Punjab - An Emerging Investment Hub. Seminar on investment opportunities in Pakistan Rome, Italy April 2016

Transcription

1 Punjab - An Emerging Investment Hub Seminar on investment opportunities in Pakistan Rome, Italy April 2016

2 Pakistan Asia s Next Big Market Multilateral Agencies And Leading International Entities Have Expressed Their Faith In Pakistan s Improving Economic Position 2

3 Value Proposition of Punjab Accounts for 55% of the Population Punjab contributes 60% to GDP 58% contribution to the Manufacturing Sector 68,000 Industrial Units Young, skilled work force 3

4 Value Proposition of Punjab GRP Greater Than Many Countries GDP in USD Billion Nepal Bahrain Jordan Kenya Sri Lanka Morocco Ukraine Hungary Punjab Source: World Bank-2014 Data 4

5 Value Proposition of Punjab Infrastructure for Domestic & Regional Connectivity 11 Airports 107,973 km Road Network 3,116 km Railway Network Strong Logistics Network 75% Tele-density Broad Band Internet Source: PTA, CAA, and MOF 5

6 Value Proposition of Punjab Abundant Raw Material for Agricultural and Industrial Use Coal Cereals Limestone Sugar Cane Leather Paper & Board Iron Ore Cotton Fruits & Vegetable Rock Salt 6

7 Value Proposition of Punjab Largest Irrigated Basin in the World with 2,700km Canal Network Source: Pakistan Institute of Development Economics 7

8 Value Proposition of Punjab Favorable Demographics 55% of population is below the age of ,000 highly skilled graduates produced annually 8

9 Value Proposition of Punjab 32% Population Living in Urban Cities 5 out of 7 Major Urban Centres Located in Punjab 9

10 UK & Pakistan Economic & Business Relations Opportunities for Business & Investment 10

11 Agriculture Sector Pakistan ranks among the top ten producers in the world for at least 25 agricultural commodities 72% of the irrigated land in Pakistan is in Punjab Punjab is a dominant producer of major crops like wheat (80%), cotton (75%), sugarcane (64%) and rice (58%) 11

12 Agriculture Sector Projects Vertically integrated corporate farming Manufacturing of farm equipment Preservation of fruits and vegetables for export Supply chain infrastructure Hybrid seed for cotton, rice, sunflower, maize & vegetables Modernization and development of irrigation facilities and water management solutions Manufacturing of farm inputs especially micro-nutrients 12

13 Livestock and Dairy Sector Meat Domestic demand of meat is growing at 6% per annum while supply is growing at 4% per annum Global Halal meat market is around US$ 600 billion Dairy Pakistan is 4th largest producer of milk Only 4% of milk is being processed and marketed through formal channels in Pakistan Supply demand gap in milk 6.8 million liters Domestic demand of milk is growing at 20% per annum 13

14 Livestock and Dairy Sector Projects Meat Large breeding farms of genetically superior animals Integrated meat production and processing Meat processing for domestic demand and export markets Slaughter houses for tapping Halal meat market Frozen foods and dried meat market Dairy Investment in dairy processing and value chain infrastructure Milk collection centers, chillers & storage in milk clusters Production of diversified value added dairy products 14

15 Energy Installed Capacity- MW Power Consumption 32% % Source: Punjab Rest of Pakistan National Electric Power Regulatory Authority Punjab Rest of PAkistan 15

16 Energy Sector Incentives Favorable Policies for Investment in Power Sector Concessions in duties/tax regime Standard Power Purchase Agreement (PPA/IA/FSA) Public, Private, PPP development modes Public land available on lease Attractive Returns 17% RoE on Renewable Energy projects Sovereign guarantee Customs Duty Exemption Only 5% on import of Plant & Equipment not manufactured locally Exemption from income tax 16

17 Energy Sector Projects Privatization of Quaid-e-Azam Solar Company (Pvt).Ltd 100 MWp DC Solar PV Plant in Bahawalpur Actual Plant factor from COD is 19% Power Generation is 153,300,000 kwh per annum IRR Guaranteed by NEPRA is 17 % Huge Potential in Biomass/Waste to Energy Sector Small Coal Power Projects (SCPP) in four districts of Punjab 17

18 Road Infrastructure Abundant availability of construction material Quality testing facilities at project sites Local contractors willing to have Joint Ventures Type National Provincial District Length 1,997kms 10,426kms 73,619kms Projects available in Public Sector, PPP Mode, and Private Investment 18

19 Road Infrastructure Sector Projects Khadim-e-Punjab Rural Roads Program (USD 1,500 million) PPP Road Projects (USD 203 million) KLM Highway Projects (USD 270 million) 19

20 Mines & Minerals Minerals of Punjab provide the resource base of its industrial sector 35 minerals under excavation by 2,300 entrepreneurs including; coal, limestone, gypsum and rock salt 56 industrial leases production of cement, soda ash, caustic soda, fertilizer, glass, ceramics and marble 20

21 Mines & Minerals Sector Projects Mining of Iron Ore & Steel Mill at Chiniot (USD 663 million) 21

22 Transport Punjab is the most urbanized province in Pakistan 32 Million (32%) people live in urban areas; forecasted to reach 51 Million by 2040 Huge demand for mass-transit and public transport systems 22

23 Transport Sector Projects Three Multi-Model Bus Terminals (USD 80 mln) 312 New Diesel Busses (USD 30 mln) Bus Terminal-cum- Commercial Complex (USD 141 mln) 23

24 Facilitation by Government of the Punjab Government of the Punjab facilitates foreign businesses looking to harness opportunities presented by Punjab s fast-growing domestic economy Ease of Doing Business Approval through One Window Facilitation in all sectors for a fast-track market entry. Punjab ranks highest in ease of doing business in Pakistan Information & Advisory Services Information available on industry & market research, entry strategy, location selection, incentives structure, financing and legal issues 24

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