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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 Cracker, 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.