and other facilities, including loan financing from local banks.

Haqqi also disclosed that import of plant and machinery for new industries would be allowed duty free in case such machinery was not manufactured in Pakistan. He also informed the audience that first year tax relief in the form of accelerated depreciation allowance was also available to priority industries, besides the availability of similar relief to existing industries undertaking balancing, modernisation and expansion in production facilities.

Establishment of Pak Japan Business Forum in Karachi was the most significant event of the month. While speaking at the launching ceremony Japan's Ambassador Sadaski Humata rightly pointed out that the event certainly marked a major development in the economic relationship between the two countries. This should become all the more evident from the primary aim of the forum, as the ambassador elucidated, is to enhance mutual trust, understanding and friendly relations between the businessmen of Pakistan and Japan. Speaking on the occasion, the Pakistan Minister for Commerce, Mr. Razzak Dawood said Pakistan and Japan are working together in many fields including bilateral trade, despite differences on signing of the Comprehensive Treaty for Banning (nuclear) Tests (CTBT) by Pakistan, he said, his government considers private sector the engine of growth and has assigned it a pivotal role in the development of the economy. We are restructuring the economy, and through it is a painful process but in the end it will provide immense pleasure, the minister revealed.

In a landmark development Saudi Arabia signed an accord with Pakistan focusing on boosting cooperation in trade and industry through joint ventures and investment in Pakistan. The accord was signed after 2 days high level sixth session of Pak-Saudi joint ministerial conference at Riyadh. During the visit, Federal Finance Minister met a number of business magnets of Kingdom in Riyadh and Jeddah. In Jeddah, he met Saudi Chamber of Commerce officials and leading Saudi businessmen. The Pakistan Mission in Riyadh and the Consulate in Jeddah, arranged separate one to one meeting between the Pakistan businessmen and their Saudi counterparts.

On his return to Pakistan, the president Federation of Pakistan Chambers of Commerce and Industry Malik Iftekhar who was included in the Pakistani delegation told newsmen that Saudi investors and leading business magnates have shown interest in setting up cooperative ventures and investments in several industrial sectors in Pakistan. These includes cement, chemical fertilizers, industrial fibre, paper products, chemicals and petrochemicals, electronics, agroindustries, ship building, petroleum and gas sectors.

He said that many new areas for collaboration in scientific, technical and cultural fields had also been identified. He said it has been decided to re-invigorate the role of Saudi-Pakistani Business Council, which would be an excellent forum for mutually beneficial interaction between the private sectors of both countries. The two countries had also agreed to review an agreement on promotion and protection of investment which would improve import/export procedures.

Malik Iftikhar said that in view of the privatization policy, both sides would benefit from each others experience, particularly in the privatization of energy, communication and electricity projects. Besides the areas mentioned by his Saudi counterpart, Pakistan would also facilitate training of Saudi personnel in Railways as well as Telecommunication, especially mobile and postal sectors, he added.

Co-operation in the field of agriculture would encompass research, quarantines, technology and visits of experts on desertification, desalination and livestock management.

It is really commendable that the present government is earnestly trying to restore the confidence of foreign investors and has adopted a positive approach for improving investment climate. Fiscal and other concessions have been liberally given by the government with a view to making the investment climate in Pakistan more attractive for direct investment in industry, agriculture and services sectors by both domestic and foreign investors. The liberalisation of incentives reflected the government's understandable anxiety over the continued lull in direct investment by both domestic and foreign entrepreneurs. Therefore, the new policy measures are aimed at overcoming the prevailing stagnation. This is indeed a welcome move but it is yet to be seen whether the investment interest having remained on the sidelines for the past three years would at all show a positive response to the latest package of incentives.

BOI (BOARD OF INVESTMENT)

NEWS UPDATE

1) American companies Investing in Food- Agri- Sector

(a) A 3-Member team led by Mr. Raymond M. Cesca, Managing Director, McDonald's International, USA visited Pakistan to expand their network of restaurants/delivery units, etc. in Pakistan. They visited various cattle and sheep farms to get sufficient and high quality beef for their restaurants. Mr. Raymond described his visit to Pakistan very successful and fruitful for the expansion of his company's programme in near future.
(b) Mr. Ian Hope-Johnstone, Agriculture Expert, Snack Foods and Pepsico (Frito-Lay) visited Pakistan from August 16-21, 1999 in connection with expansion/ diversification of Pepsico food business in Pakistan. He held various meetings with Government officials, especially with the Ministry of Food, Agriculture & Livestock.
He visited the potato growing areas of Okara, Sahiwal, Sialkot and Lahore to ascertain the potential of potato crop in Pakistan.

2. Agha Khan's Serena Hotel at Islamabad. M/s Tourism Promotion Services (Pakistan) limited owned by Agha Khan Development Network is establishing a five star hotel at Islamabad, namely, ‘Islamabad Serena Hotel. The work has been started and machinery/equipment to be imported has been allowed for provisional release. Total cost of the project is about US $ 26 million, civil work is in advance stage. The sponsors of Serena Hotel have made substantial Foreign Investments in hotel projects in the past. With the addition of this project, the total investment of about US $ 40 million will be one of the largest foreign investments in Tourism Industry by the private sector in Pakistan.

3. New & Simplified Procedure for Permission to Expatriate to Work in Pakistan

The main features of the revised procedure are the following:-

a) Uniform facility has been extended to exempt expatriate technical and managerial personnel from work permit for working in newly opened sector of the economy, including Agriculture, Services and Social Sectors in addition to exemption already enjoyed by such personnel for working in manufacturing/industrial and infrastructure sectors. They are now only required to obtain work visa.
b) No permission will be given to foreign expatriate personnel for jobs other than technical and managerial personnel to effectively realize the obligation of Pakistanization Policy.
c) In cases requiring employment of foreign personnel for the purpose of transfer of particular skill and know-how, work visa will be allowed with the condition of Pakistanization of the job within a specified period.
d) The system for issuing work permit for foreign personnel by BOI Officer Karachi has been discontinued.
e) A committee has been setup under the Chairmanship of Secretary BOI to periodically consider and decide the cases of grant of work visa to the foreign expatriate personnel.
f) The Company requiring employment of foreign national will submit the request on prescribed application form to the Board of Investment (FTP Wing). The prescribed form can be obtained from the office of the Board of Investment at Islamabad, Karachi or from the Ministry of Interior and its regional immigration Passport Offices.
g) Work vise will be authorized and issued by the Ministry of Interior within a month on the basis of the decision of the Committee.
h) The work visa will be allowed for a period of 3-5 years on till the validity of the Passport. The Concerned Pakistani Mission abroad will grant work visa to the applicant on the basis of authorization by the Ministry of Interior.

INVESTMENT POLICIES

Previously only the manufacturing sector was open to foreign investment. Now, the Policy Regime is much more liberal with most other economic sectors open for foreign involvement and with significant efforts at mobilising domestic financial resources towards long term investment.

(i) Manufacturing/Industrial Sector

• Foreign Investors are permitted to hold 100% of the equity of industrial projects without any permission of the Government. 

• No Government sanction is required for setting up any industry, in terms of field of activity, location, and size, except for the following:

- Arms and Ammunitions.
- High Explosives.
- Radioactive Substances.
- Security Printing, Currency and Mint.

• No new unit for the manufacture of alcoholic beverages or liquors will be allowed.

• There is no requirement for obtaining No Objection Certificates (NOC) from the provincial governments for locating the project anywhere in the country except in areas that are notified as negative areas. 

• Full repatriation of capital, capital gains, dividends and profits, is allowed.

Tourism

Tourism has been given the status of Industry in accordance with Ministry of Industries and Production Circular No. 1-129/99-INV-IV dated 2nd August, 1999. It has been placed under priority Industries i.e. Category "C" of the Investment Policy.

Housing and Construction

The Housing and Construction sector has also been declared as Industry. (see Finance Division Notification No.10 (10)/IF-II/98 dated 7-4-1999 and 4-6-1999. It has been placed under priority Industries i.e. Category "C" of the Investment Policy.

Local and Foreign Companies involved in real estate projects will not market these projects unless the title of the property is transferred in the name of a locally incorporated company and the "Commencement of Business" certificate is issued by the Security Exchange Commission of Pakistan (SECP) to the firm.

Information Technology

In accordance with Government notification No. 3 (2)/97-INV-IV dated 05/03/1997, Computer Software and Information Technology (IT) have been declared as Industry and placed in Category ‘B' of Industries. More details on the Government's IT Policy can be obtained at the following web site: www.itcomm.gov.pk.

Custom duty exemption is available on import of machinery & equipment used in the field of IT. Computers software and other items related to IT can also be imported at zero rate of import duty

Others

Foreign investment on a repatriable basis is now allowed in the Service, Infrastructure, Social and Agriculture Sectors subject to the conditions indicated against each. They will have to simply register their company with Security Exchange Commission of Pakistan under the Companies Ordinance, 1984 and to inform the State Bank of Pakistan provided the relevant conditionalities are fulfilled.

(a) Services Sector

Activities

FDI in Service Sector is allowed in any activity subject to condition that services which require prior permission/NOC or licence from the concerned agencies will continue to get the same treatment until and unless de-regulated by such agencies and will be subject to provisions of respective sectoral policies.

Conditions

The amount of foreign equity investment in the company/project shall be at least US$ 0.3 Million. Foreign investors are allowed to hold 100% of the equity subject to the condition that the repatriation of profits will be restricted to a maximum of 60% of total equity or profits and the condition that a minimum of 40% of the equity is held by Pakistani investors (including sale of shares in stock exchange) within five years.

(b) Infrastructure Sector

Activities

Infrastructure Projects, including the development of Industrial Zones.

Conditions

• The amount of foreign equity investment in the company/project shall be at least US$ 0.3 million. 100% foreign equity is allowed on a repatriable basis.

(c) Social Sector

Activities

Education, Technical/Vocational Training, Human Resource Development (HRD), Hospitals, Medical and Diagnostic Services.

Conditions

• The amount of foreign equity investment in the company/project shall be at least US$ 0.3 million. 100% foreign equity is allowed.

(d) Agriculture Sector

Activities

Land Development/Reclamation of Barren Land, Desert and Hilly Areas for culture purposes and Crop Farming, Reclamation of Water Front Areas/Creeks, Crops, fruits, Vegetables, Flowers, Farming/Integrated Agriculture (Cultivation and Processing of Crops), Modernisation and Development of Irrigation Facilities and water Management, Plantation/Forestry, Horticulture, Dairy, Small Ruminants (sheep and goats) and all Other Livestock Farming and Breeding.

Conditions

• There is no upper ceiling on land holdings for registered agricultural companies. However, the income of these companies is taxable. 

• The proposals related to foreign investment in the Agriculture Sector are processed by the BOI in consultation with the respective Provincial Governments for approval by the competent forum.

• Land for agricultural purposes can be obtained on a lease basis for long periods, i.e., initially up to 30 years, extendable for a further period of 20 years. 

• A foreign company permitted to invest in the agriculture sector is not allowed to transfer land to any other foreign company unless specifically approved by the Federal and the concerned Provincial Government.

INCENTIVES

To keep Pakistan competitive in international markets and support the viability of investments in the country, the following incentives are available to both foreign and local investors:

Priority Manufacturing/Industrial activities have been designated as follows:

Category A: Value Added or Export Industries;

Category B: Hi-Tech Industries;

Category C: Priority Industries; and

Category D: Agro-based Industries.

Units that annually export a minimum average 50% of their production or more in the first ten (10) years or are included in positive list of value added industries are classified as Export or Value Added Industries. In case of expansion of existing units they should export minimum 50% of additional capacity created under expansion to avail the incentives of export industries.

(i) Tariff

(ii) Fiscal (Tax Relief)

First Year Allowance (FYA)

For new investments, a First Year Allowance (FYA) on investment in plant, machinery and equipment (PME) is available. The FYA can be set-off against statutory income in the year of assessment. Any unutilised allowance can be carried forward to subsequent years until the whole amount is used up. The FYA is available at the following rates:

(a) Manufacturing/Industrial Sector

Categories A and B: @ 90% of the Cost of Plant, Machinery and Equipment.

Categories C and D: @ 75% of the Cost of Plant, Machinery and Equipment.

Other Industries: @ 50% of the Cost of Plant, Machinery and Equipment.

(b) Other Sectors

Infrastructure, and Agriculture: @ 75% of the cost of Plant, Machinery and Equipment
Service and Social: @ 50% of the cost of Plant, Machinery and Equipment.

Re-investment Allowance (RA)

To encourage investors to re-invest their earnings by expanding existing manufacturing facilities and improving technology or diversifying product lines, a Re-investment Allowance (RA) of 50% of the cost of Plant, Machinery and Equipment is allowed in case of Balancing, Modernisation and Replacement (BMR) projects, and Expansion projects.

Industrial Building Depreciation Allowance

To encourage the establishment of Small and Medium Industries (SMIs), companies constructing industrial sheds/structures for sale or lease to SMIs are granted an enhanced Depreciation Allowance (DA) at 30% (in the first year) of the cost of the development of these sheds/structures.

Normal Tax Rates

FACILITATION

(i) Manpower

To improve working relations among employers and employees and to increase productivity, the Labour Laws are being revised. The Ministry of Labour and Manpower has constituted a Commission on Labour Laws to recommend specific measures to implement the following:

(a) Contract Labour

In order to improve productivity and efficiency in the country, the contract labour system will be encouraged. As per the Investment Policy of 1997 and the Labour and Manpower Policy, legislation will be made more stringent to ensure the protection of the rights of contract workers.

(b) Right to Replace Unwilling Workers

The right to replace unwilling workers with willing workers may be exercised under the provisions of the relevant Law in the event of violence, lack of discipline, and loss of productivity. In this regard, the Commission established for consolidation, simplification and rationalisation of labour laws will suggest measures to remove the bottlenecks and provide a viable solution.

(c) Consolidation of Labour Laws

Difficulties are being faced by employers in the country due to numerous laws covering the labour field. The existing labour laws will, therefore, be reduced to a few essential laws covering terms and working conditions of employment, wages and safety, labour welfare and other benefits. A Commission has been constituted for the purpose of consolidation, simplification and rationalisation of labour laws, under the Chairmanship of a former Judge of Supreme Court of Pakistan.

(d) Outsiders and Trade Union Activity

Outside trade union activity under the respective ILO Agreement will be trade based but not factory based. However, no steps will be taken contrary to ILO Conventions that have been ratified by Pakistan. The Labour and Manpower Policy also supports the idea that workers and employees can resolve these issues by evolving a code of conduct themselves.

(e) Trade Unionism

The growth of trade unions at the plant level has, on occasion, been a source of disruption in the pace of industrial relations, foiling genuine efforts by the parties to promote mutual confidence. In order to check this, unions receiving less than a minimum level of support (20% of the votes) in an employee referendum will stand dissolved automatically and their registration will be cancelled.

(f) National Productivity Council

The National Productivity Council has been set up to promote measures to increase productivity. The Head of the Government is the Patron and the Minister for Industries and Production serves as its Chairman.

(g) Minimum Wage Council

A Tripartite National Wage Council has been set up to systematically determine the minimum wage for different business activities, industries and occupations in different provinces, taking into account the realities and state of economic growth of the respective province.

(h) Workers Profit Sharing

In view of rises in the cost of living, the Workers' Profit Participation Fund law will be amended to enhance wage levels to a reasonable extent and to allow the maximum number of workers to benefit from profit-sharing. A Committee of representatives from Ministry of Labour, FPCCI and National Trade Unions shall decide the wage level limits for this purpose.

(ii) Exchange Control

(a) Full repatriation of capital, capital gains, dividends and profits, is allowed.
(b) The facility for contracting foreign private loans (which does not involve any Guarantee by the Government of Pakistan) is available to all those foreign investors, who make investment in sectors open to foreign investment, for financing the cost of imported plant and machinery

required for setting up the project. However, loan agreements should be registered/ cleared by the State Bank of Pakistan.
(c) Foreign controlled manufacturing concerns will be allowed unlimited domestic borrowing according to their requirements for working capital.
(d) For foreign controlled semi-manufacturing concerns, the borrowing entitlement is 75% of paid-up capital including reserves, and for foreign controlled non-manufacturing concerns (trade/services) it is 50%.

(iii) Transfer of Technology

(a) There is no restriction on payment of royalty and/or technical service fees for the manufacturing sector. However, such agreements shall be registered with the State Bank of Pakistan.
(b) The payments of royalties and technical service fees to foreign companies will be taxed at 15%. However, reduced rates under the treaties with different countries remain applicable.
(c) The payment of franchise, royalty or technical fee in case of non-manufacturing sectors is allowed subject to following conditions:-

• In case of foreign investment in non-manufacturing sectors including food sector, the initial/lump/sump sum fee should not exceed US$ 100,000 irrespective of number of outlets under one franchise.

• A maximum 5% of net sales (excluding 15% Sales Tax) in the food sector may be allowed as franchise fee only for those items which are core items of the franchise and are the specialties of the trade name. The payment of such fees be allowed on monthly basis. No item will be eligible for twice payment of royalty/franchise fee, e.g, soft drinks, etc.

• Percentage/amount of fees etc., for other non-manufacturing projects is also be upto the maximum of 5% of net sales (excluding 15% Sales Tax).

• Initial period for which such fees may be allowed to projects in non-manufacturing sectors should not exceed 5 years. Subsequent extension in time period may be considered provided these projects also make investment allied upstream projects.

• The agreements conforming to above guidelines will be sent by the sponsors to State Bank of Pakistan for its information. However, any relaxation or deviation from the guidelines, will require prior approval of the Cabinet Committee on Investment (CCOI).

(iv) Intellectual Property Rights (IPRs)

The laws are being amended to enhance the protection of Intellectual and Industrial Property Rights in conformity to WTO Agreements and mechanisms will be devised to enforce the law.

(v) Social Facilities /Quality of Life

(a) Foreign nationals (investors, executives, expatriate employees) having "CBR's Pass Booklet" are allowed duty-free import of food stuffs and other consumable items equivalent toUS$1,000 per year per person in Pakistan. However, imports exceeding the above duty free limit of US$1,000 will be allowed on payment of normal import duties.
(b) Various communities of foreign investors and their employees are allowed to establish Exclusive Clubs with recreation facilities.
(c) One Airport Entry Pass for protocol purposes will be issued to foreign and local investors/companies, provided the equity investment is at least US$ 10 Million.
(d) The BOI extends a courtesy service covering reception in Pakistan, hotel bookings, accommodation, transport bookings, and assisting with the business itinerary, etc. for foreign investors visiting Pakistan.

(vi) Unilateral Relief

A person resident in Pakistan is entitled to a tax relief on any income earned abroad, if such income has already been subjected to tax outside Pakistan Proportionate relief is allowed on such income at the average rate of tax in Pakistan or abroad, which ever is lower.

(vii) Agreements on Avoidance of Double Taxation

The Government of Pakistan has either signed or initiated agreements on Avoidance of Double Taxation with 51 countries including almost all the developed countries of the World. The names of countries with which Pakistan has concluded Agreements for Avoidance of Double Taxation are given below:

(viii) Investment Treaties

Pakistan has signed Bilateral Agreements on Promotion and Protection of Investment with 38 countries. Following are the general features of these agreements.

(a) The term investment includes all assets of the individual investors and companies for the purpose of business investment in particular, although not inclusively. This includes: shares, moveable and immovable assets, intellectual property rights, licensing and know-how agreements, goodwill, and concessions to cultivate, extract, or exploit natural resources.
(b) The Contracting Parties shall encourage investments in their respective territories by investors of the other Contracting Parties.
(c) Non-discrimination vis-a-vis local investors and foreign investors of third countries.
(d) Nationalisation shall be applied exclusively for the reasons of public interest, pursuant to the law, and shall in no case be discriminatory. Countries adopting such measures shall pay to investors an adequate indemnity without undue delay according to the market value of the investment nationalised.
(e) Equal/non-discriminatory treatment in case of compensation for losses owing to war, other armed conflicts, a state of national emergency, requisitioning measures, etc.
(f) The free transfer of investments, and income deriving therefrom including particularly but not exclusively, profits, dividends, interest income, proceeds of sales or liquidation, repayments of loans, salaries, wages and other compensation received by foreigners employed on the investment.
(g) Subrogation.
(h) A dispute settlement mechanism to settle any dispute between the countries with respect to the interpretation of the respective agreement.

• A dispute settlement procedure to settle any dispute between a host country and an investor of the other country. If the dispute is not settled through mutual consultation, the investor concerned can take his case to the competent court of the respective country or ad hoc court of arbitration established under the rules of the UN Commission on International Trade Law or the International Centre for Settlement of Investment Disputes (ICSID) or the Court of Arbitration of the International Chamber of Commerce.

(ix) Protection to Domestic Manufacturing

The objective of keeping domestic manufacturing competitive will continue to be actively pursued through suitable adjustments in the tariff structure. Imported finished products will attract higher rates than imported raw materials/inputs. The incidence of duties and taxes on locally produced goods will be less than the incidence of duties and taxes on finished imported goods. Reasonable tariff protection will be available to domestic manufacturing depending upon value addition.

(x) Protection to Investment

The economic policies and the existing legal cover for foreign and Pakistani investment will be extended to new areas and sectors. The benefits and incentives for investment provided by the Government shall continue in force and will not be reduced or altered to the disadvantage of investors.

Pakistan's business strengths

Abundant Land and Natural Resources

• Extensive agricultural land 

• Crop production ( wheat, cotton, rice, fruits, vegetables)

• Mineral reserves (coal, crude oil, natural gas, copper, iron ore, gypsum, etc.

• Fisheries and livestock production

Strong Human resources

• English specking work force

• Arabic also widely understood

• Cost-effective managerial and technical workers

Large & Growing Domestic Market

• 140 million consumers with growing incomes

• a growing middle-class moving to sophisticated consumption habits

Well-Established Infrastructure and legal Systems

• Comprehensive road, rail, air and sea links

• good quality telecommunication and IT services

• Modern company law

• Long-standing Corporate culture

Strategic Location as a Regional Hub

• Principal gateway to the central Asian Republics

• Strong and Long standing links with the Middle East and South Asia

Pakistan's Investment Policies: Consistent Trends

• Liberalization

• De-regulation

• Privatization

• Commitment to market-led economy, pursuing open trade and investment policies

• Strong and effective BOI coordinating with the federal & provincial authorities, and overseas mission to proactively market Pakistan as a competitive place to do business

Investment Policy Reforms of December 2000

• The entire services sector has been opened for FDI

• Minimum reduced from $0.5 mn.

• The relaxing of restrictions on remittances of franchise, royalty and technical fees for non-manufacturing enterprises

• The addition of a number of key industries to the value-added list

Chemicals,
Textiles,
Iron & steel,
Engineering,
Pharmaceuticals,
Ceramics,
Mining

• The granting of industry status to tourism, housing, and construction industries.

THE STRATEGY FOR BOOSTING INVESTMENT

• Chief Executive of Pakistan approved the strategy for boosting domestic and foreign investment on October 16, 2000

• Institutional strengthening of BOI

BOI Ordinance being submitted to Cabinet
BOI's restructuring underway
Induction of private sector members on BOI's Board
Overseas Pakistanis are being appointed as Investment Counsellors
Young professionals being inducted in BOI
ADB Project on BOI's capacity building – building the investment promotion diamond

Greater participation of Provinces

• The Provincial Investment Committees have been revived with strong links to the BOI

• Two Industrial Estates in each Province identified for development as Model Estates

• Industrial clusters and parks being targeted

Investment promotion and targeting

• Identify potential countries:

Traditional investors - USA, UK, Japan
Islamic countries - Saudi Arabia, UAE, Libya, Lebanon
New directions - China, Malaysia, Korea

• Identify investment opportunities and develop marketing materials

• Market the investment opportunities to selected investors

• Track the investors' interests and concerns

• Facilitate the entry of investors into Pakistan

Image Building Campaign

• Domestic/Provincial Investment Conferences

• Overseas Investment Conferences

• Interaction with foreign and local media

• Consultation process initiated with FPCCI, Local Chambers, Overseas

• Chambers, Foreign Missions,

• CBR and other government agencies/Ministries

• Development of promotional tools

• BOI website being completely revamped

Vision and Missions of the BOI

• BOI's Vision - Promoting domestic and foreign investment to enhance Pakistan's international competitiveness and contribute to economic and social development.

• BOI's Missions

To implement Policy

• Simplify procedures to attract investment

To promote investment for profits

• Promotion (proactive, cost effective and responsive)

• Facilitation (account executives to provide customized assistance to investors)

To coordinate for success

• Build linkages amongst provinces, private & public investors and overseas missions

Major Facilitation Services of the BOI

• Access to investor information - especially through a major revamp and development of the BOI's web site: www.pakboi.gov.pk

• Identification of investment opportunities

• Investor matchmaking services

• Support in obtaining required licenses and other interactions with government agencies

• Assistance in overcoming operational constraints after project has started up

A Menu of Investment Opportunities along the New Business Frontiers

Value-added agro-industry

Fruits & vegetables
Livestock & dairy
Fisheries
Horticulture

Supporting industries

Textiles
Garments
Automotive
Electrical & electronics

Information technology & related services

Infrastructure and related services

Hydro-electric power
generation
Roads (highways, motorways)
Railways
Ports & Port Handling activities
Gas & Oil pipelines
Urban Mass transit
Storage facilities for agricultural produce
Cool chains (for agro-business)

Resources-based industries

Oil & gas
Petrochemicals
Chemicals
Other minerals

Corporate farming

Light Industries

Surgical instruments
Bicycles
Electrical appliances (fans)
Bus body-building
Gems and jewelry
Leather and leather products

Tourism development

Hotels and related facilities
Marine complexes and beach resorts
Mountain resorts in the northern areas
Privatization
A US$ 3 billion opportunity
Banking, finance, insurance
Oil and gas
Power
Telecommunications
Aviation
Industries

A base for the emerging markets of the Central Asian Republics

The Major Privatization Opportunities Upcoming Transactions Prior to June 2003

Banking & Finance

Allied Bank Ltd.
Muslim Commercial Bank
Habib Bank Ltd.
United Bank Ltd.
NIT/ICP
National Bank of Pakistan

Oil and Gas

Interests in 18 oil/gas fields
Pakistan Oilfields Ltd.
Oil & Gas Dev. Corp.
Pakistan Petroleum Ltd.
Attock Refinery Ltd.
Pakistan State Oil
SNGPL/SSGC
National Refinery Ltd.

If you are a government based or private organization and have any business proposal, which you would like foreign investors to consider, please E-mail us the details and after confirming the same, we will place the details at our website for foreign investors to evaluate and decide.

E-mail: info@investinpakistan.org