Keenjhar Lake Resort Project - Sindh Board Of Investment ...

KEENJHAR LAKE RESORT 

PROJECT 

Development of a Tourist Resort 

Under Public Private Partnership 

at 

Keenjhar Lake, Thatta 

Project Information Memorandum 

Sindh Tourism 

Department 

PPP Unit 

Finance Department 

Advisors: 

Ernst & Young 

Ford Rhodes Sidat Hyder 

Meinhardt (Pakistan) 

Private Limited 

Haidermota & Co.

Table of Contents 

1 Disclaimer ............................................................................................................................... 5 

2 Abbreviations ......................................................................................................................... 7 

3 Introduction ............................................................................................................................ 8 

4 The Tourism Industry ........................................................................................................... 9 

4.1 International Tourism.................................................................................................... 9 

4.2 Tourism in Pakistan .................................................................................................... 10 

4.2.1 Estimates and Forecasts .................................................................................... 11 

4.2.2 GNP Contribution ................................................................................................. 12 

4.2.3 Inbound Tourist Traffic and Tourism Receipts .............................................. 12 

4.2.4 Outbound Tourist Traffic and Expenditures ................................................... 13 

4.2.5 Motivation .............................................................................................................. 13 

4.2.6 Average Spending Levels .................................................................................. 14 

4.2.7 Exports & Tourism Earnings ............................................................................. 14 

4.2.8 Tourism and Employment .................................................................................. 14 

4.2.9 Tourism and Regional Development ................................................................ 14 

4.2.10 Domestic Tourism................................................................................................ 15 

4.3 Tourism Attractions in Sindh .................................................................................... 15 

4.3.1 Tourist Destinations ............................................................................................ 16 

4.3.2 Eco-Tourism.......................................................................................................... 17 

4.4 Tourist Sites under consideration for development ............................................. 17 

4.5 Eco friendly Tourist Resort in Sindh ....................................................................... 19 

5 Pakistan – Profile and Overview ...................................................................................... 21 

5.1 Country Profile ............................................................................................................. 21 

5.1.1 Overview ................................................................................................................ 21 

5.1.2 Demographics ...................................................................................................... 21 

5.1.3 General Macroeconomic Indicators ................................................................. 23 

6 Province of Sindh – Profile and Overview ...................................................................... 28 

6.1 Province Profile ........................................................................................................... 28 

6.2 Regional Connectivity ................................................................................................ 29 

6.3 Demographic and Socio-economic Profile ............................................................. 31 

7 Overview of Thatta and surrounding districts ............................................................... 32 

7.1 Introduction to Districts surrounding Keenjhar .................................................... 32 

7.2 Overview of Thatta and Badin District ..................................................................... 32 

2 

Keenjhar Lake Resort Project - Project Information Memorandum

7.3 Hyderabad District ....................................................................................................... 33 

7.4 Karachi District ............................................................................................................ 33 

7.5 Keenjhar Lake .............................................................................................................. 34 

7.5.1 Proximity ............................................................................................................... 34 

7.5.2 Socio-economic Conditions: Surrounding area ............................................ 34 

7.5.3 Site Conditions: 100kms radius ........................................................................ 35 

8 Project Overview ................................................................................................................. 36 

8.1 Keenjhar Lake .............................................................................................................. 36 

8.2 Project Concept ........................................................................................................... 37 

8.3 Project Objectives ....................................................................................................... 38 

8.4 Operating Model .......................................................................................................... 38 

9 Development Framework ................................................................................................... 40 

9.1 Site Analysis ................................................................................................................. 40 

9.2 Conceptual Design ...................................................................................................... 41 

9.3 Visualizations ............................................................................................................... 43 

10 Conceptual Master Plan ................................................................................................. 44 

10.1 Infrastructure Development ....................................................................................... 45 

10.2 Development Package I .............................................................................................. 46 

10.3 Development Package II ............................................................................................. 47 

10.4 Synopsis of DP-I and DP-II ......................................................................................... 48 

11 Analysis on Commercial Viability ................................................................................ 49 

11.1 Project aims and objectives ...................................................................................... 49 

11.2 Tourism opportunities at Keenjhar Lake ................................................................ 49 

11.3 Demand Generators .................................................................................................... 50 

11.4 Survey of Recreational spots near Karachi ............................................................ 52 

12 Development Parameters .............................................................................................. 55 

12.1 Development parameters ........................................................................................... 55 

13 Project Development Strategy ...................................................................................... 58 

13.1 Marketing strategy for Farmhouses ......................................................................... 58 

14 Financial Analysis ........................................................................................................... 61 

14.1 Project Cash Flows ..................................................................................................... 61 

14.2 Development Period Cash Flows ............................................................................. 62 

14.2.1 Estimated Project Costs – Resort Zone ...................................................................... 63 

14.2.2 Project Development Timelines ................................................................................ 63 

3 


14.2.3 Development Outlays ............................................................................................... 64 

14.2.4 Project Financing Assumptions ................................................................................. 64 

14.3 Operational Period Cash Flows ................................................................................ 66 

14.3.1 Revenue Assumptions............................................................................................... 67 

14.3.2 Cost Assumptions ..................................................................................................... 68 

14.4 Investment Analysis.......................................................................................................... 70 

14.4.1 Upside Potential ....................................................................................................... 70 

15 Project Implementation Framework ............................................................................. 71 

15.1 Implementation Structure .......................................................................................... 71 

15.2 Role of the Developer ................................................................................................. 71 

15.3 Role of the Keenjhar Project Company ................................................................... 71 

15.4 Concession Agreement .............................................................................................. 71 

15.5 Concession Period ...................................................................................................... 72 

15.6 Payment Security Mechanism ................................................................................... 72 

4 


1 Disclaimer 

This Information Memorandum (“the Memorandum” or “this Document”) has been compiled 

by Ernst & Young Ford Rhodes Sidat Hyder (“Transaction Advisors”), on behalf of the 

Tourism Department and the PPP Unit, Finance Department, Government of Sindh (“the 

Client”), on the Keenjhar Lake Resort Project (“the Project”). 

This Memorandum is confidential and is provided solely for the information of the recipients 

(“the Recipients”) for providing preliminary information regarding the Project. While the 

information contained herein is from sources believed to be reliable, it is not represented to be 

accurate or complete and should not be relied upon as such. The information provided is on a 

best efforts basis and neither the Transaction Advisors nor the Client have any obligation / 

liability of any nature whatsoever relating to the gains and/or losses incurred by the 

Recipients based on any information provided. 

The information contained in this Memorandum is selective and does not include a description 

of any risks. It does not purport to contain all the information that the Recipients may require 

and is subject to updates, expansions, revisions and amendments. However, neither the 

Client nor its Transaction Advisor, undertake any obligation to update, expand, revise or 

amend any information or to correct any inaccuracies contained in this Memorandum or to 

provide the Recipients with additional information at any time whatsoever. 

Neither the Client, nor its Transaction Advisors, nor affiliated partnerships or bodies 

corporate, nor the directors, shareholders, managers, partners, employees or agents of any of 

them (“the Parties”), make any undertaking, representation or warranty, express or implied, as 

to the accuracy, reasonableness or completeness of the information contained in this 

Document. All such Parties expressly disclaim any and all liability for, or based on, or relating 

to, any information/ errors/ omissions contained in the Memorandum, or based on or relating 

to the Recipient’s use of the Memorandum. Furthermore, the Parties will not have any liability 

to any of the Recipients or any other person under law, equity or contract, or otherwise for 

any alleged loss, expense or damage of any nature whatsoever which may arise from or be 

incurred or suffered in connection with anything contained in this Memorandum or from any 

matter deemed to form part of the same. 

This Memorandum is not a prospectus and does not constitute or form any part of any offer or 

recommendation to invest in the Project nor shall it or any part of it form the basis of, or be 

relied upon, in any way in connection with any contract relating to any contractual 

arrangements that the Recipient may enter into with the Client or its designated/ nominated 

entity (ies). Any interested party (including the Recipients) shall be deemed to acknowledge 

that it has not relied on or been induced to enter such arrangements or agreement by any 

representations or warranty set out herein or otherwise. The information provided in this 

Document does not constitute a personal recommendation nor does it take into account the 

particular investment objectives, financial situations and/or needs of individual Recipients. 

The Recipients should read and consider all of the information contained in this Memorandum 

and should conduct their own independent investigations and analysis in respect of the same. 

The contents of this Memorandum are not to be construed as legal, financial, or tax advice. 

Before acting on any advice or recommendation contained in this Document, the Recipients 

should consider whether it is suitable for their particular circumstances and, are strongly 

advised to seek professional advice. Each Recipient should consult his, her or its own legal 

advisor, financial advisor and/or tax advisor for legal, financial or tax advice. The Recipients 

are required to conduct their own due diligence and seek their own advice prior to making any 

investment decision relating to the transaction and the Project. 

5 


This Memorandum is for information only and is not an offer to enter into any kind of 

transaction whatsoever. This Document (including its contents) is confidential, being for use 

only by the persons to whom it is issued, and may not be used for any other purpose. This 

Memorandum (or any part thereof), may not be copied, distributed, published, reproduced or 

disclosed to any other person by the Recipients to third parties other than the Recipients’ 

professional advisers for the purpose of considering their interest in the Project and obtaining 

advice in respect thereof. Additionally, the provision of this Document may be restricted by 

law. This Memorandum is for distribution only to the persons of the kind to whom it may 

lawfully be issued. Persons to whom this Memorandum is provided are required to inform 

themselves about and to observe any such restrictions. 

This Memorandum includes certain statements, estimates and projections with respect to the 

anticipated future performance of the Project. These statements, estimates and projections 

are based on a hypothetical business model envisaged by the Client and its Transaction 

Advisors. Certain statements in this Memorandum constitute “forward-looking statements”. All 

statements other than statements of historical facts included in this Memorandum including, 

without limitation, financial position, business strategy, plans and objectives of management 

or future operations (including development plans and objectives relating to products), are 

forward-looking statements. Such forward-looking statements involve known and unknown 

risks, uncertainties and other important factors that could cause actual results, performance 

or achievements to be materially different from future results, performance or achievements 

expressed or implied by such forward-looking statements. Such forward-looking statements 

are based on numerous assumptions based on anticipated business strategies of the 

prospective investors/ developers/ consortia to the Project, including their subsidiaries, and 

the environment in which the prospective investors/ developers/ consortia to the Project, 

including their subsidiaries, will operate in the future. These forward-looking statements speak 

only as at the date of this Memorandum. All such statements, estimates and projections 

reflect various assumptions and best estimates made by the Client and its Transaction 

Advisors concerning anticipated results, which assumptions or estimates may or may not 

prove to be correct. There are no assurances whatsoever that such events as stated in the 

estimates or projections will occur and the Client, Transaction Advisors and the Parties shall 

not be liable or responsible to the Recipients in any manner whatsoever in respect of the 

same. 

This Memorandum has been delivered to interested and invited parties (including the 

Recipients) for information only and upon the express understanding that such parties will use 

it only for the purpose set out above. Furthermore, the Memorandum does not create an 

obligation on the Client to consider any offer, and reserves the right, without prior notice and 

without giving reasons, to reject any or all proposals and/or to negotiate with any prospective 

bidder on any terms (and whether individually or simultaneously with any other prospective 

bidder) with respect to the Project. The Client reserves the right, without advance notice, to 

terminate the Expressions of Interest solicitation process at any time. The issue of this 

Memorandum shall not be taken as any form of commitment on the part of the Client to 

proceed with any transaction. 

All inquiries and requests for further information in respect of this Memorandum must be in 

writing, and directed to the Client. No verbal discussion with any staff or advisor of the Client 

or the Transaction Advisors or the Parties, or any of their respective subsidiaries and/ or 

affiliates, can change, add to or clarify any of the material contained in this Memorandum. 

Recipients should only rely on written additions or clarifications issued by duly authorized 

representatives of the Client. Email communications from authorized representatives of the 

Client will be deemed as written communications. 

6 


2 Abbreviations 

EOI 

Expression of Interest 

RFP 

Request for Proposal 

PPP 

Public Private Partnership 

GoS 

Government of Sindh 

PCP 

Population Census of Pakistan 

KP 

Khyber Pakhtunkhwa [formerly North West Frontier Province (NWFP)] 

CAGR 

Compounded Annual Growth Rate 

PSLM 

Pakistan Social and Living Standard Measurement 

GDP 

Gross Domestic Product 

FY 

Financial Year 

FDI 

Foreign Direct Investment 

PKR 

Pakistani Rupee 

US$ / USD United States Dollar 

EDL 

External Debt and Liability 

KSE 

Karachi Stock Exchange 

b 

Billion 

m 

Million 

UNWTO 

United Nations World Tourism Organization 

GNP 

Gross National Product 

SBP 

State Bank of Pakistan 

ADB 

Asian Development Bank 

OPEC 

Organization of the Petroleum Exporting Countries 

NH 

National Highway 

KPAC 

Keerthar Protected Area Complex 

FAR 

Floor Area Ratio 

ID 

Infrastructure Development 

DP-I 

Development Package I 

DP-II 

Development Package II 

O&M 

Operation and Maintenance 

DHA 

Defence Housing Authority 

WTTC 

World Travel & Tourism Council 

T&T 

Travel and Tourism 

km 

Kilometres 

NW 

Northwest 

N 

North 

S 

South 

SE 

South East 

7 


3 Introduction 

With almost 180 million people, a growing middle income class, young and educated 

population and consistently growing remittances from increasing number of Pakistanis 

working abroad, tourism is an economic sector that holds tremendous potential in Pakistan. 

Despite limited investment and government support in the past, the potential of the industry 

can be estimated from the amounts being spent on tourism activities by Pakistani people and 

businesses in and out of Pakistan. 

Pakistan, with its diverse culture, historic treasures, and numerous natural endowments, 

boasts of a variety that offers something for everyone to enjoy. It has all the elements of being 

a tourist haven, offering a glimpse of the sub-continental culture, as well as a profound blend 

of landscapes ranging from the costal beauty of the Arabian Sea in the South to the wondrous 

mountain ranges in the North. From untamed deserts to the historic ruins of Mohenjo-Daro, 

Harappa and Taxila, to the caves of Balochistan, and the Mughal architecture in Lahore, 

Pakistan has a huge potential to become an attractive tourist destination for the world. 

Pakistan is enriched with natural beauty and landscape, carrying strong potential to become 

attractive tourist destination. In fact despite lack of infrastructure development (the “ID”) and 

incentives to support this sector, tourism has developed well particularly in the northern parts 

of Pakistan. Sindh, with its rich history and culture and its beautiful landscapes, from its 

beaches and wetlands to its deserts, hills, farmlands, ports, archeological sites and its mega 

city, Karachi (the commercial hub of Pakistan), has so far not been able to effectively develop 

the tourism industry in the province. 

The Tourism Department, Government of Sindh, (the “Tourism Department”) is now actively 

looking at developing the tourism industry in Sindh to leverage off from the large industrial 

and commercial base and the huge demand for leisure and recreation in the growing middle 

and high income population of the province and of the country i.e. Pakistan. At the same time, 

the Government of Sindh (the “GoS”) views the tourism industry to be sector that can provide 

the economic stimulus to local economies in the hinterlands of the province by creating job 

and business opportunities and improving the livelihoods of people in the hinterlands. 

Expenditure on tourism induces a chain of transactions requiring supply of goods and 

services from related sectors. The consumption demand emanating from tourist expenditure 

also induces more employment and creates a multiplier effect on the economy. Tourism thus 

has the potential to stimulate other economic sectors through its backward and forward 

linkages across various sectors including agriculture, horticulture, handicraft, transport, 

construction, etc. 

The Tourism Department sees public private partnerships (the “PPP”) as the most efficient 

and effective method for developing the tourism sector, whereby the private sector would 

bring its operating models focusing on customer care and operating efficiencies. It is 

envisaged that the GoS would act as the facilitator and regulator, providing infrastructure and 

support services that complement the investments being made by the private sector and 

monitoring service and maintenance standards. 

8 


4 The Tourism Industry 

4.1 International Tourism 

Tourism had been rising steadily internationally, especially in the Asia-Pacific region until 

2008 when, following global economic meltdown, there was a fall in demand, with implications 

for some of the region’s developing economies. 

According to United Nations Economic and Social Commission for Asia and the Pacific (the 

“UNESCAP”) the global growth in international tourist arrivals fell from 6.7% to 2.0% between 

2007 and 2008, thus reflecting an extremely volatile and unfavorable global economy. 

However, as the world comes out of recession, tourism growth is also likely to be modest in 

the coming years. 

Over the period 1995-2007, tourism around the globe continued to experience steady growth 

of 4.2% per year, thus confirming its status as the world’s largest growth industry. Between 

the years 2006 and 2007, international tourist arrivals increased by 6.7% to 900 million. All 

regions of the world registered increases in tourist activity during such period with the Asia- 

Pacific region leading the rankings with a 10.4% increase. 

Between 1995 and 2007, the 

Asia-Pacific region’s share of 

total arrivals increased from 

18.7% to 25.7%. Steady growth 

was also recorded in Africa: 

Over the same period, its share 

grew from 4.2 to 6.0%. North 

America and Europe, on the 

other hand, despite increases 

in their absolute number of 

tourist arrivals, saw their shares 

of the market decline as 

depicted by the adjacent chart. 

Between 1995 and 2007, the 

Asia-Pacific region’s share of 

total tourist arrivals increased 

Percentage Share 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

1995 2005 2007 

Asia and the Pacific 

Africa 

Europe 

Latin America and Carib. 

North America 

Source: UNESCAP Statistical Yearbook for Asia and the Pacific 2009 

from 18.7% to 25.7%. Steady growth was also recorded in Africa over the same period – with 

its share growing from 4.2 to 6.0%. However, North America and Europe, on the other hand, 

despite increases in their absolute number of tourist arrivals, saw their shares of the market 

decline. The aforementioned statistics relating to the global tourist arrivals in various regions 

are depicted by the adjacent chart. 

Within the Asia-Pacific region, the strongest performance was in the South and South-West 

Asia sub region, with a hefty increase in tourist arrivals in 2007 of 14.4%. This growth was 

sustained by the robust performances of Nepal (+37.2%), Turkey (+17.6%), India (+14.3%) 

and Maldives (+12.3%). The South-East Asia sub region, which used to be the region’s 

leader, became the second best performer with a 11.7% increase with major contributors 

being Malaysia 

The East and North East-Asia sub region, led the growth in tourist arrivals with an increase of 

21.1% in 2007. China’s growth in arrivals (+9.6%) also contributed to the sub region’s 

continuing high performance. Indeed, in recent years China has become a world tourism 

leader – both inbound and outbound. Since 1995, tourist departures from China have grown 

tenfold. Among the beneficiaries of China’s outbound travel growth were Japan with a 13.8% 

increase of visitors in 2007 and Hong Kong with an 8.4% increase. 

The North and Central Asia sub region also had a solid performance, averaging a 7.7% 

annual growth in arrivals over the period 1995-2007. Kyrgyzstan, Kazakhstan and Azerbaijan 

were major contributors to this growth. 

The growth in arrivals has been accompanied by a large growth in income. Between 1995 

and 2007 worldwide receipts from international tourism more than doubled to $1,028 billion. 

9 


As in the previous years, Europe received almost half ($466.9billion) of world revenue, while 

almost one quarter ($241.7 billion) went to Asia and the Pacific. Between 2000 and 2007, the 

region increased its share of global tourism receipts from 19.1% to 23.5%, consolidating its 

position as the second-highest tourism earner. 

Tourism can have a huge economic impact as visitors spend money on accommodation, food 

and drink, and local transportation. Within the Asia-Pacific region, several countries depend to 

a substantial extent on tourism. The chart presented below illustrates tourism receipts as a 

percentage of the Gross Domestic Product (the “GDP”) for certain selected countries for 1995 

and 2007. 

Kyrgyzstan 

Malaysia 

Hong Kong, China 

Thailand 

Singapore 

Phillipines 

Australia 

Turkey 

Bhutan 

Srilanka 

Indonesia 

India 

Pakistan 

Bangladesh 

2007 1995 

0 2 4 6 8 10 12 

Percentage 

Source: UNESCAP Statistical Yearbook for Asia and the Pacific 2009 

As per the United Nations World Tourism Organization (“the UNWTO”) the number of 

international tourist arrivals worldwide reached 247 million between January 2009 and April 

2009, down from 269 million compared to the same period in 2008, declining by 8%. Results 

reflect the severe impact of the global economic crisis and all the associated causes and 

effects, exacerbated in some regions by concerns about the outbreak of the influenza virus. 

The UNWTO World Tourism Barometer 2009 has revised its previous forecast and expects 

international tourism to decline by between -6% and -4%. 

4.2 Tourism in Pakistan 

Tourism has been a major social phenomenon of societies all along and is motivated by the 

human desire for leisure, adventure and entertainment. The motivation for development of 

tourism also includes social, religious and business interests. The importance of tourism as 

an instrument for economic development and employment generation, particularly in remote 

and backward areas has been recognized the world over. Tourism is one of the largest 

service industries globally in terms of gross revenue as well as foreign exchange earnings. 

Tourism is among the significant economic sectors in Pakistan that has huge potential to 

achieve high growth rates if supported effectively by the government. Support from the 

government can be in the form of providing infrastructure, utilities, services as well as other 

incentives for private investor in the form of project support under PPP arrangements. It has 

the capacity to capitalize on the success of the country in the services sector and provide 

sustainable models for growth. It offers the potential to stimulate other economic sectors 

through its backward and forward linkages across various sectors like agriculture, horticulture, 

handicraft, transport, construction etc. Expenditure on tourism induces a chain of transactions 

requiring supply of goods and services from related sectors. The consumption demand, 

emanating from tourist expenditure also induces more employment and creates a multiplier 

10 


effect on the economy. Consequently additional income and employment are generated 

through such linkages. 

Tourism industry is overwhelmingly represented by the private sector service providers while 

public sector has a significant role to play in infrastructure areas either directly or through 

other mediums such as PPP. Another important feature of the tourism industry with reference 

to Pakistan is its contribution to national integration and preservation of natural as well as 

cultural environment and enrichment of social profile. 

4.2.1 Estimates and Forecasts 

According to World Travel and Tourism Council (the “WTTC”), Pakistan is estimated to have a 

Travel and Tourism (the “T&T”) demand of PKR 1,050b in 2010, less imported goods and 

services including T&T spending abroad of PKR 264.5b, amounts to an overall T&T Economy 

GDP of PKR 786.2b. Overall, the T&T sector supports 2.4 million jobs across Pakistan, 

however direct industry GDP and employment is PKR 291b (equivalent to 2% of GDP) and 

869,000 jobs (representing 1.6% of total employment) respectively. 

The adjacent chart indicates the sectors comprising 

T&T demand in 2010 for Pakistan as per the WTTC 

Report 2010 for Pakistan, which states the following: 

„ Contribution of T&T to the GDP is expected to 

rise from 5.3% (PKR 786.2b) in 2010 to 5.5% 

(PKR 2,205.1b) by 2020; 

„ Real GDP growth for T&T economy is expected 

to be negative 3.7% in 2010, but would average 

5.8% per annum over the coming 10 years; 

„ Export earnings from international visitors and 

tourism goods are expected to generate 3.8% of 

total exports (PKR 81.7b) in 2010, growing (on 

nominal terms) to PKR 232.2b in 2020; and 

„ T&T investment is estimated at PKR 356.9b, or 

13.8% of total investment in 2010. By 2020, this 

is projected to reach PKR 1,036.0b or 13.3% of 

total investment. 

8% 3% 

38% 

34% 

3% 

14% 

Personal T&T 

Business T&T 

Government Expenditures Capital Investment 

Visitors Exports 

Source: WTTC Report 2010 for Pakistan 

Other Exports 

THIS AREA IS INTENTIONALLY LEFT BLANK 

11 


The table below illustrates the major indicators of tourism in Pakistan as forecasted by WTTC 

Table: Major Tourism Indicators from 2010 – 2020 : Estimates and Forecasts 

2010 2020 

PKR 

(billion) 

% of 

Total 

Growth 1 

(%) 

PKR 

(billion) 

% of 

Total 

Growth 2 

(%) 

Personal Travel & Tourism 395.0 3.4 10.4 1,386.9 4.4 8.2 

Business Travel 151.2 1.0 (3.7) 433.8 1.1 6.0 

Government Expenditures 30.9 2.0 2.0 86.7 2.1 5.8 

Capital Investment 356.9 13.8 (6.6) 1,036.0 13.3 6.1 

Visitor Exports 81.7 3.8 2.2 232.2 2.5 5.9 

Other Exports 34.9 1.6 5.5 151.0 1.6 10.5 

T&T Demand 1,050.7 5.8 1.0 3,326.8 6.5 7.1 

Direct Industry GDP 290.6 2.0 (1.2) 792.3 2.0 5.5 

T&T Economy GDP 786.2 5.3 (3.7) 2,205.1 5.5 5.8 

Direct Industry Employment 3 869.3 1.6 (1.3) 1,138.2 1.6 2.7 

T&T Economy Employment 3 2,400.4 4.3 (3.8) 3,235.5 4.4 3.0 

1 2010 real growth adjusted for inflation (%); 

2 2011-2020 annualized real growth adjusted for inflation (%); and 

3 000 jobs 

Source: World Travel and Tourism Council Report on Tourism in Pakistan 2010 

4.2.2 GNP Contribution 

Tourism Receipts (YOY) 

Receipts PKR mn 

18,000 

15,000 

12,000 

9,000 

6,000 

3,000 

0 

2002-03 2003-04 2004-05 2005-06 2006-07 

60.0% 

50.0% 

40.0% 

30.0% 

20.0% 

10.0% 

0.0% 

-10.0% 

YOY % change 

Source: State Bank of Pakistan 

Contributions from the tourism industry have remained at 0.2% of Gross National Product (the 

“GNP”) during 2005-06. The GNP of Pakistan for the same period was PKR 5,285 billion, as 

reported by the State Bank of Pakistan (the “SBP”), the exchange earnings for the same 

period amounted to PKR 13.2 billion. 

4.2.3 Inbound Tourist Traffic and Tourism Receipts 

Inbound Tourist Traffic refers to the number of international tourists who stay at least one 

night in a collective or private accommodation in the country visited. Same-day visitors are not 

included. The data refer to the number of arrivals and not to the number of persons. 

12 


International tourism receipts are the receipts earned by a destination country from inbound 

tourism resulting from expenditure made by visitors from abroad, on lodging, food and drinks, 

fuel, transport in the country, entertainment, shopping, etc. 

Long term trends of foreign tourist arrivals and tourism receipts of Pakistan reflect irregular 

trends during the last decade as exhibited in the adjacent table. 

Year 

Tourist Arrivals in 

"000s" 

Receipts 

(US$ Million) 

Tourism Receipts 

as a percentage 

of GDP 

1995 378 582 0.7% 

2000 557 Not available- Not available 

2005 798 828 0.6% 

2006 898 Not available Not available 

2007 840 900 0.5% 

Source: UNESCAP Statistical Yearbook for Asia and Pacific 2009 

According to UNESCAP foreign tourist arrivals increased continually from 378,000 in 1995 up 

to 898,000 in 2006. However, in 2007 tourist arrivals saw a slight decline when they went 

down to 840,000. This was primarily on account of the decline in global tourism. During the 

period, 1995 - 2007, tourist arrivals increased at a CAGR of approximately 7.5%. Tourism 

receipts have also continued to increase throughout the period 1995-2007. 

4.2.4 Outbound Tourist Traffic and Expenditures 

Outbound Tourist Traffic refers 

to the number of departures that 

people make from their country 

of usual residence to any other 

country for any purpose other 

than a remunerated activity in 

the country visited. 

Outbound tourism expenditure 

includes expenditures on 

lodging, food and drinks, fuel, 

transport in the country, 

entertainment, shopping, etc. 

USD Millions 

2,500 

2,000 

1,500 

1,000 

500 

0 

1995 2005 2007 

Outbound Tourism Expenditures (USD Millions) 

1.60 

1.40 

1.20 

1.00 

0.80 

0.60 

0.40 

0.20 

0.00 

Percentage 

%age of GDP 

Source: UNESCAP Statistical Yearbook for Asia 

As the data in the table above illustrates there is a significant demand for outbound tourism in 

Pakistan. Although a significant part of this is also attributable to religious tourism for 

purposes of Haj and Umra, it is estimated that this should account for about half of the traffic, 

which indicates a sizable component of T&T for business and leisure. This continues to grow 

over the years, with expenditures exceeding nearly US$ 2b in 2007. 

The statistics clearly indicate the ability of Pakistanis to spend money on trips abroad, be 

these for business or leisure. It also indicates the potential for tourism industry in Pakistan, if 

the country was not faced with lack of infrastructure to support the tourism industry, which 

drives Pakistanis to travel abroad for tourism activities. It would also be unreasonable to 

ignore the significant latent demand for tourism in segments that seek affordable leisure 

activity. The cost of air travel certainly restricts, if not prohibits, people from taking recreational 

trips out of the cities in Sindh’s urban centres, including Karachi. 

4.2.5 Motivation 

Using the western definition, motivational analysis of foreign tourists to Pakistan during 2006 

is given in the following table. 

13 


Motivation for Foreign Tourists 

0% 

5% 15% 

3% 

21% 

56% 

Holiday/Recreation 

Business 

Family Visit 

Meetings/Conventions 

Archaeology/Historical Sites Others 

The adjacent image illustrates that more 

than half of foreign tourist arrivals in 

Pakistan were for family visit (56%), 

followed by business (21%), 

holiday/recreation (15%) and meetings/ 

conventions (3%) according to a T&T study 

in 2007 by the Ministry of Tourism, 

Government of Pakistan. These four factors 

of motivation combined, account for about 

95% of the total arrivals. Very few tourists 

came to Pakistan for other reasons i.e. 

religion, archaeological/historical sites, 

sports, study and health. 

Source: T&T study, Ministry of Tourism 

4.2.6 Average Spending Levels 

According to the data of SBP, average spending per foreign tourist increased by 25% from 

US$ 232 in 2005 to US$ 290 in 2006. Similarly, spending per tourist per day also increased 

by 24% from 9 US$ in 2005 to 12 US$ in 2006. 

4.2.7 Exports & Tourism Earnings 

Export receipts have grown at an annual rate of 15% between 2002 and 2006, while earnings 

from tourism have increased at an annual rate of 19% over the same period. The place of 

tourism in foreign exchange earnings improved in 2005-06 as compared to 2004-05 i.e. from 

12th to 11th. 

International travel receipts as a percentage of earnings from exports remained the same i e. 

1.3% in 2005-06. Their share in the combined receipts of merchandise and service items also 

remained the same i.e. 1% in 2005-06 as was in the previous year. 

Tourism receipts were higher in all twelve months of the year 2006 as compared to the same 

months of 2005, which resulted in an increase of 40% overall receipts during 2006. 

4.2.8 Tourism and Employment 

Tourism is labor intensive and provides an ideal mechanism for increasing employment in the 

service sector. The principal employers in the tourism sector are hotels, restaurants and travel 

agents / tour operators. 

During 2005-06, there were 1,761 hotels with 41,146 rooms, 226 air conditioned restaurants 

with seating capacity of 25,814 and 2,142 travel agents/ tour operators. Other tourism 

services such as, airlines, road transport, souvenir shops etc. also provide employment to a 

large number of people besides paying taxes, license & registration fee etc. to the public 

exchequer. It is estimated that the hospitality industry and travel trade employed more than 

600,000 people directly in 2005-06. However, as indicated above, the sector overall supports 

2.4 million direct and indirect jobs across Pakistan, out of which 869,000 jobs are provided 

under direct employment in the T&T sectors (representing 1.6% of total employment). 

4.2.9 Tourism and Regional Development 

Tourism, being a labor intensive industry creates more jobs and opportunities in the areas, 

which are not suitable for industrial development. It helps in the redistribution of wealth in 

remote areas and creates a range of job opportunities from highly qualified people to people 

with low academic profile, such as waiters, cooks, housemaids and janitorial workers. 

14 


It is estimated that more than half of total income earned by the people from tourism sector 

came from backward districts, and/ or areas having certain tourist attractions. These areas 

were mostly, Murree, Galliat, Northern Areas, Swat, Ziarat, Abbottabad, Kaghan, Naran, Azad 

Kashmir and other smaller resort areas. 

4.2.10 Domestic Tourism 

Composition of Domestic Tourists 

15% 

20% 

7% 

8% 

19% 

13% 

18% 

Students 

Skilled agriculture and fishery workers 

Housewives 

Sales workers 

Businessmen 

Government officials 

Others 

Source: Domestic Tourism Survey, Ministry of Tourism 

Based on the findings of the Domestic 

Tourism Survey carried out by the 

Ministry of Tourism, Pakistan, it was 

estimated that in all 43 million domestic 

tourists travelled within the country 

during 2006. 

Domestic tourism is mostly concentrated 

among those below 40 years of age. 

Most domestic tourists i.e. 31% fall in 

the age group of 16-30 years, followed 

by 25% between 31-40 years, 17% from 

the age under 15 years and 41-50 years 

each, and 10% in the age group of 51 

years and above. 

As the above chart depicts, one-fifth of domestic tourists were students, followed by 19% 

skilled/agriculture & fishery workers, 18% housewives (which most likely represents family 

holidays), 13% sale/ service workers, 8% businessmen, 7% government officials and 15% 

other categories. 

Over half of the domestic tourists were motivated by social calls followed by recreation, 

business and health. These four motivating factors, combined together, formed 85% of the 

travel within Pakistan. 

Domestic tourists usually use three types of accommodation; either a relative's house, or 

hotels and/ or their own houses which combined together makes up for more than 94% of the 

total accommodation used. More than three-quarters of the tourist preferred to stay with their 

relatives while the use of hotel accommodation was 15% only. Nearly 90% of domestic 

tourists travel by road, 9% by rail and 2% by air. 

4.3 Tourism Attractions in Sindh 

Sindh holds many tourist attractions, such as wildlife sanctuaries, beaches, lakes, historical 

sites, tombs of several Sufi saints and shrines, etc. A few examples of the same are given 

below: 

► 

► 

► 

► 

► 

Wildlife protected areas at Keerthar National Park 

Hill stations at Gorakh Hill 

Tombs at Makli and Chaukandi and 

Shah Jehan Masjid 

Shrines at Sehwan Sharif 

Due to its varied geography and long history, Sindh hosts numerous spots of interest, which 

can be developed in to tourism spots. The districts of Thatta and Badin have popular ecotourism 

locations, including Keenjhar Lake and Keerthar National Park. There are a number 

of places of cultural and religious significance, such as mosques, shrines and temples, as well 

as ancient tombs and forts as well as remnants of ancient civilizations, scenic hill ranges, 

unexplored forests and deserts. 

15 


4.3.1 Tourist Destinations 

Chaukundi Tombs: 27kms from Karachi 

on the National Highway (“the NH”), on the 

distant horizon one sees clusters of 

unusual graves in the shape of stepped 

pyramids. The distinguishing features of 

these graves are the superb carving and 

engraving of the slabs with various designs 

of jewellery, floral patterns and even horses 

and their riders. The adjacent picture 

exhibits and illustration of the elaborate and 

exquisite carvings and Islamic architecture 

for which Chaukandi tombs are famous. 

Makli Tombs: Approximately 101kms from 

Karachi is the largest necropolis in the 

world (Makli). The elegant use of beautifully engraved sandstone on the graves is a feature 

unique to this site. 

Shah Jehan’s Masjid: Shah 

Jehan’s Masjid, situated on 

Thatta’s outskirts, is 

representative of Muslim 

architecture. It was built in 

1647 A.D. by the Mughal 

Emperor Shah Jehan, and is 

said to have the most 

elaborate display of blue-andwhite 

tile work in the subcontinent 

as can be seen in 

the adjacent picture. 

The Shah Jehan Mosque has 

99 domes and is considered a 

masterpiece of Mughal 

architecture. 

Indus Valley Civilization: The Indus Valley was home to the largest of the four ancient urban 

civilizations of Egypt, Mesopotamia, South Asia and China. Most of its ruins, even its major 

cities, remain to be excavated and the ancient Indus script has not been deciphered. Many 

questions about the Indus people who created this highly complex culture remain 

unanswered, but other aspects of their society can be answered through various types of 

archaeological studies. 

Discovered in 1922, Moenjodaro (in Sindh province) was once a metropolis of great 

importance, forming part of the Indus Valley Civilization with Harappa (discovered in 1923 in 

the southern Punjab), Kot Diji (Sindh) and recently discovered Mehrgarh (Balochistan). 

Moenjodaro is considered as one of the most spectacular ancient cities of the World. It 

hasmud and baked bricks’ buildings, an elaborate covered drainage system, a large state 

granary, a spacious pillared hall, a College of Priests, a palace and a citadel. Harappa, 

another major city of the Indus Valley Civilization, was surrounded by a massive brick wall 

fortification. Its other features and plans of the city were similar to that of Moenjodaro. The Kot 

Diji culture is marked by well-made pottery and houses built of mud-bricks and stone 

foundations. Mehrgarh, the oldest Civilization (7,000 B.C), remains of which were found in the 

district Kachhi of Balochistan recently, was the pioneer of the Indus Valley Civilization. The 

evidence of crop cultivation, animal husbandry and human settlement has been found here. 

The inhabitants of Mehrgarh were living in mud-brick houses and learned to make pottery 

around 6,000 B.C. 

16 


4.3.2 Eco-Tourism 

Marine Turtles & Mangrove Forests: A 

drive to the beaches of Hawks Bay and 

Sandspit (near Karachi) is one of the 

greatest sources of pleasure to a nature 

lover. It provides a unique tour of the 

shores of the Karachi coast where the 

Green Turtle and Olive Ridley are found 

during the nesting seasons. During 

autumn, after the monsoons when the sea 

is calmer, the visitors can sit quietly on the 

beach on a moonlit night and watch the 

turtles come up and repeat what they have 

been doing for generations i.e. laying their 

eggs and leaving them in the enclosing 

warmth of the soft sand for the heat of the sun to incubate till young hatchlings, perfect 

miniatures of the adult, emerge and scramble to the sea. Visitors in this area may also wish to 

tour the Somiani Bay Mangrove Forest that is the breeding ground for fish and shrimps and 

home to many resident and migratory birds. 

Bird Watching, Keenjhar & Haleji Lakes: In the northeast of Karachi, forming the end of the 

chain of the great lakes lie the beautiful fresh water lakes of Haleji and Keenjhar in the district 

of Thatta. Some forty 

thousand birds including over 

70 species of waterfowl find 

refuge here during the winter 

months. These lakes can be 

regarded as one of the most 

important wintering areas for 

waterfowls in Eurasia. 

Flamingos, Pelicans, Purple 

Gallinules, Ducks, Coots, 

Herons, Pheasants, Tailed 

Jacanas, are just some of the 

birds that can be observed 

here, undisturbed in their 

natural habitat. Besides 

providing an excellent opportunity for bird-watching, there are also tours of the surrounding 

areas which allow for exploration of the historical monuments of Thatta and Chaukandi. 

Thatta has the largest necropolis in the world with beautifully engraved sandstone on the 

graves. 

Indus River: Indus is one of the greatest rivers of the world. It originates high in the 

mountains of Tibet and flows through Ladakh in Sindh before flowing into the Arabian Sea. 

On its 3,200kms journey it passes through the great Himalayan and Karakoram ranges, the 

fertile plains of the Punjab and the vast desert of Sindh. Near the great Nanga Parbat (8126 

m), it forms the borderline between the Asian and Indian continental plates. The Indus is 

blessed with a rich variety of wildlife throughout its journey. Among these are various resident 

and migratory birds, mammals, reptiles and fish. The Indus Blind Dolphin is one of its most 

famous inhabitants. 

4.4 Tourist Sites under consideration for development 

Keerthar Protected Area Complex (KPAC): Keerthar National Park is one of the largest 

wildlife reserves in Sindh. The Keerthar Range forms the boundary between the Lower Indus 

Plain (east) and southern Balochistan (west). It consists of a series of parallel rock hill ridges 

rising from 4,000 ft (1,200 m) in the south to nearly 8,000 ft (2,500 m) in the north. Keerthar 

National Park is Pakistan's second biggest National Park. 

17 


Keerthar is an area of outstanding beauty and wildlife which provides an important habitat for 

a variety of mammals, birds and reptiles characteristic of the arid subtropics. Approximately 

one third of the park 

lies in the north of 

Karachi district and 

two thirds in the 

south-west of Dadu 

district. The park is 

part of a 447,161 

hectare protected 

areas complex, being 

contiguous with the 

Mahal Kohistan 

Wildlife Sanctuary 

(70,577ha) to the 

south and the Hab 

Dam Wildlife 

Sanctuary (27,219ha) 

to the south-west. 

There are two tourist centers in the Park managed by the Sind Wildlife Management Board, 

namely Khar and Karchat. The centres offer cottage and dormitory accommodation and 

guides are available. There are some 671kms of un-metalled roads within the park, most of 

which are traversable only by a four-wheel drive vehicle. 

Gorakh Hills: At an elevation of almost 6,000 ft, Gorakh Hill is 93kms away in the north west 

of Dadu District along with (Khuzdar) Balochistan Border. It is the highest point of the 

Keerthar Mountain Range in Sindh and a unique adventure point for nature lovers. In the 

summer season, the temperature ranges between a maximum of 25°C during the day time to 

5°C at night. Temperatures during winters are well below zero with occasional snow fall 

making it the only region in the province of Sindh where it snows. Gorakh hills could serve as 

a hill resort for the locals of Sindh and Balochistan as well as the international community. 

There is an opportunity to 

develop Gorakh Hills into a 

well managed hill station. In 

this regard, the GoS has 

established Gorakh Hills 

Development Authority 

(GHDA) which has 

developed a master plan for 

the site and is in process of 

making development plans 

for the site. The Tourism 

department is actively 

looking to develop the 

infrastructure and initial 

development packages and 

has appointed a team of 

technical, financial and 

legal consultants to assist 

them in this task. 

Buddhist Pilgrimage & Development of Buddhist Shrines: A study should be made on the 

basis of a similar study undertaken taken by the Planning and Development Division of 

Pakistan with the same title. Development projects for archaeological sites such as Mohenjo- 

Daro should be undertaken in order to enhance tourism in Sindh. Further, Hindus and 

Buddhists should also be kept in mind when undertaking these studies. 

18 


4.5 Eco friendly Tourist Resort in Sindh 

Sindh is rich in cultural heritage varying from religious sites in Sukkur, Thatta and the Sehwan 

districts to the relics of ancient civilizations like Mohenjodaro and Rannikot Fort and is marked 

by its diversity and its close ties to the great Indus Valley Civilization of the third millennium 

B.C. Despite all this, efforts made to acknowledge the remarkable value of this cultural 

heritage as a tool for understanding history, archaeology, as well as for the promotion of 

tourism in the area, have been largely ineffective. 

There are also a number of natural and man-made wetlands in Sindh that offer potential for 

tourism. These wetlands can act as the base upon which the tourism industry can be 

developed in Sindh and its history and culture celebrated with its people and shared with the 

rest of the country and indeed the world. 

In order to facilitate tourism, schemes are being developed for establishing world class tourist 

facilities at selected wetlands on a PPP basis. The GoS intends to provide land on long term 

lease at concessional rates to the private sector to develop supporting infrastructure for 

tourism activities, while it provides links such as road access and other utilities in connection 

to the development sites. The role of the GoS would be to facilitate the private sector in 

developing and operating these facilities in an eco-sensitive manner. 

GoS has identified Keenjhar Lake in Thatta District one of its first tourism projects to be 

developed on a large scale. It plans to develop a carefully selected site at the lakeside as a 

world-class eco-friendly tourist resort, with a large recreational area to add to its economic 

viability. Key facts on the lake are summarized below: 

► 

► 

Keenjhar Lake (also known as Kalri Lake) is situated at a distance of 113 km from 

Karachi, 70 Km from Hyderabad and approximately 20 km north and north east of Thatta 

City. 

Keenjhar Lake is a Ramsar Site 1 . The Ramsar Convention applies on designated 

wetlands of international importance whose conservation and preservation is supported 

by “159 contracting parties” (countries). 

1 The Convention on Wetlands (Ramsar, Iran, 1971) - called the "Ramsar Convention" - is an intergovernmental treaty that 

embodies the commitments of its member countries to maintain the ecological character of wetlands of international importance 

and work towards the “wise use” of these wetlands through national land-use planning, appropriate policies and legislation, 

19 


► 

► 

► 

► 

► 

The National Highway (N-5) passes very close to the Keenjhar Lake while Jhimpir 

Railway Station, the first station after Karachi is also located in close proximity. 

Keenjhar is the largest freshwater lake in Pakistan spread over an area of 145 sq km 

with an irregular shoreline of 192 km. The maximum depth of the lake is 8 meters. 

The lake is an important source of drinking water for Karachi and supports major fishery. 

A variety of breeding, passage and water birds make their way here in winter. The lake 

also has a rich flora of submerged, floating and emergent aquatic plants. 

Lack of overall infrastructure and control over exploitation of the lake resources is leading 

to the loss of environment and deterioration of the natural habitat around the lake. 

The overriding objective of the Project is to create an eco friendly tourist destination which 

would provide high quality business and recreational facilities, supported by infrastructure and 

amenities within a secure and wholesome environment that encourage extended stay at the 

site. The GoS also intends to develop infrastructure and facilities to further facilitate 

commuting to the lake. 

Plans are also under way to plan and develop the Thatta city and district area to meet the gap 

in infrastructure, utilities and services that has eluded many small urban cities and towns in 

interior Sindh. This is not only expected to improve the quality of lives of people who are 

resident there, but also enable the city to support tourism activities and furthermore it would 

add to the value of projects at Keenjhar Lake. 

management actions, public education and international cooperation regarding development projects and conservation of site 

species 

20 


5 Pakistan – Profile and Overview 

5.1 Country Profile 

5.1.1 Overview 

Pakistan is the 6 th largest country of the world with a population estimated at 180 million 

according to the Population Census of Pakistan – September 2009. It lies between 23°35’ to 

37°05’ north latitude and 60°50’ to 77°50’ east longitude, touching the Hindu Kush Mountains 

in the north and extending to the Arabian Sea. Pakistan is bounded by Iran in the west, 

Afghanistan in the north-west, India in the east and south-east with Arabian Sea in the south. 

It shares a common border with China alongside Gilgit and Baltistan in the northern part. It 

covers 796,096 sq kms and is divided into four provinces namely: Sindh, Punjab, Khyber 

Pakhtunkhwa (KP) [formerly known as North West Frontier Province (NWFP)] and 

Baluchistan. 

Climatically, Pakistan enjoys a 

considerable measure of variety where its 

north and north western areas are 

extremely cold in the winter while the 

summer months, from April to September, 

are pleasant. The coastal strip in the south 

normally has a moderate climate. The 

Indus Valley plains are extremely hot in 

the summer with cold and dry weather 

during the winters. Monsoonal rains fall 

late during the summers. Due to the 

rainfall and high diurnal range of 

temperatures, humidity is comparatively 

low. 

The country has an agricultural economy 

with a network of canals irrigating a major 

part of its cultivated land producing major 

crops such as wheat, cotton, rice, millet 

and sugar cane.. The main natural 

resources comprise natural gas, salt, coal 

and iron whereas cotton, textiles, sugar, 

cement and chemicals also tender an 

important role in the economy of Pakistan. 

Pakistan is an Islamic country where 97% of the population is Muslim and the remaining 3% 

comprise Christians, Hindus, Zoroastrians and others. 

English is the official language while Urdu, used as a medium of understanding throughout 

the country, is the national language. According to the Summer Institute of Linguistics, a total 

of 72 languages are spoken all over Pakistan. 

5.1.2 Demographics 

► Population Reference Bureau, figures for mid 2009 classify Pakistan as the sixth most 

populous country in the world. Population grew during 1972 to 2009 at a compounded 

annual growth rate (“the CAGR”) of 2.3%. The country’s population is estimated to double 

by the year 2045 if it grows at 1.8% per annum. 

► The population density has increased to 209 persons per sq. km. in 2009, from 42.5 

persons per sq km in 1951 which is almost a fivefold increase. A large percentage of the 

urban population of Pakistan is centred in three major urban agglomerations: Karachi, 

Lahore and Faisalabad. 

21 


► Furthermore, according 

to a 1998 census, about 

56% of the population 

was based in the 

province of Punjab, 23% 

in Sind, 16% in KP and 

5% in Baluchistan. The 

same rate of population 

division was observed in 

estimates for the year 

2008 according to the 

Economic Survey of 

Pakistan 2008-09. 

Table: Population Profile of Pakistan 

Population Mid-2009 180,808,000 

Birth Rate (annual number of births per 1,000 total 

population) 

30 

Death Rate (annual number of deaths per 1,000 total 

population) 

7 

Rate of Natural Incr. (birth rate minus death rate) 2.3 

Natural Increase/Decrease, Annual 3,883,000 

Population Mid-2025 (projected) 246,286,000 

Population Mid-2050 (projected) 335,195,000 

Population Change 2009-2050 (projected %) 85 

Population Gain/Loss, 2008-2050 122,425,000 

► As per the 1998 census, 

the population of Punjab 

Population Age

5.1.3 General Macroeconomic Indicators 

GDP 

Pakistan experienced a period of 

high growth rate from 2003 to 2007, 

after which the global economic 

slowdown and specific internal 

issues in the country contributed to 

a reduction in economic growth. 

Real GDP grew by 2.0% in 2008-09 

as against 4.1% last year, falling 

well short of the growth targeted of 

4.5%. The intensification of war on 

terror in settled areas, coupled with 

other domestic factors like political 

turmoil and unstable law and order 

situation, acute energy shortages, 

10% 

9% 

8% 

7% 

6% 

5% 

4% 

3% 

2% 

1% 

0% 

Source: Pakistan Economic Survey 2008-09 

GDP Growth Trend 

2004-05 2005-06 2006-07 2007-08 2008-09 2009- 

10(target) 

supply shocks, augmented by external factors like worsening of international financial crisis 

feeding into shrinkage of external demand and the uncertainty about global recession, tested 

the resilience of Pakistan’s economic fundamentals. 

USD Millions 

Foreign Direct Investment (FDI) 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

USD Billions 

0 

7 

6 

5 

4 

3 

2 

1 

0 

2002 2003 2004 2005 2006 2007 2008 2009 Feb 

2010 

FDI (US$m) 

Source: Board of Investment, Government of Pakistan 

Worker’s Remittances 

2002 2003 2004 2005 2006 2007 2008 2009 Feb 

2010 

Workers Remittances (US$b) 

Source: Board of Investment, Government of Pakistan 

Total Foreign Direct Investment (“the 

FDI”) (excluding worker’s remittances) for 

the fiscal year 2008-2009 i.e., from 1st 

July 2008 to 30th June 2009 was $3.72 

billion compared to $5.2 billion in 2007- 

08. This fall was led by the global 

financial crisis as most countries around 

the world faced severe cutbacks in 

private capital inflows. However, 

Pakistan’s inflows were further impacted 

by the deteriorating security environment. 

Worker’s remittances continue to boast 

an increasing trend and have amounted 

to US$ 7.81b during FY09 and have 

already reached US$ 5.79billion just 

before the end of the third quarter of 

FY2010. They are further expected to 

reach nearly US$ 8.7b by the end of 

FY2010 if this trend continues. Some 

analysts have raised concerns that this 

growth is mainly attributable to one-off 

transfers from expatriates who lost jobs 

in the Middle East, USA and Europe in 

the wake of the global economic crisis. 

However, it is equally possible that a 

structural shift has taken place after the 

actions against alleged illegal activities 

by some foreign exchange companies has been taken, which imposes transfers through legal 

channels and thereby reinforces this positive trend. 

23 


Exports 

Exports and Imports 

The trend of Pakistan’s exports of 

major items remains concentrated 

on five items namely cotton 

manufactures, leather, rice, 

synthetic textile and sports goods. 

These five categories accounted 

for 73.5% of the total exports 

during the period July 2008 – 

March 2009. 

Imports 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

FY03 FY04 FY05 FY06 FY07 FY08 FY09 Target 

Exports Imports 

FY10 

Source: Pakistan Economic Survey 2009 , SBP Economic overview 1st Quarter FY10 

Imports declined by 9.8 percent and stood at US$ 28,922.4 million during the period July 

2008-April 2009 as against US$ 32,059.4 million of the corresponding period last year. The 

overall import bill is lower by $ 3,137 million than imports in the comparable period of the 

previous year. Import compression measures, lowering domestic demand, coupled with fall in 

international oil prices from the highs in early 2008 that had a crippling effect of Pakistan 

economy, have started paying dividends and imports have witnessed a slowdown. 

Depreciation of the rupee had also played a significant role for lower imports during FY2009. 

Imports continue to decline during the initial quarter of the fiscal year 2010. However, it is 

forecasted that this trend will reverse and imports will rise in the months ahead with an 

expected revival in domestic manufacturing, and rising international commodity price. 

Per Capita Income 

Per capita income has grown at an 

average rate of above 13% per 

annum during the last five years, 

rising from US$ 586 in 2002-03 to 

US$ 1042 in 2007-08. Per capita 

income depicted a marginal increase 

of 0.3% in 2008-09 when it rose to 

US$ 1,046 in 2008-09. 

Real per capita income in rupee 

terms has also increased by 2.5%, 

as compared to 0.3% growth last 

year. 

Per capita Income (US$ m) 

1200 

1000 

800 

600 

400 

200 

0 

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 

Source: Pakistan Economic Survey 2009 

Employment 

60 

50 

40 

30 

20 

10 

0 

Labor Force and Employment 

2001-02 2003-04 2005-06 2006-07 2007-08 

Labor force Employed 

60 

50 

40 

30 

20 

10 

0 

Pakistan had a recorded labor force of 51.78 

million people in 2007-08 compared with 50.33 

million people in 2006-07 – an increase of 1.45 

million. However, the gender composition of 

Pakistan’s labor force remained the same with 

79% male and 21% female workers. 

As per the Labor Force Survey 2007-08 the 

total number of people employed in FY08 was 

49.09 million, 1.44 million more than the 

previous year. Although unemployed workers 

increased in absolute terms during FY2008, the 

unemployment rate remained constant at 5%. 

Source: Labor Force Survey 2007-08 

24 


The informal sector contributed more than seven-tenth (73%) of employment in main jobs 

outside agriculture, while formal sector activities were concentrated more in the urban areas. 

Nearly 44.6 percent of the labor force was employed in agriculture, indicating an increase 

from the previous year’s figures. 

GDP Overview 

With international and domestic economic pressures, GDP growth has been estimated at 

3.3% for the year 2009-10; with agriculture sector growth estimated at 3.8%, manufacturing at 

1.8% and services sector at 3.9%. 

The Nine Points Economic Agenda of the Government forms the strategic thrust for the 

economy. Major elements of the strategy are: 

► 

► 

► 

► 

► 

► 

Ensure economic recovery consistent with stabilization. 

Maintain momentum of agriculture growth together with support policies for revival of 

industries; 

Address critical infrastructure gaps in water, power and transport for enhancing 

competitiveness; 

Achieve Millennium Development Goals and reduce poverty through a comprehensive 

social protection system with an exit strategy; 

Facilitate balanced development in the country by reducing regional disparities; and 

Rehabilitation and reconstruction of conflict affected areas. 

Agricultural Sector 

Agriculture has grown at an average rate of 4.1% per annum since 2002-03 to 2008-09 and 

grown by 4.7% in 2008-09 against a target of 3.5%, primarily on account of record production 

of wheat (23.42 million tons), rice (6.9 million tons) and maize (4 million tons). 

Manufacturing Sector 

Large scale manufacturing registered a negative growth of 7.7% from July 2008 to March 

2009 as against 4.8% positive growth in the comparable period last year. 

Services Sector 

In FY2009, the services sector grew by 3.6 percent against the target of 6.1 percent and 

actual outcome of 6.6 percent. A slowdown in economic activities, worsened by the energy 

crises, has impacted the performance of this sector too. In relation to domestic economic 

slowdown the decline in foreign inflows of funds impeded growth prospects in this sector. 

Other indicators 

Workers’ remittances totalled US$ 6.3b during the period July-April 2009 as against US$ 5.3b 

in the comparable period of last year, depicting an increase of 19.5%. Major remittances were 

from US (22.6%) and UAE (21.5%). 

Pakistan’s current account deficit expanded by 23.5% to US$ 8.547 billion during July-April 09 

as against US$ 11.173 billion in the corresponding period of last year. 

FDI showed a decrease of 13.8% during July to April 2009, amounting to US$ 3205 million as 

against US$ 3719 m during the comparable period last year. 

25 


Foreign Exchange Reserves followed a v-shaped recovery pattern declining from US$ 11.4b 

at end June 2008 to US$ 6.4 billion on 25 th November 2008 and then recovering to US$ 11.6 

b by the end of May 2009. The import coverage ratio improved to 18 weeks as of May 2009. 

The exchange rate after remaining stable for more than four years, lost significant value 

against the US$ and the rupee fell 16.3% during July 2008-October 2008. With the signing of 

the Standby Arrangements with IMF, the rupee got back some of its lost value and with 

substantial import compression, and improvement in overall external balance including revival 

of external inflows from abroad, the exchange rate hovered around Rs.80.50 during April 

2009. 

The country’s debt burden ratio declined from 50.9% at the end of 2001-02 to 27.6% of GDP 

by June 2008; however, it increased to 27.9% by September 2008. 

In relative terms, External Debt and Liability (the “EDL”) as a percentage of GDP increased 

from 28.1% at end-June 2008 to 30.2% by end-March 2009— an increase of 2.1% points. 

This is the highest ever rise in a single year for almost one decade depressed economic 

growth and the massive depreciation of rupee against the dollar partially explains this 

increase in EDL as a percentage of GDP. The EDL stood at 31.2% at the end of the first 

quarter of FY2010, witnessing a decrease of 0.4% points. Pakistan’s foreign exchange 

earnings have been falling due to sluggish performance of exports and volatile capital flows. 

Capital Markets 

The Karachi Stock Exchange (the “KSE”) 100 index hit its peak at 15,739.28 points on 21 

April 2008 and by August 2008, the capital markets went into a tailspin, declining by 43% from 

its peaks. As a safety measure the Pakistan stock exchange authorities placed a floor on KSE 

at the level of 9,144 points, which resulted in a virtual halt of the stock market. 

The index underwent a gigantic loss of 58.3% to close at 5,865 points on 31 December 2008 

as against 31 December 2007. The market capitalization experienced a huge fall of PKR 

2,471b (US$ 47b) since 31 December 2007. Prices nosedived due to waning macroeconomic 

fundamentals, a worsening law and order situation and international capital flight. 

The market resumed to its normal cycle after more than 4 months of delay on 15 December 

2009. Thereon, after suffering further decline, the KSE-100 share index has witnessed growth 

from 12 March 2009 and registered an increase of almost 2,000 points till the first week of 

April 2009. During this period the KSE-100 index improved to over 7,500 points, breaking the 

psychological barrier of 6,000 and 7,000 points. 

Since the commencement of the FY2009 equity investors had embarked on a fractional 

recovery of their fortunes with 

an upsurge in the KSE-100 

KSE 100 index 

index of 22.5%, driven up 

chiefly by signs of returning 16,000 

economic stability. 

14,000 

The aggregate market 

capitalization decreased by 

43.4 percent during 2009 to 

stand at PKR 2,137.3 billion on 

May 15, 2009 compared to 

PKR 3,777.7 billion at the end 

of FY2008. According to figures 

released by KSE, the total 

market capitalization during 

March 2010 stood around PKR 

2,753 billion. The magnitude of 

the fall in the market capital in 

terms of USD is comparatively 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

- 

Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 

Source: Karachi Stock Exchange 

KSE 100 index 

12-Mar- 

10 

greater, up to 52%, during the same period amid increasing rupee-dollar parity. The market 

has become more attractive. 

26 


During FY2010 Pakistan’s financial markets have seen positive results. The KSE saw a 

renewed foreign buying interest especially towards mutual funds. Recently various blue chips 

such as National Bank of Pakistan, Oil and Gas Development Corporation have recorded 

outstanding results which further attracted local and foreign investors. As a result the KSE 

index crossed the 10,000 points mark in during the 3 rd quarter of FY10 and hit a nineteen 

month high on 1 st April 2010. 

27 


6 Province of Sindh – Profile and Overview 

6.1 Province Profile 

Sindh is the third largest province in terms of area with its capital in Karachi, the most 

populous metropolis of the country and Pakistan’s commercial hub. The Province of Sindh 

forms the lower Indus basin and lies between 23°35’ to 28°30’ north latitude and 66°42’ to 

71°1’ east longitude. It is about 579 kms in length from north to south and nearly 442 kms in 

its extreme breadth (281 kms average). In terms of area, the province is 140,915 square kms, 

almost equal to England and Bangladesh. 

Geographically speaking the word "Sindh" denotes the lower half of the Indus Valley from 

Bhakkar down to the sea and from the Keerthar in the west to the desert of Thar in the east. 

The province is bounded on the north by Baluchistan and the Punjab, on the east by 

Rajisthan (India), on the south by the Runn of Kutch and the Arabian Sea and on the West by 

Lasbela and Kalat districts of the province of Baluchistan. 

At the time of independence from the 

British occupation in August 1947, the 

population of Sindh was estimated at 

5.5 million. Today, after the passage of 

over sixty years, population of the 

province stands around 40 million as 

per the Sindh Government website, 

half of whom now live in urban centres 

like Karachi, Hyderabad, Sukkur, 

Mirpurkhas, Tando Adam, Nawabshah, 

Larkana, Shikarpur, Khairpur, Badin 

and other smaller towns. Sindh is 

primarily an agrarian province and 

nearly one third (944 km) of its 2,880 

km length traverses the province. 

The climate of Sindh ranks among the 

hottest and is most variable. The 

average temperature of the summer 

months is 35°C and winter months are 

16°C. But the mercury frequently rises 

in summers to 45°C and occasionally 

to 50°C. The northern parts of Sindh 

are marked by extreme temperatures. 

Jacobabad recorded its highest temperature, i.e. 52°C, in June 1919. 

Cotton, rice, wheat and sugarcane are the main crops produced in Sindh. Rice is by far the 

most important crop cultivated. It is the only crop that can be grown in the annually inundated 

lands within the delta of the Indus and a larger quantity and much finer quality is produced in 

the Larkana district. Rice cultivation is also done in Jacobabad, Sukkur, Badin, Thatta and 

Dadu, whereas cotton is produced mainly in Sanghar, Nawabshah, and Hyderabad. 

Sugarcane is another important crop which is chiefly grown in the Ghulam Mohammad 

Barrage zone in South. Sindh is also renowned for its quality fruits, such as bananas and 

mangoes.The waters on the coast of Sindh are rich with seafood and are considered to be 

some of the best fishing spots in the world. Surmai, pomphret, lobsters, shrimps and sharks 

are some notable species of sea water. Whereas dolphins, crocodiles and Pallas exist in 

plenty in the sweet waters of the Indus, Manchar, Keenjhar, Haleji and other lakes. 

The province of Sindh has traditionally been rich in wildlife heritage. Keerthar National Park, 

about 70 kms North West of Karachi, is enlisted as a world heritage site and wildlife protected 

area. Keenjhar Lake, Gorakh Hills, Haleji Lake and Thar area are also of paramount 

importance and hold a vast potential for tourism. 

Though chiefly an agricultural and pastoral province, Sindh has a reputation for textiles, 

pottery, leatherwork, carpets etc. The craftsmanship of the people of Sindh began during the 

28 


period of Mohenjo-Daro civilization. Their polished ornaments and articles of apparel made 

out of muslin and wooden lacquer work have won praise within and outside the country. 

6.2 Regional Connectivity 

Road 

At the time of independence, Sindh inherited only about 1,039kms of blacktopped roads, 

mostly 9 ft. to 12 ft. in width. The only major road at that time was the National Highway 

running from Karachi to Reti, bordering on Punjab, and having a length of 664kms. Today the 

total road network in Sindh, including federal roads, approximates to 36,500kms in length. 

According to a survey conducted 

by Road Management Unit in 

year 2000-01, about 70% of the 

road network was in poor 

condition and required 

reconstruction / rehabilitation. 

Taking cognizance of the 

situation the province is now 

allocating Maintenance and 

Replacement (the “M&R”) funds 

at an annual growth of 20% over 

the previous year allocations. 

This is a welcome change and 70% of the M&R funds are utilized on the basis of prioritizedroads 

and 30% on emergency road-works. 

The Asian Development Bank (the “ADB”) and Organization of the Petroleum Exporting 

Companies (the “OPEC”) funded PKR 14.4 billion Sindh Road Sector Development Project 

and it includes 3 provincial highways covering 164 kms and Rural Access Roads of 1,200 

kms. Details of the project are given in the table above. Furthermore, the Hyderabad- 

Mirpurkhas and the Hyderabad-Badin road covering approx 165km are currently being 

constructed under a PPP structure. 

The image below depicts the road network in the immediate vicinity of Keenjhar Lake. As is 

apparent, the National highway (NH) passes closest to Keenjhar while a cluster of secondary 

and access roads in the Thatta district connect to the National Highway, increasing ease of 

transport for the people of Karachi and Thatta districts. Provincial Highways, S60 and S90, 

and some of their tributaries are well connected for this purpose. 

Figure: Sindh Roadmap 

Source: Government of Sindh 

Table: Sindh Road Sector Development Program 

Road 

Cost Work 

(PKR million) Completed 

P1-Thatta-Sujawal Road-301 Kms 740 98% 

P2-Nawabshah-Padedan 67.5 Kms 2,573 69% 

P3-Padedan Ranipur – 66.4 Kms 

48% 

Construction of 1200 Kms of Rural 

9,995 

Access Roads 

89% 

Sector Reform 306 Completed 

Source: Department of Transport, Government of Sindh 

National 

Highway 

River 

Indus 

Secondary 

Roads 

Provincial 

Highway 

Keenjhar 

Lake 

29 


Rail 

The image below outlines the railway track passing Keenjhar Lake. The track runs parallel to 

a road track passing by the same area. Major stops lying on the rail path are Karachi, Landhi, 

Jummah Goth, Bin Qasim, Badal Nala, Marshalling Yard Pipri, Gaddar, Dhabeji, Ran Pethani, 

Jungshahi, Braudabad and Jhimpir. The track goes further to Kotri, Hyderabad, Nawabshah 

and others. The Jhimpir Railway Station is the closest station to Keenjhar Lake and is only an 

hour and a half of journey time from the Cantt station of Karachi. 

Airports 

The adjacent image represents airports in 

Sindh, which also hosts the busiest airport of 

Pakistan, located in Karachi i.e. the Quaid-E- 

Azam International Airport. Airstrips are 

available at various other district headquarters 

which mainly include Hyderabad, Nawabshah 

and Sukkur. Lastly, two military airbases are 

placed near the coast of Karachi. The airstrips 

closest to Keenjhar Lake are situated at 

Karachi and Hyderabad. 

Sea Ports 

Sindh, hosts two of the major sea ports of 

Pakistan, namely the Karachi Port and Port 

Bin Qasim, as shown in the adjacent map. 

30 


6.3 Demographic and Socio-economic Profile 

Population forecasts for the decade i.e. from 

1998 to 2007 have been made on the 

assumption that the past trends have continued 

at least during this decade. The growth trends 

during the inter-censal period of 1981-98 have 

provided the basis for these projections. If 

things move with the current pace and direction, 

the likely scenario of the province after a 

decade is delineated in the adjacent table. 

Table: Sindh Demographic Indicators 

Indicator 

Statistics 

Urban population (%) 49 

Rural population (%) 51 

Population growth rate (%) 2.8 

Gender ratio (male per 100 female) 112.24 

Economically active population (mn) 22.75 

Source: 1998 census 

Table: Projected Population of Sindh up to 2030 

Population in millions 

1998 2007 2020 2025 2030 

Pakistan 132.4 168.1 245.6 272.1 326 

Sindh 30.4 39.0 63.5 64.2 89.8 

Source: Sindh Vision 2030, Government of Sindh 

In 2007, Karachi remained the largest city and 

Tando Muhammad Khan the smallest district of 

Sindh even though their shares in total 

population changed. The share of Karachi 

increased from 32.38% in 1998 to 32.4% in 

2007, whereas the shares of Nawabshah, 

Naushero Feroze, Hyderabad, Khairpur and 

Jacobabad appear to decline because of low 

growth rates. The share of Tharparkar rose 

substantially from 7.9% to about 9% percent of the total. If the current trends prevail, the GoS 

is looking at addressing and managing the needs of approximately 90 million people by the 

year 2030. 

31 


7 Overview of Thatta and surrounding districts 

7.1 Introduction to Districts surrounding Keenjhar 

Keenjhar Lake is strategically located in 

Sindh, between Karachi and Hyderabad. 

The Project site is located about 22 kms 

from Thatta City and is about a 20 

minutes drive from the Makli tombs. The 

total population within a 100 kms radius 

of Keenjhar is illustrated in the adjacent 

chart and roughly 24.8million comprising 

the Karachi District, the Hyderabad 

District, the Thatta District, the Dadu 

District and the Badin District. Section 3 

of this document has outlined the profile 

of the province of Sindh, providing a 

demographic and socioeconomic profile 

as well as giving an overview of various 

tourist attractions and tourism sites under 

development. 

The districts surrounding Keenjhar Lake are largely driven by agriculture and livestock. 

However, compared to the rest of the province, the production is relatively lower. 62% of the 

total Sindh province area is arid and contributes towards production of rice, sugarcane, cotton 

and wheat. 

7.2 Overview of Thatta and Badin District 

According to the Household Survey Data (Jan 2005), 20 percent of the households relying on 

fishing as an occupation in the Thatta and Badin Districts, which have an estimated 

population of 1.4 million. In 2005, only 6% of the population was earning income of PKR 

8,000 or more per month. Almost 88% of the population resides in rural area and the 

population base indicates a high level of younger population. The overall literacy rate as per 

1998 census is 22% (Urban-46% and Rural-19%), whereas electricity is available in only 21% 

of the rural housing units. 

Despite the industrialization in Thatta and Badin, the local community has not benefitted much 

and their contribution to the workforce for these industrial units has remained as low as 5%. 

The major industries present in Badin district include six large scale sugar mills and 70 rice 

husking units, whereas the Thatta district houses over 30 industrial units. In addition, Badin 

provides 45% of the total crude oil produced in Pakistan. 

More than 78% of the housing units in Thatta District and 82% in Badin District are one room 

houses whereas merely 15% or less of the housing units in the two districts are pucca units. 

Two-thirds of the housing units are constructed with wood and bamboo while more than half 

the housing units were constructed at least 10 years ago. There is considerable overcrowding 

in houses, which are poorly constructed and provide an inadequate structure. 

Out of the total population of Thatta City (i.e. 1.4 million), 25% is economically active of which 

85% work in the fishing and agriculture sector. 88% of the population lives in rural areas of 

the Thatta district and the overall literacy rate was 22% in 1998 (46% in urban and 19% in 

rural) and unemployment was 18%. 

18,000 

2,892 

1,113 1,136 

1,689 

72% 12% 4% 5% 7% 

Karachi District 

Hyderabad 

District 

Thatta District Badin District Dadu District 

Population (000s) 

32 


7.3 Hyderabad District 

The Hyderabad District is spread over 1,235 sq kms, comprising 4 Talukas with a population 

exceeding 2.8 million as per the 1998 census. This district houses Hyderabad City, which is 

the second largest city of the province. Significant funds have been spent in the district on 

construction and in creating and improving road infrastructure. There are on average 6 

persons per household, where 18% of the population is aged less than 15 years. 

Literacy rate in Hyderabad is 52.6% and 34.9% among males and females respectively. 

There is a reasonable network of schools providing primary, secondary, middle school and 

higher studies. In addition there are also 2 Universities in the district. Access to government 

schools is reported by 73% of the households; however a serious lack of access to college 

level institution was reported by 85% of the households. 

A budget of over PKR 5billion was announced for the Hyderabad district, with a major chunk 

of the budgetary allocations going towards improvement and initiating of health and education 

sector schemes. Giving due importance and immediate relief to this important aspect of city 

life 32 schemes of PKR 249.9million were executed including development and rehabilitation 

of 18 parks and playgrounds of high standard by the District Government. Additionally, the 

famous Rani Bagh, Abbas Bhai Park, Open Air Theatre and Zoo have also been renovated at 

a cost of PKR 150million. Major recreational areas include Niaz Cricket Stadium, exhibition 

and parade grounds, Rani Bagh, Abbas Bhai Park, Board stadium, Giddu Park, Hill Park, 

Hyderabad Gymkhana, Hyderabad Sports Complex, and a few cinema houses etc. 

The proportion of adult males who are employed is estimated to be greater than 65%. Income 

categories under PKR 12,000 per month accounts for nearly three fourths of the total 

households, however 36% of the population of rural Hyderabad earns PKR 6,000 or less per 

month. Three fourths of the total households, stated above, represent the target market for 

the Recreational Zone while the higher income group level is also targeted for the Resort 

Zone. The district is an important industrial and commercial centre with economic activities 

including textile, rice, sugar, cement and hosiery mills followed by manufacturing of glass, 

soap, ice, paper and plastics. Ornamented silks, silver work, gold work and lacquer are also 

some of its exclusive products. 

7.4 Karachi District 

Karachi District plays an important role in the national economic activity of Pakistan. The chart 

below indicates a snap shot of the contribution of Karachi to the entire economic activity of 

Pakistan. . 

40% of Financial activity 

30% of manufacturing 

40% of large scale manufacturing 

50% Bank Deposits 

Karachi 

20% Federal Revenue 

95% foreign trade passes through Karachi 

33 


The population of Karachi is estimated to be in the 

range of 16 to 18 million, which is growing by 5% 

according to CDGK. As per the 1998 census, the 

male-female ratio is 54:46 where 38% of the 

population is 15 years of age or less. Furthermore, 

60% of the population is represented by age group up 

to 24 years. According to KSDP 2020 plan, the 

population of Karachi is expected to reach 27.5 million 

by the year 2020. Total number of households was 

estimated at 2.1 million with an average size of 7 

persons per household. 

7% 

3% 

16% 

14% 

20% 

According to the Socio-economic Study and Proposal 

for Livelihood Improvements conducted by the World 

Bank and City Myers Statistics (2007), 14% of the 

households had income levels in excess of PKR 

25,000 per month in 1998. Presently, it is estimated to 

be close to PKR 50,000 per month. 

40% 

5000 or below 5000 to 10000 

10000 to 15000 15000 to 20000 

20000 to 25000 25000 and above 

Karachi is the financial hub of Pakistan and houses key individuals involved in manufacturing, 

trading, services and other businesses. A large population plans international trips to the 

UAE, Far East and other areas. Given the fact that a world class facility is prepared at 

Keenjhar, such individuals are bound to visit with their families by taking a break from their 

daily work routine. 

One should note that people from large urban centres in Sindh travel to Murree and other 

tourist destinations in the provinces of Punjab and KP for a change of climate and recreation. 

This indicates that a tourism destination of the type envisaged in this Project, will be able to 

attract some of this traffic and fill the huge latent demand for developed tourism activities for 

urban and rural Sindh. A resort at Keenjhar Lake, with allied recreational facilities, would 

attract many of these visitors to Keenjhar, particularly for short stays. Being close to Karachi, 

the attractiveness of the location should not be limited to peak (holiday) seasons only. 

It is expected that a resort at this location should benefit from the huge corporate demand for 

destinations for their corporate activities( which is presently limited to PC Bhurban) some of 

the water parks just outside Karachi and significant travel outside Pakistan. In addition, a 

destination with the development mix, as is being proposed for this Project, provides 

something for everybody. It offers the exclusivity and tranquility to a large number of high net 

worth individuals that reside in Karachi who wish to have a peaceful retreat away from the city 

or simply wish to take a short recreation and retreat (“the R&R”) break at a world class facility 

that is an hour and a half drive from home. At the same time, it provides recreational activities 

and a nature retreat for the large young population of Karachi on weekends, and holidays. 

7.5 Keenjhar Lake 

7.5.1 Proximity 

The total population surrounding a 2kms radius around Keenjhar Lake accommodates some 

40,000 people living in 39 villages. These comprise some 5,500 households, with an average 

household size of just over 7 persons. Roughly 73.3% of the houses built are kacha. 

7.5.2 Socio-economic Conditions: Surrounding area 

As per the Socioeconomic Study and Proposal for Livelihood Improvements conducted by 

World Bank (2005) and the Preliminary Socioeconomic Baseline Study Report by World 

Wildlife Fund (2007), there exists a lack of basic health facilities and absence of utilities 

infrastructure in the area. In addition, there also exists lack of employment opportunities. 

According to our survey conducted during the second half of 2009, the monthly earnings of 

the habitats range between PKR 2,500 to PKR 4,000 during peak season i.e. November- 

February from fishing which is the main occupation within the 2kms radius. Off season 

earnings are generally about PKR 1,000 or lower, during which common sources are: 

34 


► 

► 

► 

Bird hunting / catching is done at least 4 months in a year when fishing is off season; 

Stone mining – local labour takes 3 to 4 days to fill one truck load with stones from the 

surrounding area – compensation is about Rs 150 per person; and 

Porters at train stations and bus terminals. 

Absence of any development has resulted in exploitation of the surrounding areas, which has 

resulted in degradation of the natural flora and fauna in a large area. We were informed that 

locals had cut off trees in certain areas so that visitors can use their thatched huts for shade. 

7.5.3 Site Conditions: 100kms radius 

Four major cities exist within the 100kms radius of Keenjhar these include Karachi, 

Hyderabad, Thatta and Kotri. The total combined population of these major cities nears 20 

million. 

Approximately 2 million people living in the 100kms radius have earnings of PKR 47,000 per 

month (PKR 25,000 per month as per 1998 census) and hence havethe capacity to spend 

money on holidays. 

The largest city, Karachi, is among the ten most populated cities in the world, with an 

estimated population between 16 to 18 million. Keenjhar Lake is easily accessible through 

National Highway and the Rail Link from Karachi to Hyderabad via Jhimpir, the nearest 

railway station to the Site (approximate distance: 10 – 15 kms) 

Areas within the immediate proximity of the Project site (mainly Thatta district) generally lack 

basic infrastructure facilities such as schools, electricity, gas, health etc. The unemployment 

rate is very high and there is a heavy reliance on fishing by the people living in nearby 

villages, thus minimal exposure to other income generating avenues. Fishing conditions have 

been deteriorating over the years mainly due to lack of control over fishing and measures 

need to be taken to replenish the lake with enough seed to maintain the level of catch for the 

fishermen. 

Literacy level is generally very low followed by a lack of basic skills due to minimal or no 

vocational trainings. Skilled labor is mainly procured/ moved from other bigger cities like 

Karachi and Hyderabad. 

The proposed Project will be a source of economic stimulus and an environmental lifeline for 

the area, offering: 

► 

► 

► 

► 

Managed tourism activities that work in harmony with the environment, 

Increased economic activity, providing business and employment opportunities, 

An alternate income generating avenue for the local population that integrates them with 

the development and conservation activities; and 

A socio-economic and environmental uplift for the area. 

35 


8 Project Overview 

8.1 Keenjhar Lake 

Keenjhar Lake (also known as Kalri 

Lake) is situated at a distance of 113 

kms from Karachi, and about 20 kms 

north and north east of Thatta town. It 

lies between the longitude of 68 and 

69 degrees north east and latitude 24 

and 25 degrees north. It is the largest 

freshwater lake in Pakistan with an 

area of 145 sq kms and an irregular 

shoreline of 192 kms. The maximum 

depth of the lake is 8 m. The lake is 

fed by the Kalri Baghar Canal (KB 

Feeder) originating from Kotri barrage 

that enters at the northwest corners, 

and by many other small seasonal 

streams entering the western and 

northern shores. The only outlet is 

through the Jam Branch Canal at the 

southeast corner of the lake. The 

National Highway N-5 passes very 

close to the Keenjhar Lake while 

Jhimpir Railway Station, the first 

station after Karachi, is also located 

very close to the lake. 

Keenhar Lake spreads over 9,842 

hectares, covering approximately 

25,000 acres. 

The lake is a very important source of 

drinking water for Karachi, serves a 

valuable function in flood control, and 

supports major fishery. A variety of breeding, passage and water birds make their way here in 

the winter. The lake also has a rich flora of submerged, floating and emergent aquatic plants. 

However, lack of overall infrastructure and control over use of the lake resources is leading to 

loss of environment and deterioration of the habitat of fauna around the lake. 

Situated fairly close to Pakistan's largest urban area, Karachi, the sanctuary offers excellent 

potential for nature-oriented recreation, conservation education and scientific research. The 

inhabitants of the villages surrounding Keenjhar are occupied mainly in fishing, agriculture, 

stone mining and mat-making. These areas generally lack basic infrastructure facilities such 

as schools, electricity, gas, health etc. Unemployment rate is very high and literacy level is 

generally very low. 

Table: Key Features of the Lake 

Surface Area 

Storage Capacity 

Usable Capacity 

Average Depth 

Length of Embankments 

Maximum Height of Embankments 

Main Water Supply Source 

Outlets 

Source: Indus for all Programme-WWF-Pakistan 

9,842 Ha 

0.508 Million acre feet 

0.38 Million acre feet 

6 m 

31 Km 

9 m 

Kalari Baggar Feeder (Upper) 

Kalari Baggar Feeder (Lower) 

The area is characterized by a 

dry subtropical monsoonal 

climate with very hot summers 

and mild winters. Average 

annual rainfall is 175 mm, most 

of which falls during the 

summer 

monsoon. 

Temperatures range between 

an average minimum of 1°C - 

2°C in January to a maximum 

of 47°C in summers. 

36 


8.2 Project Concept 

Keenjhar Lake, being a Ramsar Site, is a wetland of international importance and the 

proposed Project site selected for development is completely undeveloped and largely barren. 

There are no settlements on the site selected for the resort, therefore this development will 

not result in any displacements. However, the local population, which is living in extreme 

poverty, should benefit from the economic stimulus generated by the development and at the 

same time be engaged in the conservation of the lake site. 

Based on the above analysis, the Project requirements can be summarized as follows: 

► 

► 

► 

► 

► 

Creation of a destination point for domestic and international tourists 

Eco-sensitive development and operation & maintenance (the “O&M”) processes 

Focus on low density development for environmental considerations 

Integrate site conservation and restoration as part of the Project program by engaging 

the local population and visitors in environmental preservation and restoration 

Maximize value enhancement of the Project area. 

The development strategy pivots on lake conservation as one of the key objectives. Hence, 

any development created would need to have a low density and a very strong O&M 

programme to minimize any adverse environmental impacts. In planning the Project outputs 

requirements, it was concluded that the resort and the annexed recreational development 

should offer something that makes the location a unique destination point. This effectively 

means that the products offered should be such that visitors are encouraged to stay for a 

longer duration (overnight to three days), thereby enhancing commercial viability. 

It was also considered important to maintain exclusivity and yet offer something for 

everybody. The design challenge was therefore to keep these two elements adequately 

segregated. In order to achieve enhanced commercial viability of the Project, a number of 

products need to be created to provide visitors with an incentive to stay longer. 

From a Project financing perspective, the development mix proposed is one that it should be 

able to generate revenues from the Project so as to partially fund the development cost. This 

is expected to reduce the investment required in the Project and help enhance the overall 

viability of the other products. 

Based on the above and the commercial assessment and benchmarking analysis carried out 

by GoS and the Project advisors, it was decided that the Project would have the following two 

development components: 

► A Hospitality cum residential component, which would offer exclusivity and security 

and house the following hospitality and residential products: 

„ Resort Hotel and Chalets; 

„ Serviced Apartments; 

► 

„ Conventions; 

„ Golf Course; and 

„ Private Residential Farmhouses which would be the real estate component of the 

Project that maybe utilized to generate project financing. 

A Recreation component that would provide varying entertainment facilities, including 

the following: 

„ Amusement Park; 

„ Theme Park; 

„ Water Park; 

„ Sailing club and boat house, with water-sports and boating facilities; 

„ Shopping mall, with food court and Cineplex; 

„ High street shops with local arts and crafts display shops; 

„ Amphitheatre; and 

„ Medium cost (2 to 3 star) lodgings. 

37 


8.3 Project Objectives 

The overriding objective of this Project is to create a word class eco-friendly tourist destination 

that would provide high quality recreational amenities and would support the infrastructure 

within a secure and wholesome environment and thus, encourage long term lodging on the 

site. 

It is also intended to develop infrastructure to facilitate commuting to the lake. However, the 

Project objectives can be summarized as follows: 

Promotion of Tourism in Sindh: Seek to create a world class eco-friendly tourist 

destination in Sindh. The Project shall aim to provide a destination for the people of the 

province with entertainment as well as recreational avenues and a place where people can 

spend quality time with their families. 

Tourism Facilities for the people of Sindh: Provide the people of the province with a resort 

destination within driving distance from their homes. 

Environmental Preservation: Incorporate a development, operations and maintenance 

framework that minimizes any adverse impact on the existing environment and seeks to 

reverse some of the effects of degradation caused by unplanned development and 

exploitation of the Lake’s surrounding areas. The Project in itself shall provide for 

environmental regeneration opportunities to mitigate the adverse impact previously caused by 

the uncontrolled exploitation of the Lake. 

Social Uplift: Use the Project as an economic stimulus for the surrounding area and create 

employment opportunities for people locally and around the province. The Project would 

provide employment opportunities mainly to the local population (where locals currently live 

under extreme poverty conditions) and will in turn would help in uplifting the lake 

surroundings. 

Private sector Investment: Search for ways to encourage private sector investment in the 

Project infrastructure; and 

Financial Viability: Make the Project financially viable for development under the PPP model 

in order to attract private sector investment in the ID of this Project. 

8.4 Operating Model 

The following were considered to be the key objectives when establishing the framework for 

development of the PPP transaction structure for this Project, 

► 

► 

► 

► 

► 

Clear output requirements of a mix of commercially viable products 

Clear identification of responsibilities of parties 

Attractive project returns for private sector to solicit interests in the Project 

Provide investors flexibility for value enhancement and facilitate fund raising 

Structured mechanisms for Project monitoring and clear mechanisms for dispute 

resolution and settlement 

Government’s role: The GoS’s role in the development would be that of a Project facilitator 

as well as of a regulator. It would provide required assistance to the private partner in 

implementing the Project and provide necessary support to develop the infrastructure and 

access to the Project site. As a regulator and business partner, it would seek to ensure that 

the Project is being developed and maintained as per the specifications agreed and that the 

objectives behind the development are achieved in the time frame agreed. 

Private sector’s role: The private sector’s role would be to ensure that the Project is 

developed in the most efficient manner. This would include: 

► 

► 

Compliance with development standards and operating and maintenance timelines 

agreed for the Project development 

Marketing and sales strategy in the development stage to ensure external financing 

requirements do not exceed the optimal capital structure agreed. 

38 


► 

Efficient management of operations to ensure the Project is commercially viable and is in 

compliance with the operating and maintenance standards, particularly with reference to 

environmental management. 

39 


9 Development Framework 

9.1 Site Analysis 

Three sites were analyzed with reference to suitability for the proposed integrated resort 

facility i.e the Project. Two of these sites were initially identified by the GoS and the third was 

identified by Meinhardt, the technical consultants appointed for conceptualizing the 

development for GoS. 

All three sites were selected because they were lake front land parcels coinciding with 

development objectives. Additionally, they were easily accessible from the National Highway, 

located within a habitable area. The first two sites were identified by the GoS due to their 

proximity to the lake and the National highway. However, the 30 ft high embankment, 

developed for flood control, blocked all visual access to the lake and acted as a physical 

barrier and hence made the sites unfeasible for resort development. 

The site finalized for development purposes was the one identified by Meinhardt as it offered 

several advantages. It is located approximately 10 km from the National Highway, spreads 

over an approximate area of 750 acres, which is entirely undeveloped and the property of 

Government of Sindh. 

Advantages of the selected site: 

► A large and untouched 

parcel of land (with no 

existing manmade 

structures/ facilities) 

provides opportunity to 

bring in natural 

environment to enhance 

the Keenjhar Lake's 

experience and to address 

any issues related to the 

eco-sensitivity of the area 

while developing and 

maintaining the same 

► The site is surrounded by 

the Lake on all three (NW, 

N, E/ SE) sides, offering 

perfect 270 degree views 

of the pristine Keenjhar 

Lake. 

► The site has great potential for possible future expansions, including the flexibility of any 

future developments along its long shoreline. 

► Greater safety/ parameter controls as the site is surrounded by the Keenjhar Lake on 

three sides. 

► Direct connection between the site and the Keenjhar Lake shoreline. 

► The potential of maximizing waterfront development/ activities due to larger shoreline. 

► Large site offers greater flexibility for the development of sustainable infrastructures. 

► Flat and raised site, suitable for land and infrastructure development. 

Challenges for the site: 

► Located approximately 10kms away from the National Highway. 

► Lack of supporting infrastructure like roads, power etc. 

► Lack of existing support facilities in the vicinity of the site. 

The GoS is addressing some of the challenges by developing a link road to the Project site 

and also setting up kiosks for tourists. In addition, several other development projects are 

40 


eing planned, including doubling of lanes on the Karachi-Thatta-Hyderabad section of the 

National Highway and making investments in the infrastructure of Thatta city. 

9.2 Conceptual Design 

As with any project design, the master planners first set out the objectives of the development 

project in order to identify the outputs that would need to be identified in the development. 

The key elements that were considered were as follows: 

► Creation of a gated facility to ensure a secure destination. 

► 

► 

► 

► 

Structuring of design development to maintain the Project’s financial viability. 

Create a national tourist attraction by promoting public facilities and keeping the 

exclusiveness indifferent. 

Ensuring efficient utilization of the land bank with key focus being on conservation of 

natural habitat. 

Effectively apply sewerage, waste water treatment and solid waste management 

strategies keeping in mind that Keenjhar Lake is a water reservoir and a wetland of 

international importance. 

To achieve the above, Meinhardt carried out an analysis of several resorts in and around the 

region, many of which were Meinhardt projects. In addition, resorts developed at Ramsar 

sights in different parts of the world were also examined to draw inferences from. 

The key features identified as the main elements that were also incorporated in the 

conceptual design were as follows: 

► Integration: Different segments of the resort should be linked through a circulation spine 

to create a conglomerate whole. 

► Tools for Segregation: Golf Course to act as a buffer, separating the residential land 

parcels from other components. 

► Value Addition: The residential parcel should face either the Golf Course or the Water 

Front. 

► Security: Single point of entry, leading to limited access of the site. 

► Engagement of the Shoreline: Maximized exposure to water through the creation of 

water inlets to break the land mass and through isolation of the land. 

► Long-term Stay: Long-term stay is encouraged through a high percentage of different 

types of residential plots and the provision of amenities and commercial activities. 

Based on this analysis and the Project objectives, the following conceptual design was 

developed, which brought in all the components required in the Project. The initial steps 

include creation of security check, followed by engagement of the shoreline by maximizing 

exposure through creation of water inlets. The image below illustrates the sub-zoning analysis 

with key legends. 

41 


The Project site is spread over 752 acres, which equals approximately 32 million sq. ft. The 

approximated built-up area, exclusive of commercial and recreational components to be 

constructed in the next phase, sums to only 1.4 million sq. ft. This area computes an Floor 

Area Ratio (the “FAR”) of 1:0.043. Phase I of the Project will be spread over 550 acres and 

will comprise several components as are indicated in the table below. 

Table: Land use percentages 

Component % 

Serviced Apartments 

Resort Chalets 

Golf Chalets 

35% 

Walk-up Apartments 

Farm Houses 

Theme / Water Parks 

Shopping Arcades 

Cineplex 

12% 

Boating Club / Restaurant Areas 

Museum / Conversation Services 

Resort 

Golf Course & Driving Range 

24% 

Convention / Meeting Facilities 

Public Amenities 

2% 

Utilities 

Water bodies / inlets 7% 

Other landscaped areas 12% 

Roads 8% 

Total 100% 

42 


9.3 Visualizations 

The picture below exhibits a perception outlook for the developed Keenjhar Lake Eco-Friendly Tourist Resort. 

43 


10 Conceptual Master Plan 

With key demand generators in view, the Project development master plan was prepared 

incorporating all key considerations to ensure that the Project meets the conceptual parameters of 

commercial viability and that it becomes a reality. 

Development of the Project has been planned in three development phases as shown below: 

Development Phase 

Infra-structure Development 

750 acre 

Development Package I 

550 acres Resort Zone Development 

Development Package II 

200 acres Recreational Zone Development 

Details of Development 

Main access road from National Highway 

Earthworks for water bodies 

Link roads and arteries 

Electrical Infrastructure 

Solid Waste Management 

Sewage Water Treatment 

Storm Water and Water Treatment System 

Other Infrastructure Developments 

Resort and Hotel 

Golf Course 

Convention Centre 

Farm Houses 

Chalets 

Walk-ups 


Hospital and Mosque 

Medium Level Hotel/ Lodging Area 

Commercial Area – Shopping Mall 

Theme Parks 

Water Parks 

Amusement Park 

Amphitheatre 

Cineplex, etc. 

It is envisaged that the GoS would need to remain engaged with the Project during its development 

and operations phases for the purposes of ensuring that the Project development and its O&M is in 

line with the parameters established and agreed. Its role would be to the extent of monitoring whether 

the development is being carried out in accordance with the approved plans, which take into 

consideration its developmental objectives, with particular reference to environmental management. 

In addition, the GoS may need to play a role in providing credit enhancement facilities to the Project, if 

so required for attracting the private sector in this investment. 

As shown in the above table, the development of the Project has been planned systematically in three 

different phases i.e. Infrastructure, Resort Zone and Recreational Zone Development. Infrastructure 

and Resort Zone are packaged together as Development Package – I (DP-I) while the Recreational 

Zone is termed as Development Package – II (DP-II). 

44 


10.1 Infrastructure Development 

Infrastructure development (the “ID”) relates to the development of basic infrastructure facilities at the 

Project site. 

The work to be accomplished within the ID phase includes the development of a road which allows 

access from the National Highway to the Project site, constructing a primary and secondary road 

infrastructure within the site area, carrying out earthworks for water bodies, installing water and 

sewage treatment systems, storm water drainage systems, the electrical and mechanical 

infrastructures and piping & equipment for water bodies. 

At the initial stages of the ID, it is planned to construct a 40ft wide, 6.5km access road from the 

National Highway to the Project site. 

LandA 

Package 

lopm Deve 

:50 rea 

I– 

ent 

acres 

LandA 

In 

ent lopm Deve 

frastructure 

Package 

lopm Deve 

I– 

ent 

rea :20 

acres 

The Project would require an internal road 

infrastructure in order to link the different 

components of the facility. This would involve the 

development of a 40ft wide, 4km long internal road; a 

60ft wide, 9km road; and a 120ft wide, 1km road for 

internal road access to different Project components 

within the Resort and Recreational Zone. 

Earthworks include creation of water inlets through 

shallow water ponds, shoreline extension and 

minimum excavation to increase the water experience 

on the Project site, which would result in the overall 

uplift of the Project. 

The Project site perimeter is 8km which is expected to 

be enhanced to 19km, as a result of earthworks for 

water bodies. 

The development of an Electrical Infrastructure 

would mean installation of a transmission system or a 

distribution network within the site area. The conceptual plan has not envisaged self generation of 

electricity for the Resort, Golf Course, Convention Centre and Amphitheatre; rather these would be 

connected to the electricity lines. However, back-up power generation systems will be in place. 

Mechanical, piping and equipment represents work in respect of pumping, piping and recycling of 

shallow water bodies. A total of 4 pumping units comprising 3 – 4 pumping machines, and other 

associated piping and civil works are included within this component. 

The storm water system feature includes installation of the surface storm water network alongside 

the road site rip rap. This system is estimated to be 2ft wide having a depth of 1.5ft. 

Another component of the Project also to be completed within the ID phase of the Project 

development is the sewage treatment and collection system. 

The Water system comprises of water supply as well as water treatment systems. The water supply 

system represents the cost for the intake system, the pump stations and the distribution system. The 

water treatment system/ plant maximum capacity has been estimated at 600,000 gallons per day. 

However, the requirement of the recreation zone should be estimated by the developer based on its 

own assessment of the requirements once the development components have been finalised and the 

actual estimates of the requirements of this component have been determined. 

45 


10.2 Development Package I 

The Development Package – I (the “DP-I”), also referred to as Resort Zone Development, relates to 

the provision of a world class resort facility. DP-I features a resort / hotel with a star category, an 18- 

hole golf course, a convention centre, private farmhouses, chalets, serviced apartments and walk-up 

apartments. This development parcel is further broken down into Phase I and Phase II. 

The resort is estimated to be constructed on a total covered area of 195,000 sq. ft. The resort facility 

is expected to include 75 rooms with an average area of 400 sq. ft. per room. The resort facility is 

also expected to include 1 speciality restaurant and 2 other restaurants having a capacity of 150 and 

300 persons respectively. 

As mentioned in the table above, a key feature of DP-I of the Project development are the chalets. A 

total of 76 chalets are included under the conceptual master plan to be constructed in the resort zone. 

Half of the chalets will consist of a single bedroom whilst the other half would consist of two bedrooms. 

The covered area of each single bedroom chalet is estimated to be 600 sq ft while the two bedroom 

chalet is to be 1000 sq. ft.. 

Under Phase I of the DP-I, three out of the total two bedroom chalets will be constructed, followed by 

an additional 35 chalets under Phase II. Out of the total one bedroom chalets, 7 will be constructed 

under Phase I and the remaining 31 shall be added under Phase II. 

The Project consists of 112 serviced apartments, constructed in lots of 16 and 96 under Phase I and 

Phase II respectively at a cost of PKR 4,000 per sq. ft. All serviced apartments are expected to be of 

two bedrooms. 

The conceptual plan also includes a provision for 200 walk up apartments, which will be evenly 

spread across 50 blocks. Out of these walk ups, 100 would provide a single bedroom and the other 

100 would be providing a double bedroom facility. The single bedroom walk ups are to measure 1,100 

sq. ft. whilst the double bedroom ones would measure 1,300 sq ft. However, the Project pre-feasibility 

numbers have not taken this into account and flexibility is available to the developer to utilise the land 

set aside for other uses, such as hospitality or for other residential components, so long as the 

development density is not adversely affected and an effective O&M plan is implemented. 

Farmhouses will be developed over 198 acres, comprising 84 units each on half acre, and 156 units 

each spread over one acre. The farmhouse owners will be provided complimentary membership of 

the Golf Course and each farmhouse will either have a view of the lush green Golf Course or the 

scenic Keenjhar Lake. The sale proceeds of these farmhouses will be utilized in the development of 

the Project. The developer however has the flexibility to use these farmhouses for hospitality rather 

than private residential units. 

An 18-hole Golf Course spread over an area of 170 acres shall be constructed over a 48 month 

period under Phase I. It is estimated that 60% of the golf course development cost would be incurred 

in the first 24 months, while the remainder 40% in the balance period. 

A single storey convention centre shall be constructed on a cumulative covered area of 30,000 sq. ft. 

Under Phase I, 20,000 sq. ft. would be constructed which shall be increased by a further 10,000 sq. ft. 

under Phase II. 

Main features of the convention centre are expected to include: 

► 

5 executive meeting rooms having a capacity of 10 person each with a cumulative covered area 

of 1,500 sq. ft.; 

► 3 meeting rooms having a capacity of 25 persons each with a cumulative covered area of 2,500 

sq. ft.; 

► 

► 

1 large ball room having a capacity of 350 persons with a cumulative covered area of 10,500 sq. 

ft.; and 

1 small ball room having a capacity of 250 persons with a cumulative covered area of 5,000 sq. ft. 

The Project shall house an amphitheatre, which is to be constructed under Phase II of the DP-I and 

shall be spread over an area of 20,000 sq. ft. 

Other development includes putting up amenities, such as a Masjid, which is estimated to cover an 

area of 12,000 sq ft and a 50 bed hospital with a covered area of 25,000 sq. ft. approximately. 

46 


Apart from the Resort component, the convention centre and the golf course, a certain amount of 

flexibility will be available to developers to suggest other alternative development mix or use 

strategies, which shall be examined for assessment of commercial viability, its impact on the 

conceptual master plan and for its environmental impact. 

10.3 Development Package II 

The Development Package II (the “DP-II”), also referred to as Recreational Zone Development, 

relates to the costs for the establishment of integrated commercial and recreational facilities within the 

Project. 

The development to be undertaken in the DP-II includes medium level hotel/ lodging area, retail 

complex, theme parks, water parks, amusement parks, amphitheatre, museum, boating club, 

Cineplex, etc. 

The inclusion of this recreational zone is to provide visitors with activities to undertake when visiting 

the Keenjhar Lake site. This in turn makes the case for longer stays at the lake and hence increases 

the money that visitors are likely to spend, thereby contributing to the Project’s commercial viability. 

It is envisaged that the Project site will only develop once there is reasonable development and 

access to roadsand at least partial development of the resort is complete. It may not be feasible to 

expect investment in theme parks and amusement zones to be made in a completely undeveloped 

area. The developer would therefore have the flexibility to either develop and operate this parcel on 

their own, subject to detailed design and a development plan that would be approved by an 

independent engineer (the “IE”), or grant a sub-concession or even sub-contract the development of 

various components of the recreation zone. 

The table below delineates the allotment of the total area for DP-II i.e. 200 acres: 

Table: Land area utilized & percentages 

Component Area (Acres) % 

Amusement Park 21 11% 

Amenities – Utilities 12 6% 

Theme Park 22 11% 

Motel / lodging area 6 3% 

Boating club, Restaurant area 7 4% 

Cineplex, Retail & Gaming zones 5.5 3% 

Water Park 18 9% 

Open area / allocable area 108.5 54% 

Total 200 100% 

The construction of DP-II is planned to be completed during a 36 month period coinciding with the 

completion of the DP-I development. Both Project phases complement each other in terms of their 

commercial viability. 

47 


10.4 Synopsis of DP-I and DP-II 

The table below indicates a snapshot of the components to be developed under DP-I and DP-II. 

Table: Land use percentages 

Components Land / Built-up Areas % 

Serviced Apartments [2 Bed: 112] 

5.5 Acres: BUA 123,200 sq ft 

Walk up Apartments [1 Bed: 100; 2 Bed: 100] 

12 Acres: BUA 240,000 sq ft 

Resort Chalets [1Bed: 38; 2 Bed: 38] 


35% 

Farm Houses [1/2 Acre: 84; 1 Acre: 156] 


Theme Park 

22 Acres 

Water Park 

18 Acres 

Amusement Park 

21 Acres 

Motel/ Lodging Areas 

6 Acres: BUA of 140,000 sq ft 

12% 

Cineplex, Retail & Gaming Zone 

5.5 Acre 

Boating Club / Restaurant Areas 

7 Acre: BUA 40,000 sq ft 

Museum / Conversation Services 


Resort [75 keys] 


Golf Course & Driving Range [18 holes] 


24% 

Convention / Meeting Facilities 


Public Amenities [Mosque and Hospital] 

Utilities [STP/ WTP] 

12 Acres: BUA 47,000 sq ft 2% 

Water bodies / inlets [19 km enhanced perimeter] 50 Acres 7% 

Other landscaped areas [Open Spaces] 125 Acres 12% 

Roads 60 Acres 8% 

Total 100% 

As indicated above, DP-I is spread over approximately 550 acres, while DP-II i.e. the recreational 

zone is spread over 200 acres. 

The development strategy is built around ‘lake conservation’ as one of the key objectives. Hence, any 

development created would need to have a low density to minimize any adverse environmental 

impacts. 

The Project development master plan has been prepared incorporating all key considerations to 

ensure that the Project meets the conceptual parameters of commercial viability and that it becomes a 

reality. 

The resort and other commercial development mix should offer what makes the location a destination 

point. This effectively means that the products offered should be such that visitors are encouraged to 

stay for a longer duration. Thus, for the commercial viability of the Project, a number of products need 

to be created to provide visitors with an incentive to stay longer. 

48 


11 Analysis on Commercial Viability 

11.1 Project aims and objectives 

The overriding objective of this Project for the GoS is to create an eco-friendly tourist destination that 

provides high quality hospitality, leisure, business and recreational facilities, within a secure and ecosensitive 

environment. The Keenjhar Lake has been a destination for tourists for decades and now 

has visitors to the lake numbering in hundreds of thousands every year. The GoS, recognizing the 

potential of the area, now wishes to develop infrastructure at the Keenjhar Lake that provides better 

facilities for tourism activities while ensuring that adverse ecological impacts from such activities are 

better managed. 

Briefly, the Project objectives can be summarized as follows: 

► 

► 

► 

► 

► 

► 

Promotion of Tourism in Sindh: Seek to create a world class eco-friendly tourist destination in 

Sindh. The Project shall aim to provide a destination for the people of the province with 

entertainment as well as recreational avenues and a place where people can spend quality time 

with their families; 

Tourism Facilities for the people of Sindh: Provide the people of the province with a resort 

destination within driving distance from their homes; 

Environmental Preservation: Incorporate a development, operations and maintenance 

framework that minimizes any adverse impact on existing environment and seeks to reverse 

some of the effects of degradation caused by unplanned development and exploitation of the 

Lake’s surrounding areas. The Project in itself shall provide for environmental regeneration 

opportunities to mitigate the adverse impact caused already by the uncontrolled exploitation of 

the Lake; 

Social Uplift: Use the Project as an economic stimulus for the surrounding area and create 

employment opportunities for people locally and around the province. The Project would provide 

employment opportunities mainly to the local population, which in turn would help in uplifting the 

lake surroundings where locals currently live under extreme poverty conditions; 

Private sector Investment: Search for ways to encourage private sector investment 

environment in infrastructure projects; and 

Financial Viability: Make the Project financially viable for development under the PPP mode in 

order to attract private sector investment in the infrastructure development of this Project. 

11.2 Tourism opportunities at Keenjhar Lake 

From a historical perspective, Thatta has been the cultural hub as well as the capital of Sindh in the 

past. It has numerous sites of historical, cultural and archaeological significance in its surrounding 

areas, which have received far less attention and promotion than they deserve. 

The development of the Project at Keenjhar Lake is expected to give Thatta greater projection as a 

tourist destination for local and international tourists. The development of this facility at Keenjhar Lake 

is expected to encourage local, national and foreign tourists to visit Keenjhar Lake and other adjoining 

tourist attractions such as, the Makli graveyard, Bhambore, etc. 

A practical approach towards developing the conceptual plan for an eco-friendly resort and recreation 

zone at Keenjhar Lake is being developed while identifying other opportunities for supporting 

environmental protection and developing infrastructure to support tourism in the area. It is expected 

that the Tourism department shall be able to benefit from this development programme and may, 

either with the Project developer or in conjunction with other private sector tour operators, develop 

programs for tourism activities during the Project development period so as the build up the tourism 

profile of Thatta. 

There are no current statistics with reference to the number of visitors who visit the Keenjhar Lake. 

However, the Sindh Tourism Development Corporation estimates that currently around 16,000 people 

visit Keenjhar Lake on a weekly average basis, which translates into daily average visitors of 2,500. 

Present conditions in terms of accommodation facilities and recreational avenues at Keenjhar Lake 

are by no means adequate to cater for the requirements of such a large visitor profile. 

49 


There are no major activities in and around the lake area for the general population. Currently the 

visiting population to the lake visits the area for its water experience. Sindh Tourism Development 

Corporation (STDC) has developed certain 

rest houses and a restaurant to cater to the 

needs of the visiting population. However 

owing to lack of funds and operational 

oversight by professionals, these facilities 

have fallen into disrepair and require major 

renovation to cater to the demands of the 

STDC Motel 

visiting population. It is also estimated that 

apart from the travelling costs, visitors spend on average PKR 100 per head at the lake. 

Given the current situation, it can be reasonably estimated that average visitors would increase 

multifold as a direct result of this Project. Keeping in view that a 200 acre recreational development 

zone would be the main focus for general visitors to the 

Project, overall viability of the recreational zone would 

increase accordingly. 

The current visitor 

profile is largely 

represented by a low 

to middle income 

level group. 

However, most of the visitors have the 

capacity to spend extra in lieu of additional 

services and attractions. In order to attract the visitors for longer 

and frequent visits, there exists a need for refurbishment of the 

existing facilities provided. Major developments currently at Keenjhar Lake include STDC rental 

cottages, Government Rest House and a restaurant. Some of the adjacent images provide an idea of 

existing facilities. 

A mechanism can be worked out that aims towards the conversion of the environmental and 

developmental challenges into opportunities. The development of Keenjhar Lake in a structured 

manner is in fact a necessity. This is because unplanned tourism activities are an environmental 

hazard and do not engage the visitors or the locals in the protection and conservation of the lake. In 

this Project, the government as well as the Iinvestor / developer can also employ other measures to 

increase the flow of income generation for the resort as well as the recreation zone. This may include 

profiling of the city of Thatta as a tourist destination, which also boasts of a rich cultural heritage and 

is a place of historical importance. The program can also include other archaeological and historical 

sites that can be exploited for these purposes, in consultation with STDC. 

The governance framework planned by the GoS for oversight of the resort and recreation zone 

development under this Project is expected to extend to incorporate other environmental and socioeconomic 

programs at Keenjhar Lake. For the Project to be successful, the developers and the GoS 

would need to engage the local villagers and businessmen in the various development programs. This 

partnership will be a critical success factor for any development program and will benefit the Project, 

the developers, investors, local businessmen and local villagers and towns people alike. 

11.3 Demand Generators 

The Project at Keenjhar Lake is expected to attract various segments of the population by providing a 

wide range of services and facilities. The local population currently enjoys the following leisure and 

business avenues: 

► 

► 

► 

► 

► 

Overseas holidays: Dubai, Thailand, Malaysia (Europe and America for high income level 

groups) 

Hill stations of Murree and Nathiagali, Northern Areas and Swat and Kaghan/ Naran Valley 

Family holidays to home cities 

Day trips to various natural tourism spots, such as beachfronts, lakes, or archaeological sites 

Weekend or overnight stays at farmhouses around the perimeter of the city. 

Choices for local and multinational corporate entities for conventions and seminars: 

50 


► 

► 

► 

Overseas 

Local hotels and out of city locations 

Golf and Country Clubs 

This creates demand for well developed tourist destinations in the proximity of this major population 

centre. 

In addition to the above, the following alternative local recreational avenues are considered within the 

100kms radius: 

► 

► 

► 

► 

► 

► 

► 

Restaurants and open-air street diners 

Beachfronts 

Historic and archaeological sites 

Cinemas/ Cineplex, Shopping Centres 

Adventure Parks, Theme Parks and Water Parks 

Farmhouses 

Clubs and Golf Courses 

Preference to such locations is based on accessibility from residence, secured environment and 

disposable incomes. However, with an increasing middle income population in Karachi, the demand 

for recreational activities far outweighs the supply. With the increase in cost of travel to destinations 

in the north of the country limited and more recently the security situation in these areas, the demandsupply 

gap for reasonably priced recreational activities has widened significantly. 

The table below delineates general recreational avenues and alternative options available to the 

population of the major surrounding cities. 

Recreational Avenues 

Alternate Options 

Dine Outs 

Recreational Parks 

Beaches and harbor 

Site seeing 

Movies and Shopping 

Social Clubs 

Farmhouses 

2 to 5 star hotels, local and international fast food chains, highway 

restaurants, food courts and street side eateries. 

Adventure, theme, amusement, water parks and public parks 

Picnics, fishing and water sports 

Monumental, historical, archaeological sites, etc. 

Cinemas, shopping malls, high street shopping, etc. 

Social and Country Clubs, Golf Clubs, etc. 

Private-owned farmhouses, gated farmhouses, chalets, etc 

Leisure and tourism activities vary significantly between the various income groups. These activities 

also vary during the peak and off-peak seasons, further segmented into weekdays and weekends. 

Peak season generally falls during the months of May to August, mainly on account of vacations of 

educational institutions. 

51 


The adjacent table presents a conservative 

estimate of the number of people in Karachi and 

other major cities near Keenjhar Lake that visit 

recreational ventures on a daily basis. Out of the 

total population stated in the table, even if 3% of 

the visitors visit Keenjhar Lake for recreational 

purposes, the number of visitors can range from 

3,500 – 5,500 persons per day. This does not 

include corporate visitors, who are likely to utilize 

the facility for corporate meetings, planning events, 

training, seminars and staff outings. 

Recreational Avenue 

Total Visitor Range 

The above analysis is a broad indicator for the 

potential of a well developed tourism facility. 

Investors may however carry out their own analysis 

Total 114,250 172,500 

and assessment of the potential demand, which may in fact be different. It must however be 

emphasized that purpose built facilities with infrastructure support from local government are few and 

far in between and the needs are still largely unfulfilled. 

Min 

Max 

Recreational Parks 100,000 150,000 

Farmhouses 1,000 3,000 

Site seeing 250 500 

Social Clubs 8,000 12,000 

Beachfront 5,000 7,000 

11.4 Survey of Recreational spots near Karachi 

A field survey was conducted to identify areas where farmhouses, resorts and water parks are 

located. The purpose of this survey was to highlight the number, facilities and rates of farmhouses, 

resorts and water parks in the surveyed area. The survey mainly covered Malir, Super Highway, 

Gadap and Gharo, which are the major water / amusement parks and farmhouses currently in 

existence. 

Our market survey covered approximately 73%, 67% and 80% of the farmhouses, resorts and water 

parks respectively. 

Farm Houses 

It was found that there were more 

private farmhouses as compared 

to commercial farmhouses in 

Karachi. Currently Palm Village is 

the biggest Farmhouse 

Development Project and 

comprises 117 farmhouses. 

The adjacent table illustrates the 

price range of privately owned 

farmhouses during the year 2009. 

The table below illustrates the market prices of farmhouses existing at the time of our survey in mid 

2009: 

Area 

Project Name Unit size Pricing (millions) 

Palm Village 2,200 sq yds PKR 10-12 per unit 

Lavish Garden 2,200 sq yds PKR 8-9 per unit 

Millennium Resorts 2,200 sq yds 

Land value per acre 

33 yrs lease 99 yrs lease 

Gadap PKR 1.2 – 1.5 million n/a 

Super Highway PKR 1.2 – 1.3 million PKR 2.0 – 6.5 million 

Malir PKR 1.2 – 1.5 million PKR 2.0 – 2.5 million 

Gharo PKR 2.0 – 2.5 million PKR 6.0 – 6.5 million 

PKR 6-9 per unit 

Gohar-e-Nayab 2,200 sq yds PKR 8-10 per unit 

Palm Dreams 2,000 to 6,000 sq yds PKR 9-22 per unit 

52 


Commercial and Private farmhouses possess several salient features commonly including cottage / 

hut, park / garden, indoor games, outdoor sports, swimming pool, water slides, zoological area / 

birdhouse, artificial pond, barbeque area, car parking, backup power and play area. The following 

chart illustrates the average rates of farmhouses area wise. 

25,000 

22,500 

20,000 

19,733 

PKR 

15,000 

10,000 

14,200 

10,611 

14,778 

14,250 13,500 

15,000 

5,000 

- 

Gadap Super Highway Malir Gharo 

Weekdays 

Weekends 

The average rental rates for weekends are comparatively higher than those charged over weekdays 

as the demand for such farmhouses is naturally higher over weekends. However, rental rates in Malir 

are relatively higher compared to other areas due to its close proximity to the city and it being far more 

developed than the other farmhouse localities. 

The demand in peak season, which starts from May and lasts until August, remains around 80% with 

off-peak season demand falling as low as 20%. 

Resorts 

The resorts offer a wide range of services which are stated below: 

Golf facilities Convention center Eateries Backup power 

Accommodation Medical area Indoor games Security 

Swimming pool Park / Garden Outdoor games Prayer area 

Boating Kids area Gymnasium Lockers 

Cinema Concert area Spa Parking 

Four major resorts are currently operating in and around Karachi, these include: 

► Countryside Chalet is located near Super 

Highway and is constructed on 350 acres. There 

18,796 

are 110 chalets and various facilities for its 

visitors. 

► Dreamworld Resort offers numerous facilities 

for its members / visitors. The resort is 

constructed on 150 acres of land and has 

8,890 

recently added chalets with 24/7 service. 

4,826 

5,500 

► Arabian Sea Country Club is located 40kms 

4,500 4,500 

from Karachi and is constructed on 200 acres. It 

accommodates 65 units of serviced apartments 

for its members. 

► DHA Country & Golf Club is constructed on Dreamworld Resorts Arabian Sea Country Club 

approximately 200 acres in DHA Phase VIII. 

Along with other attractive facilities, the club has 

20 luxurious chalets for its members. 

Members Non-members Corporate 

Dreamworld Resorts and Arabian Sea Country Club cater to members, non-members and corporate 

customers. The adjacent graph illustrates the average accommodation charges per day. 

Most resort operators offer complimentary services to its occupants. DHA Country & Golf Club only 

provides its chalets to its members and average charges range from PKR 9,000 per day on weekdays 

to PKR 25,000 per day on weekends. On the other hand, Countryside Chalets who provide their 

chalets without any restrictions charge PKR 15,000 to PKR 18,000 per day on weekdays and 

weekends respectively. 

53 


Resort operators providing membership facilities charge monthly subscription charges. Dreamworld 

Resorts, Arabian Sea Country Club and DHA Country & Golf Club charge monthly subscriptions of 

PKR 1,450, PKR 1,500 and PKR 2,000 respectively. According to our research, a member family on 

average spends PKR 5,000 per month against the use of all facilities excluding accommodation. 

The demand for Resort Chalets remains fairly high from December to August reaching as high as 

90% in the months from June to August. The minimum demand at any time during the year does not 

fall below 50%, whereas estimated average demand during the year equates to 70%. 

The above mentioned resorts comprise a golf course and other ancillary services. However, Keenjhar 

Lake has the added advantage of the lake view and several other recreational facilities annexed close 

to the resort. Several companies, including multinationals, regularly arrange for their sales force and 

customer symposiums meetings and conferences at places like Murree and Bhurban. Keenjhar would 

be a very viable alternative for such type of corporate events. 

Water / Amusement Parks 

Karachi currently has water / amusement parks located in Gadap, Gulshan-e-Iqbal, Gharo, Malir and 

Super Highway. Our market research concluded that Sunway Lagoon and Aladin Amusement & 

Water Park are the most popular amongst the public since an average of 4 to 5 million people visit 

these parks annually. 

These water / amusement parks mostly provide the following features: 

Huts Zoological area Kids area 

Medical Area Changing rooms Lockers 

Water slides Snack bar / restaurant Accessories purchase / rental 

Swimming pool 

Car parking 

The chart below illustrates the entry charges of several water / amusement parks: 

400 

PKR 

150 

100 

100 100 

50 50 

250 

250 250 

175 

200 

150 

100 

► 

► 

► 

Cosy 

waterpark 

Chandna 

waterpark 

Samzoo Zoological 

& waterpark 

Sunway Lagoon 

waterpark 

Adults 

Aladin 

waterpark 

Waterworld 

waterpark 

Fiesta 

Waterpark 

Aladin Water Park was opened approximately 15 years ago and is still reasonably well 

maintained compared to other older water parks. 

Samzoo has a main attraction, by virtue of its zoological garden which is almost 30 years old. 

However, the water park was constructed around 5-6 years back, in order to attract new market 

and more visitors. 

Sunway Lagoon’s charges are the highest and it is the newest of them all. It offers the latest 

facilities and certain unique features, such as the provision of overnight accommodation facilities 

for its visitors. 

Demand for water parks is at its peak from June through August, due to the warm weather during 

summer. Water parks cease to operate during the winters due to an obvious fall in demand. This time 

period is used by the owners to carry out necessary maintenance of their offerings and any other 

related improvements. 

Even though most of the above renowned parks provide a cluster of activities, Keenjhar Lake would 

be a differentiating factor by virtue of its location, golf course, farmhouses, resorts, water park, 

amusement park, boating club / ride among other attractions. 

Kids 

54 


12 Development Parameters 

The development parcels, i.e. the Resort (hospitality and residential zone) and the Recreation 

(commercial and entertainment zone) are being offered to the developer as a combined parcel. The 

developer shall have the flexibility to modify the develop plan on the basis of which this Project’s 

feasibility has been prepared. The objective of this is to allow the private developer to introduce its 

own ideas into the Project while keeping the overall theme intact. This is expected to bring the value 

addition to the development through ideas and innovation as well as development and operating 

efficiencies that are expected from the private sector. 

To enable the private developer to raise capital and enhance his profitability and a number of avenues 

have been left open for the private partner for modification to the development plan. However, certain 

aspects of the development are the core elements of the development and developer’s modifications 

to the conceptual plan through value addition ideas shall only be accepted if these prime parameters 

and objectives remain unaltered in the development plans. 

12.1 Development parameters 

A conceptual plan (see above) for the development has already been prepared for the GoS by 

Meinhardt (Pakistan) Private Limited, and two parcels of land, measuring approximately 550 acres 

and 200 acres (together 750 acres or thereabout) have been identified for the development of the 

Resort and Recreation zones respectively. 

The development components identified in each of these development parcels are also outlined 

above and identified in detail in the Request for Proposal (the “RFP”) document, the Concession 

Agreement (the “Concession Agreement”) and the Guidelines for Development Parameters provided 

as part of the RFP package. These documents also set out the quality of developments and 

architectural design influences that are expected to be incorporated in the design, without restricting 

the use of modern designs. 

55 


Resort zone 

While details are provided in the above referred RFP and supporting documents, the following 

elements of the resort zone are mandatory: 

1. Resort Hotel, Serviced apartments and Chalets 

2. Convention Centre 

3. 18 hole Golf Course 

4. Utilities infrastructure, including STP, Water Treatment Plant and Solid Waste Management 

In addition to the above, the following areas have been identified in the development mix for which 

developers shall have the flexibility on development. These are all residential components that were 

added to the development mix in order to provide avenues to the developers to raise funds for the 

Project. However, developers may utilize this space for hospitality components to add to the ones 

already indicated above: 

► Walk-up apartments: These may be utilized for further hospitality components such as 

additional hotels, serviced apartments or Chalets. Developer may choose to utilize this area for 

additional farmhouses. Developers may also choose to develop this component after completion 

of the mandatory components described above and the farmhouse components described below 

(first phase of development). However, the nature of development and timelines for the 

development must be agreed in advance at the time of signing the development agreement with 

Government of Sindh. 

In no event should the resort be seen to be a construction site for an extended period of time and 

therefore significantly greater preference shall be given to proposals that complete the 

development of this component in the first phase. Regardless, utilities infrastructure must be put 

in place in the first phase of development. 

► Private Residential Farmhouses: This is the key real estate component of the development 

mix and was introduced as the component that may be utilized to raise a significant part of 

project finance. The commercial success of this element is critical for the Project, if the developer 

opts to adopt this component as the real estate component in the development mix that can be 

sold on long term lease. A possible commercial strategy in this regard was developed for the 

purposes of the Project feasibility and is outlined later in this section of the Information 

Memorandum. 

Developers have the option of not selling any or only selling part of this component of the 

development mix. Various options in this regard are available, including operating these as an 

extension to the hospitality component, offering these on short term leases or introducing the 

concept of time share. Where however, this element is being sold on a long term lease to private 

individuals or corporate entities, such individuals or entities shall not be permitted to offer these 

premises to third party for short letting, other than through the Resort operator. This is necessary 

to ensure that the security and maintenance requirements, including environmental standard, are 

not compromised. 

The utilities and amenities are a very important element of the development and should keep into 

consideration the requirements of the entire development. Hence the water treatment plant, sewage 

treatment plant and waste management system should cater to the need of the entire development. 

Development of a Museum and a Mosque is a requirement of the development. Museum may be 

operated in a formal arrangement with the Archaeological department. In addition, a hospital / health 

centre for primary health services and medical emergencies, such as accidents, burns and snake 

bites, should be maintained. 

56 


Recreation zone 

The developer has significant flexibility with regard to this development package. The area shall only 

be used for commercial activities, i.e. no farmhouses or residential component shall be included. The 

following development components have been identified in this development, but additional elements 

are permitted if the developer/resort operator deems appropriate: 

Entertainment zone: 

1. Theme Park 

2. Amusement Park 

3. Water Park 

4. Food Court 

5. Lakeside pier, with boating, sailing and other eco-friendly water sports in a limited lake area 

annexed to this zone 

6. Indoor games (bowling, gaming zone, etc.) 

7. Museum 

8. Other entertainment facilities deemed appropriate 

Commercial District 

1. Medium cost hotels/motels/ 

2. Shopping malls, with food courts, and Cineplex 

3. High street with shops for local souvenirs and handicrafts 

4. Indoor Restaurants 

5. Lake side pier, with provisions for managing waste disposal so as to ensure that the lake is 

not polluted. 

Master planning and development plan 

The developer shall be expected to have a detailed design and feasibility report for this development 

within six months of signing the Concession Agreement and shall submit its business plan, indicating 

the components in the entertainment zone, to the GoS through a special purpose vehicle company to 

be established by the GoS for the Project (the “Keenjhar Project Company”). Master planners 

specialising in the development of theme parks should be selected for development of the master 

plans for this Project to ensue that matters relating to international safety, health and environmental 

standards are complied with and kept in the design philosophy. In case a resort operator of 

international repute is brought in as a development partner, their master plan for the development 

would be acceptable if they have qualified professionals for this task in-house and can provide 

examples of how this has worked in other locations in which they are operating. However, the same 

standards of safety and environmental standards would be expected. 

Options to Sub-lease 

The Developer would have the flexibility to sub-lease the different components of this recreation zone 

to different developers, however the Developer will continue to remain responsible for the overall 

operations and maintenance and may recover charges for this from his sub-lessees. However, the 

sub-lease and developing and operating agreements for components to be sub-leased would be 

subject to approval by the GoS through the Keenjhar Project Company. 

Standardized agreements and sub-lease documentation are required to be developed and their 

contents agreed with Keenjhar Project Company in advance. The purpose of this is to ensure that the 

principle elements of the sub-lease and development agreements are approved and subsequent 

variations that are subject to negotiations with parties are kept to a bare minimum. 

57 


13 Project Development Strategy 

The Project feasibility is based on a certain development mix, as already outlined in the preceding 

chapter. In order to select the different development components, the master planners carried out 

benchmarking analysis of various resorts in different parts of the world and analysed the needs and 

objectives of this Project. The resort and convention centre would be the business and leisure 

components, while the walk-up apartments and the farmhouses would be the residential components 

of the development mix. It is envisaged that the golf-course would create value addition and would 

act as a tool for segregation between these two development components, as well as between the 

overall resort and recreation zones. 

The residential component of the development mix provides the developer with the ability to raise 

finance for the Project through sale of the real estate component. The sale of this component is 

critical to Project success if this source of revenue is to be applied for raising part of the Project 

financing. Accordingly, a commercial strategy was developed for this component as part of the 

business plan for the resort zone. 

13.1 Marketing strategy for Farmhouses 

Effective marketing and sales strategy for the sale of this component is critical to the success of the 

project, since significant cash can be generated from the sale of farmhouses. However, this rests on a 

sound commercial strategy that demonstrates value creation and is effectively able to monetize that 

through effective sales. 

Product Offering 

The first phase of the Keenjhar Lake Resort is also its most exclusive. The development offers a 

highly exclusive parcel of 240 farm houses as follows: 

► 

► 

84 small farmhouses on ½ acre 

156 large farmhouses on one acre plots 

The farmhouses will be developed combining rustic charm with modern facilities, set in manicured 

gardens set off by the lush green hues of indigenous flora to offer the best of both worlds. With 

facades and interiors inspired by the local architectural and aesthetic styles of Thatta, Hala, 

Hyderabad and surrounding towns, the resort farmhouses offer their owners complete peace of mind 

and ease of ownership with a centralized facilities management system. 

58 


For infrequent users and investors, the development offers a 

designated package with the option of short-let accommodation 

whereby farmhouses are managed and let out on behalf of the owners 

making this a self sustaining, income generating investment 

proposition. 

Of the 156 one-acre farmhouses, parcels of exclusive farmhouses 

overlooking the lake have been set aside for specified target markets 

such as corporate buyers, and high net worth individuals. These 

parcels will be enclosed in a restricted access, high security perimeter 

with round the clock security patrols, surveillance, back-up power and 

centralized maintenance facilities. The community also benefits from 

catering services from the eateries within the Keenjhar Lake Resort. 

In order to organise the sales process and balance the pricing mechanism, the farmhouse component 

has been split into 3 parcels. The suggestive product parcels and associated target markets are as 

follows: 

The concept behind splitting the farmhouse proposition into parcels is to group together products 

which are aimed at the same target market, namely general buyers and investors, high net worth 

individuals and corporate entities. It is however important to note that the parcels are not mutually 

exclusive and a degree of overlap will be encouraged in the sales of the general category parcels. 

Further parcels subdivisions such as those focused exclusively on corporate entities and high net 

worth individuals take into account the specific target market requirements such as homogeneity of 

ownership, security, exclusivity and controlled access. 

Each parcel has been priced separately taking into account its location, proximity to demand 

generators such as the recreational / theme park area, golf course, lake vistas and convention centre. 

The exclusivity of this offering is further enhanced by a select buyer profile, which may be targeted 

through the sales strategy as set out. 

While farmhouse sales for all 3 parcels would take place simultaneously for the corresponding target 

markets, the marketing activities to support the process have been broken up into 3 Phases to allow 

for pricing escalations and to bundle together various unit locations within the area allocated to 

farmhouses. The phasing process should be designed to create a sense of urgency and to control the 

flood of farmhouses creating a supply – demand imbalance in the market. 

Sales Strategy 

The proposed price ranges applied in the feasibility study for the Keenjhar Lake Resort was selected 

after having extensively benchmarked the various types of farmhouses currently available in the 

region and assuming that general land prices would have inflated by the time the resort is announced. 

59 


► 84 half acre plots PKR 7.7m to 10.5m per plot 

► 

156 one acre plots PKR 16.5m to 22m per plot 

The sales support phases have been sequenced taking into account the level of visual development 

on the site. Our market research has negated the option of commencement of sales when the 

development is a virgin site due to lack of buyer interest at this stage. A degree of development needs 

to have been initiated to give the Project credibility. This credibility would be the driver for a 

transactions surge. 

Prior to the commencement of sales, the sales agent and developer should strongly consider 

developing a model farmhouse or, in the least, developing a farmhouse lot with an artificial structure 

and conducive landscaping to give the buyer a taste of the lifestyle being sold. Discussions and 

meetings during site visits would be conducted on the model plot and assist the process. 

The concept of using three phases for the sales support activities is to take the buyers on a journey 

through a process of conversion from prospective to actual buyers. Additionally, in order to retain 

converted prospects, these phases will serve to pacify buyers that they have made the right decision 

by purchasing a farmhouse at the Keenjhar Lake Resort and facilitate sales referrals. The 

chronological sequencing for these phases is as follows: 

60 


14 Financial Analysis 

This section sets out the financial analysis of the Resort Project at Keenjhar Lake and presents its underlying assumptions. There are no 

assurances whatsoever that such events, as stated in the estimates or projections, will occur and should not be relied upon under any 

circumstances. It is reasserted that the developers, investors and interested parties should carry out their independent investigations and analyses 

for determination of estimates, projections and other matters relating to the Project. For reliance on the business model applied and the assumptions 

made, please refer to the Disclaimer page. 

14.1 Project Cash Flows 

Currency: PKR '000s Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 

1 2 3 4 5 6 7 8 9 10 

CASH FLOW FROM OPERATING ACTIVITIES 

Profit / Loss before taxation - - (84,786) (11,234) 3,267,780 308,245 449,469 581,135 845,734 999,320 

Adjustment for non- cash charges 

Depreciation - - - - 268,125 254,719 241,983 229,884 218,390 207,470 

Financial charges/ Interest Costs - - 84,786 11,234 248,795 170,094 127,571 85,047 42,524 - 

- - - - 3,784,700 733,059 819,024 896,066 1,106,648 1,206,790 

Increase/ decrease in current assets (722,955) - (187,539) (184,812) 989,780 81,937 (2,734) (2,433) (5,808) (3,249) 

Increase/ decrease in current liabilities 50,176 423,052 1,024,691 2,254,319 (3,732,424) 2,505 2,536 2,231 3,991 3,115 

Taxes paid (64,252) (198,468) (263,678) (343,599) (4,746) (5,897) (6,581) (7,189) (106,569) (366,963) 

(737,032) 224,584 573,475 1,725,908 1,037,310 811,604 812,245 888,675 998,261 839,694 

CASH FLOW FROM INVESTING ACTIVTIES 

Capital expenditures (1,586,654) (1,325,903) (1,332,705) (1,331,608) - - - - - - 

(1,586,654) (1,325,903) (1,332,705) (1,331,608) - - - - - - 

CASH FLOW FROM FINANCING ACTIVTIES 

Share Capital 1,190,658 510,282 - - - - - - - - 

Sub-ordinated loans 319,440 - - - (319,440) - - - - - 

GoS Loan (Interest Rate Payable) 25,555 25,555 25,555 25,555 (102,221) - - - - - 

Long term financing 1,190,658 340,188 170,094 - (283,490) (283,490) (283,490) (283,490) (283,490) (283,490) 

Financial charges paid - - (84,786) (11,234) (248,795) (170,094) (127,571) (85,047) (42,524) - 

2,726,311 876,025 110,863 14,321 (953,946) (453,584) (411,061) (368,537) (326,014) (283,490) 

Total Cash Flow During the year 402,625 (225,294) (648,366) 408,621 83,364 358,020 401,184 520,138 672,247 556,204 

61 


The cash flows presented above covers the following phases: 

1. Development Phase: 

The development Phase relates to a 4 years period whereby the Project is envisaged to be 

completed, including both the Resort and Recreational Zones. The Golf Course, Resort and 

Convention Centre are envisaged to be the prime development components – the same being 

mainly for corporate consumers. 

2. Operational Phase: 

The Operational Phase relates to the operations and maintenance phase of the Project 

following the completion of the Project. For the purposes of financial analysis, 5 year 

projections for the operational period are presented. 

14.2 Development Period Cash Flows 

Figures in PKR Millions 

Development Period 

Year 1 Year 2 Year 3 Year 4 Total 

Land and Infrastructure 1,203 - 299 294 1,795 

Resort and Hospitality Segment 545 794 795 783 2,916 

Golf Course 209 329 195 207 940 

Project Development Costs 1,957 1,123 1,289 1,284 5,651 

Interest During Construction 353 203 233 232 1,021 

Estimated Project Costs 2,310 1,326 1,520 1,516 6,672 

Financed Through: 

Farmhouse Sales 

Advances received 50 423 1,025 2,254 3,752 

Taxes paid (64) (198) (293) (348) (904) 

Net proceeds (14) 225 731 1,907 2,849 

GoS – deferred payment facility* 345 26 26 26 422 

Equity 1,191 510 - - 1,701 

Debt 1,191 340 170 - 1,701 

Total funds generated 2,712 1,101 927 1,932 6,672 

Excess/ (shortfall) within the year 403 (225) (593) 416 - 

* Based on notional value of land of PKR 399 million. 

62 


14.2.1 Estimated Project Costs – Resort Zone 

Total estimated Project costs for the Resort Zone during the 4 year development phase is estimated at 

PKR 6,672 million (US$ 78.5 million). Breakdown of Project costs is as under: 

Figures in Millions 

In PKR 

Resort Zone 

In USD 

Land and Infrastructure 1,795 21.12 

Resort and Hospitality Segment 2,916 34.31 

Golf Course 940 11.06 

Project Development Costs 5,651 66.49 

Interest During Construction 1,021 12.01 

Estimated Project Costs 6,672 78.50 

The Project development costs (amounting to PKR 5,651 million) include the effects of the following: 

1. Escalation costs over the 4 year development phase applied over base Project costs @ 6.5% 

p.a. 

2. Soft costs over Project base costs adjusted for escalation. These further include: 

a. Project Consultancy Costs: 2.5% 

b. Project Administration Costs: 3% 

c. Project Management: 4% 

3. Land price included in the infrastructure cost representing a notional value of PKR 399 million. 

14.2.2 Project Development Timelines 

As indicated in the graph above, the Project development period is estimated to be 4 years during 

which the development works in respect of the Resort Zone (including the Infrastructure works) and the 

Recreational Zone are expected to be completed. 

63 


14.2.3 Development Outlays 

In respect of the Resort Zone, development outlays for Year 1 are expected to be spent on the 

infrastructure development and land costs, comprising 35% of the total development costs. 

Development outlays in the subsequent years of Project development are estimated to be incurred 

almost equally. Component wise development outlays are presented in the graph below. 

Development Outlays during the 4 year Development Period 

0% 25% 50% 75% 100% 

Land Cost 

Infrastructure 

Resort and Hospitality 

Golf Course 

IDC 

2011 2012 2013 2014 

14.2.4 Project Financing Assumptions 

The Project is envisaged to be funded through the following forms of financing: 

► Funds generated through sale of farmhouses; 

► 

► 

► 

GoS deferred payment facility in respect of Project land; 

Commercial debt contribution by the Project lenders; and 

Equity contributions by the developer. 

Project Funding Structure (Figures in PKR millions) 

PP Equity 

1,701 

26% 

FH 

Proceeds 

2,849 

43% 

GoS 

Deferred 

Payment 

Facility 

Comm. 422 

Debt 6% 

1,701 

25% 

14.2.4.1 Sale of Farmhouses 

Farmhouses are the only residential component that would be sold on an upfront basis to raise 

substantial Project funding during the Project development period. As elicited in the graph above, 

farmhouses are expected to generate 43% of the Project finance requirements. The sale of farmhouses 

also includes the sale of 500 golf club memberships during the last 6 months of the Project 

development at PKR 1.3 million per membership. 

64 


Composition 

Total number of farmhouses is 240, spread over an approximate area of 200 acres. These farmhouses 

are further bifurcated into the following: 

► 

► 

1/2 Acre: 84 units; and 

1 Acre: 156 units. 

Sales plan 

From the view point of achieving sales to potentially fund a larger portion of the Project development 

costs, a robust sales strategy has been developed alongside the Project feasibility of the resort zone to 

assist the potential developers. 

The strategy is aimed at achieving sales at prices that are attractive enough for the end consumers as 

well as enabling the potential developers to market the development components, especially the 

farmhouses to achieve sales bookings within the Project development phase. 

Salient features of the sales strategy are: 

► 

► 

► 

► 

► 

The primary target consumers for these farmhouses are: 

„ Corporate clients; and 

„ High net worth individuals, including investors. 

Sale of farmhouses to start from the expiry of 9 months from the commencement of development 

work. 

Sale of farmhouses is expected to be launched in three phases, aligned with the development 

works. 

10% will be payable upfront, while the remainder to be paid in equal quarterly installments. 

It is assumed that the farmhouses will be sold out during the construction period in the following 

manner and at the following prices: 

Year 

1 Acre 1 Acre 1/2 Acre 1/2 Acre 

Units 

PKR 

Price/unit*^ 

Units 

PKR 

Price/unit*^ 

2011 20 14,475,000 16 8,970,000 

2012 50 16,549,750 43 9,933,663 

2013 42 18,817,500 25 11,407,500 

2014 44 20,769,432 0 13,689,000 

* Prices reflected above includes prices for golf club memberships valued at PKR 1.0m. 

^ 

These exclude farmhouse construction costs to be recovered from the end consumers and 

applicable marketing commissions payable. 

14.2.4.2 GoS deferred payment facility 

The GoS is offering the Project land on a long term lease for the purposes of this Project under the 

deferred payment mechanism. The developers are expected to pay 20% of the Quoted Bid Amount (the 

“QBA”) upfront, while the remainder is on a deferred payment basis. The QBA includes a fixed land 

price (currently valued at a notional amount of PKR 399 million) plus premium on Project land. 

The GoS will charge a concessional interest rate of @ 8% per annum on the remaining balance which 

is required to be paid by the developer in full or in installments, no later than the completion of 

development works, i.e. 4 years. 

65 


14.2.4.3 Commercial Debt & Equity 

The balance finance for the Project is expected to be funded in equal proportions through the 

commercial debt and developer’s equity, i.e. 50:50. 

The commercial debt is envisaged to be raised @ the interest rate of 15% per annum for 10 years 

period, with a grace period of 4 years, i.e. the development phase. The land would be available for 

mortgage to secure funding from the commercial lenders while all the receipts and payments in respect 

of the development will be routed through a payment security mechanism, i.e. Escrow Account. 

It is expected that the total external funding in the form of commercial debt would include: 

► Long term debt for PKR 1,701m; and 

► Short term borrowing with a limit of PKR 500m. 

14.3 Operational Period Cash Flows 

Figures in PKR Millions 

Operational Period 

Year 1 Year 2 Year 3 Year 4 Year 5 

Operating Inflows 

Farmhouse proceeds – residual 574.8 - - - - 

Resort and Hospitality 845.4 934.9 1,060.0 1,169.1 1,309.4 

Convention Centre 79.1 84.7 90.6 96.9 105.8 

Golf Course 24.8 159.9 165.5 171.8 313.0 

1,524.1 1,179.5 1,316.1 1,437.8 1,728.2 

Operating Outflows 

Maintenance costs (43.3) (46.7) (50.5) (54.5) (58.9) 

Operating costs (353.0) (399.7) (446.6) (487.2) (562.7) 

Income taxes (4.7) (5.9) (6.6) (7.2) (106.6) 

(401.0) (452.3) (503.7) (548.9) (728.1) 

Other Inflows/ (Outflows) 

Working capital (85.7) 84.4 (0.2) (0.2) (1.8) 

Loan repayments (248.8) (170.1) (127.6) (85.0) (42.5) 

Financial charges (283.5) (283.5) (283.5) (283.5) (283.5) 

GoS deferred payment facility (421.7) - - - - 

(1,039.7) (369.1) (411.3) (368.7) (327.8) 

Cash flow for the year 83.4 358.0 401.2 520.1 p 672.2 

66 


14.3.1 Revenue Assumptions 

Except otherwise indicated, these charges are expected to grow annually at 7% per annum. Rates 

indicated in the assumptions below are exclusive of any applicable taxes and levies. 

14.3.1.1 Resort and Hospitality 

As indicated under section 10.4, the resort and hospitality segment includes the following Project 

components under the Resort Zone: 

► 

► 

► 

Chalets: 2-bed; 38 chalets and 1-bed; 38 chalets. 

Serviced Apartments: 2-bed; 112 apartments. 

3 to 4 star category 75 room resort with 1 specialty restaurant and 2 normal restaurants. 

Chalets 

► Occupancy: 2 bed chalets – 34%; 1 bed chalets – 36%. 

► Occupancy levels are weighted on average occupancies applied throughout the year, using 

different occupancy levels for peak seasons and for off-peak seasons. 

► Occupancy levels are projected to grow @ 2% per annum subject to a maximum weighted 

occupancy of 45% on an overall basis. 

► Charges: 2 bed chalets – PKR 17,500 per stay; 1 bed chalets – PKR 13,500 per stay. 


► Occupancy: 2 bed apartments – 34%. 

► Occupancy levels are weighted average occupancies applied throughout the year, using different 

occupancy levels for the peak seasons and the off-peak seasons. 

► Occupancy levels are projected to grow @ 2% per annum subject to a maximum weighted 

occupancy of 45% on an overall basis. 

► Charges: PKR 16,000 per stay. 

Resort 

► 

Resort assumptions are summarized below: 

Category Units Capacity 

Charges 

in PKR 

Basis 

Occupancy* 

Resort Rooms 75 n/a 10,000 Per night 30% - 35% 

Restaurant 1 – Specialty 1 150 1,000 Per Person 40% - 45% 

Restaurant 2 & 3 – Normal 2 300 500 Per Person 50% - 55% 

* Occupancy levels indicated for first 6 years of operations only. 

► 

► 

Table turnover for Restaurant 1 is assumed at 1.5x and for Restaurant 2 & 3 the turnover is 

assumed at 2.0x. 

Food and Beverage charges for Resort rooms is estimated at PKR 1,000 and other facilities such 

as swimming pool, gym, track, telephone, laundry etc is assumed to be 20% of room rent plus F&B 

revenues. 

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14.3.1.2 Convention Centre 

► 

Convention centre assumptions are summarized below: 

Category 

Units 

Capacity 

(Persons) 

Charges 

in PKR 

Basis 

Occupancy* 

Executive Meeting Room 5 10 6,000 Per booking 40% 

Meeting Room 3 25 10,000 Per booking 45% - 50% 

Large Ball Room 1 350 400 Per Person 20% 

Small Ball Room 1 200 300 Per Person 25% 

* Occupancy levels indicated for the first 6 years of operations only. 

► 

Food and Beverage charges: 

„ Executive meetings rooms estimated at PKR 1,000 per person. 

„ Others estimated at PKR 500 per person. 

14.3.1.3 Golf Course 

► 

► 

► 

► 

► 

It is assumed that a total of 2,000 memberships will be sold over a period of 10 years commencing 

after expiration of 1 year of the commencement of commercial operations. 

One time membership fee of PKR 1.3m will be charged followed by a monthly subscription of PKR 

2,000 per membership. 

Facility usage is assumed at 1,200 persons every year, which is expected to grow at 5% per 

annum. 

The usage ratio for the club is assumed at 70% for weekends and 30% for weekdays. 

Course fee and range fee would be PKR 800 and PKR 150 for weekends and PKR 500 and PKR 

100 for weekdays respectively. 

14.3.2 Cost Assumptions 

14.3.2.1 Operating Costs 

► 

► 

Operating costs include staff salaries, wages, insurance promotions etc. 

While an accurate determination of such expenses at the Pre-Feasibility stage is not possible, an 

effort has been made to factor these expenses into the feasibility on the basis of a share in 

revenues. 

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► 

The table below summarizes the various operating expenses and their respective shares in 

different revenue streams for the first year of operations only. 

Component 

Percentage of 

Revenues 

Resort and Hospitality 

1. Chalets 25% 

2. Serviced Apartments 25% 

3. Resort Rooms 40% 

4. Restaurants 65% 

Convention Centre 50% 

Golf Course 40% 

Overall 37% 

14.3.2.2 Maintenance Costs 

► 

► 

► 

Maintenance expenses are estimated to amount to 0.5% of the total Project development cost 

every year for general upkeep and maintenance of the facilities. 

Major maintenance expenditures are estimated @ 2% of the Project development costs after every 

7 years. These expenses are capitalized under the fixed assets. 

All maintenance expenses are adjusted for inflation. 

14.3.2.3 Depreciation 

► 

Accounting depreciation is assumed @ 5% per annum on the written down value. 

14.3.2.4 Finance Costs 

► 

Financial charges on short term borrowings are estimated @18% per annum for borrowings 

availed in any year during the operational period. 

14.3.2.5 Working Capital 

► 

During the operational period, working capital is assumed as follows: 

„ Receivables: 2% of the total revenues. 

„ Payables / Accruals: 5% of the operating expenses excluding depreciation. 

69 


14.4 Investment Analysis 

Based on the financial assumptions described above, the Project yields a Project IRR of 17.7% and 

Equity IRR of 22.8%. Simple payback is estimated to be achieved by 9 th year, i.e. 5 th year of operational 

period which is very healthy when compared with regional benchmarks on tourism projects followed by 

reduced upfront investment. 

14.4.1 Upside Potential 

The following factors are expected to contribute towards enhancing project returns over the base lines 

estimates presented above: 

1. Reduced upfront payment against Quoted Bid Amount (QBA): The transaction structure 

being envisaged proposes a low cost deferred payment facility option whereby initial payment 

by selected bidder to be limited to only 20% of QBA. 

2. Exit Options: Exit options are available from start of the project, subject to certain conditions 

relating to maximum dilution levels. 

3. Modification of development outlays: Development outlays can be further reduced in the 

initial phase of development since the initial phase would focus on Infrastructure Development, 

which is expected to have significant lower cost/ outlays than those required in the finishing 

stages of the project. 

4. Recreation zone: Flexibility is available on the design and development of 200 acre Recreation 

Zone component with an added option for the developer to enter into sub-concession or subcontract 

arrangement(s) with the third parties. 

5. Option to modify non-essential facilities: Developer shall have the option to modify the nonessential 

components such as Walk-up apartments and farmhouse villas into hospitality 

components and may be able award sub-concessions for those components, as long as such 

modifications do not contradict the overall theme of the Conceptual Master Plan. 

6. Walkup- Apartment: Cash flows from walk-up apartments have not been factored into the 

baseline project returns. 

70 


15 Project Implementation Framework 

15.1 Implementation Structure 

The GoS intends to develop this Project under the PPP mode. The Project is to be implemented 

through a project special purpose vehicle (the “Project SPV”) which shall be responsible for the entire 

development and operations of the Project. The Project SPV shall be controlled by the developer (the 

“Developer”) who would be selected through a competitive bidding process to enter into a Concession 

Agreement with the Keenjhar Project Company to design, build finance, market, operate and maintain 

the Project on long term lease basis. 

15.2 Role of the Developer 

The role of the Developer would be to undertake planning, design, construction, commissioning, 

marketing, operation and maintenance of the project facilities including the Minimum Development 

Obligations (“the Essential Facilities”). The Developer would be encouraged to use innovative 

technology and design for creation and expansion of the other Project facilities as per the market 

demand and subject to the design fulfilling the requirements and performance criteria, as stipulated in 

the Concession Agreement. 

15.3 Role of the Keenjhar Project Company 

Keenjhar Project Company, proposed to be a wholly owned GoS entity, shall be the Project 

implementation entity responsible to give land on lease with clear title, free of encumbrances, to the 

Developer for developing the Project. The land shall be offered on a long term lease basis to the Project 

SPV as per the terms of the Concession Agreement. 

15.4 Concession Agreement 

Keenjhar Project Company will enter into a Concession Agreement with the Project SPV, thereby 

allowing the requisite rights for construction, operation and maintenance of the project facilities 

throughout the concession period. The responsibility for regulating as per the Concession Agreement 

will rest with the Keenjhar Project Company, who will appoint an Independent Engineer and/or 

71 


Independent Auditor, as required to provide professional support for the purposes of regulating the 

Project development. 

15.5 Concession Period 

The Concession Period would be on a long term basis, for a period of __ years (including 4 years 

construction/ development period). 

15.6 Payment Security Mechanism 

Investment under the Project to be safeguarded through a proper Payment Security Mechanism (PSM), 

i.e. Escrow Account to be operated to ensure that proceeds from saleable components are first utilized 

for the project development. 

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Keenjhar Lake Resort Project - Sindh Board Of Investment ...

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