1	Pakistan Chairman Board of Investment, Pakistan March, 2002
2	Pakistan in Perspective GDP US$ 65 B GDP/ Capita US$ 443 GDP/Capita PPP US$ 2,230 2000 GDP growth 2.6% Population 140 M Area 796,000 Sq Km Inflation 2.6% Exchange rate Rs. 60= 1US$ Fixed Tel. line 2.2% Cellular lines 0.7% Risk Rating B+
3	Pakistan - A Profile
4	Liberal Investment Policy Liberal Investment Policy All economic sectors open for FDI 100% foreign equity allowed No Government sanction required Attractive incentives package Remittance of Royalty, Technical & Franchise Fee; Capital, Profits, Dividends allowed Foreign investment fully protected
5	Security and assurance… Full security of capital: Foreign Private Investment (Promotion & Protection) Act, 1976 Protection of Economic Reforms Act, 1992 Bilateral Investment protection agreement with 40 countries Freedom of Remittances: Profit Capital Capital gains Royalty Technical / franchise / service fee
6	Pakistan’s Incentives Package
7	Investment Policy - Regional Perspective
8	(42/51)nü üü nFrancenü ü nFinlandn nü nEgyptnü nü nDemarknü nü nChinanü ü nCanadanü nü nBelgiumnü nü nBelarusnü nü nBangladeshn nü nAzerbaijannü ü nAustrian üü nAustralianAvoidance of Double TaxationnInvestment ProtectionnCountrynü n nKenyanü n nKazakhstannü n nJordannü nü nJapannü nü nItalynü n nIrelandnü nü nIrannü nü nIndonesianü n nIndianü n nHungarynü n nGreecenü nü nGermanynAvoidance of Double TaxationnInvestment ProtectionnCountry
9	Investment Protection/Avoidance of Double Taxation Agreements
10	Investment Protection/Avoidance of Double Taxation Agreements
11	Pakistan Home to 600 + Foreign Companies
12	300 Multinationals
13	Sources of Investment 1990-2001
14	Foreign Investment Shares by Sector
15	Corporate Performance - ROE
16	Pakistan’s Improving Investment Climate Resolution of IPPs / Hubco Issues Successful Structural Reforms Privatization, Liberalization & Deregulation Monetary, Forex, Fiscal & Trade Policy Corporate & Capital Market Governance & Electoral Tax Administration & Tariff Homeland Security Initiatives Police Reforms Counter Terrorism Measures De weaponization Programme Changes in Economic Fundamentals Improved Trade & Current Account Balance Stable Exchange Rate Increased Foreign Exchange Reserves Lower Inflation Economic Sanctions Lifted & Debt Reprofiled IMF – Poverty Reduction & Growth Facility Credit Rating B+
17	Removal of Investment Impediments Regulatory Reforms Privatisation Programme Building financial markets Improving the legal framework for business: SECP, Capital Market Reforms Increasing investment in education and human resources
18	Oil & Gas Resources & Infrastructure Road Map to an efficient Oil & Gas Sector Liberalize Oil & Gas Sector Privatize Public Sector Entities Accelerate Gas Development Improve Governance Promote Foreign Investment Improve Environment Potential 27 B barrels Oil & 282 T cubic feet Gas Only 737 M barrels Oil & 38 T cubic feet Gas discovered Future discoveries will come from offshore and Balochistan
19	Oil & Gas Resources & Infrastructure Total exploratory wells drilled 526 Total discoveries 142 Success rate 1:3.7 Total demand for Oil (b/d) 386,000 Total Production 58,000 Deficit – imports 328,000 Total demand for Gas (bcf/d) 2.9 Total Production 2.4 Deficit – Unsatisfied demand 0.5
20	Oil & Gas Resources & Infrastructure Existing foreign Oil & Gas Cos. 24 Five Oil Refining Capacities 11.28 million tones per year One Oil Refinery is under installation 1.2 million tones per year Natural Gas Network 8,000 Transmission Lines 52,000 Distribution & Service Lines 3.6 million consumers
21	Mineral and Coal Minerals Exploitation of proved mineral deposits Evaluation of identified prospects Generation of exploration targets Complete geological Map Geophysical Survey Geochemical Survey Coal Thar field is 5th Largest but un-exploited (175 billion tones) Current Production: 3.5 million tones / year Coal good for: power generation, industrial, commercial and domestic use
22	Areas of IT Initiatives An environment that stimulates creativity and welcomes advances in the use of Information Technology
23	Infrastructure
24	Infrastructure
25	I.T & Telecommunications Development Cellular Phone Usage Jan 2001: 225,000 – Jan 2002: 850,000 Multiplied 400 % in last 10 months as compared to the whole of last 11 years Software Technology Parks Training of 25,000 people - last 12 months Medical & Legal transcriptions IT Law (digital signatures,e-commerce,Secure comm.) Task forces & synergies (Health, Agri, Call Centers, Women in IT, IT & Poverty Alleviation, Venture Capital etc.) Education (The Virtual University, 7 IT Universities, IT faculty training, IT curriculum for class 9^th onwards)
26	PRIORITY SECTORS
27	PRIORITY SECTORS (Contd..) Infrastructure and related services Hydro-electric power generation Roads (highways, motorways) Railways Airports Ports & Port Handling activities Gas & Oil pipelines Urban Mass transit Storage facilities for agricultural produce Cool chains (for agro-business) Information Technology and Telecommunications Wireless technologies, Call Centers, Cable TV
28	Privatization A US$ 3 billion opportunity Banking, finance, insurance Oil and gas Power Telecommunications Aviation Industries A base for the emerging markets of the Central Asian Republics
29	"Infrastructure" Infrastructure Telecom & Communication Exchanges, Transmission Links, Telephony / TV Airports Roads Housing & Shelter Bridges, Medium & Small Dams Water supply & Sanitation Transit Pipelines Trade Food Items (Wheat, Rice, Edible Oils) Clothing, blankets, beddings Healthcare, Pharmaceuticals, Surgical Goods & Hospital Equipment Educational & Training Material Housing & Construction Material (Cement, Furniture, Steel Items) Transport (Vehicles, Tractors & parts)
30	Afghanistan – opportunities for business from Pakistan Agriculture & Industry Development of Agri Land Crop Substitution & Seed Distribution Forestry, Plant Protection, Livestock, Orchids & Farms Small Industries Services Sector Infrastructure Repair & De mining Immunisation, Hospitals & Healthcare Units Education & Training Currency Printing Repair & Vehicle Maintenance Facilities
31	Investor Facilitation Services
32	Strategic Location
33	Why Pakistan Strategic Location Emerging Regional Hub & Transit Access to Afghanistan / CARs Abundant Land & Natural Resources Growing Domestic & Regional Market (CARs, Afghanistan, Gulf, SAARC) Liberal Investment Policy Attractive Incentives Package Sound Industrial / Commercial Base
34	Why Pakistan indeed! Low Production Costs Legal Infrastructure based on British System English Language Skills Trained and Low Cost Manpower Quality Telecom Infrastructure Export Processing Zones and Industrial Estates One Window Facilitation
35	Pakistan is open for business…..
36	THANK YOU