Punjab - An Emerging Investment Hub

Seminar on investment opportunities in Pakistan

Rome, Italy April 2016

Pakistan Asias Next Big Market

Multilateral Agencies
And Leading International
Entities Have Expressed Their
Faith In Pakistans Improving
Economic Position

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

Value Proposition of Punjab

GRP Greater Than Many Countries
GDP in USD Billion
132

137

150

107
61
34

36

Bahrain

Jordan

19
Nepal

Source: World Bank-2014 Data

Kenya

75

Sri Lanka Morocco Ukraine

Hungary

Punjab

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

Value Proposition of Punjab

Abundant Raw Material for Agricultural and Industrial Use

Coal

Paper &
Board

Cereals

Iron Ore

Limestone

Sugar Cane

Leather

Cotton

Fruits &
Vegetable

Rock Salt
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Value Proposition of Punjab

Largest Irrigated Basin in the World with 2,700km Canal Network

Source: Pakistan Institute of Development Economics

Value Proposition of Punjab

Favorable Demographics
55% of population is below the age of 30
500,000 highly skilled graduates produced annually

Value Proposition of Punjab

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

UK & Pakistan
Economic & Business Relations

Opportunities for Business & Investment

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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%)
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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
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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
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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
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Energy
Installed Capacity- MW

Power Consumption

32%
9315

14348

68%

Punjab

Source:

Rest of Pakistan

National Electric Power Regulatory Authority

Punjab
Rest of PAkistan
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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
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Energy Sector Projects

Privatization of Quaid-e-Azam
Company (Pvt).Ltd

Solar

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

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Road Infrastructure

Abundant availability of construction material

Quality testing facilities at project sites

Local contractors willing to have Joint Ventures

Projects available in Public Sector, PPP Mode, and Private Investment

Type
National
Provincial
District

Length
1,997kms
10,426kms
73,619kms

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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)
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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

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Mines & Minerals Sector Projects

Mining of
Iron Ore &
Steel Mill at
Chiniot
(USD 663
million)

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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

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Transport Sector Projects

Three Multi-Model Bus

Terminals
(USD 80 mln)

312 New Diesel Busses

(USD 30 mln)

Bus Terminal-cumCommercial Complex

(USD 141 mln)
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Facilitation by Government of the Punjab

Government of the Punjab facilitates foreign businesses looking to harness opportunities
presented by Punjabs 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
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