Federal Minister for Privatisation and Investment Dr Abdul Hafeez Shaikh on Sunday said here that Pakistan has great potential for foreign investment in various sectors and, for the first time, it would attract a foreign direct investment (FDI) of $1 billion this year. Speaking at the inaugural session of international conference on 'Investment Opportunities in Pakistan' he said that foreign investment in the country was increasing every year and in the last seven months it had touched the figure of $600 million which is higher by 50 percent compared to the same period of last year.
Most of this investment was in oil and gas, construction, real estate and telecommunication sectors and was result of positive policies of the present government, he added.
The minister said that on the domestic front, in the past two years there was 17 percent growth in large-scale manufacturing sector and this indicates the growing prosperity of the middle-income group of Pakistan. Agri industries were having a tough time at the beginning of the tenure of the present government and this is recording a better growth rate at present, he said.
He said that the privatisation policies of the government attracted the foreign investment. "We are welcoming foreign investors and providing them with incentives and motivations for investment here", he said and added that "we are backing up our promises with our action".
He said that Pakistan is open for all for investment and all investors are being provided equal facilities, and added that the government was increasing association with Muslim countries so that more investors could be attracted from the Muslim world and most of the foreign investors are coming from the OIC countries.
Hafeez said that the image of the country is improving internationally and its growth rate, stable government and positive policies are attracting them to invest in this country.
He said that the government has taken many steps to improve working environment in the country and is still working to ensure good governance. The government has allocated more funds to improve infrastructure facilities but, he said, the whole infrastructure can not be improved overnight.
Talking to newsmen he said that the government was pursuing the strategic sale of Pak-Arab Fertiliser, NIT, TIP, PS and PSO. The public offering of UBL and State Life Insurance Corporation would be completed by the end of current fiscal year, he added.
Secretary General, Islamic Chamber of Commerce and Industry Aqeel Al Jassem, appreciating the policies of present government, said that foreign direct investment is coming into Pakistan due to the positive and attractive policies of the government of Pakistan and its Prime Minister Shaukat Aziz.
He called for focusing on development of tourism sector in Pakistan to attract tourists especially from the Muslim countries.
He said that the Muslim world is full of resources and the OIC countries should make strategy to use these resources for the economic growth and prosperity of the Muslim world.
He said that there is gap of information among the OIC countries and they should bridge this gap to get benefit of the potential and human resources of OIC countries.
Jassem said that ICCI would continue its support to promote economic activities and for foreign investment in Pakistan.
Chairman SITE Association of Industry Dr Mirza Ikhtiar Baig said that SITE industrial area is the oldest and largest industrial zone in the country, where more than 2500 industrial units are providing job opportunities to more than 55000 people. Its daily turnover is more than Rs 2 billion and it pays one-fourth of the total revenue of the country.
He said that textile sector has huge opportunities for investment. The project of Textile City near Port Qasim and the Garment City in Karachi are being established and foreign investors should avail opportunity to invest in these projects.
He said that things have been changed and now Pakistan has become the best place for investment, and hoped that in the next few years a huge foreign direct investment would come into Pakistan.
Sindh Minister for Transport, Industry, Production and Commerce Muhammad Adil Siddiqui, addressing second session of the conference, said that the image of the country has been improving with the positive policies of the government, political stability in the country and with the improving relations among the neighbouring countries in the region.
He said the industrial activities are increasing in the country especially in Sindh. He said many industrial units are now functioning in Nooriabad, Dhabeji and other industrial zones, where most of the industrial units had been closed in the past.
He said government is providing all facilities to foreign investors; law and order situation has been improved and the country has a huge potential for investment in various sectors.
Saquib Sherazi, Chief Executive Atlas Group said that Pakistan is standing first position in industrial growth in Asia, third in GDP growth, fourth in population, sixth in car sales, seventh in motor cycle sales and eighth in poverty ratio in the eight countries of the region.
He said that the auto sector is growing in the country and with decreasing interest rates, auto financing has gone up from Rs 737 million in 1997-98 to Rs 24 billion by June 2004. Pakistan auto sector production targets are also going up and the target of car production is 400,000 cars up to 2009-10. In the same way the target of motor cycle production is 1 million motor cycles in 2009-10.
He was of the opinion that the joint venture of the local and foreigners would be more successful in the industrial sector with the local know-who of Pakistan side and technical know-how by the foreigners. He said there is huge potential for investment in auto sector in Pakistan.
Chairman, State Engineering Corporation, Major General (Retd) Sikandar Hayat said that industrial growth in Pakistan has been achieved 13.1 percent against 7.8 percent targeted.
He said that the country's foreign exchange reserves have gone up 12-fold, exports increased to over $13 billion, inflation reduced to single digit and budget deficit down from 7 percent to 3 percent.
He said that Pakistan business strengths are investor-friendly policies allowing 100 percent foreign equity, protection to private investment, remittance of profit, royalty and technology fee, zero import duties on raw materials for production of export, large and growing domestic market, well-established infrastructure, skilled, qualified and cost effective manpower, regional hub in view of gateway to Central Asian Republics and strong links with Gulf region and South Asia.
He said that there is huge potential of investment of Rs 594.4 billion in engineering industry in Pakistan against existing Rs 289.8 billion in this sector including potential in Automotive & Agriculture Implements of around Rs 110.3 billion, against existing Rs 65.3 billion, Rs 26 billion in heavy machinery against existing Rs 17.5 billion, Rs 13 billion in Consumer Durables against Rs 9.5 billion, Rs 21 billion in Surgical & Cutlery against existing Rs 15 billion, Rs 251.5 billion in Steel against existing Rs 83.5 billion and Rs 172.6 billion in others against existing Rs 99 billion.
The State Minister for Petroleum & Natural Resources Muhammad Naseer Khan at the third session of the conference said that the Balochistan province is full of natural resources and has a huge potential for investment.
He said that the new natural resources have been discovered during the current geological survey of the country.
He asked the local investors for taking initiatives to invest so that foreign direct investment could be attracted.
He said that Gwadar Deepsea Port and the Coastal Highway had been completed and now the Motorway and railway lines are being built for connecting it with the whole country as well as with Iran, Afghanistan and Central Asian countries.
He asked foreign investors to come forward to invest and avail the vast opportunities available in gas, oil and other sectors in Pakistan and get benefit of business-friendly policies of the government.
Managing Director PPIB Zafar Ali Khan, Chairman House Building Finance Corporation Zaigham M. Rizvi, Chief Executive Arif Habib Investment Management Limited Nasim Baig and Senior General Manager Sui Southern Gas Company Hasan Nawab also spoke on this occasion.
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