[

Punjab Board of Investment and

Trade
Untapped Investment Opportunities in Punjab

TODAYS AGENDA
Snapshot of Pakistan
Snapshot of Punjab
Overview of Potential Sectors
Overview of PBIT

Potential & Opportunities in Punjab

SALIENT FEATURES OF
PAKISTAN
Pakistan GDP is USD 162
Billion (current USD)

Ranked as the 46th

economy in the world.

Population of 169 Million

ource: Data @ World Bank

Potential & Opportunities in Punjab

PAKISTAN: INVESTMENT DESTINATION OF

CHOICE
1: Geo-strategic Location
The gateway to the energy rich Central Asian States, the financially liquid Gulf States
and the economically advanced Far Eastern Economies

2: Trained Workforce
Proficient in English, hardworking and skilled mostly in engineering and medicine

3:Positive Economic Outlook

One of the fastest growing economies of the world having touched a GDP growth rate
of 8.4% in 2005. Over 170 million consumers. Foreign Direct Investment has risen
sharply from an average of $300 million in the 1990s to over $3.7 billion in 2008-09

4:Investment Policies
Tailor made to suit investor needs. No investment in Pakistan has ever been
nationalized

5:Financial Markets
Development of improved infrastructure in the stock exchanges of the country

Potential & Opportunities in Punjab

POLICY INCENTIVES
100% Foreign Equity is allowed
Remittance of capital, profits, dividends, etc is
allowed
Advanced tax ruling
International arbitration enforcement guide
All economic sectors in Punjab open to FDI
Equal Treatment of local and foreign Investors
No government sanction is required
Only 5% customs duty on import of parts not
available in Pakistan
Potential & Opportunities in Punjab

[PUNJ ]
AB

Potential & Opportunities in Punjab

PUNJAB REGION OF UNTAPPED

OPPORTUNITIES
Punjab GPP 95 billion (Current
USD)
58.5% of Pakistans National
Economy
Population of 93 Million
PUNJAB

Most industrialized province of

Pakistan
Fertile and well irrigated
agricultural land
Business conducive policy regime
Potential & Opportunities in Punjab

MARKET SIZE
COMPARISON
93
82

75

68

63
49
40

34

29

27

22

Population in million
Potential & Opportunities in Punjab
Source: Data @ World

PUNJAB LEADS MANY COUNTRIES

IN GDP
95
88
GDP in USD billion

63
52

49

42
35
25

21
12

Potential & Opportunities in Punjab

Source: Data @ World

WORLD BANK: EASE OF DOING BUSINESS

2011
167

79

83

127 134
123
116
107
102

Potential & Opportunities in Punjab

ce: World Bank Ease of Doing Business Index 2011

10

AGRICULTU
RE

Potential & Opportunities in Punjab

11

GLOBAL RANKING IN AGRICULTURE &

LIVESTOCK

10

11

urce: FAOSTAT United Nations,

2008
Potential
& Opportunities in Punjab

12

13

14

15

16

17

18

19

* Indigenous
12

EDGE IN AGRICULTURE
Abundant Workforce;
46% of total workforce in Pakistan employed in
agriculture.

Four distinct seasons;

Summers, winters, spring and monsoon, all essential for
the rich quality and flavor; characteristic of crops in
Pakistan

Fertile Soil;
Alluvial soil of five rivers

Largest Contiguous Irrigation Network;

Largest system in the world covering 14 Million
hectares.
Total length of the canals is about 61,000 km with
communal watercourses, farm channels, and field
ditches covering another 1.6 million km.

Potential & Opportunities in Punjab

13

POTENTIAL INVESTMENT OPPORTUNITIES

Fruit
Concentrate/
Pulp Plant
facility

Cost; US$ 1.5 Million

Location; Multan/RY Khan/Khanewl/Bahawalpur
Capacity: 3 Tons/ Hour
IRR: 23 %

Integrated cold
chain facility

Export Pack houses:

Cost/Pack house: USD 1.5 Million
Locations; All over Punjab
14 Key strategic locations have been identified
IRR: 36%

Cold Storage

Cost/Cold store: USD 2.1 Million

Locations; 8 strategic locations including
Rawalpindi/Islamabad
IRR: 30.81%

Refrigerated
Containers:

Cost of One Container Terminal: USD 8.5 Million

Location; Lahore
200 Refers and 50 CA Reefers
IRR:32%

Cost: USD 1.0 Million

Fresh Fruit
IRR: 75%
Processing
Location; Bhalwal
Potential & Opportunities
in Punjab Industrial
14Estate
(kinnow)

LIVESTO
CK

UAE Pakistan Investment and Trade

Potential & Opportunities in Punjab
Opportunities

15

15

EDGE IN LIVESTOCK

World's 3rd largest

livestock population

5th largest milk producer

43 breeds of livestock

Livestock growing @
4.2%

Million Heads

Source: Punjab Development Statistics 2010

Potential & Opportunities in Punjab

16

POULTRY

25,000 Poultry
Poultry Farms
Farms in
in
25,000

Pakistan is
is only
only 7
7 KG
KG and
and 60-65
60-65 eggs
eggs
Pakistan

the Country.
Country.
the

400 Hatcheries
Hatcheries
400

150 Feed
Feed Mills
Mills
150

5.51 M.M.T
M.M.T Feed
Feed
5.51

The per
per capita
capita consumption
consumption of
of meat
meat in
in
The
annually.
annually.
Whereas developed
developed world
world consumes
consumes 41
41 KG
KG
Whereas
meat and
and over
over 300
300 Eggs
Eggs per
per capita
capita per
per year
year
meat

Consumption
Consumption

$4
4 Billion
Billion Turnover
Turnover
$

10-12% annual
annual growth
growth
10-12%
rate
rate

Potential & Opportunities in Punjab

17

[ HAL ]
AL

Potential & Opportunities in Punjab

18

HALAL MARKET POTENTIAL; THE SLEEPING

GIANT
Global Halal Product Market worth USD 3 Trillion
Halal Food Market worth USD 67 Billion
Growing demand for certified and hygienic
Livestock produce locally and internationally
Production of processed meat & dairy unable to
keep pace with growing demand
Shortage valued at USD 240 million including Meat,
Dairy, Poultry & Eggs

(Source: Livestock Department

Potential & Opportunities in Punjab

19

PAKISTAN: DOOR TO REGIONAL HALAL

MARKET
Regional Halal market of
more then 360 million
consumers
Direct neighbors (Iran,
Afghanistan, China, India)
Allows sea access to China,
Afghanistan
Land Routes to Central Asian
States
Sea Routes to Middle East.
Potential & Opportunities in Punjab

20

OPPORTUNITY
MEAT

DAIRY

Establishment of Integrated meat

processing facility
Estimated cost US$ 5.7
Million,
Location: Metropolitan Area

Dairy processing & value addition

units including Yogurt , Cheese,
white cola/mint cola, Goat milk
products ,etc.

Payback Period: 1.2Years

Capacity:
(small)6000 animals/ day
(large) 500 animals/day
Bone Chips & Gelatin plant
(Estimated cost US$ 3.4 Million,
Pay back in 1.6 years
Halal Tallow, Soap & Cosmetics units

Potential & Opportunities in Punjab

21

HALAL PARK IN LAHORE

Availability of 40 hectares in the premises of

Lahore Meat Processing Complex in the vicinity
of Lahore

Availability of raw material for by-products

manufacturing industries from LMPC and
slaughterhouses in the surrounding cities

Excellent opportunity for by-products industries

i.e. Soap, Gelatin, Cosmetics, Casing etc. as
huge market for the by-products is available in
Pakistan besides global halal market.

Lahore Meat
Venture or
Partnership for

The interested parties are at liberty to offer their

own proposals for Partnership or Joint Venture
Potential & Opportunities in Punjab
22
ship

Company can enter into Joint

any mode of Public-Private
provision of safeguard

ENERGY

Potential & Opportunities in Punjab

23

PROJECTED ENERGY DEMAND

Source: Private Power & Infrastructure Board Supply & Demand

Position 2020

Potential & Opportunities in Punjab

24

ATTRACTIVE POLICY REGIME

Fast track project development at highest priority
Guaranteed purchase of electricity backed by Government of Pakistan
State Support - Modes of ownership
Various Public Private Partnership models available
Independent power producer (IPP) Govt. of Punjab as a facilitator
Price setting model employed- Cost plus tariffMinimum 15% ROE guaranteed net of taxes (US$ based)
Many of the variable operating cost are passed-on in the tariff
model
Special incentives
Tax benefits (capital-gains tax, income tax and turnover tax
exemption)
Hydrological risk taken by the power purchaser for hydropower
projects. Up to 50 Potential
years &ofOpportunities
concession
available25
in Punjab

PUNJABS ENERGY SECTOR

POTENTIAL
HYDEL PROJECTS:
317 Hydel Sites with a potential of
600MW

CO-GENERATION AT SUGAR
MILLS:
46 Sugar Mills with a potential of
1100MW

COAL BASED POWER PLANT:

245 million MT of Coal with a
potential of 86,100MW

SOLAR POWER:
2.9 million Hectares of unused
desert land with aPotential
potential
of
& Opportunities in Punjab
6,105,263MW

26

[MINING]
27

OPPORTUNITY TO DEVELOP 1 BILLION MT OF

IRON ORE IN PUNJAB
Deposits
Status
Estimated value is over USD
170 billion
Flexible
investment option for mining of
Chiniot, Rajoa and Kalabagh Iron Ore
deposits
Setting up Steel mills utilizing the
domestic Iron Ore
Background
RFP
already issued
Large untapped deposits of Iron Ore in
Punjab
Authetication of deposits and technoeconomic studies of Iron Ore deposits
are in progress

Chiniot

123 MMT

Proven

Rajoa

500 MMT

Assessed

Kalabagh

300 MMT

Estimated

Policy highlights

Public Private Partnership (PPP)

model offered to facilitate the
private investor

Punjab Mineral Company (PMC) is

established to work with the
private sector

Iron Ore development is one of the top

priorities of the government
Fast-track development of Iron Ore
projects

ge Source: Mines & Minerals Dept.; Information Source(s): Mines and Mineral Department Punjab

28

[CONSTRUCTIO]
N

29

COMMERCIAL & MODERN HOUSING

Opportunity for rapid construction of
housing available for private investment
in Gujranwala and Sialkot.
Land is being purchased in Gujranwala
(500 acres) and whereas that in Sialkot
(200 acres) has been purchased.
Registration and operation of Real Estate
Investment Trusts (REITs)
Allows pooling of capital of a large
number of investors to purchase, develop
and manage real estate assets
Legal framework exists.
Government
Project
Highlightsoffers various tax incentives

Gujranwala 500 acres

Sialkot
- 200 acres
Investment required US$ 40 Million
Payback Period 5 years
IRR
- 45%
Can be executed independently/ through JV or
Public-Private Partnership

mage(s) Source(s): PBIT; Information Source(s): Housing Dept.,

Market highlights
Shortage of 7 Million houses
Need to construct 330,000 every
year
Existing housing stock is 12.07
million units of which 30% is
aging
Pakistan has 2% population
growth rate and 33% of
population resides in urban
centers
Punjab is urbanizing at a rate
30of
5-6% every year.

Lahore Ring Road (Southern Loop) with over 300k daily

commuters
Market
highlights

Background
Total length of the
ring road is 89 km
or which 40km is
completed
(Northern Loop)

Automobile growth
over 12% per
annum since 2002
Urbanization has
created the
demand for quality
road infrastructure

3 + 3 (with future
provision of 4th
lane, Metro and
Service Roads)
Project includes 5
interchanges and
17 underpasses

Available opportunities

Total construction
costs at PKR 26
billion

Opportunity for the construction of the

Southern Loop of the Lahore Ring Road for
Private Investors

RFP for the project

available at
http://pportal.punj
ab.gov.pk/portal/d
ocimages/29756E
OI_Advertisement.

To be executed under PPP Mode

The government shall provide land free
of all encumbrances
Concessions to be decided mutually
upon completion of detailed financial
model

age(s) Source(s): Transport Dept.; Information Source(s): Transport Dept.

Over 300k
commuters
transpire the
existing roads of
the southern loop
daily

31

INDUSTRIAL
ESTATES

Potential & Opportunities in Punjab

32

PUNJAB: INDUSTRIAL
ESTATES

the biggest
industrial
estate of
Pakistan:
3500 acres

Potential & Opportunities in Punjab

33

COMPANIES OPERATING
CURRENTLY

Potential & Opportunities in Punjab

34

[PBIT]
Potential & Opportunities in Punjab

35

PBIT Alignment
Structural
Integration
with Federal BOI
goals
Formulate and
review national
investment policy

Innovate and
re-think
investment in
Punjab

Promote
Punjab as the
destination of
choice for local
and foreign
investors

Provide a one
window facility
and coordinate
with concerned
ministries
Coordinate &
implement trade
& investment
policies of Federal
& Provincial govt.

Facilitate
investment
through one
window
arrangement

Initiate Sectoral
investment
proposals and
maintain
investment
database

Promote
private/public
partnership
models

Develop
PBIT into a
Knowledge
Center of
excellence

Monitor progress of
investment , appoint
commissions and
negotiate agreements

Consider individual
investment
proposals and
categories of
investment.

Promote local and

international
investment
opportunities

Provide referral
(matchmaking)
services for
prospective
investors &
businesses

Liaise with private

sector, trade
bodies &
associations to
promote
trade/investment

36

PBITs Sphere of Influence

Federal Board of
Investment

Chief Minister
Punjab

Secretariat

Provincial
Ministries

PBIT

Inspector
General Punjab

Administration

36 Districts

37

PBITs Role and Focus as an

IPA

INVESTOR FACILITATION/
IMAGE BUILDING
INVESTMENT
GENERATION/
SERVICING
CREATION

38

PBITs Private Sector Focus

SUPPORT STAFF

SUPPORT STAFF
GOVERNMENT OFFICERS

OVER 70% GOVT.

OFFICERS
OVER 80%
PROFESSIONALS

PROFESSIONALS

TYPICAL
DEPTS.

PBIT

39

Services PBIT provides to

Investors
1. One-to-One Relationship

POTENTIAL
INVESTOR
S

2. Reduced Time to Market

3. Link Relevant
Government
Departments
4. Matchmaking between
International businesses
and local businesses

PBITs
ONE WINDOW
OPERATION

42 RELEVANT GOVERNMENT
AGENCIES FOR ACQUIRING
PERMISSIONS AND
AUTHORIZATIONS
40

PBITS STRATEGIC FOCUS

AREA
1. Build Punjabs image and perception
2. Identify opportunity and develop concrete
sellable projects
3. Match-make investors, generate
MOU/EOI/Agreements and follow-up on these
with related departments till execution
4. Undertake trade promotion to boost exports
5. Carry out Business Facilitation and undertake
policy advocacy

Potential & Opportunities in Punjab

41

OFFERING A ONE-WINDOW
FACILITY TO BOOST
INVESTMENT AND TRADE IN
PUNJAB

of
d
r
a
o
B
b
a
j
Pun tment &
s
Inve
e
Trad
Get Connected

01
205 2
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9
42
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+9205 17
2
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42op.p
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t
i
pb
info@ it.gop.pk
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www

Potential & Opportunities in Punjab

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42