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Qatar set to finalise $2 billion investment plan in Pakistan

Qatar has identified five major areas which also includes an industrial zone and an important power project in Pakistan, a senior government official said.

Later, he said Amir of Qatar will visit Pakistan next month, most probably after the announcement of next budget on June 9, to sign many agreements and Memorandum of Understandings (MoUs) between the two countries.

Giving the details, he said that Qatar has proposed to set up $500 million power project at Checho-ki-malian, near Sheikupura, Punjab. Similarly, he said in Khaniwal, livestock farm at five thousand of acres of land has been planned to be established by Qatar at a cost of around $100 million.

"Then Qatar government has informed us that it is interested to build two five star hotels, each in Karachi and Lahore at a cost of $150 million", he said.

He said Qatar is also interested to make roughly $1 billion investment at Lahore-Sialkot industrial zone. Also, Qatar government, he said, was negotiating with National Logistics Cell (NLC) to enter into joint venture with it for constructing a multi-stored building in Islamabad for offices and other business activities. The project, he said, would cost about $100 million. Qatar, he said, has shown keen interest to further set up a cement plant near Thatta, Sindh at a cost of $100 million. "The issue of launching a new a airline will also be discussed for which Qatar has shown lot of interest", Talat Miyan added.

Responding to a question, he said all these new projects by Qatar will be set up during 2-3 year period. The power project, he said, could be set up within this year as certain homework has already done by the Qatar government.

He said Qatar is also interested in establishing "Qatar Islamic Bank" for which initial negotiations have been held with the central bank and the ministry of finance.

To a question, he said Qatar will be required to arrange 49 per cent equity for establishing an airline while 51 per cent equity is needed to be arranged locally. "This issue may take time but other five projects are expected to be finalised soon between the two governments".

Talking about China, he said that land has been identified for the setting up of China-Pak Economic Zone for which the government will be offering five year tax holiday. "Chinese government has informed us that its investors would reach Pakistan within one year period once various infrastructure facilities were finalised", he said adding that there will be zero rated custom and excise duty in the economic zone for importing plant and machinery. For the first time, he said, real one window operation will be facilitated in the economic zone which will have the offices of the BoI, custom office, technical centre and other required government officials.

Responding to a question, he said there will be 40 per cent necessary Chinese equity in establishing projects in the economic zone while the remaining equity was expected to come from Saudi Arabia and some other countries besides some local participation by Pakistanis.

He said that the economic zone will be set up at Kalashah Kako, near Lahore for which Punjab government has provided land on market price. He said electricity, gas and other facilities will be instantly made available to the zone.

To a question, he said foreign investors have complete legal protection to their investments and that all economic sectors were open to foreign direct investment (FDI). Foreign equity up to 100 per cent had been allowed and no government permission was required for making investment.

To another question, he said that there had been 37 per cent increase in the FDI during July-April 2007 compared to corresponding period last year. The first ten months of 2006-07, he said, have witnessed $4.1 billion FDI against $3 billion of the same period last year. "We are expecting to have more than $6 billion foreign investment during the current financial year", the official said.