Karachi 27 April 2017
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1 Karachi 27st April 2017 Trade with China Gawadar Port 2013 2014 2015 Million US$ Million JF-17 Thunder Pakistan-China joint project. Pakistan and China signed a Free Trade Agreement in 2006 Total FDI in Pakistan FY-2016 : USD 1,280 million Half of FDI originated from China : USD 594 million Source: TradeMap.org Trade with China (FY 2015) USD 1.7 B – 66% shareholding US$ Exports in Million Million Exports in US$ Imports in Million Million in Imports Source: TradeMap.org China Engineering Co. The Economy 4 GDP: The economy of Pakistan has shown US$244 billion Per Capita GDP: resilience and has fared well overall 1300 USD despite a global meltdown during the last decade Languages: Urdu, English, Market Size: 200 Punjabi, Sindhi, million consumers 45% Urbanization Balochi, Siraiki Diversity in religion, language and ethnicity Centralized Administration- Ongoing devolution through 18th amendment to Districts:135 Punjab: 36, 1973 constitution Area: Sindh: 29 796,095 km² Baluchistan: 30, Coastline 1,050 Islamabad KPK: 26 KM FATA: & Agencies Federal capital 13, Islamabad: 1 Labour force: Legislative assembly 104 million-52% of the total Supreme court population 60% skilled Sea Ports in Pakistan 5 Karachi Port is the hub and got the pivot status in the Cargo handling TEU No. of cargo economic development of the country as 98% foreign trade Name is conducted through this port and it also handles 65% of Liquid Dry Containers birth nation’s cargo --- Million tons --- Karachi Port 14 12 650,000 33 Bin Qasim Port is the oil hub for the country, it got 2 oil terminals with a total capacity of 10 m tons of furnace oil per M. Bin Qasim 10 12 1,100,000 4 annum Gawadar 19 6 350,000 5 Gawadar port is the core of CPEC. Its strategic importance is far greater than any other port. The 45,000 acres Gwadar master plan encompasses development of an airport, industrial zones, export processing zones, beach resorts, housing facilities and all civic amenities over the next 50 years The Sindh government has decided to revive the Keti Bandar project along with the installation of a 10,000-MW coal-fired power plant. Sindh Provincial GDP : US$78 billion* 50% Urbanization Per Capita GDP 1400US$ Market Size: Diversity in religion, language and 44 million ethnicity Provincial consumers Capital: Karachi Youth:17 million Urban: 22 million Strong Administration Abundant agricultural and mineral resources Area: Languages: 141 square km Karachi English, Coastline 350km Road network: Urdu, Sindhi 53000km Financial & commercial capital 7th largest city of the world Districts: 29 Port City Natural Gas in Sindh Natural Gas 3,000 MMCF 2,749 5% 9% Sindh 17% Balochistan 2,000 KPK Punjab 69% 1,563 1531 1,000 669 362 242 175 182 0 Sindh Balochistan KPK Punjab Gas Supply Gas Consumption Source: Ministry of Finance, GoP 2015 Sindh Board of 8 www.sbi.gos.pk Investment Government of Sindh’s Primary Business and Investment Facilitation Agency Sindh Board of Investment (SBI) is established with broad based responsibility of promotion of investment in all sectors of economy; facilitation of local and foreign investors for speedy materialization of their projects and to enhance Sindh’s international competitiveness and contribute to economic and social development. How do we help? 9 To help investments into Sindh? Promote Bridge Policy Develop OSS Investment Promotion Acts as the Focal Point Provides Framework for Supports and develops One–Window at the Agency of Sindh to for all Investment related implementation of Public Private Provincial level for facilitate Foreign & Local activities in the Province Investment Policy Partnerships facilitation of local and Businesses foreign investors Strategic Projects 10 We are the custodians of Special Economic Zones and Industrial Parks SEDF: A Fund for development of Agribusiness Education City: Asia’s largest Education City Marble City: State of the art marble refinery park GoS’s agency for improving ‘Ease of Doing Business’ Ease of Doing 11 Sindh’s Connectivity with CPEC Business Ports Market Growth Karachi Port and Investors access Port traffic – Bin Qasim to Regional historically 8% handle 95% of market: more annual growth Pakistan’s trade than 4 billion customers Doing Business in Sindh 12 Karachi has the highest weight 35% Lahore Doing Business Karachi Has the highest 65% weight contributing to the index of world doing Karachi business report. 100% Pakistan Lahore Karachi Pakistan Doing Business in Sindh 13 Karachi’s Contribution to the Economy 15% Pakistan’s GDP 42% Value Added LSM $ $ 25% Revenue to Government Home to Pakistan Stock Exchange 5th Best Performing Exchange in the World which had 42% Growth in 2016 and lists 512 companies with a market capitalization of 92 Bln USD Doing Business in Sindh 14 Priority Indicators for Sindh Starting A Business Registering Enforcing Contracts Property Dealing with Sindh, through Construction Karachi, has a 65% Permits weightage in Pakistan’s overall DB ranking Fiscal Incentives . Ten years income tax holiday for entities operating in SEZs . Zero sales tax on import of machinery in SEZ’s . Business Losses are adjustable for six subsequent tax periods . Import of raw material for export manufacturing is zero-rated for tax . Avoidance of double taxation treaties with 52 countries, . Tax exemption for profits earned from refining or concentrating mineral deposits – Thar Coal . Pakistan allows 100% foreign ownership of businesses and unrestricted repatriation of profits to encourage investment in the country Public Private Partnership • Sindh PPP Act 2010 1st PPP law in Pakistan Provides legal cover to the Institutional Framework • PPP Policy Board • PPP Unit • PPP Projects • Departmental PPP nodes Regulates the contractual relationship between public and private sectors Covers processes regarding project approval and spending from: • PDF (Project Development Fund) • VGF (Viability Gap Fund) Energy Mix Renewable Energy Wind Solar Hydro (Run of River) Thermal Oil & Gas Coal Constitution After the 18th Amendment, energy is in Part II of Federal Legislative List Installed capacity – 24,000 MW Available capacity 17,000 MW 17 Energy Resources Wind Corridor Solar Coal Location Coal 180x60KM Wind One of the (Billion tons) Corridor at Jhimpir highest solar Thar 175 (Thatta) has got insulation in the Lakhra Potential for world ranging 1.33 generating 60,000 from 5 KWh- Sonda-Jherruk 7.11 MW 7.5/m2/per day Jhimpir 0.43 Indus East 1.78 Badin 1.36 Total 187.01 Wind Power Projects Wind Power in Sindh Land to 35 Projects (23,000 acres)-indicated capacity 1,925 MW Contribution to Grid - 530 + MWs by June 2016 Upcoming projects Three projects under CPEC of 200MW: 400 MW WIND FARM AT JHIMPIR a) UEP b) Hydro China Dawood c) Sachal Upcoming 9 projects – 477 M 10 MW Wind Project of Ismail industries Ltd in Sindh -Thatta region 50MW Wind Power Project of New Park Energy - Nooriabad 50 MW PROJECT AT NOORIABAD Solar Power Projects Solar Power Projects in Sindh Geographic solar insolation (5.3 kwh/m²/day ) is very high in Pakistan specially in upper Sindh Three pilot project completed by the GoS in November, 2014 Village and School Solar Electrification i) 350 schools - Nangarparkar (Thar) ii) 140 houses - Sanghar iii) Street lights - 5 villages in Malir & Ghotki Solar Power Projects 5 Projects (PPP mode) 20 MW each Jhimpir (Thatta) Shaheed Benazirabad 17 Projects (IPP) total 900 MW Sukkur 20 MW Solar Park at Jhimpir Larkana 22 firms applied -17 shortlisted Khairpur Land allocated Awaiting grid connectivity from Federal Government 1. SCATEC (Norway) with Nizam Energy (2x50MW) projects in upper Sindh 2. Hybrid Energy Project, 50 MW at Jhimpir 3. DACCLLC Solar Project, 50 MW 4. National Solar 50MW at Thatta Coal Mining and Energy Projects Thar Coal is the only major source of power generation in the country and the key resource of Petro Chemical Industry GoS Goal : Generate 5,000 MW by 2020 using Thar Coal (175 billion tons, worth 9 trillion USD) Policy Priorities Develop Thar Coal as ‘core resource’ to achieve affordable and reliable energy security Development of Coal Mining Sector leading to poverty alleviation Thar Coal Field Developed 12 blocks Allocated 8 blocks Partners a)Sino Sindh Resources (Pvt.) Limited (Pak-China) b) Sindh Engro Coal Mining Company (Under Way- CPEC) c) Asia Power Thar Coal Limited (UK) d) Harbin Thar Energy (Pvt.) Limited (China) 3rd Largest Lignite Coal Reserves e)Underground Coal & Gasification Power Project f) Sindh Carbon Energy Ltd (Oracle, UK) Financial Close- CPEC g)Fauji fertilizer Company Limited h)TharPak. Consortium (LLC–US) i) Pakistan Energy & Resource Company Karachi: Node City on CPEC www.kwsb.gos.pk www.kwsb.gos.pk Critical Needs/ Opportunities for Investment www.sswmb.gos.pk Water Supply www.sindhpnd.gov.pk (Karachi Water & Sewerage Board) www.urbandirectorate.gos. Sewerage System pk www.sindh.gov.pk/dpt/phc/p (Karachi Water & Sewerage Board) olicy.html Solid Waste Management www.sindh.gov.pk/dpt/works (Sindh Solid Waste Management Board) andservices Housing (Planning & Development & Initiatives Department, GoS) Roads, Bridges & Infrastructure (Works & Services Department,Karachi’sGoS) Area : 3,527 km² , Elevation : 8 m Karachi New Development Model Special focus on planning Karachi City Foreign Investor partnerships with private sector and provincial Government Priorities: Industries, Urban Development, Environment, Transport Management and financial partnerships with Local and Provincial Government – Opportunities for business Karachi Mass Transit System To provide safe, reliable, comfortable and affordable means of transportation to travelling public by creating enabling environment for private investment in the sector leading towards development and prosperity. Goals • Current situation Proper regulation of public transport through implementation of motor vehicle laws. •Encourage private sector to bring more investment in the transport sector by providing incentives. •Initiate public sector schemes and programs where private investment is slow or not forth coming so that safe, reliable, comfortable and affordable transport is available to public.