Transcript Document

BOI
Board of Investment
2nd Asian Business Forum
INVESTMENT DIVISION
&
BOARD OF INVESTMENT
March 03, 2008
At The Center of Asian Growth
BOI
Pakistan becoming Asia’s trade, energy and transport corridor
Board of Investment
U
Kazakhstan
Almaty
Frun ze
#
#
Land locked
energy
rich
#
Central Asia
Tosh ke nt
Uzbekistan
Kyrgyzstan
Samarkand
Kashi
#
Turkmenistan
Dus hanf e
#
Ash kha bad
#
Tajikistan
#
China
Mashhad
#
Her at
Kabul
#
#
Jum mu &
K as hmir
(Disput ed Territ ory)
Islamaba d
#
#
Afghanistan
Yaz d
Ra w alpindi
Qa ndahar
#
Fa isa labad Lahore
#
Iran
#
Pakistan
#
Nepal
#
Jaipur
Hyde rabad
#
#
Amrit sar
New D elhi Delhi
India
#
Ab u Z aby
#
Pakistan
Zahed an
Capital & Energy
surplus Middle
East
#
#
Kath mandu
#
Luc know
Kanpu r #
Booming
South
#
Asia
Benar es
Patna
#
#
Ka rachi
Masq at
#
ab Emirates
Oman
Ahma dabad
#
2 3 Ca
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
BOI
Board of Investment
BOI
Improving Economic Indicators
Indicators
Board of Investment
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Exports (B $)
9.20
9.13
11.16
12.31
14.39
16.47
17.01
Imports (B $)
10.72
10.34
12.22
15.59
20.60
28.58
30.54
Remittances (B $)
1.09
2.39
4.24
3.87
4.17
4.60
5.49
FOREX Reserves
(B $)
3.22
6.43
10.72
12.33
12.61
13.14
15.18
Stock Exchange
Index
1,300
1,520
3,402
5,279
7,450
9,989
13,772
501
503
582
651
736
847
925
2.6%
3.6%
5.1%
6.4%
8.4%
6.6%
7.0%
GDP per capita ($)
GDP Growth
4
Remarkable Demographics
– Total population: 160 million
– Population under 25 years: 100 million
Demographics
20 to 39 years
27%
Below 19 years
54%
81%<40yrs
40 to 59 years
60 years and
above
Source: Economic Survey 2006-07
6%
13%
BOI
Board of Investment
Declining Poverty, Unemployment,
Debt
BOI
Board of Investment
• 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 200506.
• Public debt as % of GDP has fallen from over 100% of GDP in 1999
to 53.4% in 2007.
Declining Public Debt Burden
BOI
Board of Investment
Public debt as % of GDP
110.0
100.3
95.9
83.8
90.0
79.7
75.1
67.1
70.0
62.2
56.9
53.4
FY05
FY06
FY07
50.0
30.0
10.0
FY99
Source : Economic Survey2006-07
FY00
FY01
FY02
FY03
FY04
Pakistan: A Leading Reformer
BOI
Board of Investment
• 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.
BOI
Doing Business Ranking
among 178 Countries
Board of Investment
Pakistan
India
Sri Lanka
Bangladesh
Ease of doing Business
76
120
101
107
Starting a Business
59
111
29
92
Dealing with Licenses
93
134
160
116
Employing Workers
132
85
111
129
Registering Property
88
112
134
171
Getting Credit
68
36
97
48
Protecting Investors
19
33
64
15
Paying Taxes
146
165
158
81
Trading Across Borders
94
79
60
112
Enforcing Contracts
154
177
133
175
Closing a Business
51
137
39
102
9
BOI
Top ranked countries in the region for
“Ease of doing Business”
Board of Investment
107
101
119
120
In
di
a
Bh
ut
an
ep
al
N
sh
Ba
ng
la
de
Sr
i
La
nk
a
76
Pa
ki
st
an
M
al
di
ve
s
60
111
10
Why Invest in Pakistan:
Liberal Investment Policy
BOI
Board of Investment
• 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
Investment Gaining Momentum
BOI
Board of Investment
Investment as a % Of GDP
28
25
21.7
22
%
19
16.8
16.9
16.6
FY02
FY03
FY04
23.0
18.1
16
13
10
FY05
FY06
FY07
FDI by Country and Sector
July – Dec 2007-08
2007-08
July-Dec
BOI
Board of Investment
USD in millions
2007-08
July-Dec
USA
907
(44%)
Communications
722
(35%)
UAE
258
(13%)
Financial Business
351
(17%)
UK
174
(8%)
Oil and gas
Exploration
331
(16%)
Switzerland
85
(4%)
Cement
80
(4%)
Japan
69
(3%)
Transport equipment
(Auto)
53
(3%)
Others
573
(28%)
Others
529
(26%)
Total
2,067
Total
2,067
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BOI
Board of Investment
Functions of ID & BOI
Mission
BOI
Board of Investment
• Promotion of foreign and domestic private
investment
• Facilitation of foreign and domestic investors
• Investment Protection (e.g. BITs)
• Policy advocacy to improve investment environment
15
Pillars of Investment Strategy
BOI
Board of Investment
• 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
BOI
Board of Investment
• 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
BOI
Board of Investment
• 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
BOI
Board of Investment
• Increase investor’s confidence by improving the
protection of contractual and property rights.
• Strengthen domestic and international arbitration in
line with international best practices.
• Enforce Pakistan’s BITs and sign additional
investment-related Agreements to provide credible
security packages to investors.
19
Structured Public - Private
Policy Dialogue (PPPD)
BOI
Board of Investment
• 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.
20
Special Economic Zones (SEZs)
BOI
Board of Investment
• SEZ’s 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
BOI
Board of Investment
• Offshore & Onshore
Exploration
• Refining
• Pipelines
• Storages
Mining
Oil & Gas
Priority Sectors
IT & Telecom
Power
• Coal
• Granite
• Marble
• Copper
• Rocksalt
• Semi-Precious Stones
• Hydel
• Thermal
• Coal
• Solar
• Wind
• Biogas
• Call centers
• Cell phone
• E-Commerce
• Software
• IT Parks
22 18
Investment Opportunities
BOI
Board of Investment
• Ports & Roads
• Urban Mass Transport
• Water supply &
• Sanitation
• Housing
• Desalination
Priority Sectors
SMEs
• Hotels
• Resorts
• Theme Parks
• Cultural tourism
• Entertainment Centers
Tourism
Infrastructure
Agriculture
• Leather
• Electronics
• Furniture
• Gemstones
• Jewelry
• Food Processing
• Sports & Surgical goods
• Value added textiles &
- Agri-Business
- Corporate Farming
- Fruits & Vegetables - Livestock & Dairy
- Fisheries
- Cool chains
- Seed Production
- Storages
23 19
Investment Opportunities
BOI
Board of Investment
• Oil & Gas
• Infrastructure
• Power
• Industry/ Real Estate
• Banking
Housing
Priority Sectors
Engineering
Chemicals
• Golf City
• Water City
• Sports City
• Media City
• Residential Complexes
• Office apartments
Privatization
• Pesticides
• Dyes
• Agro Based
• Mineral Based
• Synthetic Fiber
• Pharmaceuticals
• Petrochemical
• Complex/ Naphtha
• Cracker
• Light & Heavy Engineering
• Automobiles
• Auto parts
• Agriculture Machinery
• Steel Production
• Textile Machinery
24 20
Five Key Reasons to Invest
BOI
Board of Investment
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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BOI
Board of Investment
Thank you
26