40 NEW PAK-CHINA JOINT VENTURES TO ADD EXISTING 42 JV IN PRIVATE/PUBLIC & PRIVATE SECTOR

Zahid Hamid Meets Shanghai Baosteel Delegation

Islamabad, May 14, 2007

In the Five Year Program for Trade & Economic Cooperation between China and Pakistan another forty (40) Private/ Public and Private sector projects will add into the existing forty-two Joint Venture Projects between the private sectors of the two countries in all sectors of economy. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated during a meeting with a visiting Chinese investors delegation of Shanghai Baosteel Group Corporation at Board of Investment (BOI) here today, which is in the process of establishing Joint Venture with a Pakistani company Sapphire Group in the field of steel manufacturing.

The Chinese delegation is visiting Pakistan as a result of follow up of Prime Minister Mr. Shaukat Aziz’s recent visit to China.

Mr. Zahid Hamid informed the delegation that Pakistan encouraged Private Sector Joint Ventures for the economic interaction and development of the private sectors of the respective countries. The ongoing 42 projects between China and Pakistan include fertilizers, mining, PVC integrate, light rail mass transit, motherhood TV Channel, Technology Transfer & Industrial, Friendship Park, Construction, Power, Housing, Mega Infrastructure, Automobile, Gawadar Airport, Pesticides, Hotels, Cement plants, Tourism, Software Maintenance, Oil & Gas Exploration, Auto-motorcycle, Production of human vaccines, Bio Pharmaceuticals, Dairy, Textile, Steel Mills, Heavy Duty Trucks, Communication Towers, Production of Hybride Rice seed, manufacturing of 4-Stroke CNG Auto Rickshaw, Cellular phone company projects etc.

He informed that 33 JV Projects were also at different stages between the private sectors of Pakistan and Japan, Malaysia, Egypt, Kuwait, UAE, Thailand, Qatar and Kingdom of Saudi Arabia.

The Minister stated that the economic relations between both the countries were fast growing and being further strengthened and cemented after having a free Trade Agreement with China, which was yielding US $ 5 billion and would be increased to US $ 15 billion within the next five years.

The Minister briefed the Chinese delegation about the attractive of Pakistan economy in a meeting held at BOI, Islamabad. He updated the delegation about investment opportunities and potential in different sectors in Pakistan. He further stated that Pakistan’s economy was booming in response to the economic reforms initiated by the present government, having consistency and continuity of the policies. The investor friendly environment has made Pakistan a desirable destination for foreign investors.

The macro economic indicators reveal that climate is more conducive for investment than ever before. Due to the present government’s policy of deregulation, liberalization, and privatization, foreign direct investment has grown to a record level of US$5.56 billion during first three quarters of the current fiscal year which is 67.5% more than the corresponding period of the 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. Out of total FDI 37%, has gone into the communications sector. The financial Business sector has received 18% and the oil and gas exploration sector 11%. During the last seven years the US$ 6 billion sales proceeds were realized, which are 87% of US$ 7 billion proceeds realized during the last 15 years through the sales of 163 public entities.

The delegation led by, Ms. Feng Aihua, Vice Director of Business Development Department, Shanghai Baosteel Group Corp expressed their keen interest in steel sector. The Minister assured the delegation all possible support to get their plans materialized. The representative of Sapphire Group, Executive Director General BOI Mr. Tallat Miyyan and other senior officials of the respective departments were present during the meeting.