ISLAMABAD- Chairman of Board of Investment, Atif R. Bokhari has said that industrialisation of Pakistan is the top agenda of Prime Minister Imran Khan and all-out efforts would be made to realize the vision by expediting the population of special economic zones in the country.
ISLAMABAD: The Approval Committee of the Board of Investment on Thursday okayed ‘Special Economic Zone’ status for the Allama Iqbal Industrial City (AIIC), Faisalabad, and referred the applications of JW SEZ and Dhabeji SEZ for consideration of the Board of Approvals, chaired by the prime minister.
According to details, the committee reconsidered the zone application of AIIC and approved the SEZ status, subject to completion of all formalities.
Foreign direct investment (FDI) in Pakistan jumped 88 percent in the fiscal year of 2019/20, with most of the inflows going into power and communications sectors, led by China, numbers released by State Bank of Pakistan (SBP) showed on Friday.
Pakistan attracted $2.561 billion FDI in July to June FY2020, compared with $1.362 billion in the previous fiscal year.
The direct investment, however, was lower than the government’s target of $4.34 billion set for FY2020. This was due to the COVID-19 pandemic’s negative impact on investments that were felt strongly.
The FDI was up 70.53 percent year-on-year to $174.8 million in June. It stood at $102.5 million during the same month of last fiscal year.
The SBP data showed that China remained the largest investor with a net FDI of $844.1 million in FY2020, followed by Norway (402 million) and Hong Kong ($190.7 million).
FDI in the power sector attracted $764.3 million foreign capital in July-June FY2020. However, investors pulled out $323.9 million from this sector in FY2019. The increase in the FDI in energy companies is attributed to an ongoing work on the CEPC-related projects especially in the thermal and coal-fired projects. Eight energy projects have been completed and nine are currently under construction.
Communications sector inflows in the FY2020 stood at $663.9 million, while the communications businesses saw an outflow of $55.7 million a year earlier.
Foreign funds managers pulled $241.3 million from the government securities such as treasury bills and Pakistan Investment Bonds in FY2020. That compared with $1 billion outflows in FY2019. Outflows from the stock market stood at $281.7 million, compared with $415.2 million in previous year.
Total foreign investment amounted to $2.038 billion in FY2020 against the outflows of $54.8 million in FY2019.
Source:- https://www.thenews.com.pk/print/688274-fdi-jumps-88pc-to-2-561bln-in-fy20
ISLAMABAD: The Board of Investment (BOI) on Thursday launched three online portals including Electronic Joint Venture (EJV), Branch Liaison Management Information System (BLMIS) and Special Economic Zones (SEZs) Information Portal to digitise all services for the benefit of investors.
The three portals were launched by the BOI Chairman Atif Riaz Bokhari during an online event which was attended by the BOI Secretary Omer Rasul, senior officers and other stakeholders including representatives from the World Bank, Department for International Development (DFID), Pakistan Business Council (PBC), Federal Board of Revenue (FBR), National Technology Council (NTC) and Punjab Information Technology Board (PITB), said a press release.
The BOI chairman highlighted that BOI was one of the leading organisations in the federal government, which had been effectively introducing technology-driven innovative solutions in terms of service delivery, with the ultimate objectives of bringing transparency, improving ease of doing business and facilitating, Foreign Direct Investment (FDI) in Pakistan.
The BOI chairman also acknowledged the role of all stakeholders in providing support to BOI for the development of the online modules.
BOI Secretary Omer Rasul explained that the objective behind the launch of the new portals is to help reduce human interaction and facilitate investors to access BOI’s services.
He added that, following the policy of the federal government, BOI not only aimed to facilitate the investors through digitisation of services but also by reducing the timelines for seeking necessary approvals.
The Electronic Joint Venture (EJV) portal is Pakistan’s first public sector online free business match-making service, which allows businesses to create partnerships worldwide.
The portal allows enterprises to enlist their profiles on the website and provide useful information regarding new opportunities for investment.
Similarly, Branch Liaison Management Information System (BLMIS) is an online application to aid the opening of branch offices and liaison offices in Pakistan.
The application is a continuation of BOI’s Online Work Visa module which has enabled companies to apply for work visas online including payment of fee and grant of final visa documents, he added.
Moreover, the Special Economic Zones Information Portal will help BOI to collect information from the enterprises and developers based in SEZs.
The Board of Investment (BOI) launched a portal for ‘investment opportunities in Housing sector in Pakistan’ on its website here on Friday, aimed to facilitating the foreign companies interested in making investments in the low-cost housing sector and providing an effective One-Stop Shop solution.
A simple ceremony for Portal launching was organized in the Board of Investment, which was attended by Chairman BOI, Mr. Atif R. Bokhari, Chairman Naya Pakistan Housing and Development Authority (NPHDA), Lt General Anwar Ali Haider, Secretary BOI Mr Omer Rasul and other senior officers, said a press release issued by BOI here.
In his opening remarks, Atif Bokhari welcomed the Chairman NPHDA for launching of Portal for this landmark project of the Government.
He appreciated the support provided by NPHDA team to BOI, enabling them to work in close coordination and develop the Portal in accordance with NPHDA requirements.
Executive Director General (EDG) BOI, Mukarram Jah Ansari, made a brief presentation about the Portal. He told that BOI envisions making it easier for the interested businessmen to collect all the required information as well as go through the registration processes without any hassle.
The EDG demonstrated that the Portal is linking the foreign investors with all relevant government organizations at Federal and Provincial levels, including Board of Investment for work visas and other services, Ministry of Interior for overall visa procedures, State Bank of Pakistan for relevant rules and regulations for foreign investors, Securities and Exchange Commission of Pakistan for company registration, Federal Board of Revenue for tax registration and Pakistan Engineering Council for required certifications.
He further highlighted that the incentives given to the investors in housing and construction sector as well as other relevant information has been made available under the Portal.
The present government has accorded the status of industry to Construction/Housing sector with plan to construct 5 Million Low Cost housing Units over coming five years.
A special organization called ‘Naya Pakistan Housing and Development Authority’ has been established in this regard.
BOI has been assigned the responsibility to act as focal point of contact, linked through a ‘Portal’ with various relevant ministries and organizations, for the assistance of foreign companies and businessmen. At the end of the presentation, Chairman NPHDA appreciated the efforts made by BOI in development of the Portal for facilitation of foreign investors interested in housing and construction projects. Chairman BOI, Atif Bokhari, directed his team to continue making improvements in the services and accessibility for maximum facilitation of the investors.
Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood has said that during first 10 months of current fiscal year (July-April), Pakistan witnessed net Foreign Direct Investment (FDI) of $ 2.281 billion as compared to US$ 1.006 billion in the corresponding period of FY2018-19 (Jul-April) showing an increase of 126.8 percent.
“The country is rapidly gaining investors’ attention for a variety of reasons in recent years”, he said while talking to APP here on Tuesday.
World Bank (WB) has recently highlighted that the Global Investment is expected to be reduced by almost 40 percent both in 2020 and 2021 and the growing economies of developing countries are likely to be worst-hit in terms of low FDI by the pandemic.
However, as per recent statistics issued by State Bank of Pakistan, the negative impact of COVID 19 on FDI into Pakistan is not significant so far, rather Pakistan attracted Net FDI of US$ 2.281 billion as compared to US$ 1.006 billion compared to the correspondence period of FY 2018-19 (Jul-April).
The World Bank (WB) has also projected a 23 percent decline in remittances for Pakistan, totaling about $17 billion in 2020 compared with a total of $22.5 billion in 2019 due to the economic crisis induced by the pandemic, and lockdowns in most cities abroad.
However, despite these projections, things can be turned around with carefully crafted strategies and finding opportunities in new areas.
The advisor said that the country has successfully managed to overcome the security challenges; the infrastructure has significantly improved, connectivity with Western China is in its final stages, a new deep-sea port is being developed, reform drives are being recognized around the world; and the long-term economic outlook remains positive.
Prime Minister himself is leading the reforms to facilitate investors and to ensure Ease of Doing Business, he said.
Razak said that recently, Pakistan has announced transformational visa reforms by introducing E-Visa facilities to most of the countries.
Replying to a question , he said that with the current positive developments and government’s focus on inviting private investments in key sectors including Information Technology and Enabled Services, Food Processing, Textile and Logistics among others, many of Pakistan’s bilateral ties around the world are shifting from transactional relationships to mutually beneficial economic partnerships.
Replying to another question, he said that due to Covid-19 ,” we are facing a truly unprecedented situation in the human history affecting millions of human lives and the economic activities”
Razak said that in the last 5 years Inflow, Outflow and net FDI to Pakistan has some time increased and decreased,
He further said that COVID 19 has no doubt slowed down the business activities all over the world including Pakistan.
The advisor said most of the economies are going through recession, which is evident from the fact that almost 80 countries have called on International Monetary Fund (IMF) for support.
Source:- https://nation.com.pk/26-May-2020/fdi-increases-126-8-percent-to-dollar-2-281-billion-in-jul-april-2020-razak-dawood
A webinar on investment opportunities in Pakistan was held today by MEDEF, the largest business federation in France, Embassy of Pakistan in Paris and French Embassy in Islamabad.
Mr. Atif R. Bokhari, Minister of State and Chairman Board of Investment of Pakistan, in his key note speech, invited the French entrepreneurs, investors and businessmen to invest in Special Economic Zones established by Pakistan, especially in food processing, information technology, housing and construction, travel and tourism and agriculture sectors and benefit from Pakistan’s liberal investment regime and stable political and security situation of the country. He also encouraged the French investors and businesspersons to consider investing into the Information Technology Park being established in Islamabad.
The event was attended by a large number of Pakistani and French companies. The Ambassador of Pakistan to France Mr. Moin ul Haque and Ms. Nora SUSBIELLE, Deputy Head of the Asia-Pacific Department of the French Ministry of Economy and Finance attended from France. Mr. Atif R. Bokhari, Chairman Board of Investment of Pakistan and Mr. Marc BARETY, Ambassador of France to Pakistan took part in the event from Pakistan.
Mr. Thierry Pflimlin, President of Pakistan France Business Council and President of Total Global Services, in his remarks said that the French and Pakistani companies should explore the emerging business and investment opportunities as both the countries restart their economies in the wake of Covid 19 lockdowns.
The Ambassador of Pakistan to France Mr. Moin ul Haque briefed the participants about the economic challenges being faced by Pakistan due to Covid 19 and the government’s relief stimulus package to help business and vulnerable segment of the society. We noted that while Covid 19 has stressed the economies of the world, it has also created opportunities.
Mr. Marc Barety, Ambassador of France spoke about the huge potential that exists between Pakistan and France in further strengthening their economic and investment relations. He said that cooperation between small and medium enterprises of the two countries is among the priority areas for enhancing business ties.
The webinar was part of Embassy of Pakistan, Paris efforts to sustain the momentum of bilateral economic and investment relations between Pakistan and France despite the difficulties and disruptions posed by Covid 19 pandemic.
Source:- https://dnanews.com.pk/french-businessmen-invited-invest-special-economic-zones-pakistan/
KARACHI: Foreign direct investment (FDI) more than doubled to $2.1 billion in the first nine months of the current fiscal year mainly on Chinese inflows and spectrum proceeds from Norway, the central bank’s data showed on Monday.
The State Bank of Pakistan’s (SBP) data showed that FDI amounted to $905.1 million in the corresponding period of the last fiscal year.
The surge in FDI was mainly driven by increased Chinese inflows followed by Norway. Net direct investment from China rose to $872 million in July-March FY2020 from $22.4 million a year earlier. Investment from Norway increased to $288.5 million from $6.4 million.
In March, FDI also increased to $278.7 million from $145.4 million in the corresponding month a year earlier.
Analysts are cautious to predict the impact of the coronavirus pandemic that hit the global economy with growth forecast at negative three percent in the current fiscal year
“The extent of damage is unknown. It is too early to make a guess,” Abdul Aleem, CEO of the Overseas Investors Chamber of Commerce and Industry said. “So going forward, this environment of doom and gloom is bound to negatively impact on the capacity and motivation of the leading international organisations and countries who regularly lead FDI in the developing world.”
Aleem said the level of FDI would likely be lower globally for next 12-18 months and Pakistan might also be part of this downward trend.
“Although we feel, that with highly attractive cost of production, due to extremely low Pakistan rupee to USD, and a large middle class market potential, Pakistan should be on the radar of many MNCs (multinational companies) looking for opportunities to relocate their manufacturing facility for local consumption and export,” he added.
In July-March, power sector fetched the highest FDI of $757.4 million compared with an outflow of $353.1 million in the corresponding period last year. Another noticeable increase was seen in communication sector that received $490.3 million FDI as against the outflow of $141.1 million.
Aleem said FDI in Pakistan has been well below the real economic potential of the country over the years, for various reasons, including negative perception of the country. “The world is currently in the middle of one of the most challenging threats in the form of COVID-19, which has severe human and economic consequences.”
“Pakistan could be very attractive place for growing export of IT services,” he said, however. “Philippines, for example, a country half of our size in population, has annual IT export of over $30 billion, more than our total exports. Why is Pakistan lagging behind, is a point to ponder for all stakeholders in this sector, more so for the regulators.”
The SBP’s data further showed that foreign portfolio investment in stock market saw an outflow of $103.3 million in nine months compared with $409.5 million outflows last year. Foreign investment in market treasury bills and Pakistan Investment Bonds stood at $331.1 million compared with $0.7 million a year ago. Total foreign investment rose 380 percent to $2.375 billion in July-March FY2020.
Source:- https://www.thenews.com.pk/print/647344-fdi-climbs-137pc-to-2-1bln-in-nine-months
CPEC has been progressing and contributing to Pakistan’s economic and social development even in the face of adverse circumstances due to covid-19. The mega project brings solidarity, assistance and confidence to the people of Pakistan.
To add impetus to CPEC projects, on March 16 and 17, President Arif Alvi paid a state visit to China. The leadership of the two countries met and agreed to further promote the development of CPEC. An MoU was signed to set up two new working groups on science, technology and agriculture, under the framework of CPEC.
On March 25, the working group meeting on energy was held. The working group will continue to meet and coordinate with other working groups under the CPEC framework to make preparations for the JCC meeting.
Contrary to negative speculation, China has not withdrawn engineers working on CPEC projects nor laid off Pakistani workers since the outbreak of covid-19 in Pakistan. Currently, CPEC hosts nearly 7000 Chinese and 40,000 Pakistani employees. Over 40,000 Pakistani families are directly supported by the CPEC projects.
The energy sector under CPEC continues to provide power. Transportation projects facilitate the transportation of medical materials. The Special Economic Zones (SEZ)s under CPEC exhibit economic vitality. The social sector under CPEC provides relief to the public.It is heartening that, owing to concerted precautions for preventing COVID-19, no infection occurred at any of the CPEC projects. The Chinese companies attach great importance to the protection of both Chinese and Pakistani employees. Some companies are planning to send medical teams to Pakistan to better protect the projects and the joint interests of the two peoples.
So far, China has donated 125,400 COVID-19 Real-time PCR Kits, 2.8 million surgical masks, 0.42million N95 masks, 1.2 million medical gloves, 0.21 million medical protection suits and 217 ventilators to Pakistan, and also provided $4 million to the Pakistani government for building an emergency hospital. Chinese medical experts’ teams are in Pakistan to provide assistance and expertise in the fight against covid-19. There are more in the pipeline.
Chinese companies working in CPEC projects have made themselves a part of the local community and are active in lending a helping hand in different ways to Pakistan. All provinces have benefited from this.
Some examples are the All Pakistan Chinese Enterprises’ Association, under whose aegis, some companies have provided medical supplies and donations to Pakistan to fight against covid-19.
Zonergy Company Limited of China, and the China Machinery Engineering Corporation called on Prime Minister Imran Khan in Islamabad on 8 April and donated Rs 5 million to the Prime Minister’s covid-19 Relief Fund. They also donated medical supplies worth Rs 3 million to the National Disaster Management Authority (NDMA) that include 30,000 masks, 100 N95 masks and 300 protection suits. The industrial and commercial bank of China has donated medical supplies to the Pakistani Embassy in Beijing. Power China Port Qasim Electric Power Company (Private) Limited donated Rs 321,000 to Pakistan’s medical authorities for fighting the covid-19 epidemic.
In Baluchistan, the Gwadar East-Bay Expressway Project in collaboration with China Overseas Ports Holding Company and the Chinese Red Cross medical team in Gwadar has donated medical supplies to GDA Hospital. TChina Power Hub Generation Company (Pvt.) Ltd. (CPHGC) has donated ration bags to the deserving families in the villages of Hub. The CPHGC also distributed 1000 kg of disinfectants and 2000 masks to the AC Hub’s office. In KP, China Railway Construction Corporation (International) Limited presented epidemic prevention materials, including face masks and hand sanitizers, to the Government of Khyber Pakhtunkhwa. China Railway presented face masks and disinfectants to Pakistan Railways.CPEC has created more than 75,000 jobs directly and 200,000 jobs indirectly for the Pakistani people, with its per capita income increased by 23 percent. More than 100 small and medium-sized enterprises have participated in the construction of CPEC, providing hundreds of thousands of jobs. CPEC is expected to create 2.3 million jobs between 2015 and 2030 and boost Pakistan’s annual economic growth rate by 2 to 2.5 percent, according to the Pakistani government.
Amid the contribution of CPEC, Pakistan is ranked 108 in the ease of doing business from 136, according to the latest World Bank annual ratings. Under the joint planning of the two governments, the next phase of development of CPEC will continue to advance infrastructure construction, focus on people’s livelihood, and industrial and agricultural cooperation, maintain a sound momentum of high-quality development and bring more benefits to the two countries and peoples.
In the realm of energy, 12 power projects have either been completed or are under construction. The total installed capacity of these projects is 7240 MW with total investment of about $12.4 billion. In addition, nine projects are under preparation, with a total installed capacity of 6390 MW.As of fiscal year 2018-19, COD CPEC energy projects had generated $250 million in tax revenue for Pakistan and provided over 10,000 jobs. They now accounted for 14.5 percent of available energy in the NTDC grid.
The Havelian-Mansehra section of the Karakorum Highway (KKH) II opened to traffic on 18 November 18, and it resolves the trip problem along the KKH. The Highway helps to shorten the travel time from 3 hours to 30 minutes. Work on upgrading the KKH’s Havelian-Thakot section is also on track for timely completion. The 392-km-long Multan-Sukkur section of the Peshawar-Karachi-Motorway was completed ahead of schedule and inaugurated at the 9th JCC in November 2019. The project has created about 29,000 local jobs, and a large number of Pakistani technicians have been trained during its construction.
In Gwadar, work on the redesigned Eastbay Expressway and the New Gwadar International Airport is proceeding according to timelines. Various issues regarding Orange Line Mass Transit project in Lahore had been resolved, and the project will start operation soon.
The Chinese and Pakistani sides agreed to expedite the design review and feasibility approval of the Main Line-I (ML-1) Peshawar-Karachi railway project. Both sides also agreed to constitute a financing committees to explore the possibility of renminbi financing. Both sides agreed to consider the Quetta mass transit and the greater Peshawar mass transit projects in the next JWG Meeting after approval of their PC-1s.The Gwadar new airport was launched in October 2019. The construction work is being carried out according to plan. Construction work of the China-Pakistan Gwadar Faqeer Middle School is in full swing and expected to be completed by this year. China-Pakistan Gwadar Vocational Technical School was launched on January and was supposed to be completed in July 2021. The 300 MW coal-fired power plant was launched in March, and its preparatory work would be expedited.
China plans to dispatch experts’ teams for the early implementation of a 1.2 million gallons per day desalination plant. The Initial District of Gwadar Free Zone has got over 20 enterprises residents, with a direct investment over $600 million. Detailed planning is being undertaken for the further development of the Free Zone which had already been granted considerable concessions.
The China-Pakistan Friendship Hospital will be launched soon. A medical college and nursing school would be considered for Phase I of the Gwadar Development Authority (GDA) hospital project.
In the last JCC, progress on three SEZs, Rashakai, Dhabeji, and Allama Iqbal, was reviewed. The importance for supporting infrastructure, targeted incentives for investors and a “one-window” facility, was reaffirmed.
The first round of business diagnosis for Pakistani’s textiles sector was undertaken and its findings on enhancing industrial productivity and overall competitiveness were presented. It was agreed to expand and deepen the business-diagnosis mechanism to other industrial sub-sectors. It was agreed to activate the Pakistan-China Business Council to give full play to the private sectors of both countries. The Council would comprise senior executives from leading enterprises.
In the Socioeconomic Development and Agriculture, out of 17 fast-track socioeconomic development projects, 12 were ready for commencement, while the remaining five projects would also be expedited. Special emphasis was placed on early launch of Pakistan-China joint agricultural technology laboratory. Both sides would also enhance cooperation in agricultural areas including deep processing technology, fisheries, and disease-free zones. Both sides also agreed to accelerate the procedures for: (a) Balochistan Solar Power Lighting Equipment; (b) Drinking Water Equipment Supply (solar-powered pumps in KP and water filtration plants in AJK); (c) Smart Classroom Project for Higher Education; (d) Provision of Medical Equipment and Material; (e) Pakistan Vocational School Equipment.
Despite the black clouds of covid-19 hovering, CPEC endeavours in the backdrop of the pandemic are providing social, industrial and economic support to Pakistan.
Source:- https://www.pakistantoday.com.pk/2020/04/16/covid-19-cpec-endeavours/
ISLAMABAD: Pakistan government makes new investment offers to the British Investors.
Special Assistant to Prime Minister on Petroleum Nadeem Babar on Tuesday invited the British investors to tap opportunities in Pakistan’s exploration and production (E&P) sector.
He extended this invitation to a British delegation, led by Her Majesty’s Trade Commissioner Simon Penny, on Tuesday. UK’s Deputy High Commissioner to Pakistan Mike Nithavrianakis and British High Commission Deputy Director for Trade Ms Olivia Campbell were also the part of delegation.
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