Foreign Investments In Pakistan
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Posted 29 March 2008 - 11:15 PM
Tuesday, January 22, 2008
By Faryal Najeeb
KARACHI: The United Arab Emirates (UAE) has set Pakistan well amongst its potential list of investment opportunities when it announced last year to double its endeavours to a staggering US$26 billion as trade between the two countries reaches the $5 billion mark.
Chairman, Pak-UAE Business Council, Mirza Ikhtiar Baig pointed out that the UAE was making heavy investments owing to increase in oil prices which have led to additional $400 billion revenue entering into the Gulf region of which the UAE is an active member. “Last year, the UAE invested $3 billion into our country which when compared to the $400 billion is insignificant and which can triple in figures.” He added that Pakistan was their first choice as the market of the country was not saturated like that of most other countries and it being a third world country offers them better economies of scale than the western countries.
Also since Pakistan is closer to the UAE and is ideally geographically placed, it benefits the Arab country to target it for its investments. He said the council was formed a year back by the foreign ministers of both the countries keeping in view the growing number of investments between the countries. Baig added that though the political instability and the dismal law and order was a major turn off for any foreign investors, the UAE was eager to continue with further investments and is searching to enter unexplored markets.
As major groups continue to participate in Pakistan’s privatisation programme, the UAE already has investments worth billions of dollars in various sectors of Pakistan such as housing and real estate, telecommunication, banking, mineral exploration, oil and gas, information technology and tourism. Other UAE investments in Pakistan are in the fields of airlines, financial business, hotels and tractors.
The UAE is Pakistan’s second largest global trading partner and it is also the second largest source of home remittances from Pakistani expatriates. The most notable investments that the Arab country has made into Pakistan includes two in the telecommunication sector where Etisalat acquired management control of the largest telecom entity - the PTCL while Warid Telecom is the fourth largest mobile service provider in the country. Wateen, a subsidiary of Warid Telecom, has earned a milestone in the telecommunication industry by being the first to introduce Wi-Fi (wireless) internet into Pakistan which is also being well received by the public.
In financial sector, Abu Dhabi Group has bought banks in Pakistan such as AlFalah and United Bank Limited while Dubai investors introduced the Dubai Islamic Bank and Emirates Global Islamic Bank which according to its marketing director, Danish Fazal, is rapidly gaining significant market shares. Fazal further stated that the Emirates Investments Group, which owns Emirates Global Islamic Bank, also have ventures in the insurance sector namely Takaful Pakistan Limited and in the real estate project of Karachi Financial Towers. Al-Ghuran is another UAE based real estate which plans to invest Rs45 billion in construction and real estate business in the near future. Similarly Al-Ghurair Giga announced last year the multi million Goldcrest DHA Islamabad project.
Emaar has also turned its attention towards Pakistan and has multi purpose projects worth $2.4 billion in Islamabad and Karachi which would be completed in the next five years. Emaar and Pakistan’s Port Qasim Authority are also in the process of undertaking a mega joint-venture project to develop an area of 12,000 acres of land into a modern city near Karachi.
Pakistan and the UAE have also entered into a landmark agreement envisaging construction of $5 billion oil refinery at Khalifa Point and renewal of soft loan of $265 million for the construction of dams in Pakistan. According to its website, the project, which would be known as Khalifa Coastal Refinery, would be set up at Khalifa Point in Gwadar and is expected to have a production capacity of 200,000 barrels a week.
Abu Dhabi government-owned International Petroleum Investment Company (IPIC) will hold a 74 per cent stake in the Khalifa Coastal Refinery joint venture, with Pakistan’s Pak-Arab Refinery (PARCO) holding the remainder. The construction work on the project will start in December 2008 with a planned production from 2012. This is the largest single country commitment for investment in different sectors of Pakistan’s economy and has the potential not only to make UAE one of the major economic players but would also open up new vistas of development in Pakistan.
About 400,000 Pakistanis are living and working in the UAE who are a source of strength for the Pakistan-UAE relations. Pakistan attracted world attention during the last five years as it made significant economic progress owing to continuity in policies and a rapidly strengthening GDP. Supported by a growing large scale manufacturing sector and services sector, private sector investments into the country helped it to have a stable growth.
Trade statistics of last five years revealed an encouraging trend in bilateral trade between Pakistan and UAE. The trade volume which was $1.4 billion in 1999-2000 increased to $2.8 billion in 2004-2005, depicting 20 per cent growth per year. Trade between the UAE and Pakistan reached new heights as it posted significant growth to cross $5 billion mark following a surge in exports across the sea in 2007. The increase in overall exports has come primarily from non-traditional exports items accounting for 67 per cent of the increase followed by 35 per cent from textile manufacturers and four per cent from other manufacturers.
Baig was of the view that while exports were increasing, the Balance of Payments (BoP) yet remained in favour of the Arab country. “The BoP does not present the true picture as much of the imports that are brought into the country from the UAE are those which are actually manufactured elsewhere such as India and Bangladesh and is imported via Dubai.” Petroleum imports are another reason for this imbalance, he continued.
Baig said the UAE could play a major role in the primary sector of Pakistan such as livestock which needs to have foreign investments to ensure its uplift. The largest turnover of Pakistan during 2006-07 was with the USA followed by the UAE, China, Saudi Arabia, Germany, Japan, Kuwait, United Kingdom and India. Approximately eight per cent of Pakistan’s exports are to UAE, making it the second-largest destination for Pakistani exports.
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Posted 29 March 2008 - 11:28 PM
by Dylan Bowman on Sunday, 07 October 2007 Dubai-based ETA Star Group plans to invest 500 million dirhams ($136.2 million) in power projects in Pakistan, the company said on Saturday.
ETA, part of the Abdullah Al Ghurair Group, said it has signed a deal with the Ministry of Water and Power to develop a 134-megawatt power plant in the country’s southern Sindh province.
Pakistan will provide gas for the plant from its Mari Deep reserves for 25 years, ETA said.
The project is expected to be completed by 2010.
ETA said it is also developing an 825 million dirham hydropower station in northern Pakistan through TransAsia Gas International, a subsidiary of Al Ghurair Investment.
TransAsia, one of the pre-qualified bidders for the privatisation of Pakistan State Oil Company, is also developing a 100,000 barrels per day (bpd) capacity petroleum refinery at Port Qasim in Karachi, ETA said.
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Posted 29 March 2008 - 11:33 PM
Dubai: Wed, 9 Jan 2008
Dubai-based TransAsia Gas International said it is in talks to develop an oil refinery in each of Pakistan and Sri Lanka at a cost of $1.4 billion.
TransAsia is also leading a group of companies to upgrade a refinery in Libya -- holder of Africa's largest oil reserves -- at a cost of $2 billion, for which it is planning to borrow, chief executive officer Zahid Muzzafar told Reuters on Tuesday.
"The group's strategy is to look at the most attractive markets where people are not present," Muzzafar said by telephone from the Libyan capital, Tripoli.
TransAsia is among a wave of private or part-private Gulf companies such as Abu Dhabi National Energy Co (Taqa) and Dana Gas that are expanding outside the Gulf, where state-owned oil and gas producers dominate.
In less than 15 months Taqa has agreed on acquisitions worth more than $10 billion ranging from India to Canada. Abu Dhabi-listed Dana Gas is developing natural gas reserves in Egypt and gas infrastructure in the Kurdish region of Iraq.
Talks with the governments of Pakistan and Sri Lanka focus on developing a 100,000 barrel-per-day refinery in each of the two countries, Muzzafar said. Each unit will cost at least $700 million, he said.
In Pakistan, where it has licences to build two 130 megawatt power plants, TransAsia is in "advanced" talks to relocate a refinery to Port Qasim, 35 kilometres east of Karachi. It will take units from old refineries and use them to build new plants, which should help cut costs and construction time, Muzzafar said.
It has also secured land in Sri Lanka to relocate a refinery to Hambantota in the south of the island, Muzzafar said. In Libya, the company is working with Dubai-based Star Petro Energy to upgrade the 220,000 barrel-per-day Ras Lanuf export refinery, after agreement on Monday with Libyan National Oil Corp.
"We are very upbeat about Libya," said Muzzafar. "The current products do not meet the standards, but we want to be able to generate better returns on the products."
The five-year upgrade contract aims to raise product standards at the refinery to boost exports to Europe. The plant produces naphtha, kerosene, and light and heavy gas oil, as well as ethylene and polyethylene, according to its Web site. TransAsia expects to select an international bank in the next few days to advise on financing, Muzzafar said.
"There will be project finance, but we are open to anything, including Islamic finance," he said, declining to be more specific. - Reuters
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Posted 29 March 2008 - 11:38 PM
03 January, 2007
Researcher, GCC-Pakistan Relations
Gulf Research Center, Dubai
Pakistan has in recent years exhibited a remarkable turnaround in its economic growth, which has influenced large-scale inflow of foreign direct investment (FDI). A recent World Bank survey placed Pakistan at 74 on a list of 175 countries most conducive for investments, with India at 134. Pakistan has also taken steps to secure future economic growth by signing a free trade agreement with China during President Hu Jintao’s visit to Pakistan in November 2006, which is expected to triple bilateral trade to $15 billion within five years. However, in order to achieve long-term economic growth, stimulated by FDI, Pakistan has to develop the skill sets of its workforce and also provide jobs by establishing new industrial units. Only such an approach can have a trickle down effect on the economy.
Much of the desired changes are linked to Pakistan further improving its symbiotic economic relationship with the Gulf Cooperation Council (GCC) countries. A large Pakistani workforce in the region accounts for a significant share of the country’s annual remittances. Pakistan received a record $4.6 billion in remittances during the fiscal year 2005-06, as compared to $4.17 billion during 2004-05. Of the Middle East’s $2.06 billion contribution to remittances, Saudi Arabia topped with $750.44 million, followed by the UAE with $716.30 million, Kuwait – $246.75 million, Oman – $130.45 million, Qatar with $118.69 million, and Bahrain – $100.57 million.
In order to assess recent investments by the GCC countries in Pakistan, it is essential to analyze the country’s current economic scenario.
Pakistan’s economic policy and response of global investors
The perception emanating from Pakistan over the last few years has been that of a growing economy in South West Asia and becoming a major regional conduit for energy and trade. Due to wide-ranging structural economic reforms that were introduced six years ago, Pakistan has exhibited a rapid, strong and sustained economic recovery. This has resulted in a stable economic growth rate of 6.6 percent for the fiscal year 2005-06. A series of exogenous shocks have had a negative impact on Pakistan’s economy – rising oil prices in international markets, weak agricultural crop; and the fallout from the October 2005 earthquake in which more than 70,000 people lost their lives, with an equally devastating effect on its infrastructure.
However, in the current fiscal year, Pakistan has witnessed a tremendous increase in FDI. This reflects the increased confidence of the global investors in the transparent privatization program that has been followed in recent years. The government has also liberalized its regulations governing foreign investments as an added attraction. According to the State Bank of Pakistan, FDI has more than doubled to $3.52 billion, with an increase of $1.52 billion over last year. These investments were mostly targeted at the communications, energy and financial sectors.
The leadership has actively pursued an investor-friendly policy and enacted incentives such as tax breaks and even subsidies on leased land in specific sectors. Prime Minister Shaukat Aziz has stated several times that Pakistan is “vying to become the regional hub for trading and manufacture”. A Newsweek report on the current economic prospects in Pakistan noted the immense potential for global foreign investors, especially in telecommunications. According to the report, Pakistan has the world’s fastest growing wireless market after China. Latest figures have placed cell phone users in Pakistan at over 45 million. The next major FDI-based privatization is the $1.4-billion sale of global depository receipts and local shares from Oil and Gas Development Co. Ltd, Pakistan’s biggest firm.
Pakistan is presenting itself as one of the world’s hottest emerging markets. The fact that China has publicized intent to invest an additional $50 billion in the port of Gwadar validates this point. The Chinese investment includes the development of a petrochemical complex. Pakistan had initially proposed developing Gwadar as a gateway for Gulf oil and energy exports to China and Central Asian States. Besides energy trading, it is also slated to serve as a major port for the bilateral trade, including agricultural produce and manufactured goods. “The proposed dual purpose rail route and energy pipeline would link Gwadar with Kashi in Xinjiang province. Gwadar can serve China as a base for exporting goods to Gulf States as well as a transit point for Gulf imports that could supply the energy-hungry Chinese market, besides serving other Central Asian markets.”
In the last few years, there has been an upsurge in investments by the GCC countries in Pakistan. The principal large-scale investments were in the real estate, infrastructure development, steel, shipping and energy sectors. In addition, banking and financial sectors also saw positive developments in terms of Gulf investments in Pakistan and vice-versa.
The largest source of FDI in Pakistan for the year ending June 2006 was the UAE with investments worth $1.42 billion, followed by the US with $517 million, and Saudi Arabia with $278 million. Financial analysts expect the investment base to broaden with the listing of Pakistani companies on the Abu Dhabi and Dubai bourses soon.
The longstanding relationship between the GCC countries and Pakistan has established a comfort zone for cooperation. The privatization of Pakistan Telecommunication Company Limited (PTCL) is a case in point. Even though Etisalat missed the deadline to pay the first installment, they were given the opportunity to pay $1.14 billion upfront instead of $2.59 billion and restructure the remaining payment over five years.
Investments in the energy sector have been influenced by the huge demand for power generation in Pakistan. The abundance of natural resources bundled with an underdeveloped power generation sector, in a rapidly growing economy, have been the key motivating factors for investment decisions.
Multi-billion dollar investment projects proposals with Qatar are under consideration. Pakistan seems to have widened its economic canvas to include the development of trading with the smaller GCC countries like Oman and Bahrain as well. Pakistan-Oman economic relations saw interesting developments in the financial, telecommunications and IT sectors.
A free trade agreement is also on the anvil between Pakistan and Bahrain. In addition, a memorandum of understanding (MoU) between the two countries for the export of manpower is in the pipeline.
King Abdullah bin Abdulaziz’s visit to Pakistan as part of his Asian tour in early 2006, followed by Crown Prince Sultan bin Abdulaziz bin Saud’s visit, and the signing of several important economic agreements, hold significant political and economic implications for the two countries. These visits have generated increased economic development in Pakistan with major Saudi investments in steel and real estate sectors.
Saudi investment in the Pakistani steel sector began with the laying of the foundation stone for the $130-million Tuwairqi Steel Mill being built by Saudi Arabia-based Al-Tuwairqi Group of Companies with an expected production capacity of between 1.5-3 million tons at Port Qasim. The same company had also submitted a winning bid of $362 million for a 75 percent stake in Pakistan Steel Mills Corporation, the country’s biggest and only integrated steel mill located at Karachi. In the real estate sector, Prince Waleed bin Talal visited Pakistan and announced the construction of two major hotel projects.
The privatization of Karachi Electric Supply Corporation (KESC) was led by a consortium headed by Al-Jomaih Holdings of Saudi Arabia that picked up a 73 percent stake. There are plans to invest an additional $500 million in KESC over the next five years. Further, the Samba Financial Group acquired 68 percent of the Crescent Commercial Bank with an investment of $98 million.
Major Kuwaiti investments include a $1.5-billion oil refinery project at Port Qasim, as well as infrastructure and real estate development projects in Karachi. Pakistan has also indicated to Kuwait that it would welcome more investments in building infrastructure projects at Gwadar port, including oil storage facilities and warehouses.
The source of the largest share of FDIs and the second biggest source of remittances after the US is the UAE. Mega investments deals in the real estate, shipping, finance sectors materialized following a number of high-level visits by leaders of the two countries. The UAE feels Pakistan’s current economic environment is ideal as it aims to diversify its investments abroad. A record amount was invested in the real estate sector by the UAE-based companies such as Emaar – $20.4 billion – and Dubai World, which announced a $10-billion investment plan. Emaar has also entered into a $43-billion joint project with the Port Qasim Authority for developing two-island projects at Bundal and Buddoo near Karachi over a 13-year period.
The Pakistani government recently announced its decision to set up a $4-5 billion oil refinery at Khalifa point near Hub (Balochistan). The project that was initially meant to be put up for open bidding has now been given to a UAE-based company. The International Petroleum Investment Limited, directly owned by the Abu Dhabi government, and Pak-Arab refinery Limited (a Pakistani government-owned company) would jointly set up this refinery, which is expected to be complete by end-2010.
In the shipping industry, Dubai Ports World signed an agreement for a $211 million project that would create a second container terminal at Port Qasim. The company has already invested $100 million for constructing the terminal and is likely to make further investments of $70 million in dredging. It is also expected that DP World is to finalize an investment of $1.6 billion to develop Gwadar Port.
Other significant developments in the financial sector include the $100 million investment plan by Dubai Bank in Pakistan. Besides, the Dubai Financial Market and the Central Depository Company of Pakistan signed a MoU to boost cooperation in capital markets of the two countries. Around 10 public Pakistani companies have already received approval for listing their shares in the UAE.
It is expected that Pakistan’s close relations with the GCC countries will result in increased economic investments as long as the country can maintain its upward economic swing and exhibit stability in its policies.
The fact that the GCC countries are developing trade and energy ties with the Indian market has also led to an air of urgency in Pakistan for not only renewing existing ties but also for developing new ones in other neglected sectors. India’s growing stature as a major regional power is something Pakistan cannot afford to ignore. Increased dialogue between the two countries includes discussions on transnational energy (oil/gas) pipelines from Iran, Central Asia or the GCC countries. Despite the long-standing historical animosities over Kashmir, it might be possible to achieve middle ground. This can only done by concerned third parties who can play the role of a catalyst in bridging the gap. In this case, the GCC countries can provide the crucial link in the chain by encouraging dialogue and opening channels of economic communication.
The future of FDI by the GCC countries is in the energy sector with the projected Pakistan-China oil pipeline. Plans on inter-connecting Gwadar with Port Qasim at Karachi and establishing a road and rail link to the Xinjiang province in China could double the capacity for trade. Gwadar is also being considered for a Trans Asia-European railway project, which starts from Malaysia and passes via India, Pakistan, Iran, Afghanistan, Central Asia Republics, and finally ends in Europe. This could be an opportunity for providing a quicker overland route for exporting Gulf oil to Far Eastern and Central Asian countries.
Pakistan, however, needs to secure foreign investments, especially in Balochistan where a volatile situation exists. The government has stressed that the insurgency is restricted to areas that do not have foreign investment. In the event of a renewed or ongoing insurgency, this situation could have a negative impact on investor confidence. In case the GCC countries seek to be a part of the Gwadar-China energy oil pipeline and the proposed trade links, it would be imperative that this security risk is mitigated.
Other areas that the GCC countries could explore in terms of lucrative investments opportunities in Pakistan are the IT, agriculture and mining sectors. Pakistan has had a remarkable growth of tele-density and a rapidly growing IT sector. The current figures indicate that Pakistan has one of the fastest growing telecommunication sectors in the region. Pakistan had only two million connections three years ago, but the current estimates place this at 45 million. There is big scope for Gulf capital in this sector; and the English speaking IT specialists in Pakistan can provide excellent service and training to businesses in the GCC countries.
An example of Pakistan’s untapped potential is the mining industry with its extensive coal reserves. Reserves of 200 billion tons of coal in Tharparkar in southern Pakistan could be used for power generation. Any capital investments in this sector could become a good source of returns.
Pakistan also offers immense opportunities in the agricultural sector, which is the mainstay of the country’s economy, making up 22 percent of its GDP. Being abundantly endowed with water resources and fertile lands, Pakistan has not been able to fully explore its potential. A poorly organized farm sector and lack of agricultural technology is mainly responsible, which the Gulf countries can neutralize through investments.
In addition, there are also opportunities in the defense sector where joint production of aircraft, battle tanks and other weapons systems can be explored. Pakistan’s defense collaboration with China has seen remarkable growth and impressive results. This collaboration has resulted in the indigenous manufacturing of the Al-Khalid tanks in Pakistan and these have already been procured by Saudi Arabia. There is also the possibility of further sales in the Gulf of the Super Mushshak aircraft, which is another product of Pakistan’s defense collaboration with China. The GCC countries, by investing in the defense sector, could further strengthen military ties with Pakistan.
For all these to materialize, however, Pakistan needs to improve economic management and its marketing capabilities in the region. The vast potential the different sectors hold for global investors can only be realized if the government is able to maintain political stability and consistent economic policies.
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Posted 29 March 2008 - 11:42 PM
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Posted 30 March 2008 - 12:27 AM
I pray that we stay united, remove terrorism so that these projects can be realized on the ground, which will be a show cause projects for the economic upgradation of our country and bringing relief to our poor.
To follow implementation of these projects is 10 times more important than restoration of judges & removal of so called dictator !
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Posted 30 March 2008 - 01:37 AM
I think Pakistan will soon begin to market PAC, HIT, AWC, KSEW, SSB, etc, for GCC funding...particularly in new-generation systems. Just imagine how much these firms can do if GCC invested $1bn US each year in their R&D.
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Posted 04 April 2008 - 03:55 AM
ISLAMABAD (March 27 2008): The UAE envoy in Islamabad Ali Mohammed Al-Shamsi said on Wednesday that the Emirates has set the target of $100 billion investment in Pakistan. He, in a statement, said that his country wants stability and progress in Pakistan and assures its full co-operation for building strong economic and trade partnership for the mutual benefit of both the countries.
The envoy said that Pakistan's promising market and its potentials under conducive environment would encourage the UAE companies both public and private for investment target of $100 billion in Pakistan. The UAE investment, at present, stands at $20 billion with assets and projects for Karachi to the tune of $50 billion.
"This is a clear message which indicates the determination and will of the UAE to build a unique economic partnership between the two brotherly countries," said Al-Shamsi, in a statement.
He said the leaders of the United Arab Emirates have expressed their desire to upscale the political and economic relations to the highest level while extending their congratulations to Syed Yousef Raza Gillani on his election as prime minister wishing him success in his new assignment.
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Posted 04 April 2008 - 04:23 AM
Islamabad, April 25, 2007
A Kuwaiti-Saudi Group Midroc Tussonia (Pvt) Limited has initiated to invest US $ 1.5 billion to US $ 2.5 billion in Power, Oil & Gas and Real Estate sectors over a period of next five to seven years. Sheikh Humoud Al-Sabah President of the group informed during a meeting with Mr. Zahid Hamid Federal Minister for Privatisation & Investment while heading a delegation here today.
Mr. Zahid Hamid assured the delegation full assistance in the completion of their projects, which were at an advanced stage. He said that the improved macro economic indicators have created investors friendly atmosphere and made Pakistan a safe haven for investors from around the globe. Pakistan and Kuwait enjoyed very close, historic and brotherly relations, which were being further strengthened and cemented through trade and investment activities between both the countries, he stated.
The Minister informed the delegation that Pakistan accorded equal treatment and level playing field to both local and foreign investors. He further stated that liberal investment policy included 100 % foreign equity in all economic sectors, with attractive incentives like remittances of capital, profits, royalty, technical and franchise fees without obtaining permission from the government. The foreign investment was fully protected and has statutory cover under Foreign Private Investment (Promotion & Protection) Act 1976 and Protection of Economic Reforms Act 1992, he stated.
He said that total foreign investment for the first 9 months of the current financial year 2006-2007 i.e. from 1st: July 2006 to 31st March 2007 was $ 5.56 billion, 67.5% more than the amount ($ 3.32 billion) during the corresponding period last year. FDI of $ 3.86 billion was 72% higher than the amount ($ 2.24 billion) in the same period last year. Net portfolio investment of $ 1.70 billion including OGDC GDR receipts of $ 738 million was 58% higher than the amount ($ 1.08 billion) last year.
Out of the total FDI of $ 3.86 billion, $ 708 million was from China, $ 694 million from UK and $ 636 million from USA. In all these cases this is the highest level of investment ever. 37% of the FDI, or $ 1.41 billion, has gone into the Communications sector. The Financial Business sector has received $ 696 million or 18% and the Oil and Gas Exploration sector $ 420 million or 11%.
He further stated that total foreign investment during 2005-06 was $ 3.87 billion, which at the time was the highest in our history. However, the huge upsurge in FDI and portfolio investment during the current financial year show that foreign investor sentiment has been very positive and foreign investment will clearly set new records in 2006-07. This upward surge was continuing with the consistency and the continuity of the policies, he said.
He lauded the keen interest shown by Kuwaiti companies in the Privatisation Program, which he said was acknowledged by the investors as most successful in the region. He urged the Kuwait investors to benefit from the privatisation opportunities, which were broad, based and included opportunities in every sector.
The basic thrust in privatisation came under the present government of President General Pervez Musharraf during the past seven years together with the economic reforms by the then Finance Minister and now Prime Minister Shaukat Aziz during the past seven years when more than US $ 6 billion sales proceeds were realized, which was 87 % of US $ 7 billion received during 15 years through the sale of 163 public sector entities, he added.
The leader of the delegation Sheikh Hamood Al Saba appreciated Pakistan economic policies and stated that the investors were acknowledging them. He expressed that co-operation in all fields especially in trade, economic and investment would grow further.
While giving an over view of their upcoming projects Sheikh Hamood Al Saba briefed that they have acquired land to establish Wind Power Project of 100 MW near Gharoo Karachi, which would complete its first phase with 50 MW next year. The feasibility work to set up Oil/ Lube Refinery with 2000 tonnes per year capacity & Petrochemical Complex at Port Qasim has been completed and groundwork would be started in 2008, he informed. The Group is also building strategic storage for oil and petroleum products, a Naphtha **********, which is at initial stage and developing an industrial estate on 5000 to 6000 acres area in Sindh. Mr. Mushtaq Malik Secretary Board of Investment (BOI), Mr. Tallat Miyan Executive Director General BOI and other senior officials were also present during the meeting.
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Posted 04 April 2008 - 01:40 PM
ISLAMABAD: Kuwaiti firm Midrock plans to invest $2 billion in lube oil refinery Naptha ********** and Petrochemical Complex at Port Qasim, president of Midrock Sheikh Humoud Al-Sabah told Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon during a meeting.
The president of Midrock informed the minister that the government of Sindh had allocated 500 acres of land for the proposed lube oil refinery.
He said that Midrock was also looking to invest in oil refinery and LPG terminal projects at Gwadar. app
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Posted 08 April 2008 - 09:22 PM
ISLAMABAD (April 09 2008): Creative Energy Resources Corporation (CER) announced on Monday that it had bought a strategic stake in the 586 MW Uch power plant in Pakistan from an affiliate of GE Energy Financial Services. But it did not disclose financial details of the transaction.
However, some knowledgeable sources confided to Business Recorder on Tuesday that the CER, which is a regional power company owned by Swicorp Joussour (Saudi Arabia), had acquired an 18 percent stake in the power plant.
According to the sources, International Power Plc, which has been operating with interests in over 40 power stations and some closely linked businesses around the world, has bought over 70 percent stake in this energy deal. The Hassan Associates is said to have acquired a small stake in the plant.
The Uch Power Limited (UPL) plant is a 586MW combined cycle thermal power plant that generates electricity, using low British Thermal Unit (BTU) gas from the indigenous Uch gas field, which is supplied under a long-term agreement by the Oil and Gas Development Corporation, majority owned by the Government of Pakistan.
The plant's output is sold to Wapda under a long-term contract. The plant is the lowest cost source of thermal power generation in Pakistan. In its Riyadh(Saudi Arabia)-datelined press release, the CER said that it will build, acquire, own and operate power generation, transmission and distribution facilities in the Middle East, North Africa, and South Asia (MENASA) region.
The generation projects will be based on conventional, thermal, as well as renewable energy. CER intends to partner with key players in the region to develop these facilities and the announcement is in line with this strategy.
Shahid Khan, Director of Investments, Swicorp Joussour said: "Power is an important asset class for our investors, and we are pleased with the addition of Uch power to the CER power platform. We are confident that the Uch investment offers our investors access to high quality, risk-adjusted returns.
We look forward to continuing to work with the CER management team to develop and acquire further power related projects in the MENASA region where the growing economies and population levels have led to acute shortages of power that we hope to address."
Commenting on the announcement, Shahzad Qasim, Founder and CEO of CER stated: "The closing of this transaction is an important milestone for CER. We are excited about expanding the generation capacity at Uch to help meet the growing power demand in the country. We are pleased to partner with International Power plc, Hawkins International, Inc and Hasan Associates and look forward to developing a fruitful relationship going forward We would like to express our gratitude for the trust and confidence the Government of Pakistan and other stakeholders in the plant have placed in CER."
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