Investment and Privatisation Minister Zahid Hamid has said that the government will not put on sale the strategic entities. However, when asked at a press conference he could not specify the strategic entities.
He told the questioner that he could give the list of entities approved by the Council of Common Interest (CCI) for sell-off, and the government would restrict its action to the approved list. The minister claimed that foreign direct investment (FDI) in oil refineries, the China Special Economic Zones and the dairy sector would help Pakistan to increase its exports.
He said that PSO and Kapco sell-off and UBL GDRs would help Pakistan attain over $5 billion FDI during 2006-07. He said that foreign investors prefer Pakistan for investment. He claimed that Qatar would invest $3 billion in banking and insurance sectors, Kuwait in hotel industry, Saudi Arabia in hotels in Islamabad and Lahore and some 40 projects were being finalised for Pak-China Economic Zone.
He added that Canadian investors were planning to invest in Pakistan's oil and gas sector and the British in wind energy projects. He said tat $2.97 billion FDI came from China, $562 million or 18.9 percent from USA , and $547 million from United Kingdom . The minister said communications sector attracted $1.28 billion, financial business sector $573 million, oil and gas $353 million by February last. He said that FDI during July-February stood at $4.62 billion, against $2.97 billion of corresponding period of last year. Portfolio investment of $1.65 billion included OGDCL GDR receipt of $731 million.
The minister said that mergers and acquisitions in the banking sector including Standard and Chartered and Union Bank, NIB and PICIC and ABN Amro bank and Prime Bank were indicative of growing economy in Pakistan. He said that UAE and IPIC are setting up oil refinery at Khalifa Point and its is at the advance stage.
He said that all sectors were open for FDI, and the privatisation program of the country is also providing best investment opportunities both to foreign and local investors.
He said that negotiations on Bilateral Investment Treaty (BIT) are at an advance stage and legal experts from both countries are engaged in finalising the remaining issues. He said that Pakistan and United States are keen to finalise the BIT as soon as possible.