British business community urged to invest in Pakistan

 

LONDON: A seminar on Business Prospects in Pakistan was informed of the investment opportunities in the South Asian country and the British entrepreneurs were urged to take advantage of liberal incentives offered by the Pakistani Government. Held on 7 July 2010 at Pakistan High Commission, it was organised by the London Chamber of Commerce and Industries and addressed by business leaders. The seminar provided an ample opportunity for obtaining information on business prospects in Pakistan and networking with companies already doing business in Pakistan.

 

Those who spoke on the occasion included Robert Gibson,  British Deputy High Commissioner to Pakistan and Director UKPTI with his presentation on  “Economic Outlook,  Market Overview and  Current Opportunities in Pakistan “,  Vince Harris, Chief Executive, Hub Power Company, Karachi, shared his views and experiences on  “Doing Business in Pakistan”.

Sir Thomas Harris, Vice Chairman, Standard Chartered Capital Markets chaired the seminar.  Other prominent speakers included Anwar Zaidi, Deputy CEO and Director Habib Bank Ltd. UK, Jawad Raza, Senior Partner Danmirr Consultants and Mudassar M. Malik, Chief Executive, BMA Capital who spoke on topics related to financial and banking solutions in the context of trade finance, upcoming opportunities in Islamabad and Lahore and potential of investment opportunities in Pakistan.

Pakistan’s High Commissioner to the UK Wajid Shamsul Hasan in his welcome address mentioned measures taken by the democratic government to address the economic challenges facing the country and said it was dealing with the energy problem on a fast track basis.
He mentioned that during 1994-1996 when the Pakistan People’s Party was in Government under late Shaheed Mohtarma Benazir Bhutto, the country had invested in power sector through Independent Power Producers which generated five thousand megawatts of electricity but the later governments ignored this sector which has led to present crisis.

He said due to supply shortfall, investment opportunities exist in wind, hydro and thermal energy and British companies could invest in this sector as the Government is providing 100 per cent profit dividend.
The High Commissioner spoke of the growing UK-Pakistan trade relations and said in 2009, the trade between the two countries stood at 1.1 billion pounds sterling and is growing steadily.

Sir Thomas Harris said his bank has 174 branches in 41 cities of Pakistan and is doing quite well despite strong competition from private Pakistani banks. He said the business climate in Pakistan was very positive and beneficial and incentives offered by the Government are also very attractive.

Robert Gibson in his presentation cited several facts that make Pakistan an attractive place for overseas entrepreneurs. He said Pakistan is the sixth largest country in the world with a population of 170 million with 60 per cent of people under 25 years of age. It is also the third largest English speaking country which is strategically located.

He spoke of the opportunities existing in various sectors such as power, alternate energy, textile, agriculture, oil and gas, real estate, health, education, infrastructure improvements, housing, road and rail transport.

Gibson said the British International Aid Department was working with the Punjab Government to improve the output of milk production by introducing new technology. He noted that Pakistan is the fifth largest milk producer in the world and the local production is 35 billion litres.

He said there is limitless potential for establishing milk collection, processing, packaging and marketing firms. In the retail sector, he said there are plans to construct between 10 to 15 shopping malls of international standard in the next 5 to 10 years.

In the energy sector, the British diplomat said Pakistan is keen to tap its vast coal reserves in Thar desert and the British expertise in this regard could come very handy. Similarly, he said Government is offering licenses for off-shore drilling and also opening new areas for gas exploration in Baluchistan, Sindh and Punjab.

Vince Harris pointed out the vast potential available in the energy sector and the need to modernise and refurbish power plants to enable them operate at full capacity. He said 14,000 megawatts of electricity was presently available in Pakistan against the demand of 19,000 megawatts.

He said electricity remains the driver of economy and no country could develop without availability of ample power. Harris said the generation of power was linked with the population growth and as Pakistan has a growing population hence its energy needs is going up.

He said the foreign companies have a very good opportunity to invest in this vital sector. He also said that Wapda is an excellent organisation but could improve further through better management.

Anwar Zaidi said the State Bank of Pakistan has stopped allowing new foreign banks to operate in the country except those who wish to go for Islamic banking. He said the foreign banks in Pakistan face strong competition from local banks.

 

 

APP - July 8, 2010

 

Last updated: 8 July 2010