The benefits to invest inPakistan

1. ROUND TABLE CONFERNECE-II
Pakistan Paradise for Investment
April 16,2018

2. PAKISTAN
Paradise for Investors

3. PAKISTAN AND
ITS ECONOMY

4. largest economy in
terms of nominal Gross
Domestic Product. (GDP)
24 42largest economy in
the world in terms
of Purchasing Power
Parity (PPP)
TH ND

5. GROWTH & MACROECONOMIC
STABILITY
Market of 207m
people with
45% middle
class
GDP growth 5.28% -
Highest in the last
decade
GDP
crossed
USD 300
billion mark
Macroeconomic
indicators
promising

6. GROWTH & MACROECONOMIC
STABILITY
Budget deficit
reduced to 4.6% in
FY16 from 8.2 % in
FY13
Net FDI in Pakistan
increased to $ 2.7
billion in FY17 as
compared to $ 1.305
billion in FY13
Revenues increased
to 15.3% of GDP in
FY16, compared to
13.3% of GDP
recorded in FY13
CPEC portfolio of
USD 54 billion in
next 13 years
4.6%
8.2%
$2.7
BILLION
$54
BILLION
15.3%

7. BMI RESEARCH REPORT NAMED PAKISTAN AS ONE OF THE
TEN EMERGING ECONOMIES WITH A PARTICULAR FOCUS
ON ITS MANUFACTURING HUB
ECONOMY OFPAKISTAN
CURRENTSCENARIO

8. INTERNATIONAL RECOGNITION
• Improvement on the Global Competitiveness scores
especially in macro economic stability, infrastructure,
institutions and innovation
• Moody’s & Fitch raised economic outlook from negative
to stable
• Standards & Poor’s revised its rating from stable to
positive
• Pakistan upgraded from Frontier market
to Emerging market by MSCI (Market
Classification Index)

9. INTERNATIONAL RECOGNITION
Economic complexity global growth
projections rank Pakistan among the
fastest growing economics to 2025 with
projected growth rate at 5.97%
Pakistan projected to become
world’s 20th largest economy
by 2030 and 16th largest by
2050 in terms of PPP
– PWC Report 2017

10. Pakistan has been recognized
by the World Bank amongst
the Top 5 countries to receive
private investment

11. ENCOURAGING INVESTMENT TREND
(BILLION US$)
2.6 2.8 2.7 2.7 2.8
0
10
20
30
40
50
60
2012-13 2013-14 2014-15 2015-16 2016-17
33.5
36.8
43.1
45.3
50.3

12. UK 31
USA 25
The Netherlands 20
Japan 13
Switzerland 12
UAE 10
Germany 10
Singapore 6
Hong Kong 5
France 5
Italy 4
Mauritius 3
Other 46
Oil/ Gas/ Energy 31
Banking/Insurance/Finance & Leasing 29
Pharmaceutical 23
Chemicals/Pesticides/Fertiliser/Paint/Cement 23
Trading & Other Services 22
Food/ Consumer Products 21
Engineering/ Industrial Products 13
IT & Communication 11
Shipping 5
Automobile 3
Telecommunications 3
Printing & Publishing 3
Tobacco 2
Security Services 1
OVERSEAS INVESTORS INPAKISTAN
Overseas Investors Chamber
of Commerce and Industry

13. 17.09
15.21
11.56
7.466.36
5.453.50
3.37
2.11
1.72
1.65
1.00
0.95
0.84 0.72
0.51
-0.28 -1.46
22.26
Country wiseFDI2007-17 USA China
UK U.A.E
Hong Kong Switzerland
Italy Netherlands
Japan Austria
Australia Turkey
Germany Kuwait
France Korea (South)
Norway Saudi Arabia
Others

14. 14
22.40
18.70
12.47
11.00
6.59
4.70
2.87
2.66
2.65
2.20
1.45
1.07
0.73
10.49
Sectors Wise FDI 2007-17 US$ Billion Oil & Gas Explor.
Financial Business
Communications
(IT&Telecom)
Power
Food & Beverages
Construction
Trade
Chemicals
Transport
Transport Equipement (Auto)
Electronics
Textiles

15. PAKISTAN -
A TRADE AND
ENERGY CORRIDOR

16. CHINA
KYRGYZSTAN
UZBEKISTAN
TURKMANISTAN
IRAN
AFGHANISTAN
GULF STATES
INDIA
TAJIKISTAN
AZERBAIJAN
NEPAL
BHUTAN
BANGLADESH
MYANMAR
(BURMA)
PAKISTAN
DISPUTED
TERRITORY
ARABIAN SEA
XIZANG (TIBET)
Booming
China
Capital &
Energy
Rich
Middle
East
Land
locked
Central
Asia
Progressing
South Asia
16
GEO STRATEGIC LOCATION

18. CPEC-AGame Changer
• China-Pakistan Economic Corridor is a
framework of regional connectivity
• Connecting Middle East and South Asia with
China and Central Asia
• Develop potential for investment, trade,
energy interconnection, logistics and people
to people contact
• Will turn Pakistan into regional corridor for
trade and energy and a hub for investments in
global value chain

19. CPEC-Salient Features
• Integrated Transport & IT systems including Road,
Rail, Port, Air and Data Communication Channels
• Energy cooperation
• Functional zones, industries and industrial parks
• Technological Upgradation
• Agricultural development
• Tourism
• Financial cooperation
• Human Resource Development

20. CPEC INVESTMENTS AND
DEVELOPMENTS-PHASE 1
• 12,130 MWs of Power Projects
• 8,000 MWs capacity in transmission line projects
• Connecting Gwadar (Pakistan) with Kashgar (China)
• Upgrading Gwadar Airport & Gwadar Port Facilities
• Developing Optic Fiber Network
• Upgrading Railway network & operating system

21. CPEC INVESTMENTS AND
DEVELOPMENTS PHASE 2
• Industrial Development
• 9- Special Economic Zones

22. PAKISTAN -
ONE OF THE MOST
OPEN ECONOMY

23. Openness to FDI All Sectors Open except in specifically prohibited or restricted
sectors for reasons of national security and public safety .
Restrictions on
foreign ownership
100% Foreign Ownership except on the following sectors: airlines,
banking, agriculture, and media. 60% foreign ownership in
agriculture (except corporate farming which is not restricted).
Minimum capital
requirement
No minimum investment is required expect for franchise
investment of USD$100,000 and a cap on subsequent royalty
payments of 7% of net sales for five years.
Access to land
Screening of
investment
Foreign companies can own land only if incorporated in Pakistan.
Authorization of investment is automatic.

24. Pakistan’s domestic law provides for the
core protection guarantees to investors
Currency transfer
and convertibility
No restrictions on currency convertibility and repatriation of capital,
remittance of profits or royalties abroad (except for franchises), and
exchange control.
Expropriation The law protects investors against unlawful expropriation.
Non-discrimination No discriminatory regulations between domestic and foreign
investors and between foreigners of different countries (including
taxation).
Incentives Incentives granted through statutory order will continue in force for
the term specified and will not be altered to the disadvantage of the
investor.

25. Pakistan also has a vast network of
International Investment Agreements
BITs with 47 countries
Foreign Private Investment & Protection Act 1976
Protection of Economic Reforms Act 1992
Treaties with investment provisions: Malaysia-Pakistan CEPA, China-Pakistan FTA,
SAFTA, Pakistan-US TIFA, EC-Pakistan Cooperation Agreement, OIC Investment
Agreement.
Other related international agreements: GATS, TRIPS, TRIMS, Islamic Corporation for
the Enhanced Dispute Investment Credit, MIGA, ICISD, NY Convention, OECD
Investment Principles.

26. SPECIALECONOMIC
ZONES
• Utilities and land connectivity ensured by
law
• One time duty exemption on import of
plant & machinery
• Income tax holiday for developers (5 years)
and enterprises (10 years)
• Captive power generation allowed
• Single window facility

27. INCENTIVES IN AUTO SECTOR
 Duty free import of plant and machinery
 Import of 100 vehicle of the same variant in CBU form at 50% of the
prevailing duty
 Tariff for Import of non-localized parts reduced from 35% to 10% and
localized parts from 45% to 25% duty for a period of 5 years for
manufacturing of cars and LCVs
 Tariff for Import of localized has been reduced from 35% to the rate
of non localized (0-10%) for manufacturing of buses, trucks and
prime movers.
 Tariff for import of motorcycle parts (non- localized and localized) has
been reduced to 10% from 35 and 45% 27

28. BOI & EASE OF DOING BUSINESS INITIATIVE
Pakistan has launched its first ever DB National strategy in 2016
for improving Ease of Doing Business in the country
Prime Minister has recently constituted a Committee headed by
him on Improving & Monitoring Pakistan’s Ease of Doing Business
and Competitiveness indices
Pakistan’s ranking was 144 in 2017 and 147 in 2018.
Pakistan has been included into top 34 economies of reformers.
Pakistan improved by seven points (From 122 to 115) in GCI Index
The reform achievements of the past 100 days reflect focused
mobilization and strong momentum for business environment
reform.

29. KEY REFORMS AREAS
Automation and online roll out of the Virtual One Stop Shop for
start-ups
Digitalization of land and property titles for greater transparency
and security
Extension of the one window concept for issuance of construction
permits
Enforcement of the Secured Transactions Act and collateral registry
to facilitate access to credit
Facilitation of cross border trade through integrated platform for
clearance of goods
Roll out of simplified electronic tax filing under simplified rules and
implementation of electronic payment systems
Roll out of case management systems in district courts &
establishing specialized commercial courts/benches
Enactment of legislation to facilitate rehabilitation of distressed
enterprises
29

30. INVESTMENT IN
PAKISTAN –
TOP POTENTAIL AREAS

31. PETROLEUM &PETROCHEMICALS
• Pakistan annually imports USD 10-12 bn of
Crude Oil (27%), Petroleum Products (73%)
• Imports around USD 4 bn of Petrochemicals
• Investments in Refineries, Naphtha Cracker
and Petrochemicals production will get Saudi
Investors a captive market
• Huge Chinese market of USD 140 bn of Oil and
Petro-products will become more accessible
from Pakistan

32. AGRICULTURE
• Agriculture, Dairy and Livestock sectors of
Pakistan – present a huge opportunity
• Gaps in Agri-conservation and processing chain
• 40% of perishables are wasted
• Demand in KSA and GCC countries
• Export potential for agriculture commodities
• Food and Fruits exports from Pakistan on the
rise

33. DAIRY
4th Largest Producer of milk
• Only 5-7% milk is processed
• 20% annual demand growth
• Net Importer of dairy products
• Huge Potential for setting up processing units
for local consumption and export
• Nestle of Switzerland is the largest investor
• USD 500m investment by Friesland Campina
(a Dutch Company) – which partnered with the
International Finance Corporation (IFC) and the
Dutch development bank FMO
• Al-Marai of KSA has shown interest

34. LIVESTOCK
3rd largest livestock population
• Growing meat demand
• Tax incentives for livestock farming
• Growing export potential of “Halal” meat
• Opportunity for corporate farming,
meat-processing units and for investment in
breed improvement, animal husbandry,
veterinary medicines
• SLIC has already declared Pakistan as favoured
investment destination for Rice and Meat

35. MINING &MINERAL
• 3rd largest copper reserves
• 5th largest coal reserves (175 billion
tonnes potential of Thar coal)
• 5th largest gold reserves
• 2nd largest salt reserves
• Abundant precious and semi precious
stones
• Iron ore and other ferrous metals
• Unlimited potential for investments in
mining, refining and value-addition

36. TOURISM
• Pakistan is rich in natural resources and
historical treasures
• It is a traveler’s paradise
• Its breath taking destinations include:

37. AUTO SECTOR
• There is a large demand in the following:
• Large domestic demand in small cars
• Hybrid/electrical vehicles
• Motorcycles (above 150 cc)
• High tech auto part manufacturing
• Large fleet of trucks and prime movers is required under
CPEC
• Massive incentives available under auto-policy
• There is high tariff protection on CBUs to
encourage investment
37

38. MIGHTY MOUNTAIN RANGES

39. PICTURESQUE LANDSCAPES

40. HOME TO ONE OF THE
EARLIEST CIVILIZATIONS

41. Identify market investment projects / highlight promising
opportunities
Investment Promotion
Investment Protection
Policy Reforms and
Advocacy
SEZs
Investment Facilitation
Establishment of Special Economic Zones, offering
attractive business incentives & tax relief
Frame and update business friendly policies and
regulatory reforms
Introduce legal framework for investment protection
including drafting & negotiations of Bilateral Investment
Treaties
Information, guidance, coordination, resolution of
difficulties and security clearance for work visas &
opening of liaison/branch offices
41
41
MANDATE OF BOI

42. Thank you
42
BOARD OF INVESTMENT
PRIME MINISTER’S OFFICE
Investors are welcomed to avail profitable
business opportunities in Pakistan