1. 48,000
93
60%
21
205,344km2
Gross Provincial Product
(in PPP Terms)
257,000Million
USD
Industrial units
million market size
National GDP Share
Industrial Estates
Punjab
At a GlancePunjab is the world’s 40th largest
economy. As the most vibrant
province of Pakistan, which is the
6th most populated country in the
world, it is a melting pot of
different cultures and traditions.
Its History dates back over 5,000
years, nestling the cradle of
civilization and earliest cities of
Taxila and Harappa.
Punjab has about 60% share in
the National GDP totaling over
USD 257 billion (in purchasing
power parity terms) and has the
potential of being the food basket
not only for the country but the
entire region, given its dense
network of the Indus River and
the world largest alluvial soil
deposit which are fertile and
abundant.
PunjabisPakistan’smostindustri-
alized economy, which mainly
encompasses textiles, chemicals,
food processing, agriculture and
other similar industries. Possess-
ing a massive agricultural set up,
with over 16.5 million hectares
under cultivation, some of the
largest production numbers in
horticulture, immense mineral
reserves, well integrated rail and
road infrastructure, a bourgeon-
ing services sector, deepening
financial sector, and one of the
highest human development
indexes in the region, Punjab is
fast becoming a focal point for
businesses in the South Asia.
The challenge remains to bring
the FDI inflows in the region
reach the mark of its true
potential. Economists link the
solution to the port city of
Karachi, predicting that this will
at least double the annual inflows
once the linkages are made more
concrete through logistical
supply chain and organizational
forces.
Under the leadership of the Chief
Minister Punjab investment and
trade activities in the province are
made though a fast track system,
facilitated though the Punjab
Board of Investment and Trade
(PBIT). For investors and
businesspeople interested in
doing business in the province
this is the single most important
contribution to increasing FDI
and internal investments. A
One-Window operation that
PBIT provides saves time-to-
market and provides investors
with accurate financial advisory
for their investments.
As the global economy recovers,
Punjab continually enjoys new
investments in sectors all across
the board which are expected to
rise significantly. Although
immense potential exists in all
sectors, the government of
Punjab is furthering
IMF-approved government
policies, bolstered by foreign
investment and renewed access to
global markets. These policies
have generated solid macroeco-
nomic recovery in the last decade.
Substantial macroeconomic
reforms since 2000, most notably
the privatization of the banking
sector has helped the economy.
Despite a dry climate, an
extensive irrigation system,
which is the largest in the world
that is built with world class
engineering tactics makes Punjab
a rich agricultural region capable
of billions of dollars worth of
value-addition to not only
agriculture and livestock but also
manufacturing and light industry.
Although the rich water and land
resource gives Punjab a head start
among developing countries, this
the real trigger for economists.
The real catalyst to make Punjab
the turn-around economy for
Pakistan and the region is the
Human Capital in Punjab number-
ing 93 million out of which over
50% are under the age of 25,
largely literate and skilled in the
craft of engineering and health
care. Much of the labor for
Pakistan’s industrialized cities
comes from Punjab given its
focus on vocational training
advancement.
Wheat and cotton are the largest
crops in Punjab in dollar terms, in
terms of the area cultivated and in
terms of production in tons. Other
crops include rice, sugarcane,
millet, corn, oilseeds, pulses,
vegetables, and fruits such as
kinnow. Livestock and poultry
production are also key contribu-
tions to the economy. Punjab
possesses the third largest buffalo
population in the world after
India and Pakistan respectively,
and an equally impressive herd of
other ruminants.
The rate of middle class growth is
also increasing faster than any
other region of the country. The
dependence ratio in Punjab is
over 47% and its population like
everything else is at the take-off
stage in its economic develop-
ment. It is also a major manpower
contributor because it has the
largest pool of professionals and
highly skilled manpower in
Pakistan.
Punjab has a 60%
share in the
National GDP
totaling over USD
257 billion making
it a 40th largest
economy in the
world.
Resource
Iron Ore
Coal
Agri Land
Housing
Electricity
Livestock
Metric
Reserves
Reserves
Underoptimised
Units backlog
Unmet demand
Annual Turnover
Measurement
Tons
Tons
Acres
Units
Kw Hrs
Dollars
Volume
1,000,000,000
245,000,000
51,000,000
4,000,000
13,140,000,000
60,000,000
Unit Price
150
82.5
500
10,000
0.12
500
Net Worth of Punjab’s Untapped Resources
Value (Billion USD)
150
20.2
25.5
40
1.6
30
Ushering in a modern era of development in Punjab
Source: Punjab Economic Report 2007
Construction
Transportation
Wholesale&Retail
Manufacturing
Livestock
MinorCrops
MajorCrops
PBIT makes no warranties or representations
about the quality, accuracy or completencess of
information contained in this supplement. PBIT is
not responsible to the reader or anyone else for
any loss or damage suffered in connection with the
use of this information or any of the content.
timeNspace
Source: Punjab Economic Report 2007
Punjab Share in Various Sectors
in National GDP
%75
60
45
30
15
0
%
%
%
%
%

2. Harnessing the Resource
of 61m Livestock in Punjab
Solving the Housing
Crisis Using Incentives
Q: What is the vision for the
livestock sector of Punjab?
Punjab is an agriculture-based
region where farming has always
been among the main sources of
income, which gives Punjab a
home grower’s advantage. In
Punjab, rearing animals is a
household activity and has been
focused on traditionally. The
Medium Term Action Plan of the
Livestock sector is to focus on
general upgradation, animal
health improvement, feed
resources upgradation, and the
marketing and empowerment of
women in support of Punjab
Vision 2020. This vision aims
towards the relentless pursuit of
modernization, innovation, a
culturally sophisticated,
internationally connected and
reasonably well-off healthy
society in this part of our great
nation.
Q: How does the livestock
sector impact the economy in
terms of value add?
About 40% of all agriculture in
Punjab is livestock after a steady
increase in the past 10 to 12
years. Technological improve-
ments have increased cultivable
land by 30 thousand acres.
Farmers are using new technol-
ogy, such as mulch, reducing use
of weedicide, ultraviolet
techniques, pesticides and
growing crops vertically rather
than horizontally, all of which
have resulted in increased quality
and productivity.
Q: What would you say is the
economic potential of livestock in
the province?
In Punjab, 70% to 80% of
livestock is being used just for
subsistence. The farmer has
largely been unable to give
commercial value to livestock, as
a result of which there is very
little marketable surplus.
Although the potential is
enormous, the livestock market is
not developed fully to harness it.
The current estimates of the
livestock industry are valued
USD 30 billion which can spike
further if the farmer can enhance
its commercial value. The
demand for livestock plays an
important role in stimulating the
profitability of this sector which
results in achieving economies of
scale.
Non-value added products are
being sold as raw products which
need to be modified in order to
increase there market value. The
export potential of livestock is
huge, and meeting that potential
will be of great benefit for the
economy of the country.
Currently, we are not exporting
substantially, just PKR 100
million this year, which is very
small compared to what can be
achieved. In terms of the local
market the demand for livestock
in Punjab is significant and so is
the export potential in markets of
Middle East and Asia. Another
avenue that awaits investment is
mozzarella cheese which Punjab
has a competitive edge in because
it has a large number of buffalos
which can be used to produce this
kind of cheese mainly for export
at competitive prices. If we do so
we would be Italy’s biggest
competitor in this sector.
Q: What are the main
challenges in this sector?
It starts with the need to organize
the domestic market, develop a
mechanism for avoiding
adulterated milk sale and to
harness the export potential to its
fullest.
Q: What are the unique
competitive advantages that
Punjab has in Livestock?
In comparison with other
provinces, Punjab has three
things in abundance:
1. Agricultural land
2. Water
3. Animal rearing tradition
Other regions of Pakistan have
demand for livestock but none of
them have abundant agricultural
land nor do they have an animal
rearing tradition, which keeps
Punjab at an advantage compared
to other areas.
Q: What potential investment
opportunities exist in Punjab?
The halal market, including halal
meat is a USD 1 trillion industry
globally, the potential for Punjab
can realistically be a small but
significant part of that pie.
Incentives and investor friendly
policies are there in the form of
tax breaks and zero-duties but
they can be further tuned to
achieve concrete results.
Investors look for fairness in
corporate prices, quality and
transactions.
I feel that currently, there is a
positive environment for
investment in the high end dairy
farming since only 3% of our
total milk is processed. One way
the government of Punjab is
working towards this is by
introducing many value-added
programs in the University of
Veterinary and Animal Sciences
which is the largest university for
livestock in the Muslim world.
The government of Punjab has
introduced three types of
investments in livestock which
include:
1. Animal health coverage with
significant numbers of veterinary
health workers
2. Breed improvement programs
– to increase milk capacity
3. Nutrition related research
work for investors or corporate
farmers. The government is also
introducing Cholistan – Land
LeaseProject,beefbreeddevelop-
ment, working on a favorable
policy for the industry and
developing the market by
providing incentives.
Livestock sector
provides many
fruitful investment
opportunities
which include
Halal meat
M. Jehanzeb Khan
M. Jehanzab is Secretary
of the Livestock
Department, GOPn. He
has over eighteen years of
progressive experience.
Livestock population in
Punjab is 61 million
Pakistan is the 3rd largest
milk producer in the world
Milk processing potential is
97% of total milk produced
Growing demand for milk is
6% annually
Total meat production is 2.7
million Metric Tons
The global Halal meat
Industry is over USD 300
billion
Extensive veterinary
infrastructure available all
across Rural and Urban
Punjab
LIVESTOCK
Investment Positives
Q: How would you quantify the
current Housing Crisis in
Punjab?
There is a shortfall of 400,000
houses every year, all over
Punjab. This shortfall prevails
among lower and lower-middle
class due to expensive land and
high cost of housing. The
shortfall is not the main problem,
the key issue is growing poverty.
The real problem is that 40% of
our population is below the
poverty line. Apart from housing,
other needs are also not being met
adequately, as a developing
country, which include food,
education, clean drinking water,
good sanitation and drainage.
People face environmental issues,
especially the poor. An overall
enabling environment is missing
for the rural poor and people who
are living in slums. The things
that accentuated the environmen-
tal issues are growing population,
urbanization and poverty.
Q: What contributes to this
overall challenge that develop-
ing countries have to face?
Housing becomes one of those
factors that contribute to the cycle
of poverty when people leave
their houses and come to the
cities. Urbanization is one of the
factors that motivate people to
move to cities from small towns
or villages. The living space
becomes very limited for growing
populations that desire a better
life, employment and improved
living standards. The pressure on
the cities increases when people
start moving into them and live in
slums in substandard areas.
Q: What are the reasons for the
steep cost of land?
After 9/11, the investment in land
increased when expatriates
invested heavily in it. Currently it
is difficult for the salaried class to
afford houses. Most housing
schemes are catered towards the
upper class and there is little
private sector focus on providing
homes to poor people.
Q: What solution has your
department devised for this
crisis?
The problem is that investing in
this sector for low income
housing does not guarantee high
returns. The solution to the
housing crisis is to invest in
low-income housing societies
which will help provide homes to
the homeless by giving subsidies.
Low income people do not have
the buying power to purchase
homes in high income housing
schemes. In order to overcome
this housing crisis, the
government has established a
company, The Punjab Land
Development Company (PLDC).
PLDC’s portfolio includes
catering to the low-income sector,
to plan affordable housing sectors
and to provide subsidized home
loans for people. The private-
sector is encouraged to invest in
this housing scheme. As an
incentive, the government is
providing land as equity to the
private-sector for investment in
the low cost housing sector. The
first scheme of the PLDC will be
to subsidize single digit interest
home loans which will further
help to reduce the housing crisis
by making it more affordable.
Q: What is your wishlist for
improving investment in this
sector?
1. To provide clean drinking
water and sewerage treatment,
and save water resources from
contamination and misuse. To
develop a system where resources
are employed on a need basis
instead of political basis. To plan
for 3-year programs rather than
1-year programs, since we need
long-term planning.
2. To save the environment, for
which Punjab Horticulture
Authority Act has been drafted.
Its objective is to save environ-
mental resources including trees,
water and the air. In Lahore, 80%
of transport is private and 18% is
public. Buses make up only 5%
of transport. Now, it is time to
regulate society to save the
environment. There is a dire need
to invest in public transport and
employ maximum restrictions on
private transport to mitigate
pollution. The environment must
not be damaged at any cost.
Unnecessary cutting of trees
should be forbidden. Develop-
ment should go side by side, but
the environment has to be safe
where possible.
3. The poor person does not have
the privilege of basic facilities. To
overcome this, there is a need to
create standards for housing
awareness and to allocate a share
for the low income class in
housing, health and education in
all newly built housing schemes.
We also look towards proportion-
ate investment balance in both
rural and urban areas, which will
avoid traffic toward cities with
repercussions on the environ-
ment.
The development of
Punjab Land Devel-
opment Company
(PLDC) is one of the
initiatives to focus
on the local investor
and to facilitate the
investment process
for affordable
housing
Irfan Ali
Irfan Ali is Secretary of the
Housing Department
Government of the Punjab.
He has more than 20 years
of experience in all four
provinces of Pakistan in
various administrative
capacities and diverse
subjects like law & order,
terrorism, urban and rural
development, poppy
eradication, primary
health care, poverty
alleviation and social
welfare.
CONSTRUCTION
Investment Positives
Milk Processing
Processed and
Distributed through
Formal Channels:
3%
Unprocessed
97%
Source: Punjab Livestock Department
Source: Punjab Economic Report 2007
Aging Housing
Stock 30%
Remaining Housing
Stock 67%
Deficit: 3%
Punjab Housing Stock
Since 2001, sector has
grown 23 fold
Housing units needed
annually are 400,000
Punjab’s potential to build
houses stands at 300,000
units annually
Investment potential in
housing is 33% of total stock
Fastest urbanizing province
Punjab accounts for 55% of
total transport GDP

3. Feasibilities are Crucial Conservation is the Solution
Q: What is the mineral
resource base available in
Punjab?
There are 4 minerals that we
would like to focus on because
they are the most lucrative and
the most marketable projects.
These include coal, iron ore, rock
salt and limestone or dimension
stone. Besides these 4 main ones
are silica sand, gypsum and
fireclay which are important for a
variety of industrial products.
Q: What is the main market
potential for coal in Punjab?
The estimated coal reserves in the
Salt Range, Punjab are 235
million tons. (Source: GSP,
Geological survey of Pakistan &
USGS, United States Geological
Survey). SNOWDEN from
Australia is a leading company
engaged by the Department of
Mines and Minerals, and is
working on a Techno-Economic
feasibility study of coal reserves
which will be completed by June
2010. It will strengthen the
confidence of the coal power
generation investors. The
potential of coal in terms of
power generation is 400-500
MWs on presently assessed coal
production of 2 million metric
tones per year. The resources
have further potential for more
coal production. Power
generation of 300 MWs can be
achieved through procurement of
coal from Chamalang,
Balochistan to D.G. Khan. Put
simply an investment of USD
1500 million is required for
producing a total of 800 MWs
power from coal.
Q: Likewise, what’s the
potential for iron ore in
Punjab?
Substantial iron ore reserves have
been found in Chiniot, Rajoa,
Kalabagh and D.G. Khan
districts. The assessed reserves of
iron ore are 110 million tons in
Chiniot, 500 million tons in
Rajoa, 290 million tons in
Kalabagh and 260 million tons in
Rakhimum, D.G. Khan. A total of
about 1150 million tons of iron
ore have been assessed in Punjab.
The proven reserves of iron have
over 70% of ferric oxide, which is
of magnetite quality in Chiniot
area. Once extracted, Pakistan
Steel will be a big buyer of these
raw materials. One thousand tons
of iron (with 70% ferric oxide)
will produce 700 tons of steel.
The iron ore reserves of Chinnot
and Rajoa are extending in
Sheikhupura, Sargodha, Lahore,
Kasur and Shahkot. A feasibility
study to prove the wide spread
iron ore reserves is being worked
out.
Iron ore is a more important
resource that Punjab has in terms
of monetary value. The
Department of Mines and
Minerals with local experts is
making a feasibility study of the
extraction of the 13 million tons
of proven iron ore reserves of
Chiniot.
Q: Can you also elaborate on
the potential of rock salt?
Theworld’slargestandinexhaust-
ible deposits of pure rock salt are
available in the Salt Range,
Punjab. There is an enormous
potential to be tapped into, which
offers cost competitiveness and
maximum revenue generation.
There is a significant demand in
the local and international
markets for rock salt based
chemical products.
Q: What is the importance of
limestone?
There are 2 broad uses of
limestone:
One is for cement, construction
and chemical units. Given an
abundance of excellent quality
calcium limestone deposits
across the province, it is used
mostly in low-cost production of
cement, lime, aggregate and
building stones. The products of
limestone can be used as fluxes,
in glass as raw materials, refracto-
ries, fillers and abrasives,
soil-conditioning and as an
ingredient in a host of chemical
processes.
Second is the use of limestone as
dimension stone. Punjab is
bestowed with immense reserves
of uniquely textured dolomitize
limestone of fine quality. They
are capable of attaining a
polished and shiny look on the
surface. The limestone has a
variety of colors with fossilifer-
ous backgrounds giving it a
unique ornamental orientation.
Fossils embedded with adjoined
ground mass have made the
marketing of limestone as
dimension stone more attractive
for the domestic and commercial
construction industry.
The dimension stones can be
developed using benching and
slicing techniques of viable
dimensions on scientific and
commercial scales.
Q: What would your wish list
for investment be?
Mineral resources found in
Punjab require proper exploration
and assessment through feasibil-
ity studies which although are
expensive and need to be
outsourced are the prerequisite to
any real trade and investment in
the province. Investors are
allowed to conduct such activities
on their own as well to assist
them in making specific
investments in viable projects.
No development work can occur
without the proactive support and
cooperation from all line
departments of the province as
per the fast track policies under
the direction of the Chief
Minister of Punjab. We are
working toward a well integrated
government setup to give an
investor immediate assistance.
Mineral resource-based project
investments can either be a
joint-venture with the Govern-
ment Company (PCMC) on
mutually agreed terms and
conditions, or be awarded for
direct investment to the individu-
als by the Department of Mines
and Minerals.
The world’s largest
and inexhaustible
deposits of pure
rock salt are
available in the Salt
Range, Punjab
Saif Ullah Chatta is
Secretary of the Mines &
Minerals Department,
GOPn. He has over 20
years of experience in
Civil Service of Pakistan
and has held various
administrative, staff and
secretariat assignments in
Pakistan.
MINES & MINERALS
Investment Positives
Q: What are the numbers for
total power production and
consumption in Pakistan?
We have installed capacity of
19,980 MWs (excluding KESC)
and available capacity varies
from season to season. Available
capacity ranges from 8000 MWs
– 14,500 MWs which includes
Hydel (6464 MWs), private
power IDPs (6500 MWs), Ex
WAPDA generation (3600
MWs), and nuclear energy (425
MWs).
Q: What is the total production
and consumption for Punjab?
In Punjab, the electricity
consumption is 61.3% of the
total. We are facing a crisis akin
to a sinking ship where people are
boring holes in it to make it sink
faster. There are some other
factors that are making the
situation worse, such as non
payment by provinces, no
subsidies from federal
government, and a WAPDA debt
of PKR 120 billion. It stems from
WAPDA having no money to pay
its gas bill and a 12 billion dollars
per year expense for importing oil
which is used for electricity
generation.
Q: What should be expected in
terms of power generation
projects in the next decade?
There are new projects focused
on achieving the goal of a self
sustained Punjab. The
government has drawn a feasibil-
ity report of natural reserves
which are potential resources for
electricity generation. These
natural reserves include coal,
which can generate 550 MWs
(235 billion tons) and is mostly
available in the salt range
(Chakwal, Khushab, Mianwali),
Solar energy, which has unlimited
potential and can generate 1
million MWs, Hydel energy
potential, which is untapped but
can also generate 600MWs
including the plant in Kalabagh
with 3600 MWs potential, and
Wind energy potential, which is
not identified yet but can produce
an estimated 1000 MW.
It is the end use of energy that
counts, that is how much heat or
cooling is produced. If we focus
on just the generation, the
demand and supply gap can never
be filled. The focus should be on
demand management through
energy conservation (reducing
dependency on energy) and
efficient use of energy (making
better use of 1 KW of energy or
getting efficiency by using energy
savers). Buildings are the source
of inefficiency as 35% of energy
is utilized in buildings.
Q: What are the causes of this
gap in power?
The major reasons for the power
gap are money motivation at the
supply side. What we need to do
to rectify the situation is ensure
good governance, power policies
that need to be consistent, a broad
vision, improvement in security
and risk perception in the country
and a cut down in the conspicu-
ous consumption by consumer-
ism. Developing countries like
ours need to perfect a
zero-tolerance policy on
corruption and need to win over
of the lobby that hinders hydel
resources to generate power, such
as in the case of Kalabagh dam.
Q: How can this power gap be
filled?
Conservation of energy is the
solution. Specifically because
conservation doesn’t need any
major investment and will also
give us immediate results: 25% of
our energy needs will be met if
we begin to implement conserva-
tion of energy. By educating
users of electricity about energy
savers and efficient use of ACs,
energy conservation can be made
an effective phenomenon. During
the post war period of 1965, there
was a power shortage in Pakistan.
There was an electricity
ordinance which was followed by
an electricity conservation
campaign, which resulted in an
effective solution to the electric-
ity crisis at that point of time.
Domestic energy utilization in
Pakistan is 40% and it is the
domestic sector that wastes a
huge chunk of the energy that is
recovered though dire steps such
as load shedding. By providing
awareness and education to
households, an effective effort
can be made to conserve energy.
For example, Spain and Cuba
have had a huge turn-around in
energy conservation because of
planning and new power plants.
They had faced a worse crisis
than ours.
Q: What is the effect of the
water crisis on Power genera-
tion?
Climate change is getting severe
due to which rain predictions are
affected. Monsoons are not
predictable anymore and there is
a shift in rainfall. Sever glacier
melting can either lead to floods
or draught, putting us in a water
crisis situation and ultimately
affecting the generation of power.
There is a need to develop
consistent policies to smooth the
flow of power planning and
energy generation. And there is a
need to design a load shedding
plan for the next 5 years and
separate industrial feeders from
domestic feeders in Punjab,
which can be done at a very low
cost while equally dividing the
shortage.
Q: How do you plan to bring
about change thorough
conservation alone?
The best thing that a government
can do is to minimize uncertainty,
align provincial and federal
policies, develop a strategy to
remove conflict among policies,
mitigate the negative role of
media, appoint a PR or media
department of the power sector
and educate media and tell them
that Mega Watts are not
important, but the use of energy is
important.
Cuba and Spain are the best
examples of those countries
which are successful in energy
conservation. In Pakistan, 25% of
energy can be saved through
energy conservation. Marginal
cost of energy could be Rs. 30 in
households. Energy awareness
and education is the primary step
towards energy conservation.
Zubair Javed is Chief
Executive Officer at
PPDCL. He has 40 years
of experience in Pakistan’s
power sector, 20 years in
teaching, 10 years in
dealing with private power
IDPs and 5 years in
research and testing.
ENERGY
Investment Positives
Saif Ullah Chatta
150 Billion USD
20.2 Billion USD
0
50
100
150
200
250
Iron Ore Coal
Value(BillionUSD)
Source: Punjab Economic Review 2007
Major Minerals
Source: PEPCO, 2010
Punjab Power Density
81353
5772
Electrified up to 2010
Capacity
35% of energy is
being used in
buildings. Build-
ings are mere
envelopes which
we use to house
our activities
Zubair Javed
Iron ore reserves are 1 billion
MTs
Punjab has the world’s
largest deposits of rock salt
Punjab government is
actively seeking feasibility
studies in mines and minerals
sector
Given that Pakistan has the
5th largest gemstone reserves
in the world, value-addition
facilities in Punjab represent
a sales potential of over USD
5 billion
Total power generation
(Punjab) is 15,055 MWs
Consumption is increasing at
8-9% annually
Investment gap is 500 MWs
Coal reserves ideal for
power generation are valued
at 235 million MTs
Highly incentivized
public-private partnerships
terms exist
timeNspace

4. Why Livestock?
Unique CompetitiveAdvantage
Punjab has the
most fertile land
which is
supported by the
largest irrigation
system
Total size of industry is USD
30 billion
Total land utilized for
cultivation is 69%
Immense opportunity in
value addition
Cotton contribution to
export earnings is USD 8.3
billion
Potential growth of
horticulture export is 50%
AGRICULTURE
Investment Positives
Q. What is the size of the
agriculture industry in
Punjab?
A. In Punjab, the agriculture
industry is 23% of GDP. It is
equally divided between crops
and livestock. 90% of the crop
sector is comprised of major
crops such as cotton, wheat,
sugarcane, rice and maize. The
estimated value of crops is USD
30 billion.
Q. What is the importance of
the agriculture sector for the
economy?
A. Agriculture is the primary
sector of the economy. Growth of
2-3% in agriculture in the
province results in overall
economic growth of 6-7%, which
creates million of jobs. There is a
huge number of young laborers
who are joining the workforce
annually with the public sector
and private sector accounting for
15% and 85% respectively. The
challenge is of sustainability to
meet the employment
requirement of the young labor
force. In agriculture, cotton or
wheat crop growth of 2-3%
results in economic growth of
6-7%, so when a crop fails to
grow or growth slows down, the
number of jobs reduces and then
economic sustainability becomes
a challenge.
Q. How can the agriculture
sector take the lead?
A. By investing in value addition
crops and horticulture, the
agriculture sector can yield
maximum returns. We have
concentrated little on horticulture
and value addition crops, which
are important sources of job
creation. The cereal crop creates
2-3 jobs per acre and horticulture
creates 7-8 jobs per acre. Capital-
izing on value addition crops like
horticulture provides the added
advantage of creating jobs. Other
than capitalizing on horticulture,
we should also focus on the
correct marketing system to make
agriculture more successful in
Pakistan. Markets create positive
pressure on farm gates, ensure
certifications, traceability and
results through linkages in the
supply chain. So we need to
correct the market system.
We have remarkable seasonal and
soil variation in our country. We
have different day and night
temperatures which also support
our quality agricultural
production.
Q. What is the main source of
value addition in agriculture?
Among value addition crops are
the mango pulp and processing,
the storage industry, citrus pulp
and processing industry. Creating
backward integration for the
market is the real value addition
in agriculture. In Pakistan,
Pepsico grows potatoes in the
sandy soil of Thal for Lays
quality chips. Pakistan Tobacco
Company is also doing the same
by growing tobacco in Mianwali
which is supporting the rural
economy by bringing in virus
free, top-of-the-line tobacco
seeds. It is a win - win situation as
it borders DG Khan, creating
employment for the rural
population. Excellent processors
give the farmer access to the
market without any wastage.
Wherever a good processor is in
place, it creates backward
pressure at the farm gate. So, we
need good investment at the farm
gate. A good processer brings
quality seeds, holds the farmer’s
hands and creates linkages in la
sustainable fashion. Processors
like Rafhan Maize, Pepsico,
Metro and Pakistan Tobacco
Company are creating backward
pressure on the farm gate and
introducing new productive
mechanisms in the agriculture.
Q. What are the competitive
strengths of agriculture sector
for the investor?
A. The agriculture industry is
private-sector driven. Its role is to
incentivize areas favorable to
private-sector investment and
remove barriers to investment.
The agriculture industry doesn’t
create unnecessary restrictions; it
has created a monopoly and
market committee ordinance out
of which 134 regulations are
operative in Punjab for the
facilitation of investment.
Q. What is the competitive
advantage that Punjab has in
agriculture?
First it is an undisputed fact that
Punjab has the most fertile land
which is supported by the largest
irrigation system. Second, it has
day /night temperature variations
which are a huge advantage.
Third, a geographically good
market, located near East, Far
East and Middle East, which are
incidentally dependent for food
supplies on many countries.
But in order to be competitive, we
need to improve the standards
and quality after which the sky is
the limit for Punjab’s production
numbers.
Q. What is your message to the
cautious investor?
A. We would like the private
sector to invest in agricultural
research and marketing and
various agricultural projects that
we can highlight and customize
for the investor based on his
requirements. We are ready to
offer incentives though Joint
Ventures, with clear exit
strategies and final handing over
of the projects to the private
sector.
Arif Nadeem is Secretary
of the Agriculture Depart-
ment, GOPn. He has held
various roles including
Provincial Coordinator
Social Action Programme,
Planning & Development
Department, Deputy
Commissioner (Lahore
and Jhang) and Secretary
to Government of the
Irrigation & Power
Department.
Arif Nadeem
Rizwan Khan
Country Manager Coca-Cola Pakistan
Asad Umer
President Engro Corporation Ltd.
Muhammad Shahbaz Sharif
Chairman PBIT / Chief Minister Punjab
Pir Saad Ahsanuddin
Vice Chairman / CEO PBIT
Mohammad Mian Mansha
Chairman Nishat Group
Syed Babar Ali
Chairman Packages Limited
Roshaneh Zafar
President Kashf Foundation
James Scott
International Operating Officer Metro
“I started with a textile mill
and further moved on to
many projects and different
businesses including
banking, cement, textile and
power generation. Punjab
has treated us very well.
There is a proper administra-
tive system here and a good
legal system. Also, the
infrastructure here is the
best in the region.”
“If you look at the expanse of
the province, I think one of
the most amazing things one
realizes by starting the work
of microfinance in Pakistan is
that Punjab is the cradle of
entrepreneurship. It is an
area where through the ages
entrepreneurship has thrived.
Punjab has a lot to offer in
terms of infrastructure,
human resources, and
creativity.”
“I am a strong believer that
Punjab presents several
un-explored and underex-
plored opportunities for
businesses all over the world.
We have a massive young
population, a growing middle
class, growing per capita
income and the availability
of resources and labor at far
lower prices which makes us
one of the most attractive
investment destinations.”
“Engro’s own experience
demonstrates how Punjab’s
fundamentals offer attractive
opportunities. Our company is
currently one of the largest
private sector investors and is
involved in projects like
fertilizer, petrochemicals,
power generation and food
processing. Favorable
investment climate has
contributed significantly in
achieving this feat for the
company.”
“We were very welcomed as a
foreign investor. We also felt
that we found a good source of
intelligent people so we know
that this is an environment
where people were entrepre-
neurial with a business
mindset. This was an environ-
ment where people
were looking to grow and
looking to learn. These were
the main reasons why we
chose Punjab as our center
and why we came to Pakistan.”
“Punjab offers a very good
base to set up industry. Also for
the consumption of your
produce, provided it is related
to what people want, the
consumer industry is very
powerful here. There is
a very large agriculture base,
we produce cotton yarn, cloth
and garments and Punjab
provides the basic raw
material for export purposes.”
“The combinations that an
intuitive investor looks for are
all here in Punjab – The
province has a large untapped
market with a skilled and cost
competitive labor force and a
GDP in excess of USD 257
billion. A liberal investment
infrastructure and rich fertile
land have produced a thriving
agricultural industry that
supports over a quarter of the
population of Punjab.”
Services Industry Agriculture
60%
50%
40%
30%
20%
10%
0
Punjab’s GPP Break-up
22%
53%
25%
Transport &
Communication
Public
Administration
Ownership &
Dwelling
Finance
Trade & Other
Services Contribution:
USD 136 billion (at PPP)
Source: Punjab Economic Report 2007 Source: Punjab Development Statistics 2009 Source: Punjab Development Statistics 2009 Source: Punjab Development Statistics 2009
Manufacturing
Mines &
Minerals
Power & Energy
Construction
Industry Contribution:
USD 64 billion (at PPP)
ForestryFishery
Major Crop
Minor
Crop
Livestock
Agriculture Contribution:
USD 57 billion (at PPP)
Perspectives on Punjab
0
MillionTons
5
10
15
20
25
Wheat Pulses Rice Cotton
Seed
Sugarcane Mangoes
Demand Supply
Major Agricultural Products
Source: Punjab Agriculture Department
“This government has the
political will and the political
sense to provide full support
to investors who can promote
public-private partnerships,
private-private partnerships
and attract investment in
areas that were considered
unprofitable in the private
sector, such as coal-based
and hydel based power
generation.”

5. The Steel Sector: Key to Urban Development
Metals have played the most
important part in both the
industrial and technological
revolution. Use of metals is
unavoidable in industry, from
capital to consumer goods and all
commodities use metals; from
needles to ships.
The main advancement has been
in the area of invention and
development of alloys at the
industrial level. In the midst of
the industrial revolution, industry
concentrated on iron-alloys
instead of copper-alloys, making
a giant leap ahead from their
predecessors. Among many, there
are three prominent Iron-Alloy
categories: Carbon Steel,
Ferro-Alloys and Alloyed Steel.
The main products of these alloys
are primarily, long products, flat
carbon steel products and
stainless steel products. Long
products include reinforced steel
bars, railroad tracks, wires,
girders, H and I beams, and all
section and bi-section bars. All
these long products are mainly
used in the erection of
mega-structures, infrastructures,
buildings and bridges. Carbon
steel products are used in
manufacturing appliances,
magnetic cores and body shells of
automobiles, trains, ships etc.
whereas stainless steel is used in
manufacturing delicate products
like surgical instruments, cutlery
and wrist watches etc. Today we
are able to get the desired
strength and usage of steel.
The period of the nineteenth
century has been a golden age for
contemporary people when the
world turned and progressed in
what is known as the industrial
revolution. The inhabitants of the
subcontinent were in a deep
slumber. The year 1857 turned
out to be a blessing in disguise
and the subcontinent was given
an infrastructure of communica-
tion and resource mobility. The
subcontinent then started to enjoy
the fruits of the industrial
revolution that had been
benefitting the entire world.
However, 95% of the industry
that had been set up at that time
was established in the area which
is now India.
In 1947 with the existence of
Pakistan this problem was
realized by the founding fathers
but unfortunately no concrete
measures were taken till 1968.
The Government of Pakistan
founded the very first and the
only steel project in Pakistan by
the name of Pakistan Steel Mills
Corporation (Pvt.) Ltd. A lot of
deliberations took place and it
was for the first time in the
history of Pakistan that the
government went on a spree of
exploring its mineral resources.
Many leading international
corporate enterprises were
engaged for the surveys at certain
designated geological sites all
over Pakistan. One of the most
important discoveries for the
province of Punjab was the
discovery of 100s of MMT of
iron ore reserves at Chichiali
/Kalabagh /Mianwali in such a
huge magnitude that a feasible
steel project could be set up. In
lieu, a detailed study was
conducted by a reputable German
company, Krupps International,
to devise a technology to utilize
its ore, from the beneficiation
process to steel manufacturing,
covering all the aspects of the
industry. Due to economic and
other significant considerations,
the domestic iron ore could not be
exploited and Pakistan had to rely
on Russian technology, compel-
ling the government to set up a
port-based plant as Russian
originated and imported iron ores
were being utilized, thus PSM
was established at Karachi.
In the 1960s, the steel industry in
the private sector started flourish-
ing in smaller units in the form of
foundries, furnaces and rolling
mills. PSM was the first
integrated mega project. The
seeds sowed in the late 1960s
blossomed in the form of an
organized private steel sector.
The steel sector in Punjab has
flourished along with the world
steel sector during the last two
decades. The private steel sector
of Punjab has developed itself by
investing in the latest technolo-
gies to produce internationally
certified quality products. During
this time, the production,
consumption and export of steel
from Punjab has risen radically.
In the period of 1990 to 2007, it
went from 1.8 M.M.T.Y to 4.5
M.M.T.Y. In the last five years, an
investment of US $500 million
was made in the private steel
sector alone. The latest technol-
ogy based induction furnaces
worth US$ 120 million were
established and upgraded. As a
result of the current investment,
large enterprises are coming into
play. Large integrated units have
and are being set up to produce
products at economies of scale.
For the domestic and
internationalmarkets,internation-
ally certified long products are
being manufactured such as TMT
reinforced steel bars of ASTM:
Gr-400 (60), Gr-500(75).
The private steel sector in
Pakistan has evolved in a
pragmatic manner over the last
few years. More than 80% of the
production houses reside in
Punjab. A large network of
markets exist all around Punjab
concentrating in the main
metropolitan cities like Lahore,
Gujranwala, Islamabad, Sheikhu-
pura, Multan, D.G. Khan. This is
due to the logistical value and
developed infrastructural
advantages. All these markets and
industry clusters have distinct
significance. Lahore itself is the
biggest market and producer of
steel in Punjab and the second
largest in Pakistan. In southern
Punjab, D.G Khan plays an
important role. The steel scrap
from Iran enters Punjab through
D. G Khan and likewise the value
added products leave the Punjab
through the same. Similarly, the
raw material from Russian states
comes through Torkham border
and reaches Lahore and
Islamabad. These markets cater
to the needs of almost entire
northern Pakistan and Afghani-
stan.
In Pakistan, Punjab is blessed
with more iron ore reserves than
the world’s annual steel
production. A detailed explora-
tion and evaluation work on the
Iron Ores in Chiniot and Rajoa
was carried out by Punjab
Mineral Development Corpora-
tion (PUNJMIN), during
1996-1999. The studies
conducted in the said area show
proven reserves of 109.83 MMT.
The study reflects that there are
12.5 MMT of smelting grade iron
ore reserves, containing more
than 85% of Fe2O3 content. The
remaining reserves are Hemitite
and Magnatite. Australian
of such magnitude will cost us
around $70 per ton, thus proving
it to be a highly lucrative project.
In Pakistan, we already have two
large scale consumers who are
ready to procure high grade and
medium grade iron ore. Both
PSM and Al-Tuwwairki have
annual demand of 1.6 M.M.T.Y
and 1.6 M.M.T.Y, respectively.
Both parties have shown great
interest and willingness to even
sign an MOU with PCMC. Since
both of these are port-based
plants, we can easily overcome
the logistics by transporting the
goods by way of railway carriage.
This will ensure a continuous
secure supply line at nominal cost
of carriage.
For the extraction of iron ores a
pilot project, which is in progress
has been devised by PCMC. As
soon as the survey report is
received, the pilot project will get
operational.
Faisalabad industrial estate
development management
company (FIEDMC) is develop-
ing an industrial park at M-3
Motorway near Faisalabad which
is in close proximity to the iron
ore reserve sites. As soon as the
extraction project is operational,
it will be the right time for
investors to set up their steel mills
and start producing value added
products at minimal cost of
production. One of the biggest
advantages for investors is that
they can start procuring the raw
material at substantially low cost.
The logistical advantage is that
Faisalabad is located at the center
of Punjab and the value added
product can easily be delivered to
the domestic markets of the
country, catering to the national
demand. It can also easily be
transported by way of railway
carriage to Karachi and Gawadar
ports for the purposes of export to
the world at large.
KALABAGH STEEL MILL
Pilot Project
Following the visionary
leadership of the Honorable Chief
Minister of Punjab, PBIT is
developing a mega integrated
project of steel manufacturing at
Kalabagh/Chichiali.
According to the studies carried
out by Krupps international in
1968, a steel manufacturing plant
using the iron ore at Chichiali is
viable. The iron ore reserves at
Chichiali confirm the presence of
more than 300 MMT of medium
grade iron ore. The Kalabagh
project is undergoing a three
stage process. The first stage is
acquiring the latest bankable
feasibility document. Second, a
pilot project to devise the
beneficiation process and to
formulate the most apt and latest
technology for steel manufactur-
ing. The third is to establish a
steel producing plant. At present,
there are two technologies being
used for steel manufacturing in
Pakistan, one is the orthodox
blast furnace (BFI) method and
the other is Directly Reduced Iron
(DRI). A lot of deliberation has
taken place at the national level
by think tanks and experts to use
the latest and most cost effective
technology. The developed
economies, like America and
Japan, are moving towards the
latesttechnologyinsteelmanufac-
turing from iron ore, by the name
of ITmK3. Pakistan is planning to
use the same technology. To cater
to its energy, needs a local coal
based thermal power plant of 200
MWs is also being planned.
The advantage of Kalabagh
project is that for the first time
steel shall be produced using
indigenous iron ore thus reducing
the cost and for manufacturing
quality products. The logistical
advantage of Kalabagh project is
that it is located in the centre of
Pakistan, hence the transport and
carriage of the value added
product is very cost effective.
Another advantage of this
location is that the Iran-Pakistan
border at Taftan, Afghanistan-
Pakistan at Turkham border and
Karachi and Gawadar ports are
very easily accessible through
road links and railway.
INVESTING IN PUNJAB
As the world is getting out of
recession, domestic steel demand
is growing gradually as real estate
development projects are being
reinitiated. The business environ-
ment for investors is well
established in the form of
infrastructure, banking system,
legal framework, telecommunica-
tions, communication systems,
human resource, cheap skilled
labor, open markets and ample
natural resources. The Govern-
ment of Pakistan has not fixed
any upper or lower limit of FDI in
Pakistan. Investors enjoy many
privileges, such as tax credit.
CONCLUSION
Since 1947, the steel sector of
Pakistan has come a long way.
From importing steel products to
exporting value added products
like complete sugar mill plants to
developed countries like the
USA, the steel sector of Pakistan
holds an extraordinary amount of
potential. The Chief Minister of
Punjab wants to ensure the self
reliance and development of the
industry by exploiting the
indigenous iron ore reserves for a
steady supply of raw materials for
the steel sector.
The steel sector in
Punjab has flourished
along with the world
steel sector during the
last two decades.
The private steel sector
of Punjab has
developed itself by
investing in the
latest technologies to
produce
internationally
certified quality
products
Serving on the Board of
Directors of Punjab Board
of Investment and Trade
(PBIT). Currently working
at Andas. The Chief
Operating Officer at
Rehman Steel Furnace
(Pvt.) Ltd. and Siddique
Iron Industries (Pvt.) Ltd.
Previously worked as an
Associate at Salman
Akram Raja Law
Associates. He is an LLM
(University of
Northumbria) & LLB
(HONS) University of
London.
Rehman Aziz Chan
4%
6%
79%
11%Lahore
Faisalabad
Rawalpindi
Others
Population by City
Nepal Bahrain Jordan Yemen Kenya Sri Lanka Qatar Luxembourg Syria Bangladesh Morocco PUNJABVietnam
PUNJAB VS. WORLD: GDP in Billion (USD)
Source: World Bank, World Development Indicators 2008
timeNspace
Australian Geological Survey
(AGS) and RDC were later
engaged to further elucidate the
potential of the instant reserves. It
is estimated that these reserves
exceed more than 500 MMTs.
IRON ORE EXTRACTION
PROJECT AT
CHINIOT/RAJOA
Pilot Project
PBIT, in the visionary leadership
of the Chief Minister of Punjab,
for a long lasting progress and
self reliant Pakistan, has
developed a project to put the full
potential of the iron ores to use.
A project is being developed to
extract the iron ore. The Govern-
ment of Punjab already has a
mining company by the name of
PCMC. This company is going to
take equity in a joint venture with
an international expert mining
company on the basis of Public
Private Partnership (PPP) and
Build, Operate Transfer (BOT)
module. This method allows us to
develop an interest of a
technically sound, international
expert mining company of a
strong background to come and
be a private partner among other
domestic mining companies.
Such formation of equity partners
has various benefits. Firstly,
PCMC will safeguard the public
interest along with revenue
generation. Secondly, the
International Private Partner will
bring investment and technologi-
cal support into Pakistan, hence
increasing the FDI and in return
enjoying lucrative returns on the
project. Thirdly, the domestic
mining sector will have a chance
to learn, develop and grow in line
with the latest international
mining techniques. In accordance
with the vision of the Honorable
Chief Minister, this method
serves multiple long term goals.
For this purpose the negotiations
for a bankable feasibility report
by well reputed international
companies, Snowden and IMC-
Montan Consulting GmbH is well
underway. After the submission
of the report we plan to invite
potential investors to participate
in the project.
At present when the world is
facing an economic recession,
metal prices have crashed down
to their lowest levels. Even in the
current economic crisis the FOB
price of medium grade iron ore at
Karachi port is around $100 per
ton. The quantum of extraction of
iron ore we are planning is 4
M.M.T.Y. The only cost incurring
on the extraction of iron ore will
be its mining cost. Using the
latest technology on production

6. Investing in Pakistan’s most industrialized province
7
7.8
9.3
16
20
21
25
92
4
Source: CIA World Factbook 2009
PUNJAB VS. WORLD: Population in Millions
PUNJAB Turkey Australia Sri Lanka Sweden Switzerland Israel UAENetherlandsSaudi Arabia
100% Foreign Equity is allowed
Advanced tax ruling
International arbitration enforcement available in local courts
All economic sectors in Pakistan open to FDI
Equal Treatment of local and foreign Investors
No government sanction is required
Only 5% custom duty on import of parts not available in Pakistan
Zero sales tax on import of machinery
Initial depreciation allowance at 50% of plant, machinery and
equipment cost
Wide network of export processing zones and industrial estates
Bilateral investment treaties with 48 countries
Avoidance of double taxation treaties with 52 countries
Import of raw material for export manufacturing zero-rated
Remittance of royalty, technical and franchise fee, capital,
profits and dividends allowed
Investment Incentive Highlights
Policy Parameters
Royalty & Technical Fee
Government Permission
Remittance of capital,
profits, dividends, etc.
Upper Limit of foreign
equity allowed
Minimum Investment
Amount (M $)
Customs duty on import
of PME
Tax relief (IDA, % of
PME cost)
Manufacturing
Sector
No restriction
for payment
of royalty &
technical fee
Not required
Allowed
100%
None
5%
50%
Agriculture
$100,000 initial
investment with
max 5% of net sales
for a period 5 years
Allowed
100%
0.3
None
50%
50%
Infrastructure
& Social
$100,000 initial
investment with max
5% of net sales for
a period 5 years
Specific agency
permission
100%
0.3
5%
50%
50%
Services including
IT & Telecom
$100,000 initial
investment with max
5% of net sales for
a period of 5 years
Specific agency
permission
100%
0.15
0-5%
50%
50%
Investment Incentive Grid for Punjab
WHYPUNJAB ?
Punjab has the following key
advantages as an investment
destination
1. STRATEGIC LOCATION
This untapped investor-hub is
located between the vibrant Gulf
economies, land-locked energy
rich Central Asia and it borders
the two major emerging
economies of India and China.
2. UNSATURATED INDUS-
TRY
Booming Agriculture Sector
Punjab’s resilience comes from
half of its economy being
subsistence based and financially
shock-proof in the international
setting. Despite slow economic
growth, the main crops in Punjab
have yielded a steep growth
contributing to approximately
42% of FY2008-2009 GDP. This
sector employs 44% of the
province’s labor force. This
sector can support a multi-billion
dollar value-added industry in
food processing, textiles, dairy
and meat as well as leather
tanning and horticulture, all have
tremendous export potential.
Untapped Iron Ore Reserves
USD 180 billion is the total
monetary value for investors to
tap into the mining of iron ore
found mostly in the region of
Chiniot, Rajoa, Jhang and
Mianwali with estimates of over
1.1 billion metric tons. The World
production averages 1 billion
metric tons of raw ore annually.
Edge over India and China
As the most industrialized
province of Pakistan, Punjab has
largely the same cost competitive
labor, the same skilled workforce
as India and China. It also has a 5
decade long infrastructure
development focus though all
administrations that has created a
largely viable infrastructure.
Although early adopters in Retail,
Food Processing, Textiles and
Services have set up in Punjab
and have seen tremendous
growth, there still remains a large
piece of the investment pie that is
unexplored. Punjab has room for
more brands in all sectors and is
not yet saturated.
Power Sector Potential
Punjab has a power consumption
of 21,000 mega watts with
increase in demand of 9% per
annum, whereas production
remains at 15,055 mega watts.
Punjab possesses one of the
longest river runs of over 2000
km through the Indus plains and
yet over 70% of its water is
wasted into the sea without it
being recycled or converted to
energy through mega hydro
electricity plants.
3. Large Market Size
Punjab is the most populous
province of the 6th largest
country in the world with over 92
million people, with GPP of over
USD 104 billion and over 3
million English daily newspaper
subscribers.
Rising GDP Per Capita value
Pakistan’s Purchasing Power
Parity (PPP) is at about $2700 in
2009 and between 2003 and 2008
per capita income increased by
77.8% from $586 to $1042.
Transitional economy
In Punjab, consolidated land
wealth is on the decline, and both
the industrialists and SMEs are
on the rise. It also has a relatively
large middle class, significantly
larger than most other
destinations in Asia.
4. COST COMPETITIVE
RESOURCES
Punjab offers investors cheap
land, utilities and labor cost as
compared to regional economies.
5. FDI SUPPORTIVE
STRUCTURE
Huge FDI Potential
Pakistan has received over USD
3.72 billion in Foreign Direct
Investment in FY2008-2009, and
an overall inflow of about $50
billion since 1993. Punjab has a
share of about 23 billion since
1993.
Viable Infrastructure
Among the South Asian
Economies, Punjab has one of the
best infrastructures and an
efficient network of roads
connecting all of Punjab and
other provinces, a reasonably
developed rail network and at
least 3 airports of international
standards. It also has the world’s
largest canal irrigation network.
High Capacity for Job Creation
The general unemployment rate
deregulation, privatization and
facilitation.
Democratic Dividend
Punjab is set firmly on the path of
democratic reforms with strong
participation from all sectors of
government.
Enhanced international collabora-
tion due to the strengthening of
democracy creates a compounded
effect on the investment opportu-
nities in the region, boosting
employment and alleviating
poverty.
1. Contact PBIT
2. Explore relevant MOUs signed
in the past
3. Select most efficient mode of
business operation
4. Determine financial feasibility
5. Incorporation of the Company
7. Acquire necessary permissions
8. Registration of IPRs which are
secure from the date of filling the
application
9. Commencement of operations
These are the typical steps a
company follows when setting up
a business in Punjab
Doing
Business in
Punjab
World Bank ‘Starting a Business’ Indicator 2010
Pakistan rated higher than all BRIC countries
Brazil, Russia, India and China
Punjab Board of Investment
and Trade, PBIT, is an
Investment Promotion Agency
(IPA) for Punjab created in
August2009undertheCompa-
nies Ordinance, 1984. It is an
organization formed in the
true sprit of Public Private
Partnership, with 80% of its
staff comprising of private
sector emoployees of the
highest caliber and is headed
by a prestigious Board of
Directors under the chirman-
ship of the Chief Minister of
Punjab.
About PBIT
has remained stable between 6 to
8% in the past 10 years despite
population pressures. In
2007-2008, the economy created
another 1.44 million jobs, mostly
in the private sector, which
interestingly were more
pronounced in the rural sectors.
High Women Empowerment
Significant in the indicators for a
stable economy is the integration
of women in the workforce, and
in Punjab this figure is higher
than in most South Asian
economies because most women
in the agrarian setups are the
primary field workers. Punjab
also has a high number of women
in the parliament and in
ministries.
Good Governance
Punjab takes the lead on good
governance in Pakistan, being the
first province to launch an
international standard Investment
Promotion Agency, PBIT, closely
aligned with the government to
create a pro-business economy.
6. Liberal Trade Policy
Investment friendly structures
One of the fastest growing
economies is in this region, with
Pakistan’s GDP growth rate of
8.4% in 2005 and an average
growth rate of 7% since 2003.
Economic policies of Punjab
have particularly been
tailor-made to suit investor needs
in a changing investor climate,
and the policies have been
consistently fine-tuning
economic liberalization,
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