Investment Policies & Opportunities for OPs


	Overseas Pakistanis


	::. INVESTMENT POLICIES & OPPORTUNITIES FOR OPs

Small Industries

The primary objective of the Small & Medium Enterprise Development Authority (SMEDA) is to provide and facilitate with support services to small & medium enterprises. SMEDA has created a network of support institutions, experts and consultants through which SMEs are helped. The limit of bank financing for SMEs has been raised by the Government from Rs. 1.5 million to Rs. 30 million. Sectoral briefs, project profiles, pre-feasibilities and data base in different fields including the following are available with them and the Overseas Pakistanis can contact SMEDA for specific details and feasibility of the project of their choice with the help of their web-site www.smeda.org.

SECTORAL BRIEFS	PRE FEASIBILITIES
Fisheries Marble and Granite Cotton and Ginning, spinning Textile Weaving Garments and Made-up Towels and Terry Products Table Linen Bed-wear and Bed Linen Blankets Curtains and Furnishing Canvas and Canvas Products Bicycles Dairy Footwear Gems and Jewelry Horticulture Leather garments Leather gloves Leather goods leather industry Meat Surgical	Animal dairy farm Bicycle Handle manufacturing Circular knitting unit Denim Jeans stitching unit Kinnow processing unit Leather footwear (boar shoes) Leather garments Leather goods Milk pasteurizing unit
DATABASE	IDBP PROJECT PROFILES (Available with SMEDA)
Leather Surgical instruments IT Agriculture Marble Fans Gems and Wooden Furnitur	Household appliances Agricultural implements Foundry Battery Cells Chalk manufacturing Electronics (Capacitor) Electric Appliances DI processing unit Electronics Household Appliances (A/C adapters)

CIRC Projects (Units)

Corporate and Industrial Restructuring Corporation (CIRC) has offered the following units for sale on "Where is, As is" basis. These units offer attractive investment opportunities to the Overseas Pakistanis, Infrastructure facilities like factory building, machinery and power connections are already in place in most of the units, thus requiring lesser time and effort to begin with the production process.

Summit Knitwear Private Limited
Product	Knitwear
Location	Old Defence Road, Near Kana Kacha at Nala Ruhi, Lahore
Capacity	3,000 Kgs of Knitted Cloth / day
Year of Installation	1993
Central Cotton Mills Limited
	Spinning Mill
	Plot No. 13-14, SITE Kotri, Distt. Dadu
	10,560 spindles
	1980
Current Garments Industries Private Limited
Product	Textile Madeups
Location	Plot No. 54-B, Sector 28, Korangi Industrial Area, Karachi
Year of Installation	1983
Delta Tyres & Rubber Company Private Ltd.
Product	Tyres & Tubes Manufacturing Unit
Location	Main Hattar Taxila Road, Near Telephone Exchange, Vill. Shadi, Hattar, Teh. Haripur, Distt. Abbottabad
Capacity	200,000 Sets of Tyres & Tubes per annum
Year of Installation	1984
Dress Leather Limited
Product	Leather Tannery
Location	4,000 skins per shift (8 hours)
Capacity	B-73 to B-80 Hub Industrial Trading Estate, Hub
Year of Installation	1987
Farooq Paper and Board Industries
Product	Paper and Board
Location	30 Kms from Lahore on Sheikhupura Road
Capacity	20 Tones/day paper and/or board
Year of Installation	1992
Goreja Steel Private Limited
Product	Steel Re-Rolling
Location	18 Kms Multan Road, Lahore
Capacity	8-10 Tones of Bars/Hr (1"-1.5" dia)
Year of Installation	1991
Haji Fazal Karim Weaving Mills Private Ltd
Product	Grey Cloth
Location	Kanga-Raiwind Road (7 Kms from Multan Road, Lahore)
Year of Installation	1993
Hussain Holding Ghee Mills
Product	Ghee & Cooking Oil
Location	Aimanabad More, GT Road, Gujranwala
Capacity	60 Metric Tones of Oil and Ghee/day
Year of Installation	1990
Imtiaz Steel Private Limited
Product	Steel Billets
Location	Bund Road, Shadi Pura, Lahore
Capacity	5 Tones/Charge
Year of Installation	1991
Malik Food Industries Private Limited
Product	Fruit Juice of Oranges, Apples, Mangoes etc. in Bottles or Tetrapack
Location	Kot Lakhpat Industrial Area, Lahore
Capacity	6,000 tones/year of Fruit Juice on 3 shifts basis from Apples, Oranges, Mangoes and Guava in up to 54 million bottles
Year of Installation	1986
Paras Textile Mills Limited
Product	Textile Spinning
Location	14 Kms Bahawalpur-Karachi highway
Capacity	24,960 spindles of East German Origin
Year of Installation	1976
Punjab Cables Limited
Product	Telephone & Telecommunication Cables, ACSR&AAC Cables (range 70 sqm to 300 sqm)
Location	33 Kms Lahore-Sheikhupura Road, Distt. Sheikhupura
Capacity	5,766 million metres of various types of cables/ single shift/300 days per annum
Year of Installation	1991
Rex-Barren Batteries Limited
Product	Automotive Batteries
Location	60,000 batteries of different sizes per annum
Capacity	49 Kms off Multan Road near Phool Nagar, Distt. Kasur
Year of Installation	1990
Shahjehan Textiles Private Limited
Product	Grey Cloth
Location	Dipalpur-Haveli Lakha Roads (24 Kms From Dipalpur, Wasavewala, Distt Okara
Year of Installation	1992
Sulfi Ghee Mills Limited
Product	Ghee & Cooking Oil
Location	Jauharabad-Muzaffargarh Road, 7 Kms from Jauharabad, Distt. Khusab
Capacity	60 Metric Tones of Oil & Ghee/day
Year of Installation	1989
Taj Ghee & General Mills Private Limited
Product	Ghee & Cooking Oil
Location	Rashidpura road, Behind Pakistan Mint, GT Road, Lahore
Capacity	60 Tones/day
Year of Installation	1991
Tech Pak Extraction Limited
Product	Oil Extraction
Location	35 Kms on Sheikhupura Faisalabad Road, Mouza Budh Singh, Manawala, Distt. Sheikhupura
Year of Installation	1991
Ujala Match Factory Limited
Product	Matches
Location	Mouza Chah Saeedan Wala & Chah Bibi Budai Wala, Jhang Road, Chiniot, Distt. Jhang
Capacity	1500 gross per shifts (8 hours)
Year of Installation	1987
Zipper International Private Limited
Product	Plastic Zip Manufacturing
Location	Aminabad More, GT Road, Gujranwala
Capacity	7 plastic Zip making machines with Auxiliary equipment and machines (Taiwan Made)
Year of Installation	Not Available
Chaudhri Cables Private Limited
Product	Electric Cables
Location	2 Kms off GT Road, Near Mannooabad, Kala Shahkaku
Year of Installation	1977
Masud Sons Industries Limited
Product	PVC Pipes
Location	Plot No. 202-203, Sector I-9, Islamabad
Capacity	2160 Tones of different dia. pipes, Rnage 1/2" to 12" dia.
Year of Installation	1981
Ali Paper and Board Industries
Product	Paper & Paper Board
Location	27 Kms Lahore-Sheikhupura Road, (about 1 Km off the road)
Capacity	15-20 tones of paper (50 - 55 gms) per 24 hrs & 30 tones of paperboard per 24 hours
Year of Installation	Late eighties
Modern Steel Re-Rolling Mills Private Ltd.
Product	Deformed/Twisted/Plain Rods/Girders/Mesh etc.
Location	Behind MBS steel mills, Opp. Badami Bagh, Railway Station, Badami Bagh, Lahore
Capacity	8 tones/hours of bar
Year of Installation	Not available

Tourism

Tourism has been declared an industry and as such holds great promise for prospective investors interested in exploring the true potential of a land as rich and diverse in its culture as it is in its geographical distribution.
From snowcapped mountains in the north, with vast fertile plains of the Punjab, rugged land of the south, deserts and a long seacoast, Pakistan has all the hall marks to become a major tourist attraction.
In Pakistan tourism has a huge growth potential with high returns and revenue for the investor. Hotels and other tourism projects hold great promise and rewards for the investor following the concessions extended by the Government to promote this industry and facilitate the growth of tourism in the country.
Marine complexes, beach resorts and mountain resorts can effectuate a huge revenue generation for Overseas Pakistanis interested in this sector.

Sale of Hotels / Lands of PTDC

The following hotels / motels and lands owned by Pakistan Tourism Development Corporation are available for sale through Privatization :

Sr. No.	PROPERTIES	LOCATIONS
1.	Motel at Astak	Skardu
2.	Motel at Birmoglasht	Chitral
3.	Motel at Bunni	Chitral
4.	Motel at Chaman	Pak-Afghan Border, Quetta, Balochistan
5.	Motel at Chattar Plain	Mansehra
6.	Motel at Hawk's Bayt	Karachi
7.	Motel at Katas	District Chakwal
8.	Motel at Khuzdar	Quetta, Balochistan
9.	Motel at Mankial	Swat
10.	Motel at Moenjodaro	Sindh
11.	Motel at Satpara Lake	Skardu
12.	Motel at Torkham	Pak-Afghan Border, NWFP
13.	Daman-e-Koh Restaurant	Islamabad
14.	Jaltarang Restaurant	Rawal Dam, Islamabad
15.	Restaurant at Bahawalpur	Bahawalpur
16.	Restaurant at Chakdara	Malakand Division
17.	Land at Bambore	Thatta-Sindh
18.	Land at Benjosa	AJK
19.	Land at Gadani Beach	Sindh
20.	Land at Garam Chashma	Chitral
21.	Land at Hyderabad	Sindh
22.	Land at Ghazikot	Mansehra
23.	Land at Muzafarabad	AJK
24.	Land at Sukkur	Sindh
25.	Land at Thalechi	Gilgit
26.	Fletti's Hotel	Lahore
27.	Flashman's Hotel	Rawalpindi
28.	Malam Jabba Resort	Malam Jabba

Corporate Agriculture Farming

Pakistan has an Agri-based economy with a very well developed agriculture sector and most of the labour is engaged in the Agriculture Sector. It has vast tracts of cultivable land offering the prospective investor lucrative returns and rich harvests on his investment. Corporate Agriculture Farming (CAF) Package is beening developed..

Investment Policy for CAF

60% foreign equity allowed
Minimum $ 0.3 foreign investment
Remittance of capital, profits, dividends allowed
Credit and other facilities
Local or foreign, private or public limited companies to invest in corporate farming
No ceiling on land holding
State land can be purchased, or leased for 50 years through open auction, extendable for another 49 years
All banks and financial institutions will earmark separate credit share

Fiscal Incentives for CAF

0% customs duty on import of agricultural machinery, equipment and implements
Exemption of duty on transfer of land for CAF
Tax relief; Initial deprecation allowance @ 50% of machinery cost.
Dividends from corporate agriculture farms not subject to tax
Farm income given more favourable treatment

Projects/Investment Opportunities

Land development/reclamation of barren, desert and hilly land for agriculture
purpose and crops farming
Reclamation of waterfront areas or creeks
Crops, fruits, vegetables, flowers farming/integrated agriculture (cultivation and processing of crops)
Modernization and development of irrigation facilities and water management
Plantations
Forestry
Horticulture
Dairy farming
Livestock farming and breeding
Sheep and goat farming
Production of quality seeds
Fruits, vegetables and flowers, grading, processing, packaging, preservation
Seafood (farming/fishing, processing preservation of fish, shrimps and other marine products)
Agri-produce storage facilities
Marketing/export of agri-produce
Cool chains

IT Sector

Information Technology (IT) has assumed unprecedented importance in the global economic arena. In Pakistan, the Present Government is according a very high priority to this sector. The Government as the main facilitator, enabler, and promoter of the IT Sector, has evolved an effective national IT Policy and Action Plan that clearly caters to the needs of nurturing the industry and is responsive to the dynamic forces of change that can effect its future growth. The Private Sector is being brought into the mainstream as the main driver for growth. The following services in Telecommunication sector has been deregulated:

E-mail / Internet / Electronic Information Services (IES)
Data communication Network Services
Trunk Radio Services
Cellular Mobile Telephone Services
Audiotex Services
Voice Mail Services
Card Pay Phone Services
Close User Group for Banking Operations
International Satellite Operators for Domestic Data Communications
Paging Services
Vehicle Tracking System (VTS)
Burglar Alarm System (BAS)
Global Mobile personal Communication System (GMPCS)
Any other telecommunication service, which is deregulated in future, will become part of this list
Note: Those sectors which have not been deregulated due to monopoly available to Pakistan Telecommunication Corporation Limited (PTCL) till 31st December, 2002, are opened to foreign investors in collaboration with PTCL.

Policy

Computer Software and Information Technology (IT) have been declared as industry and placed in Category 'B' of industries
Computers, Software & IT related equipment can be imported at zero percent import duty. For detail list visit www.pakboi.gov.pk
The rate of depreciation on computer equipment is 30%

Incentives

Some of the incentives given by the government to the IT sector are as follows:
Information Technology (IT) enjoys the status of "industry"
The cost of Internet bandwidth has been drastically reduced by 65%
To facilitate the private sector IT telecom industry and to enhance the investor's confidence in the Government, processing period for licence application in the deregulated sector has been reduced to 7 days
In order to deliver efficient IT infrastructure, PTCL would now provide international bandwidth and Internet connectivity to the ISPs and other corporate customers within 4 to 8 weeks
As a first steps towards, Electronic commerce, the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts within Pakistan
Internet delivery on Cable TV has been permitted which would result in substantial increase in the Internet usage
The market is being opened up for the private sector participation in joint venture with PTCL in terms of tele-housing arrangement, voice over Internet, setting up international bandwidth gateways via satellite and cable
Universal Access to the Internet even to non connected areas at the cost of a local using the unique '131' Universal Internet Numbers of ISPs has been extended
Call Centres, which are important potential source of foreign exchange earnings and employment creation, have been allowed to establish in the private sector
Computer networking and majority of IT equipment has been exempted from custom duties
Income tax holiday for the IT Training Institutions has been extended by another five years
Income of computer training institutions set upto 30-06-2005 is exempt form Income Tax
For providing credit to software companies, banks are allowed to accept firm contracts with foreign principals as opposed to requiring opening of LCs
Banks are allowed to invest in the form of equity in dedicated venture
Exports of IT software, hardware and inter-enable services will be eligible for concessionary export finance under the State Bank's export refinance scheme
Software companies are allowed to retain 25% of their export earning in foreign exchange to meet the expenditure on purchase of hardware/software, foreign travel, marketing and hiring of consultants

Technology Parks

Information Technology Parks (ITPs) may develop both the hardware as well as the software
Private sector may set up such parks on BOT/BOO basis and do the same for IT Incubation Centres
The facilities/incentives being offered by Export Processing Zone Authority (EPZA) and other Industrial zones in the country will be available to ITPs be fully utilized
Lower utility and infrastructure rates for bulk consumers to ITP users
Software exporting companies having a minimum export obligation verifiable through the State Bank of Pakistan in locations other than ITPs should be declared as EPUs (Export Processing Units) to avail the incentives equivalent to that of ITPs. IT hardware manufacturing units having a minimum import substitution capability, should be treated similarly
The existing software companies shall be provided land on lease as commercial rates to build their campuses

Infrastructure

There are many investment opportunities for Overseas Pakistanis in developing the country's infrastructure which are highlighted below :

Water & Power Sector

In the Water and Power Sector following are the investment opportunities:

Jinnah Barrage Hydropower Project

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