Sindh organises investment conference: Hafeez urges provinces to improve systems

The Advisor to Prime Minister on Finance, Dr Abdul Hafeez Shaikh, said on Saturday that foreign and local investments were unlikely to pour unless the provinces made their systems and procedures better. In a few minutes of video conference from Islamabad at the Sindh Investment Conference 2010, which the Sindh Board of Investment [SBI] had organised at a local hotel, he said that after the NFC Award the responsibility of the provinces had increased to attract investments.
He offered to have discussions with the Sindh government on all issues in Karachi or Islamabad. Earlier, Sindh Governor Dr Ishratul Ibad Khan formally inaugurated the conference, which was attended by diplomats, representatives of multinational companies, foreign and local eminent personalities from business and investment sectors.
Experts of different sectors also delivered speeches urging the investors with huge opportunities in all sectors in the province. The Governor said that the Sindh province is rich in natural resources while there are huge business and investment opportunities.
He said that the province also has its advantage of strategic geographical location with seaports, developed telecommunication infrastructure, ample agriculture and mineral resources, better educational system and abundance of human resources. He pointed out that the city's scope for coastal recreation resorts, construction and housing especially in low cost sector, IT Parks, modern municipal management, mass transit make it an ideal destination for investors.
He highlighted the objectives of SBI, saying that it works to create the investment friendly environment to augment the industrial partnership for socio-economic development in the province. He added that the SBI is also responsible for co-ordinating and implementing investment policies and provide a forum to share ideas, concepts and identify new business areas besides providing Public Private Partnership models.
Sindh Chief Minister Qaim Ali Shah announced the transformation of the Land Utilisation Department (LUD) into one-window facility to facilitate the investors. He also announced formation of a committee on land grant, which Investment Advisor to CM Sindh Zubair Motiwala will head.
He hoped that the one-window service would help the investors acquire land without any difficulties in the future for investment purposes. Expressing astonishment, he said that he had been overwhelmed with huge presence of potential investors during the conference, and added that it would help develop the province, and Pakistan, into an industrialised state.
Qaim hoped that the signing of some memorandums of understanding (MoUs) would pour investment in the energy sector. He also announced one-month bonus salary for SBI officials for organising such a big event. Chairman of the Board of Investment [BoI], Saleem Mandviwalla, told the conference that the government was willing to strengthen institutions in the country.
He said that with becoming the Special Economic Zone Act through the assembly will allow the import of machinery at zero-duty rate. Besides, the act will also facilitate the investors with five years to 10 years income tax exemption. He hoped that the assembly will shortly pass the zone bill into an act.
Zubair Motiwala said that the government is keen to remove the concerns of foreign investors, adding that the Yamaha has been allowed to import 50,000 bikes into Pakistan although the move would deprive many other investors of such a facility.
He said that the government had to take the decision because Yamaha is investing about Rs 1.5 billion in the auto sector. Director of the Institute of Business Administration [IBA], Dr Ishrat Hussain, urged the investors to put their money in different sectors, as there are huge opportunities on investment returns.
He said that the market demand for goods and services in Sindh is ample while its contiguity with the Middle East also makes it viable for investment to cater to the needs of trans-border markets. He pointed out that there was also an opportunity to reach the consumers of rural Sindh, as their purchasing power is lower than the ones in urban parts of the province, which needs enhancement, too.
He said that the government in the 70s during its socialist policy of nationalising the economy avoided foreign investment. He said despite the negative impression about Pakistan, there is also huge investment opportunity with huge profitability.
Dr Ishrat said that the backbone and financial hub of the country is also located in Sindh namely Karachi, which also encourages the investors to put their money in Sindh. He also urged the government to resolve the problems of new investors like land acquisition, energy shortage, etc.
MoUs were also singed at the last session of the conference between the investors and SBI in alternative energy sector. Various potential investors signed five memorandums of understanding (MoU) with the Sindh Board of Investment (SBI) for setting up alternative energy projects in the province.
Azur Solar of Germany signed the first MoU with SBI for setting up three wind energy projects of 50 megawatts each at Dhabejee, Bhambore and Karachi Education City. The second MoU was signed between SBI and transatlantic Energy for setting up wind turbine manufacturing facility under the assistance of Dutch government The Netherlands will provide financial assistance of $86 million for this project. The company will set up a wind farm for 36 MW of electricity.
Similarly, Iran-Pakistan Wind Energy Power inked MoU for setting up of 50 MW wind power plant in Sindh. SBI also singed MoUs for marble city over an area of 3 acres of land in the province. SBI also signed MoU with Zarai Tarraqiati Bank Ltd (ZTBL) and PASDEC.