1	Board of Investment Government of Pakistan Pakistan: A New Business Frontier A Presentation by Talat Miyan Director General June, 2001 email: boipak@isb.compol.com
2	Pakistan AirRoutes
3	Presentation Structure Key features of Pakistan economy Global, regional, and Pakistan investment scoreboard Strengthening business climate Initiatives to strengthen private sector Business perceptions Corporate profitability Investment Policies Pakistan’s Investment Package Visa Policy Pakistan’s Investment Policy - Regional Perspective Investment opportunities Pakistan - comparative advantages Pakistan’s Message
4	Key Features of Pakistan Economy 1999-2000 Area (sq.km) 796,095 Population (million) 139 Rural/urban ratio 71:29 GDP ($ billion) 64 GDP growth: 4.8% Inflation: 3.8% Fiscal revenues as percentage of GDP 16% FDI ($ million) 470 well below potential Registered Cos. 40,000+ Foreign firms 657 Listed Cos. on Stock Exchange 761 Exports ($ billion) 8.6 Imports ($ billion) 9.6
5	Global/Regional Investment Scoreboard Foreign Investment Inflows - 1999
6	Pakistan Investment Scoreboard (1990 – 2000)
7	Pakistan Investment Scoreboard Main Foreign Investors (1990 – 2000)
8	Foreign Investment Shares by Sector
9	Pakistan Investment Scoreboard July-April 2000-01
10	FDI Top Investors and Leading Sectors – Pakistan 2000-01 (July-April) Top Investors UK 82.7 USA 68.3 Saudi Arabia 45.6 Germany 12.0 Others 50.4 Total 259.0 Leading Sectors IT 67.8 Oil & Gas 66.9 Food, Beverages & Tobacco 44.6 Power 25.4 Others 54.3 Total 259.0
11	Initiatives to strengthen Private Sector Strong focus on:- Oil & Gas ü Information Technology SMEs ü Agriculture Tourism Introduction of aggressive fiscal reforms Growing focus on indirect taxes Reduced taxation slabs and number of taxes CBR restructuring Capital Market Reforms: SECP involved in stock exchange risk management systems Restrictions on short selling Introduction of shorter clearing cycle and more sophisticated clearing system Non-member management of stock exchanges
12	Initiatives to strengthen Private Sector (Cont’d) A revitalized Privatization Program Privatization Law to protect investors Prioritization of asset sales and diversified divestment strategies Establishment/strengthening of independent regulators Securities and Exchange Commission of Pakistan Pakistan Telecommunications Authority National Energy and Power Regulatory Authority Gas Regulatory Authority Reduced interest rate environment Reduced National Savings Scheme rates Non Performing Loan recovery drive Institutional strengthening of BOI
13	Impact of initiatives Large scale manufacture growth up by 9.56% during FY2001 Net private sector credit demand up by 200% during FY2001 versus FY2000 Deterioration of credit portfolios of banks controlled through restructuring/ rescheduling of NPLs Improved GOP finances (July-April ‘01) Tax revenues up 14% Direct taxes up 17% Sales tax up 32% Exports up 08% OPs Remittances up 16% Focus on financing SMEs and agriculture sector Increased activity in Oil & Gas exploration and IT Improved corporate sector profitability
14	Business Perceptions of the Economy The American Business Council of Pakistan
15	Business Perceptions of the Reforms The American Business Council of Pakistan
16	Corporate Profitability (Return on Equity (ROE) - MNCs/JVs)
17	Pakistan’s Investment Package
18	Visa Policy Business visas Multiple entry visa up to three years by Pakistan missions 30 days Landing Permit upon arrival at the airport Work visas Special Committee set up in the Board of Investment Maximum processing time of one month Registration of foreigners with the police Foreigners exempted from police registration
19	Pakistan’s Investment Policy - Regional Perspective
20	Menu of Investment Opportunities along the New Business Frontier Information technology & related services Value-added agro-industry Fruits & vegetables Livestock & dairy Fisheries Horticulture Supporting industries Textiles Garments Automotive Electrical & electronics
21	Menu of Investment Opportunities along the New Business Frontier (cont.) Tourism development Hotels and related facilities Marine complexes and beach resorts Mountain resorts in the northern areas 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
22	PAKISTAN – Comparative Advantages Strategic Location Long Coastal Line and Land Resources Export Processing and Industrial Zones with facilities Most liberal Investment Policy Simplified Immigration / Visa Policy Attractive industry specific tariff/tax incentives All economic sectors opened for foreign investment Special Facilitation Centers (BOI, SMEDA, EAC, EPB) Incentives for Direct/ Indirect Exports Well established Industrial / Commercial Base Raw Materials Available
23	PAKISTAN – Comparative Advantages (Cont’d) Cost effective Human Resources Qualified and experienced persons Engineers (all fields) Medical Experts IT Professionals Commercial Managers Business Managers High Skilled Technicians
24	Pakistan’s Message Pakistan is turning the corner with respect to the investment climate Positive signals on the macroeconomic front, and from business Investment impediments being removed Investment policy reforms implemented We know that there is much more to do, and we will maintain our watch on the reform agenda, but now we at the BOI have the opportunity to focus on: Building on Pakistan’s fundamental business strengths Networking with the private sector, the Provinces, and other government agencies Identifying, developing, and promoting investment opportunities and projects in Pakistan And we seek close cooperation and involvement with the domestic and international business community as well as OPs
25	In sum, we at the Board of Investment cordially invite you to visit us and explore the business potential of…. http://www.pakboi.gov.pk