2nd Asian Business Forum

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2nd Asian Business Forum INVESTMENT DIVISION
BOARD OF INVESTMENT March 03, 2008

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At The Center of Asian Growth
Pakistan becoming Asias trade, energy and
transport corridor
Land locked energy rich Central Asia
Pakistan
Capital Energy surplus Middle East
Booming South Asia
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Country Profile

• Population 160 million (2006 est.)
• GDP (Nominal) US 145 billion (FY07)
• Foreign Investment US 8.4 billion (FY07)
• GDP per capita US 925 (FY07)
• FX Reserves (February 04, 2008) US 15.074
  billion
• Stock Market Index (February 29, 2008) 15,078

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Improving Economic Indicators
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Remarkable Demographics

• Total population 160 million
• Population under 25 years 100 million

Demographics
81lt40yrs
Source Economic Survey 2006-07
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Declining Poverty, Unemployment, Debt

• Poverty has declined from 34.5 in 2000-1 to
  23.9 in 2004-5, which means that 13 million
  people have come out of poverty in this period.
• Unemployment has fallen from 8.3 in 2000-01 to
  6.2 in 2005-06.
• Public debt as of GDP has fallen from over 100
  of GDP in 1999 to 53.4 in 2007.

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Declining Public Debt Burden
Public debt as of GDP
Source Economic Survey2006-07
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Pakistan A Leading Reformer

• Runner-up reformer in the South Asian Region
  (after Maldives) according to the Report of the
  World Bank and IFC entitled Doing Business in
  South Asia 2008 which compared business
  regulations in 178 countries around the world.

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Doing Business Ranking among 178
Countries
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Top ranked countries in the region for Ease of
doing Business
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Why Invest in PakistanLiberal Investment Policy

• Equal opportunity for local foreign investors
• All economic sectors open to foreign investors
• Foreign equity upto 100 allowed
• No Government permissions required
• Attractive tax, tariff and other incentives
• Remittance of capital, profits, royalty,
  technical franchise fee allowed
• Network of Export Processing Zones / Industrial
  Estates
• Statutory protection for foreign investment
• Bilateral Agreements
• Investment Protection 47 Countries
• Avoidance of Double Taxation 52 Countries

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Investment Gaining Momentum
Investment as a Of GDP
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FDI by Country and Sector July Dec 2007-08
USD in millions
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Functions of ID BOI
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Mission

• Promotion of foreign and domestic private
  investment
• Facilitation of foreign and domestic investors
• Investment Protection (e.g. BITs)
• Policy advocacy to improve investment environment

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Pillars of Investment Strategy

• Enhancing Image of Pakistan as Investment
  Destination
• Promoting Investment Projects
• Strengthening Investment Protection
• Structured Public - Private Policy Dialogue

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Enhancing Image of Pakistan as an Investment
Destination

• Pro-active image enhancement focusing foreign
  investors and international business media.
• Sign MOUs with other Investment Promotion
  Agencies.
• Arrange local and foreign Investment Conferences.
• Appoint Honorary Investment Counselors.

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Promoting Investment Projects

• Database set up for
• Standardized profiles of marketable investment
  projects
• Marketing Network
• Target investors and domestic joint venture
  partners
• Facilitate investors at all stages of investment
  cycle utilizing existing offices in all
  provincial capitals.

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Strengthening Investment Protection

• Increase investors confidence by improving the
  protection of contractual and property rights.
• Strengthen domestic and international arbitration
  in line with international best practices.
• Enforce Pakistans BITs and sign additional
  investment-related Agreements to provide credible
  security packages to investors.

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Structured Public - Private Policy Dialogue
(PPPD)

• Structured PPPD presently created by ID BOI
• Foreign Investor Council (FIC) headed by PM
  formed with international business leaders being
  members.
• Advisory Boards for priority sectors formed and
  meetings held.
• Frequent interaction with private sector
  representatives.
• PPPD linked with
• Competitiveness Support Fund initiatives (CSF).
• Public Private Partnership initiatives (IPDF).
• Small and Medium Enterprise promotion (SMEDA).
• Reforms of economic regulations - regulatory
  impact assessments by ERU.

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Special Economic Zones (SEZs)

• SEZs instrumental in cluster building also
  conducive to site development, administrative
  rationalization and security protection.
• BOI is preparing a draft act on SEZs which will
  set out legal and institutional framework with
  incentive package.

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Investment Opportunities
Oil Gas
Mining
Power
IT Telecom
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Investment Opportunities
Infrastructure
Priority Sectors
Tourism
SMEs
Agriculture
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Investment Opportunities
Privatization
Housing
Chemicals
Engineering
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Five Key Reasons to Invest
1. Geo-strategic location Gateway to the
energy rich Central Asian States the Financial
liquid Gulf States 2. Trained Workforce
Low cost skilled English speaking flexible
workforce Labour force of over 45 million
Large pool of engineers, accountants, managers
and IT Professionals 3. Economic outlook
Average 7.3 GDP growth annually for the last
three years 4. Investment Policies Liberal
policies and profitable opportunities Liberal
trade and low tariff regime 5. Financial
Markets Karachi Stock Exchange is one of the
best Stock Markets in the region
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Thank you