apex presentation arif elah i

Investment Opportunities &

Entrepreneurship in Pakistan

BOI

Board of InvestmentBoard of Investment

INTRODUCTION

IntroductionThe Board of Investment, Ministry of Investment is headed by thePrime Minister

Board of Investment is the apex investment promotion and facilitation organization of the Government

The Board of Investment was established in 1989 with the following primary responsibilities:

promotion of investment facilitation of local and foreign investorspolicy advocacy

The services provided by Ministry of Investment include:providing information on investment opportunitiesfacilitating companies who are looking for joint venture partnerscoordination with other Government Departments and Agencies to resolve investor issues

Mandate of BOI

““ Promoting Domestic and Foreign Promoting Domestic and Foreign Investment to Enhance PakistanInvestment to Enhance Pakistan’’s s

International Competitiveness International Competitiveness and Contribute to Economic and Contribute to Economic and Social Development and Social Development ””

Liberal Investment PolicyEqual opportunity for local & foreign investorsAll economic sectors open to foreign investorsForeign equity ownership of 100% allowedNo Government permissions requiredAttractive tax, tariff and other incentivesRemittance of capital, profits, royalty, technical & franchise fee allowed Statutory protection for foreign investmentBilateral Agreements :

Investment Protection 47 CountriesAvoidance of Double Taxation 52 Countries

Economic Profile

Indicators 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09(Jul-Nov)

Exports (B $) 11.16 12.31 14.39 16.47 17.01 19.22 10.16

Imports (B $) 12.22 15.59 20.60 28.58 30.54 39.96 18.33

Remittances (B $) 4.24 3.87 4.17 4.60 5.49 6.5 2.97

FOREXReserves (B $) 10.72 12.33 12.61 13.14 15.18 10.83 9.34

(22 Dec)

Stock ExchangeIndex 3,402 5,279 7,450 9,989 13,772 12,289.03 9,187.10

GDP/Capita $ 582 651 736 847 925 1,085 1,085

GDP Growth 5.1% 6.4% 8.4% 6.6% 7.0% 5.8% -

Investment Trend 2000-01 to 2008-09

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Jul-Nov

PrivatisationProceeds

176 199 363 1540 266 133.2 0

FDI Excluding Privatisation

622 750.6 1,161 1,981 4,873.2 5,019.6 1,603.30

FDI 798 949 1,524 3,521 5,140 5,153 1,603.30

Portfolio Investment

(239) 311 611 964 3,291 40.1 -162.9

Foreign Investment

559 1,260 2,135 4,485 8,417 5,193 1,440

USD in millions

Graphical illustrationForeign Direct Investment in Pakistan

Million US $

5153

5140

798485322470472601682

1102

442949

1524

3521

0

1000

2000

3000

4000

5000

6000

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

ENTREPRENEURSHIP

“Entrepreneurs are risk takers, willing to roll the dice with their money or reputation on the line in support of an idea. They willingly assume responsibility for the

success or failure of a venture.”

“Innovation is specific instrument of entrepreneurship…the act that endows resources

with the capacity to create wealth.”

(Peter Drucker – Founder of Modern Management)

What makes Entrepreneurial Economy?

Competitive environment with a level playing fieldFree and flexible markets that will enable the closing down of business that have run their course and be replaced by more efficient firmsRule of Law: Protection of property rights & Contract enforcementAvailability of a financial system that provides the entrepreneurs with an easy access to capitalA quality educational system

Success Stories

IT startups in PakistaniTrango, a game and 3D content studio, provided content for the wildly successful game Tomb Raider Legend, and also for high profile companies such as Nike, Lexus, Scion and other global brands

Trevor, a software company, recently acquired by Bentley Motors, was one of the world’s top providers of GIS/geospatial software solutions

Post Amazors, an animation house, provided content for the film, The Mask, and also the local character of Safe Guard for P&G which is now being used globally (Mexico)

EnterpriseDB develops and supports EnterpriseDB Advanced Server, a leading Oracle-compatible relational database management system (RDBMS)

Ultimus is one of the most widely deployed Business Process Management solutions in the world, enabling over 1800 companies to increase profitability by managing, automating, modelling and optimizing core business processes. Their customers include Microsoft, Lockheed Martin and others.

Source: MIT Entrepreneurship Center

Engro Foods, a wholly owned subsidiary had its first full year of operations in 2007. The Company continued expanding with additions to brand portfolio, milk production and distribution capacities.

The portfolio now includes four impressive brands; Olper's milk, Olper’s cream, Olwell and Tarang. Olper’s market share peaked at 18% within just two years of operations.

EFL operates two dairy processing factories located in Sukkur, and Sahiwal. The company’s milk collection network now boasts over 700 village milk collectors and 400 milk collection centers. Covering 2400 villages across Pakistan, the activities of the Company touch the lives of almost 51,000 farmers.

An exciting new venture is the diversification of dairy portfolio into ice cream. Work has commenced for detailed engineering and market study with a view to launch of first ice cream in 2009. Also on EFL slate is the establishment of a modern dairy farm with milking expected to start in second quarter 2009.

Engro Foods Limited

Indus MotorsIndus Motor Company is a joint venture of the House of Habib, Toyota Motor Corporation and Toyota Tsusho Corporation. It manufacturesand markets Toyota and Daihatsu vehicles in Pakistan.

Indus Motor Company, with support from Toyota Motor Corporation has worked closely with its 62 local vendors for increased localization and technology transfer. The company has expanded its dealershipnetwork across Pakistan to 29 dealerships and this will increase further in the coming years. IMC produced 48,193 units in the Fiscal Year 2007-8, with sales of over 50,000 units. Indus Motor alone contributed Rs 13.7 billion or about 30% of the total collection from the Auto sector in 2006-07 to the national exchequer.

The company’s products, renowned for their quality, durability, safety, fuel economy and resale value, are appreciated by customers in Pakistan. There has been high demand for the Corolla which is the market leader in this segment. Pakistan is the highest producer of Corolla in Asia. At the time of the Corolla launch in March 2002, the company was producing 57 vehicles per day. Today, it produces 200 vehicles per day.

Umer Group of CompaniesEstablished in 1982, Umer Group of Companies headquartered in Karachi, Pakistan, today enjoys an annual turnover of 9 billion Pakistani rupees – approximately US $150 million.

The group has invested more than US $10 million in recent years to expand its textile facilities to meet the international demand for its yarns and fabrics.

The Umer Group is involved in textile, power generation, footwear, tannery and construction activities.

The textile group comprises of three companies: Bhanero Textile Mills LtdFaisal Spinning Mills LtdBlessed Textile Ltd

Umer Group of CompaniesUmer Group’s weaving mills feature more than 500 air-jet weaving machines from Japan and Belgium. Greige fabrics – produced for sheeting, denim and apparel – range from 170 centimeters to 340 centimeters in width

The weaving mills produced over 6 Million meters of fabric monthly. One of the associated company Firhaj Footwear has the exclusive manufacturing license of Hush Puppies International USA and the distribution license of Caterpillar in Pakistan

The growth rate of Hush Puppies shoes has the second largest growth rate in the world.

Umer Group of companies currently employs more than 6,000 people.

Nirala SweetsThe great journey started when Taj Din migrated from Amritsar, India, to Lahore and started a small breakfast shop in the inner city of Lahore in 1948. The business of Nirala Sweets, in just over half a century, has evolved into a Group of Companies, consisting of various business divisions.

It is heartening to see that from a single, small mithai shop in old Lahore in 1948, the Company now owns 37 shops in 9 cities of Pakistan, besides 2 in the UAE.

The Group consists of businesses like dairy processing and packaging, snacks, restaurants, software house and more recently, automobiles.

Nirala SweetsThe Nirala Group consists of ten companies operating in different market segment

Anmol CompanyN Design N Restaurants Nirala Canada Ltd.Nirala Dairy (Pvt) Ltd.Nirala Snacks (Pvt) Ltd.Nirala (Pvt) Ltd.Nirala (UK) Ltd.Porsche PakistanTaj Trading LLCVCS (Pvt) Ltd

SHELL—a leading MNC in the Petroleum marketing sector has its Corporate Social Responsibility program, which focuses on spreading Entrepreneurship among youngsters. This vibrant program has title name “LiveWire” Globally, and in Pakistan “Shell Tameer”.

It primarily appreciates Young Entrepreneurs with eye-catching prize; 1000cc Car, Motor Bike, Lap Tops, and much more and also offers mentoring through Business Leaders and Business Experts. Shell arranges Shell Tameer Award each year; in which they receive profiles of Successful Young Entrepreneurs across the country.

They mostly prefer those Entrepreneurs, who have some unique and unconventional kind of business in limited resources. For instance, they nominated their top prize to Taj Traders— a new Young Entrepreneur, who has Bangle making small unit in Hyderabad, along with it, he is exporting to USA, UK, and UAE, and contributing in country’s economy.

The Indus Entrepreneurs (TiE), a leading Non Profit Entrepreneurship Fostering Body, Which is based on Silicon Valley, USA, is principally focuses on spreading the Entrepreneurship globally.

TiE’s focus is on generating and nurturing our next generation of entrepreneurs. TiE has created wealth & helped boost the economies of geographies in which it operates - it is estimated that over $200 billion of wealth creation has resulted from varied TiEinitiatives.

Besides its flagship event, TiECon - the largest professional conference for entrepreneurs, TiE now has a wide range of programs including Special Interest Groups (SIGs), TiE Institute, Deal Flow Meetings, TiE Young Entrepreneurs, and, most recently, TiE Women’s Forum and CEO Forum.

TiE have three chapters in Pakistan; Karachi, Lahore, and Islamabad. They are really very helpful for Young Entrepreneurs in case of Business Plan Competitions, Networking forums, Start Ups, Mentorships, Entrepreneurial summits, and much more. All these locals’ chapters are operating by renowned Entrepreneurs of the country.

Pakistan the Land of Opportunities

Geo-Political Location: Close Proximity to China, India, Afghanistan & Iran

WHY INVEST IN PAKISTAN

4

160 million Population (2006 est) Trained workforceHuge domestic marketRising per Capita Income-Rising Consumer SpendingGeo-strategic locationAbundant LandClimate suitable for multiple cropsExport manufacturing zero ratedAvailability of low cost raw materials and manpower

Liberal policies and profitable opportunities5th largest milk producer – 3% milk is processedlargest cotton producerHuge Coal reservesRich in Mineral Resources1000 Km coastal LineSea Ports –Airports-Dry Ports-Industrial Estates-EPZ, SIZ etc

Population & Demographics

5

Extremely Favorable DemographicsExtremely Favorable Demographics

• 160 million (2006 est)• A young and highly talented population• Rising Middle Class

Source: Population Census Organization, Federal Bureau of Statistics

20 to 39 years27%Below 19

years54%

40 to 59 years60 years

Pakistan Population Demographic

Below 19 years19%

20 -39 yea28%

40-59 years27%

60 years and above 26%

Japan Population Demographic

Growing Middle ClassGrowing Middle Class

45.048.6

51.6

49.341.7 36.0

12.39.75.7

1990 2002 2004

Source : Economic Survey 2004-05, 2005-06, 2006-07; House Hold Survey 2004-05

Household Income Distribution (%)

20062005 2007

Highly Competitive Labor CostHighly Competitive Labor Cost

0.22 0.30.46

0.540.78

1.92

3.61

0

0.5

1

1.5

2

2.5

3

3.5

4

Pakistan China Thailand Phillipines Malaysia Hong Kong New Zealand

US$ Per Hour

Availability of Skilled LaborAvailability of Skilled LaborGrowing Labor Force

Figures in millions

0

10

20

30

40

50

60

1991-92 1992-93 1994-95 1995-96 1996-97 1997-98 1999-00 2001-02 2002-03 2003-04 2005-06Source: Pakistan Economy Survey - 2005 - 2006

De- regulation, Liberalization, Privatisation and Competitiveness as corner stone of the Economy

Capital Market Reforms

Access to Justice, judicial reforms and

civil reforms

Major Economic Reforms

Tax Reforms

Agriculture Sector Reforms

Financial Sector Reforms

Fiscal Responsibility & Debt Limitation Act

5

Privatisation

Governance Transparency

PAKISTAN - HOME TO OVER 600 FOREIGN COMPANIESPAKISTAN - HOME TO OVER 600 FOREIGN COMPANIES

Deutsche Bank

ZTE

22

BGP Haier

Source: Company Reports (annual A/Cs); ROE: Return on Equity

Corporate Performance - ROECorporate Performance - ROE

29.9%NA22.4%36.2%32.7%27.3%30.9%PSOOil & Gas

22.0%NA21.6%17.9%26.8%21.8%NABank AlfalahFinancial Business

28.5%NA46.4%26.9%31.7%19.2%18.5%Siemens Engg.Engineering

24.4%NA20.0%22.0%31.0%24.0%25.0%

Engro Chemicals PakistanChemical

57.3%NA43.9%53.9%61.9%63.5%63.2%Nestle MilkpakFood

84.5%NANA89.8%86.7%81.9%79.4%Unilever PakistanConsumer Items

15.6%NA9.1%9.3%17.0%18.4%24.0%HubcoPower

25.2%37.8%29.0%30.7%29.5%24.6%21.0%Shell PakistanOil & Gas

Average200820072006200520042003CompanySector

GROWTH DRIVERS

Agriculture: Major CropsAgriculture: Major Crops

RiceRice--Basmati 5.5 Basmati 5.5 MtpaMtpaWheatWheat--24 24 MtpaMtpaCottonCotton--12.5 M bales12.5 M balesSugarcaneSugarcane--46 46 MtpaMtpaMaizeMaize--3.6 3.6 MtpaMtpaOil SeedsOil Seeds

Sun FlowerSun Flower--0.6 0.6 MtpaMtpaCanolaCanola -68,000 tpaMustardMustard--210,000 210,000 tpatpa

PotentialPotentialLargeLarge--scale investments scale investments needed for converting needed for converting grains into valuegrains into value--added added productsproductsCorporate farming needs to Corporate farming needs to be developed for all be developed for all agricultural crops agricultural crops particularly oil seeds, particularly oil seeds, wheat, maize & cottonwheat, maize & cottonThe crops sector can The crops sector can absorb over absorb over US$ 10 US$ 10 billionbillion of investment in of investment in the next 5 yearsthe next 5 yearsLand can be made Land can be made available by the Govt. on available by the Govt. on longlong--term leaseterm lease

INVESTMENT OPPORTUNITIES IN AGRICULTURE FARMING

Fertile agriculture land in public as well as private sector available in all the 4 provinces for corporate farming on mutually agreed terms and conditions.

Similarly vast tracts of waste land also available for conversion into fertile land by using modern technology and used for agricultural crops.

Details of land available for above are as follows:

Punjab 30227 (acres) Sindh 212000 “NWFP 20000 “Balochistan 40000 “

Agriculture: Fruits & VegetablesAgriculture: Fruits & Vegetables

Citrus FruitsCitrus FruitsMandarin (Mandarin (kinnowkinnow))Grape FruitGrape FruitOrange varietiesOrange varieties

MangoMangoBananaBananaPomegranate Pomegranate DatesDatesApplesApplesPearsPears

OnionsOnionsGarlicGarlicCorianderCorianderChiliesChiliesTomatoesTomatoesPotatoesPotatoesTurmericTurmeric

PotentialPotentialLargeLarge--scale investmentsscale investments

Producing fruit preservesFruit pulp Fruit juices Vegetable dehydration Cold storagesRefrigerated transportfor local markets and exports

5th Largest Producer of Dates5th Largest Producer of DatesDate processing units

Over Over US$ 2 BillionUS$ 2 Billion in next 5 in next 5 yearsyears

Live Stock, Poultry & FisheriesLive Stock, Poultry & Fisheries

Varieties of high quality Varieties of high quality meat and dairy livestockmeat and dairy livestock

•• CattleCattle•• GoatGoat•• SheepSheep

•• PoultryPoultry•• FisheriesFisheries

PotentialPotentialWorld’s 5th largest producer of milk Need largeNeed large--scale investment in scale investment in dairy farming & dairy processingdairy farming & dairy processingQuality livestock for beef, mutton & Quality livestock for beef, mutton & lamb meat production and lamb meat production and processingprocessingHigh quality fresh and marine fish High quality fresh and marine fish species available for corporate species available for corporate farming (both inland & coastal)farming (both inland & coastal)LargeLarge--scale poultry farming scale poultry farming potentialpotentialSector can absorb an investment of Sector can absorb an investment of US$10 billionUS$10 billion in next 5 yearsin next 5 years

Minerals & MiningMinerals & Mining•• Gemstones Gemstones –– worldworld’’s 5th largest deposits. Emeralds, Topaz,s 5th largest deposits. Emeralds, Topaz,

Aquamarine, Garnet, Ruby, Tourmaline, MooAquamarine, Garnet, Ruby, Tourmaline, Moonstone & nstone & PeridotPeridot. Investment of US$100M needed in next five. Investment of US$100M needed in next fiveyears.years.

•• Oil and gas Oil and gas –– a success rate of over 25%. 100 wells planned for 2007a success rate of over 25%. 100 wells planned for 2007

•• Coal Coal –– TharThar coal having deposits of 182.5 billion tons. Additionallycoal having deposits of 182.5 billion tons. Additionallygood quality coal is available in good quality coal is available in BalochistanBalochistan and Punjaband Punjab

•• Gypsum Gypsum -- 95% white deposits est. at 595% white deposits est. at 5--6 billion tons. Investment of6 billion tons. Investment ofUS$3 billion needed.US$3 billion needed.

•• MagnesiteMagnesite –– large deposits in NWFP for relarge deposits in NWFP for re--factoriesfactories

•• Copper/Gold Copper/Gold –– Very large deposits in Very large deposits in BalochistanBalochistan. . SaindakSaindak Copper Copper Mining Complex already functioning. Second Mining Complex already functioning. Second complex coming at complex coming at RicodicRicodic. Investment of US$100 million . Investment of US$100 million already made in this sectoralready made in this sector

OFFER FOR INVESTORS IN NATURAL RESOURCES SECTOR

Direct Allocation of Blocks for Oil and Gas Exploration without bidding process.

Joint Ventures with public sector Oil and Gas Companies like OGDCL and PPL for Oil & Gas Exploration.

Participation in services side of Exploration & Production (E&P) Sector both within Pakistan and for the region through regional offices based in Pakistan.

Pakistani downstream companies like SSGCL and SNGPL for participation in pipeline projects .

Participation in down stream oil marketing and distribution .

Investment in Iran-Pakistan-India (IPI) Gas pipeline project (Approximately 6 billion $ project size).

Investment in Oil Refinery (ies) in Coastal regions.

ManufacturingManufacturingOver 30,000 units functioningOver 30,000 units functioning•• Automotive Automotive –– US$2 billion investment needed for OEMsUS$2 billion investment needed for OEMs

•• Chemicals, Fertilizer & Paint Chemicals, Fertilizer & Paint –– US$2 billion investment neededUS$2 billion investment needed

•• EngineeringEngineering–– ElectricalElectrical–– ElectronicsElectronics–– Machine ToolsMachine Tools–– LightLight–– HeavyHeavy

•• Food & Consumer Items Food & Consumer Items •• Food ProcessingFood Processing•• Oil, Gas & EnergyOil, Gas & Energy•• PharmaceuticalPharmaceutical•• TextileTextile

• Dairy Products (milk, butter, yogurt, cheese, ice-cream)

• Edible Oils (cooking oils, hydrogenated vegetable oils)

• Fruits & Vegetable Products (fruit juices, fruit juice drinks, canned fruits)

• Carbonated Beverages

• Sugar, Flour

• Snack Foods (potato crisps, salted nuts, extruded products from rice flakes, corn grits)

• Processed Chicken, Fish & Meats

• Honey, Jams, Jellies, Marmalade, Squashes, Sauces, Pickles

• Cereals (cornflakes, rice cereal, porridge)

• Biscuits, Breads, Confectionary (toffees, bubble gums, chocolates)

• Spices (pepper, corriander, turmeric, ginger)

Manufacturing: Food ProcessingManufacturing: Food Processing

PotentialPotential

• Dealerships for Pak-origin food items need to be established in KSA

• Large-scale investments needed in preparing halalprepared-foods for USA, Canada, UK, EU and ME markets

• Investment of over US$500 million needed

OIL & GAS PRODUCERS

Pakistan Petroleum Ltd. (Under Privatization)Oil and Gas Development Company (Under partial Privatization)Pakistan Oil Fields, OMV, MOL, BPand ten more private companies

OIL REFINERIES

National RefineryAttock Refinery `PARCOMID Country RefineryPakistan RefineryBOSICOR

GAS TRANSMISSION & DISTRIBUTION

Sui Southern Gas Company (Under Privatization)Sui Northern Gas Pipe Line Ltd. (Under Privatization)

OIL MARKETING COMPANIES

Pakistan State Oil (Under Privatization)

Oil & Gas ProducersOil & Gas Producers

The NeedThe Need –– The Infrastructure ChallengeThe Infrastructure Challenge

HighwaysHighwaysVarious Highways & Bridges are planned to be developed on PPP basis.

• Mansehra – Hassanabdal Expressway – 100 Km – US$ 350 M

• Rawalpindi Bypass – 28 Km – US$ 50 M

• Peshawar Northern Bypass – 30 Km – US$ 30 M

• Bridge over River Chenab at Multan – 1 KM - US$ 25 M

EOIs are expected to be in the market by November 2008

Bin Bin QasimQasim and and GawadarGawadar East Bay ShipyardsEast Bay Shipyards

• Two large Shipyards at Bin Qasim, Karachi and Gawadar East Bay, Gawadar

• Shipyards would construct Very Large Crude Carrier (VLCC) and Ultra Large Crude Carrier (ULCC) size Ships & Offshore / Onshore Oil Rigs.

• Investment requirement is around US$ 500 M for each Shipyard

EOIs are expected to be in the market by early 2009

Private Sector Investment is Critical for Infrastructure Development

Public Transport Public Transport -- CNG BusesCNG Buses

• C•Project envisages CNG based Public Transport for eight major cities in Pakistan in addition to manufacturing of CNG Buses in Pakistan

•More than 8,000 Buses envisaged in the Project

•Government of Pakistan would provide upfront Grant and also provide Interest Subsidy

•Investment estimated for Bus Operation is US$ 400 M

Karachi needs 4,000 Buses for which EOIs & SOQs have been requested

•EOIs & SOQs already requested – Last date is 15 December 2008

Horticulture Cool ChainHorticulture Cool Chain

• Cool Chain project is being developed for the development of Supply Chain Infrastructure for Horticulture produce (Fruits & Vegetables)

• Project envisages establishment of–39 Export / Pack Houses–23 Cold Storages–2 Reefer Yards

• Project size is estimated to be US$ 100 million

EOIs are expected to be in the market by November 2008

Tourist VillageTourist Village•Project envisages Three star hotel on a area of 25 Acres of land in

the heart of Islamabad

•Proposed facilities of the hotel include Restaurants, Conference

Halls, Theater facilities, Gymnasium, Health Club, Indoor Sports

Facilities, Swimming pools, Corporate Offices etc,

•Estimated project cost is US$ 75 M

EOIs are expected to be in the market by December 2008

Investment Incentives & Projects

Agriculture & Agro-based IndustryCorporate Farming of SoybeanCorporate Farming of Soybean

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Farming of soybean & production of edible oil on 50,000 acres of leased land producing. 90,000 ton soybean, 20,000 ton edible oil, & 150,000 ton wheat.

Pakistan imports over US $ 550 million worth of edible oil. The project is for import substitution.

US $ 60 Million 37%

Agriculture & Agro-based Industry

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Mango, Guava and Tomato pulp manufacturing plant under license

There is a large local and international demand for high quality juices made from pulp. Pakistan produces very large quantity of these fruits which need to be used to manufacture pulp on year round basis.

The total investment in one plant would be around US$10 million. 5 to 10 plants may be set-up.

20-25%

Fruit PulpingFruit Pulping

Agriculture & Agro-based Industry

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED IRR

Cattle Farming and Meat processing for exports 200 cows & 1500 sheep/ goats per day Plant.

The GCC countries alone import over US $ 12 billion of meat, offering huge potential for processed beaf, lamb & mutton from Pakistan.

US $ 8 million ROE40%

Cattle Farming & Meat ProcessingCattle Farming & Meat Processing

Engineering & Automobile

20%US $ 18 MillionAgainst local demand of 40,000 TPY of automotive castings only 6 to 8,000 TPY is produced in the country.

20,000 tons / per year Automotive Foundry

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED IRR

Auto Foundry

Engineering & Automobile

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

4 Million Tons / per year Integrated Steel Mill

Local production is only 4.0 MTY against local demand of 8.0 MTY.

US $ 400 Million

25-30%

Steel Mill

Oil & Gas

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

NapthaCracker + PE & PP units based on 650,000 tons locally available Naptha.

Pakistan exports over 600,000 tons Naptha & imports PE, PP and other plastics

NapthaCracker US$ 300 M, PE & PE units US $ 500 M. Total US $ 800 Million

25%

Naptha Cracker

Oil & Gas

25%-30%US$2 to 4 billion depending on the size

Pakistan continues to import nearly 70% of its requirement of refined products. Location Gwaderor Karachi using imported crude oil

Oil Refinery of 200,000 to 300,000 bpl/day

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Oil Refinery

Minerals: Gold & Gems

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED IRR

50,000 carats per year Gemstone/ Lapidary units.

Pakistan has 5th largest deposits of Ruby, Tourmaline, Pink Beryl, Topaze, etc. There is no Lapidary unit in the country. Huge potential for local & export markets. World Market is US $ 20 billion for cut & polished gemstones.

US $ 3.5 Million per unit - Ten Units can be established in 2 to 3 years with a total investment of US$ 35 million.

100% in 1st year for each unit.

• Huge deposits of gems and gemstones• Large-scale potential for setting up gemstone cutting and

polishing units• Investment of US$100 million needed in the next 5 years

Lapidary Unit

Building Materials

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

10,000 TPD Cement Plant

By 2011 Pakistan will need to import cement. There is large export potential to Afghanistan besides local market.

US $ 250 Million

20%

Cement Plant

Building Materials

25-30%US $ 50 MillionPakistan has top quality huge deposits of gypsum. There is a large demand for gypsum plaster, blocks, tiles, gypsum board etc. both locally and for export to GCC countries.

300,000 Tons per year Gypsum plaster & related products (blocks, tiles, gypsum board, alpha gypsum) manufacturing plant.

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Gypsum Plaster Plant

Hospitals & Medical Supplies

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED IRR

350 bed world class Tertiary hospitals in Multan, Lahore, Faisalabad, Sialkot, Peshawar & Quetta.

There is a great need for state-of-the-art medical facilities in the country. There is a large demand in the named cities where patients can pay. Special purpose charitable funds can be set-up for others who can not pay.

US $ 50 Million / Tertiary Hospital

20%

• Major investments needed for setting up tertiary hospitals in all mega & large cities

• An investment of US$500 million needed

Tertiary Hospital

Hospitality & Tourism

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Amusement & theme park near Karachi on 250 acres on National Highway

Karachi's per capita income is much higher than that of rest of the country having very little avenues for amusement & recreation.

US $ 40 Million 30%

Amusement Park

Hospitality & Tourism

25-30%Each Hotel will require an investment of US$75 to US$100 million depending on location and facilities

There is an acute shortage of Five Star rooms in all major cities. Demand is increasing due to improving economic activity

Five Star Hotels in Karachi, Lahore and Islamabad under franchise

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Five Star Hotels

Hospitality & Tourism

25-30%Each hotel will require investment of US$30-50 million depending on location and facilities.

These hotels will target both foreign as well as domestic tourists and business travelers.

Chain of two or three star hotels in top ten cities e.g. Karachi, Lahore, Faisalabad, Hyderabad, Multan, Rawalpindi, Peshawar, Quetta, Sukkur, Gujrat under franchise

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

2-3 Star Hotel Chain

Energy

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

5,500 MW BunjiHydropower Run of River project.

Pakistan faces energy deficiency. This Project uses hydel sources. Pakistan has over 45,000 MW hydelgeneration potential.

US $ 4 Billion including transmission lines and ancillary facilities.

25%

Bunji Dam Hydel Project

Energy

20%US$1.2 to 1.4 billion including the power plant, mining operations and ancillary facilities.

Thar Coal is one of the largest deposit of low quality coal in the world estimated at about 3.2 billion tons

1000 Mega Watt Power Plant based on TharCoal

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Thar Coal Power Plant

Energy

25-30%Each RDF plant will require investment of US$15-20 million each depending on its size and facilities

The 20 major cities of Pakistan in total produce about 50,000 tons of municipal solid waste daily. This can be used to make RDF which in turn is used for generating power

Refuse Derived Fuels for generating electricity

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

RDF Plant

Energy

ROE 15%

US 8 Billion in the form of bonds only for these 8 IPPs.

The Govt. has already approved 8 IPPs for generating 5,500 MWs based on gas or imported oil. These Projects are under implementation.

Thermal Power Fund to finance govt. approved Independent Power Projects. (IPPs)

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Thermal Power Fund

Miscellaneous

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

100-Store Chain of super markets

There is a great need for establishing top quality super markets throughout the country. Only Utility Stores Corporation - a govt. owned entity is running a chain of 400 outlets. Makro Cash & Carry has started a hyphermarket & Metro is planning to do the same.

Total US $ 20 Million 30%

Chain of retail Stores

Miscellaneous

25-30%Engineering Consultants have been appointed. The project requires an investment of US$100 million

The Karachi Port Trust is planning to reclaim 1350 acres of land for developing an integrated Cargo Village to ease the pressure on existing facilities and to handle increasing business

Cargo Village at Karachi Port

PROJECT NEED ASSESSMENT INVESTMENT REQUIRED

IRR

Cargo Village

The One Stop Investment Promotion Agency

BOARD OF INVESTMENTBOARD OF INVESTMENT

Facilitation for Local & Foreign InvestorsFacilitation for Local & Foreign Investors

BOI

www.pakboi.gov.pk