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Large scale-industrial-development-in-pakistan
1. Industry and Trade of Pakistan – Part 1
10/09/12 RAZA LILANI. razamr@hotmail.com
2. Industrial Policy of Pakistan
The present policy follows the tried and tested policy of
indigenous, broad-based industrialization to attain prosperity.
This policy seeks to turn Pakistan into a factory for the world
rather than a shop.
Industrialization is a long-term process and requires
consistency and continuity of policies. No industrial policy will
be successfully implemented unless the basic inputs of
affordable energy, physical and electronic connectivity and
infrastructure, skilled and productive labor enabling
macroeconomic environment and a friendly regulatory regime
are in place.
10/09/12 RAZA LILANI. razamr@hotmail.com
3. Sustained growth in manufacturing of at least 8% per
annum leading to a doubling of manufacturing output in
ten years.
Expansion of the currently stagnant industrial employment
from the current 13% of labour force to at least 20%.
Accounting for employment elasticity this means an
addition of 4 million workers to the industrial workforce,
who will need to possess different and higher skills to
succeed in the global competitive environment.
10/09/12 RAZA LILANI. razamr@hotmail.com
4. Radical increase in Pakistan’s manufacturing value
addition (MVA) by more than 100%.
Diversification from traditional resource based /low
technology enterprise to medium & high technology
enterprise.
A sharp increase in exports of medium and high
technology manufactures to 10 % from the current 1.5%
10/09/12 RAZA LILANI. razamr@hotmail.com
5. 1. Structure of Industry in Pakistan and its export potential
Pakistan ranks 55th worldwide in factory output.
Pakistan's industrial sector accounts for about 24% of
GDP.
Cotton, textile production and apparel manufacturing
are Pakistan's largest industries, accounting for about
66% of the merchandise exports and almost 40% of
the employed labour force.
10/09/12 RAZA LILANI. razamr@hotmail.com
6. Other major industries include cement,
fertilizer, automobile, edible oil, sugar,
steel, tobacco, chemicals, light engineering,
defense production, food processing, ship
manufacturing and ship breaking industry.
Government policies aim to diversify the
country's industrial base and bolster export
industries.
10/09/12 RAZA LILANI. razamr@hotmail.com
7. 2. The Performance of Large Scale Industry in Pakistan –
Challenges & Issues
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8. PAKISTAN TEXTILE INDUSTRY
Textiles is the premier industry & backbone of
Pakistan’s Economy:
• Major Agrarian industrial sector.
• Generates about 55.6 % of exports
• Constitutes 32.6 % of Manufacturing Industry
• Employs 40 % of country’s working force in
manufacturing sector
• Contributes 7.4% to the total GDP
• Drives Banking, Shipping ,Transport ,Insurance,
Machinery, Dyes/Chemicals ,Printing/Packaging &
allied sectors.
9. Total Investment in Textile $ 7.5 Billion (1999-2010)
10/09/12 RAZA LILANI. razamr@hotmail.com
10. PAKISTAN TEXTILE SECTOR
The Market
The textile and clothing industry has been the main driver of Pakistan’s
exports for the past 50 years in terms of foreign currency earnings and job
creation.
75% to 80% of total cotton and synthetic production is exported in the form
of yarn, fabric, readymade garments, bed wear & made ups.
Pakistan is the fourth largest producer of cotton and third largest user of
cotton.
The sector’s contribution to total exports has averaged nearly 60% during
the last six years and declined to approximately 52% during FY2009.
During July – October 2009, the sector benefitted from recovery in retails
sales in advanced economies and increased price differential in local and
global yarn prices.
Investment of about USD7.5 billion has been made in the textile industry
during the last ten years (1999-2009).
10/09/12 RAZA LILANI. razamr@hotmail.com
11. PAKISTAN TEXTILE INDUSTRY
STRENGTHS
Ample availability of cheap labour.
Good markets for products.
Large domestic market.
Industry Supportive Government Policies.
Free Import of cottons is Allowed (which is used for development of special
fabrics with yarn counts from 40’s to 120’s
Yarn dyed fabrics & high quality blends & counts is increasing.
dobby/jacquard Bed Linen-House hold products – shirts & blouses.
Volumes of yarn with synthetic fibers in various
10/09/12 RAZA LILANI. razamr@hotmail.com
12. PAKISTAN TEXTILE INDUSTRY
WEAKNESSES
• Low productivity resulting in high labour costs.
• Limited skills development facilities, including management training businesses are locally-
owned (i.e. no foreign investments as in other countries, where foreign partners bring
technical and market expertise).
• Value addition is low and low unit prices are realized over dependence on foreign agents
and little contact with final customers.
• Limited marketing know-how, especially to break into new markets very limited
experience in generating new products.
• Pakistan’s image continues to be that of a low quality, low price, non consistent and
unreliable supplier.
• Average quality of products and lack of brand names
10/09/12 RAZA LILANI. razamr@hotmail.com
13. TEXTILE POLICY 2009-14
• Textiles Investment Support Fund (TISF) is established under the
ambit of the policy.
• Measures proposed for financing from the TISF include;
Export refinance available at 5%.
Long term loans will be converted on the pricing applicable to LTTF.
scheme, together with a grace period of one year on both existing
and converted facilities, without the facility of refinancing.
To settle the past claims under R&D scheme of 2007-08, allocation
of PKR5.4 billion for the purpose by GoP.
10/09/12 RAZA LILANI. razamr@hotmail.com
14. TEXTILE POLICY 2009-14
• GoP will contribute part of the investment financing or
part of the investment cost through the Technology Up-
gradation Fund.
• The policy will focus on certain sub-sector issues from
fibre to garments including ginning, spinning, weaving,
knitting, processing, fashion designs, handloom and
handicrafts, carpets, technical textiles etc.
10/09/12 RAZA LILANI. razamr@hotmail.com
15. TEXTILE POLICY 2009-14
• The policy offers duty drawbacks of between 1% and 3%
for a two-year period for value added textile exports.
• All textile machinery imports will be zero-rated to
encourage new investments. Import duty on raw
material, sub components and components used in local
manufacturing of textile plants and machinery, has been
reduced to zero percent.
10/09/12 RAZA LILANI. razamr@hotmail.com
16. GOVT INITIATIVES
• Federal Textile Board
• Contamination free cotton program.
• Textile City
• Garment Cities (Lahore-Faisalabad-Karachi).
• Compliant Labour laws.
• Textile Skill Development Board.
• Textile Training Institute Management Board.
• Tariff rationalization.
10/09/12 RAZA LILANI. razamr@hotmail.com
17. GOVT INITIATIVES
• Increased market access through PTAs and FTAs.
• Removal of sales tax on textile chain
• R&D support during 2005-8( 6% to garment, 5% home
textiles and 3% on dyed printed fabrics).
• National Textile Strategy Committee.
• Textile Policy Initiatives (Infrastructure, Skills Development,
Technology Upgradation, Supply of Raw Material).
• Ginning Institute.
10/09/12 RAZA LILANI. razamr@hotmail.com
21. Global View
PER CAPITA CONSUMPTION
(kgs. of textile fibres per capita)
PER CAPITA TEXTILE CONSUMPTION
INDIA 2,8
PAKISTAN 4
CHINA 5,5
DEVELOPING COUNTRIES AVERAGE 4,5
JAPAN 8,5
USA 21
DEVELOPED COUNTRIES AVERAGE 17,7
GLOBAL AVERAGE 6,8
0 5 10 15 20 25
10/09/12 RAZA LILANI. razamr@hotmail.com
23. What ails Pakistan’s Textile sector
• The Industry is unable to absorb and pass on the rising cost of production.
• Products are basic in nature, low value added and thus fetching low prices.
• The machinery installed being old relative to our competitors, hence
electricity intensive, less productive and carry higher maintenance cost.
• Increased wastage of inputs adding to the cost.
• Low productivity of labour.
• Low return on capital.
• Due to low returns and better tax treatment in non-industrial sectors,
Pakistani entrepreneurs have been investing in non productive sectors.
10/09/12 RAZA LILANI. razamr@hotmail.com
24. What ails Pakistan’s Textile sector
• Low Level of skills.
• Insignificant expenditure on innovation, product development &
R&D.
• Pakistan’s export houses lack capacity to meet bulk orders.
• Inability to meet requirements of consumers in terms of fashion and
design.
• Uncompetitive ness in terms of adherence to contracted quality and
delivery schedule.
• Due to higher investment competing countries enjoy better
economies of scale.
10/09/12 RAZA LILANI. razamr@hotmail.com
25. THE FUTURE VISION
• Competing on price is no longer effective in gaining share in
the global market.
Instead
• “Technological Innovations” and “Branding” strategies are
future directions.
10/09/12 RAZA LILANI. razamr@hotmail.com
26. FUTURE COURSE
To compete manufacturers will have to take urgent steps to
minimize costs.
Eliminate wastages at all stages of supply chain.
Improve productivity levels.
Shift to value addition and differentiated products.
Market proximity will become an increasingly valuable
competitive advantage as customers demand better quality of
service, time lines and reliability of delivery.
10/09/12 RAZA LILANI. razamr@hotmail.com
27. FUTURE COURSE
• Government has to negotiate for Market Access and
preferential terms.
• Trade Agreement (Bilateral, Multilateral, Regional, Free
Trade) will gain more importance and hence needs more
focus and professional approach.
• Investment in modern technology (Competitiveness)
• Investment cost for BMR and additional capacity should be at
low mark up rate.
10/09/12 RAZA LILANI. razamr@hotmail.com
28. • THE WAY FORWARD: CHALLENGES TO BE
ADDRESSED
1. Assist the Industry to sustain its existing market shares
2. Synergise all policy initiatives to support the Industry to
develop its competitiveness in the changing global
environment
3. Focus on Short Term Strategies with result oriented
approaches to help companies progress
4. Promotion of the Value Added products. This Sector has
the possibility to create more than 1 million additional
jobs – more than any other sector
10/09/12 RAZA LILANI. razamr@hotmail.com
29. Automotive Industry
Total auto sales during first half
of FY2010 increased by 16.37%
to 61,021 units from 52,435 units
in the same period of last year.
The auto industry was operating
at 37% of its installed capacity of
273,000 units per annum in
FY2009 and it is expected that
20% growth in sales in FY2010
can easily be met through higher
production by assemblers
utilizing the existing capacity.
10/09/12 RAZA LILANI. razamr@hotmail.com
30. Automotive Industry
Pakistan has the second highest number of CNG
powered vehicles in the world with more than 1.55
million cars and passenger buses, constituting 24% of
total; vehicles in the country.
Investment in the automotive sector stood at US$70.2
million in July 08 – April 09.
Despite recessionary phase Indus Motor Company
and Honda Atlas Cars launched new models for their
key products, Corolla and City in the local market.
10/09/12 RAZA LILANI. razamr@hotmail.com
31. Automotive Industry
Car sales are related to the interest rate regime
functional in Pakistan especially in the small-low
and economy segments, whilst purchases in the
small-high segment (1300cc and above) are
dependent on rising income level and improved
living standards.
2011-12 – Inspite of increase in price, there is 20%
increase in the sales of the vehicle in Pakistan
10/09/12 RAZA LILANI. razamr@hotmail.com
32. Energy (Power, Oil & Gas)
The energy industry is regulated by the
Policy for Power generation Projects 2002,
Policy for Development of Renewable Energy
for Power Generation 2006 and Petroleum
Exploration & Production Policy 2009.
Customs duty at the rate of 5% applicable on
import of plant, machinery & equipment not
manufactured locally for power generation
projects whilst zero-percent customs duty
applies on plant, machinery and spares
imported by power generation projects under
nuclear and renewable energy sources like
solar, wind, micro-hydel bio-energy, ocean,
waste-to-energy, hydrogen cell etc.
10/09/12 RAZA LILANI. razamr@hotmail.com
33. Energy (Power, Oil & Gas)
For power projects above 50MW one-window support to
be provided at the federal level. For projects below or up
to 50MW support to be provided at the respective
provincial level.
Royalty will be payable at the rate of 12.5% of the value of
petroleum at the field gate.
Local petroleum companies are encouraged to establish
joint ventures with foreign concerns.
Import of equipment related to the petroleum & refining
sectors allowed on concessionary rates.
The lube industry has been deregulated.
10/09/12 RAZA LILANI. razamr@hotmail.com
34. Fertilizer Industry
There are 10 fertilizer units (6 in the public sector and 4 in
the private sector) in the country, having an installed
capacity of 4.3 Million Tonnes (1.7 Million Tonnes in the
public sector and 2.6 Million Tonnes is the private sector).
Total production of fertilizers in 2001-02 was 5 million
tonnes.
10/09/12 RAZA LILANI. razamr@hotmail.com
35. Cement Industry of Pakistan
Cement is one of the major industries of
Pakistan.
Cement sector contributes 0.76 percent to
GDP while it maintains a weight of 4.41
percent in the overall manufacturing.
Pakistan Cement Industry has huge potential
for export of cement to neighboring countries
like India, U.A.E, Afghanistan, Iraq & Russian
States.
The country at present has 29 cement plants
with an installed capacity of producing
around 39 million tones of cement.
There has been a robust growth of cement
demand seen both in domestic and exports
market during the last decade.
10/09/12 RAZA LILANI. razamr@hotmail.com
36. Cement Sector Over View
There are 29 cement production units in the country. Up to May 2007, the
total installed cement production capacity is 36.841 million tones. By the end of
June2011, the installed cement production capacity has touched the level of
49.579million tones.
Due to political instability and lack of allocation of funds for public sector
development program, cement industry of Pakistan was in the recession phase
had registered an average growth rate of 2.96% for the period from 1990
to2002. For the period from 2003 to 2007 cement industry of Pakistan had
registered an average growth rate of 20%.
The boost in cement sector is because of the rising construction activity in the
country, reconstruction activity in Afghanistan and increasing development
expenditure by the government.
10/09/12 RAZA LILANI. razamr@hotmail.com
37. Cement Exports
Pakistan is ranked 5th in the world’s cement exports after a
huge increase of 47 percent in exports during last fiscal year.
India has become one of our major market of cement export by
land route but due to some Non-Tariff barriers we could not
encash its true potential.
Pakistan could achieve the mark of 13 to 14 million tonnes
exports by the end of the fiscal year keeping in view Indian
market which has once again started importing cement from
Pakistan.
10/09/12 RAZA LILANI. razamr@hotmail.com
38. Export of Cement & Clinker
Cement Clinker Export Breakup
Other
Financial Afghanistan India Other Countries Total %age North South
Countries
Years Via Land Via Sea & Land
Via Sea
Via Sea Exports Incr/(Decr) Zone Zone
Quantity in Metric Tons Quantity in Metric Tons
2003-2004 1,118,293 - - - 1,118,293 137.02% 1,088,218 30,075
2004-2005 1,407,900 - 157,270 1,565,170 39.96% 1,516,370 48,800
-
2005-2006 1,413,994 - 91,165 1,505,159 -3.83% 1,409,492 95,667
-
2006-2007 1,725,526 - 1,096,995 390,973 3,213,494 113.50% 1,929,938 1,283,556
2007-2008 2,777,826 786,672 3,045,995 1,106,127 7,716,620 140.13% 5,111,607 2,605,013
2008-2009 3,148,306 634,455 6,061,035 908,690 10,752,486 39.34% 6,989,136 3,763,351
2009-2010 4,013,670 722,967 5,637,163 283,436 10,657,235 -0.89% 6,960,854 3,696,382
2010-2011 4,725,165 590,104 3,910,675 200,169 9,426,112 -11.55% 6,686,824 2,739,284
2011-2012 2,501,165 350,059 1,607,157 - 4,458,381 -4.58% 3,282,402 1,175,979
6 months
10/09/12 RAZA LILANI. razamr@hotmail.com
40. PERFORMANCE OF CEMENT INDUSTRY
The Financial Year 2010-2011 was not fruit full for
the cement industry of Pakistan. Sluggish demand in
the local market, increased competition in the
international markets and a fall in profit margins
marked the highlights of the financial year. In
addition to this, disruption of distribution channels
due to floods and increase in raw material (coal)
costs further added to the cost of the cement
manufacturers.
10/09/12 RAZA LILANI. razamr@hotmail.com
41. PERFORMANCE OF CEMENT INDUSTRY
The demand for cement remained stagnant in the
local market due to inadequate public spending and
negligible private sector spending because of lack of
generic economic growth. The government cut
down on its Public Sector Development Program
(PSDP) by 77 per cent during the financial year which
has affected some of the ongoing Mega projects.
10/09/12 RAZA LILANI. razamr@hotmail.com
42. PERFORMANCE OF CEMENT INDUSTRY
The lesser demand forced players in the industry to severe
price competition to sell a cement bag for as low as Rs235
although, later on the manufacturers disciplined their prices
which reached the Rs380 per bag mark. During the FY 2011,
the domestic dispatches fell to 22 M Tonnes from 23.551 M
Tonnes in the previous year, marking a 6.9 per cent
decrease.
10/09/12 RAZA LILANI. razamr@hotmail.com
43. PERFORMANCE OF CEMENT INDUSTRY
After experiencing years of growth the cement industry had
to face a tough year in the international market. In the past
cement has been exported to Afghanistan, India, Sri Lanka,
China and Africa. However, in the outgoing year there was
some increased competition from the Middle East and the
cement industry was hit with a fall in cement exports. The
cement exports fell by 11.55 per cent from 10,657,235 M
Tonnes to 9,426,112 M Tonnes.
10/09/12 RAZA LILANI. razamr@hotmail.com
44. CHEMICAL INDUSTRY
There are 12 chemical factories in the country
producing, soda ash, sulphuric acid, caustic
soda, chlorine gas and other chemicals. The
contribution of the chemical industry towards
GNP is only 3%. This
industry is not fulfilling
domestic requirements,
so a large amount of
foreign exchange is spent
on the import of different
chemicals every year.
10/09/12 RAZA LILANI. razamr@hotmail.com
45. Engineering Industry
There are 4 heavy Engineering Industries in public sector
(1) Heavy Mechanical Complex, Taxila
(2) Heavy Foundry Project, Taxila
(3 Pakistan Machine Tools Factory, Landhi
(4) Pakistan Steel Mills, Karachi.
(5) Pakistan Ordinance Factory Wah (Defense
Production)
(6) Karachi Shipyard & Engineering Works Karachi
10/09/12 RAZA LILANI. razamr@hotmail.com
46. 3. Weakening of Large Scale Manufacturing Sector
1.A key weakness of the Pakistani
Economy is traceable to the non-
availability and high price of energy.
Also, Pakistan’s energy mix is skewed
heavily towards the most expensive
sources of energy with more than 64%
from thermal versus 33% from hydel.
10/09/12 RAZA LILANI. razamr@hotmail.com
47. While coal has negligible contribution.
Hence, it is imperative to invest in
energy generation with more use of coal
(imported initially, until local resources
become available), hydel, and imported
gas. In addition, Pakistan’s energy
consumption stands in contrast to
almost all industrial economies with
domestic use of electricity 46.6%.
10/09/12 RAZA LILANI. razamr@hotmail.com
48. The Composition of our Energy Consumption
10/09/12 RAZA LILANI. razamr@hotmail.com
49. As Pakistan industrializes, this mix will
change with industrial energy consumption
going up manifold. The Government over the
next 2-3 years will prioritize provision of
energy to manufacturing installations over
other users.
As per cabinet decision, Industry is Second
priority after residential consumers, followed
by Commercial IPPs and CNG Stations.
10/09/12 RAZA LILANI. razamr@hotmail.com
50. 2. The state will encourage investments in
improving business processes and technologies
by fostering strategic alliances with foreign
entities. This intervention will include the
provision of matching grants for purposes of
diversification and brand development /
acquisition. The Trade Policy has announced
Government support for opening of Export
Marketing Offices abroad, buying franchises and
equitation of brands
10/09/12 RAZA LILANI. razamr@hotmail.com
51. 3. Over the next five years, the Government will reform
the steel sector and extend full support to develop
indigenous metallurgical capabilities. While the
capacity of Pakistan Steel Mills will be increased
substantially in the next ten years and more
metallurgy institutes will be set up in national
universities, foreign investment in the sector will be
encouraged based initially upon imported iron ore,
with a transition towards exploitation of the large
deposits of iron ore in the country.
10/09/12 RAZA LILANI. razamr@hotmail.com
52. Top 10 Crude Steel Production (million tonnes)
Rank Country / Region 2007 2008 2009 2010
WORLD 1,351.3 1,326.5 1,219.7 1,413.6
1 CHINA 494.9 500.3 573.6 626.7
2 EUROPEAN UNION 209.7 198.0 139.1 172.9
3 JAPAN 120.2 118.7 87.5 109.6
4 UNITED STATES 98.1 91.4 58.2 80.6
5 RUSSIA 72.4 68.5 60.0 67.0
6 INDIA 53.5 57.8 62.8 66.8
7 SOUTH KOREA 51.5 53.6 48.6 58.5
8 GERMANY 48.6 45.8 32.7 43.8
9 UKRAINE 42.8 37.3 29.9 33.6
10 BRAZIL 33.8 33.7 26.5 32.8
11 TURKEY 25.8 26.8 25.3 29.0
12 PAKISTAN 4.3 4.3 4.3 4.3
10/09/12 RAZA LILANI. razamr@hotmail.com
53. Some Mega projects on the way
4.The government will facilitate the
establishment of a Petrochemical Complex
near a major port, or refinery as a private-
public partnership. It will involve setting up
a Naphtha cracking facility for the
production of Olefins (Monomers,
Polymers and Intermediate Chemicals) and
b) Aromatic Petrochemical Complex linked
with new refineries.
10/09/12 RAZA LILANI. razamr@hotmail.com
54. 4. Prospect of Chinese Entrepreneurship in
Industrial Joint Ventures
10/09/12 RAZA LILANI. razamr@hotmail.com
55. 1. The Silk route/Karakoram Highway connects
China and Pakistan with what must be the
most harrowing trail of asphalt on earth. From
Kashgar to Islamabad, the road stretches 1260
kilometers, and pierces the territory of at least
five ethnic groups. The highway was begun in
the late 1960s. China provided most of the
engineering know- how, building bridges to
span. On the Pakistan side of the border
alone, more than 400 lost their lives.
10/09/12 RAZA LILANI. razamr@hotmail.com
56. 2. 330MW Chashma-2 Nuclear Power Plant becomes
operational
Pakistan’s third nuclear electric power plant became operational,
pumping another 330MW into the national grid in a bid to help
meet country’s growing energy demand and cut down the
shortfall.
The generation of additional 330 MW electricity would provide
immediate relief to a section of consumers, adding that two more
power plants C-3 and C-4 already under construction at this site
would help in paving the way for PAEC to meet the government
assigned target of 8800 MW by the Year 2030.
10/09/12 RAZA LILANI. razamr@hotmail.com
57. Pakistan has a small nuclear power program, with 725 MWe
capacity, but plans to increase this substantially. The country’s first
Canadian pressurized heavy water reactor (PHWR) at Karachi –
KANUPP, with a gross capacity of 137 MWe is generating net 125
MWe and is under international safeguards.
The second unit is Chashma-1 (CHASNUPP-1) in Punjab, a 325
MWe (300 MWe net) 2-loop pressurized water reactor (PWR) has
been supplied by China’s CNNC under safeguards.
The main part of the plant was designed by Shanghai Nuclear
Engineering Research and Design Institute (SNERDI) and it started
operations in May 2000. It also has a design life of 40 years.
10/09/12 RAZA LILANI. razamr@hotmail.com
58. Completion of Chashma-2 three months ahead of the
scheduled time was a reward for the joint efforts of
Chinese and Pakistani teams, the benefits of which will
go directly to the people of Pakistan.
It is an illustrious example of the Pakistan-China
cooperation in the field of nuclear science and
technology. “Completion of this project takes to even
greater heights the long and time-tested friendship
between the two countries”
10/09/12 RAZA LILANI. razamr@hotmail.com
59. Work on the Chashma-3 and Chashma-4 reactors with
300 MWe each is also under way and would nearly
double this capacity, adding another 600 megawatts to
the grid.
According to the International Atomic Energy Agency,
there are 443 nuclear power reactions in operation,
with a total installed capacity of over 375 GW(e) around
the world.
10/09/12 RAZA LILANI. razamr@hotmail.com
60. 3. A Joint Venture to manufacture Electronic
Appliances in Pakistan
Pakistan’s Ruba Group and China’s Chong
Hong Group have formed a joint venture
to produce electronic appliances including TV
sets, refrigerators, LCDs and air conditioners
in Pakistan. The project has investment of $11
million, followed by additional investment of
$100 million.
10/09/12 RAZA LILANI. razamr@hotmail.com
61. 4. Pak China Investment Company Limited (PCICL)
PCICL is a DFI formed under the initiatives taken by
Government of Pakistan and Peoples Republic of China for
promotion of Trade, Investment and Economic Growth of
Pakistan.
The company was incorporated in July 2007 with an
Authorized Capital of USD 200 Million and was formally
launched in December 2007. The company is a joint venture in
which equity is equally contributed by Government of Pakistan
and China Development Bank (one of the largest State Owned
banks of Peoples Republic of China).
10/09/12 RAZA LILANI. razamr@hotmail.com
62. Pak China Investment Company Limited in view of its inherent
strengths and mandate aims to become a hub for investment
activity and add value to sectors like Industry, Agriculture,
Services, Information & Technology, Manufacturing, Real Estate
and Infrastructure etc, for which we offer conventional and
innovative solutions to Investors and Projects through a full range
of Investment Banking services.
10/09/12 RAZA LILANI. razamr@hotmail.com
63. 5. PRODUCTION OF DEFENCE EQUIPMENT
Pakistan's Al Khalid Tank, widely considered one of the most
competent Main Battle Tanks (MBTs) in the global arms
market, has received an update, according to Grande Strategy
sources. This new version of Al-Khalid is said to be ready for
production, although orders are yet to be placed for production
to begin. The Al Khalid II is said to have a new armor that has
been tested to defeat all known 120mm and 125mm rounds.
This "special" armor is a major technological breakthrough for
Pakistan. The tank has received a new transmission and
revised electronic turret control
10/09/12 RAZA LILANI. razamr@hotmail.com
64. A Joint Venture to manufacture JF-17 Thunder Jets
Pakistan Aeronautical Complex (PAC) and Chengdu Aircraft
Industries Corporation (CAC) of China, has successfully
manufactured JF-17 Thunder Jets for Pakistan Airforce having
advance technology of US F-16.
First flight 25 August 2003
Two Squadrons Operational with the Pakistan Air
Status
Force as of 18 February 2010
Prototypes: 6
Number built
Production: ~34
Program cost US$500 million
Block 1: US$15–20 million
Unit cost
Block 2: US$20–25 million
10/09/12 RAZA LILANI. razamr@hotmail.com
65. Pakistan, China set-off joint venture to build Missile Boats
Pakistan and China have embarked on a joint venture for the
construction of two missile carrier boats in the Chinese port
city of Tianjin.
Under the joint venture signed between Pakistan Navy and
China Shipbuilding and Offshore International Company, two
boats capable of carrying missiles would be manufactured
simultaneously in Pakistan and China.
The boat would be equipped with the latest weapons. Their
sensors would be an important addition to the fleet of Pakistan
Navy. The second boat would be built at Karachi Shipyard and
Engineering Works.
10/09/12 RAZA LILANI. razamr@hotmail.com
66. Other Joint Ventures
Gwadar Port
Thar Coal
Shahrah-e-Karakoram
China Mobile - Zong
Investment of $2 Billion in Telecom Sector of Pakistan
Pakistan has entered into various joint ventures with China for the
production of new cotton seeds and colour cotton in Pakistan. Pakistan is
also acquiring Chinese expertise for small water reserves for irrigation
purposes.
10/09/12 RAZA LILANI. razamr@hotmail.com