Punjab – A Destination to Invest

1. Punjab – A Destination to Invest Punjab Board of Investment and Trade

2. Contents • Introduction to Punjab • Opportunities for Investment • Agriculture • Livestock and Dairy • Energy • Roads and Real Estate Infrastructure • Industrial Estates & SEZs • Mines and Minerals • Collaboration with Belarus • Services Offered by PBIT

3. International Seminar in Punjab: 6-7 Nov 600 PARTICIPANTS; 250 FOREIGN; 160 MOU & AGREEMENTS

4. International Seminar in Punjab: 6-7 Nov

5. Pakistan – A Destination to Invest • Strategically located : At cross road of South Asia, Middle East and Far East Asia. CPEC has enhanced its global connectivity • Young Population: 55% below 30 years of age • Middle class growing at an astonishing rate of 36.5% • Consumer spending increased by an average of 26% • GSP + status for exports to EU • Skilled Workforce: 60.0 million • Ranked 3rd in Top 10 Best performing global markets • PUNJAB IS AT HEART OF PAKISTAN WITH55 % POPULATION.

6. Introduction to Punjab Punjab has Area of 205,344km² Making it Second Largest Province Punjab Contributes 60% to GDP of Pakistan Population of Punjab is 55% of Pakistan’s Population Punjab Contributes 68% to Annual Food Grain Production Small to Medium Scale 11,820 Textile Units in Punjab Medium to Large Scale 48,000 Industrial Units in Punjab

7. Introduction to Punjab

8. Infrastructure and Social Structure Focus • ANNUAL DEVELOPMENT PLANS FY16 TO FY18 • ADP focus on Social Sector and Infrastructure Development • Total Outlay of USD 16.55 Billion; 40% for Infrastructure • Roads 46% • Irrigation 22% • Energy 19% • Urban Development 10% • Public Buildings 6% Breakup of ADPs

9. Success Stories Currently more than 50 Multinational companies are operating in Pakistan in the sectors of telecommunication, Financial Services, Construction, Oil & Gas, Home Appliances, Electronics, Energy, Mining, Ports, IT, Packaging & Engineering

10. Agriculture & Allied Sectors

11. Agricultural Production • Pakistan: Top ten for 25 commodities • 72% of the irrigated land in Pakistan is in Punjab • Punjab is a dominant producer of major crops: • Wheat (80%), cotton (75%), sugarcane (64%), rice (58%) • Opportunities in Sub-Sector • Corporate Farming: • Total cultivable Land: 16.5 Million hectares • Available for farming: 1.7 million hectares • Manufacturing of Farm Equipment: • Mechanized harvesting: 60% area • Agricultural machinery for domestic use and exports

12. Agricultural Production • Preservation of Fruits and Vegetables for Export: • 30 to 35% post harvest losses in horticulture. • Opportunities exist in supply chain infrastructure like storage capacity, cold chain, processing, and preservation of farm produce. • Hybrid Seed Multiplication: High demand for seed multiplication & hybrid seed for cotton, rice, sunflower, maize, vegetables & flowers. • Prospects for investment in modernization and development of irrigation facilities and water management solutions. • Inputs Industry: High dependence on agricultural inputs like fertilizer and chemicals. • Increasing demand for farm inputs, especially with micro-nutrients that enhance per acre yield

13. Livestock & Dairy

14. Energy

15. Energy – Sector Overview Pakistan • Cumulative Installed Capacity of 23,663MW • Average Generation Capability of 16,823MW • Demand During Peak Hours 21,605MW • Average shortfall of 4,000MW to 6,000MW Punjab • Average Demand of 8,117MW • Average Supply of 4,774 MW • Short fall of 3,340 MW • Large and rising demand growing at 8%per year • Punjab as the largest power consumer in Pakistan Installed Capacity Power Consumption State of the Industry Report National Electric Power Regulatory Authority

16. Energy – Incentives Structure • Strong & Increasing Demand • GOPs Policy Commitment to Increase Private Sector • Transparent Regulatory Environment • One Window Facility and Investor Friendly Policy • Predictable Multi Year Long Term Tariff • Standardized Security Package – Implementation and Power Purchase Agreements • Pass Through of Fuel Cost and Additional Taxation • Risk Coverage for Exchange Rate Variation • Protection Against Change in Duties & Taxes and Political Risks • Income Tax Exemption

17. Energy - Opportunities

18. Energy - Opportunities

19. Roads & Real Estate Infrastructure

20. Infrastructure Prospects and Opportunities Pakistan offersreturns on roads, housing and transport projects (IRR of greater than 25%) Projects available in Punjab in PPP’s, JV’s or Sole Investments)

21. Infrastructure Prospects and Opportunities

22. Infrastructure Opportunities – Real Estate Projects

23. Infrastructure Opportunities – Road Projects

24. Industrial Estates & SEZs

25. Opportunities in Development of Industrial Estates

26. Opportunities in Development of Industrial Estates

27. Opportunities in Development of Industrial Estates

28. Development of Special Economic Zones SEZ 0% Duty on Imports of Capital Goods 0% Corporate Income Tax Rate 10 Years Corporate Income Tax Holiday 50 Acres Minimum Land Required for SEZ 100% Private Ownership Allowed FTZ, FEZ, EPZ & Etc All Options Available • SEZ Act promulgated in 2012 • SEZs to be set up by the Federal or Provincial Governments • All modes available for zone developers, zone enterprises and investors • Public Private Partnership option also available • No restriction on sectors

29. Mines & Minerals

30. Mines and Minerals • Minerals of Punjab provide the resource base of its industrial sector • 35 minerals under excavation including; coal, limestone, gypsum and rock salt by 2300 entrepreneurs • 56 industrial leases under large corporations and multinationals for industrial production of cement, soda ash, caustic soda, fertilizer, glass, ceramics and marble

31. Opportunities in Mines and Minerals • Key projects for investment are as follows:

32. Collaboration with Belarus

33. Potential Sectors For Collaboration • Mining & Quarrying • Knowledge Transfer & Sharing Expertise • Livestock, Dairies & Agriculture • .Belarus also accounts for 1.4% of global milk production • 5% of world export of dairy products; 11% of butter export • Energy • Knowledge Transfer & Sharing Expertise SurgicalEquipment • Domestic production of surgical instruments in Belarus partially meeting demand; rest of instruments is imported. Rice Exporter • Imports of Rice in 2013 – 14 were more than 15,000 MT.

34. Potential Sectors For Collaboration • Transport and Logistics • Over 100 million tonnes of European cargoes is transported via Belarus • Information Technology & Telecommunication • Belarusian IT exports grew from USD 20 million in 2005 to USD 215 million till date. • Automobiles Sector • Belarus accounts for 17% of worlds output of harvesters, and • 6% of tractors • Construction • New Govt. initiatives • Booming industry

35. Potential Areas For Trade Promotion Hosiery & Knitwear • The knitting industry focuses on the production of knitwear, knitted fabric, hosiery and other products. Sports Goods • It's roughly a $3 billion market, at retail. • The most popular sports are running and football, fitness, tennis, alpine skiing, snowboarding, billiards, and darts.   • Fishing, hiking, and swimming are also widely popular.

36. Services Offered by PBIT

37. Investor Facilitation One Window Facilitation • Assisting in obtaining all necessary national and provincial approvals/requirements to facilitate a market entry and aftercare Information & Advisory Services Providing information to investors and businesses in relation to industry research, location selection, incentives structure, financing and legal issues Policy Reform Support Ensuring inclusive policy reform with feedback from private sector stakeholder and creating business enabling environment

38. Thank you Contact Us info@pbit.gop.pk