Title front - Sindh Board Of Investment, Government Of Sindh

SINDHINVESTMENTPROFILE

SBI has strong conviction in thefuture of Sindh as an economicand energy hub of the region. Itbelieves that the immenseeconomic potential of Sindhrequires sustained public-privatecollaboration and sees for itself apivotal role in building such arelationship. SBI aims to bringpublic objectives closer toprivate aspirations.

Dr. Ishrat UI Ebad KhanGovernor SindhSindh, with its numerous competitive advantages, becomes anobvious choice for investors. Sindh‘s wealth of natural resources, itsstrategic location and its well-developed industrial, financial andtelecommunication sectors have all the ingredients for a successfulbusiness venture.Karachi has been the focus of investors‘ interest, who have beenattracted to its vibrant economy and enormous business potential.The scope for coastal recreation resorts, construction and housingespecially in low-cost sector, IT parks, modern municipalmanagement, mass transit and in relocation of textile and otherindustrial setups from developed economies make it an idealdestination for investors.The endeavor by Sindh Board of Investment to showcase Sindh‘spotential for investment particularly in rural economy, would helpin fulfilling government‘s commitment to provide equitabledevelopment in all parts of the province.Sindh, by the grace of Allah, will continue to be the majorcontributor in national revenues.

Syed Qaim Ali ShahChief Minister Sindh &former Chairman, Sindh Board of InvestmentSindh Government attaches high priority to investment facilitationwhich it believes would take the province on the path of progresswhere it achieves its true economic potential. The creation ofSindh Board of Investment is manifestation of Sindh Government’scommitment to bring about continuous improvement in theinvestment climate in the province. SBI is tasked to showcaseinvestment opportunities for large, medium and small investors,which will include technical assistance in conducting marketresearch and feasibility studies.Sindh has been successful in signing the biggest joint ventureproject in the country’s history where the provincial governmentwill invest with a private sector company on a US$ 1.5 billion coalmining project.Sindh Assembly has provided legal structure for public-privatecollaboration by enacting Sindh Public Private Partnership Act,2010. M/s Deokjae Construction Company of Korea has alreadystarted work on the first PPP road project, Hyderabad-MirpurkhasDual Carriageway. Sindh Enterprise Development Fund is anotherunique initiative whereby the government will provide subsidy tothe private sector initiatives for value addition in agriculture,fisheries, livestock and dairy sectors.The Government of Sindh is actively pursuing its goal tobring prosperity to its people by creating jobs and economicopportunities by facilitating investment and business.

Saleem H. MandviwallaChairman, Board of InvestmentNature has blessed Sindh Province with ideal climate suitable forgrowing a wide range of crops, fruits, minerals as well as manpowerresources. Government policies are conducive with the emphasison promotional activities to facilitate the establishment of newindustries and their smooth growth and operation.Pakistan’s Investment policy is the most liberal in the region, andopens new vistas to local as well as foreign investors for investmentin service, social, agriculture and industrial sectors so as to keepPakistan competitive in international market and viable area forinvestment. Under the Investment Policy in vogue no permission isrequired to invest in Pakistan. A foreign investor can hold up to 100percent of equity. Remittance of profits, dividends, and capital isallowed among many other facilities available in the policy.Pakistan is home to over 700 multinational companies, which showsthe confidence of investors in Pakistan. Due to consistenteconomic/investment policies, international studies and surveyshave ranked Pakistan better than India, China, Sri Lanka,Bangladesh and others for ease of doing business.Pakistan being one of the fastest growing economies of the worldhas touched a GDP growth rate of 8.4% in 2005. Today Pakistan hasover 170 million consumers with an ever-growing middle class.Foreign Direct investment has risen sharply from an average of US$300 million in the 1990s to over US$ 3.7 billion in 2008-2009. Fiscaldeficit has declined from an average 7% of GDP in the 1990s toaround 3% in recent years. FOREX reserves have increased from US$3.22 billion in 2000-01 to more than US$ 17 billion in December 2010and are increasing further.We at the Prime Minister’s Secretariat BOI assist companies andinvestors who intend to invest in Pakistan as well as facilitateimplementation and operation of their projects warmly welcome allinvestors to the province of Sindh.

Mr. Muhammad Zubair MotiwalaChairman, Sindh Board of InvestmentSindh is the most resilient and attractive investment destination forinternational and local investors. With Karachi as the financialcapital of Pakistan and nucleus of headquarters of major financialinstitutions and business houses, large agricultural, industrial andaquaculture base as well as emerging opportunities in energysector provides the province with unmatched competitiveadvantage to attract investment. In order to capitalize on thiscompetitive advantage Sindh Board of Investment (SBI) has beenestablished to strengthen business-friendly environment in theprovince with efficient mechanisms of governance to enhancecomfort level of the investors by acting as a bridge between theGovernment and the business community.SBI facilitates by offering the potential investor viable projects withbasic technical knowledge. Through Sindh EnterpriseDevelopment Fund, the Government of Sindh has established acredit assistance window where the idea is to work closely withfinancial institutions and subsidize the interest rates for attractinginvestment in agro-based industries to support rural economy ofthe province. The commencement of mega projects likeEducation City, Special Economic Zones, Textile City, Marble City,Khairpur Special Economic Zone will provide immense employmentopportunities and usher in a new era of economic activity in theprovince.With prudent policies of the Government, new investmentopportunities are emerging in Sindh everyday making it a topchoice for foreign and local investment including relocation ofindustries from the developed economies.SBI looks forward that you will join thousands of investors alreadybenefiting from investment in Sindh as we offer a winningcombination of advantages and opportunities to be yourpreferred investment destination.

ForewordSBI, in a short span of time, has emerged as the platform for facilitation to all the investmentscoming in the province, public-private interaction, business partnerships and matchmaking.With the efforts of the entire team of Sindh Board of Investment I am confident that the secondedition of Sindh Investment Profile highlights tremendous opportunities of investment availablein this land of endless resources. Sindh is bestowed with enormous resources which remainuntapped to date not only in agriculture and livestock sectors but also in energy, renewableresources, and education and infrastructure sectors.Apart from this, SBI also holds the distinction of pioneering signature events like Sindh InvestmentConference (SIC), Livestock, Dairy, Fisheries and Agriculture Exhibition and Seminar (LDFA) 2011& 2012), International Coal Conference (ICC) and International Halal Conferences (IHC). Allthese activities have made SBI a hub for diplomatic, business and official circles seeking tointeract on the matters of investment and trade facilitation in the province. The depth ofinvolvement of SBI team in various sectors of Sindh’s economy is now reflected in the morerefined version of Sindh Investment Profile.The material in the following pages could not have been compiled without the valuablecontributions from various government departments and organizations, trade associations,experts and members of academia.As mentioned in our first edition, we reiterate that SBI while eager to see early realization ofenormous potential of Sindh in agriculture, energy, urban development, mass transit and othersectors for large-scale investments would also like to put equal emphasis on supporting small andmedium ventures in these sectors as well.I am particularly indebted to Ms. Naheed Shah Durrani, ex-Secretary InvestmentDepartment/DG, SBI for initiating revision of the Profile and for providing vision and all-outsupport to accomplish this important task.I am also indebted to the team of Sindh Board of Investment particularly Mr. Zubair AhmedChanna, Director Administration and Mr. Fayyaz Alam Solangi, Deputy Secretary who workedday and night to make this book an authentic catalogue of Sindh’s investment opportunitieswith thorough details about policies and procedures.We hope that this extensively revised version of Sindh Investment Profile will be of immense helpto investors whose facilitation is one of the primary objectives of the Government of Sindh.Muhammad RiazuddinDirector GeneralSindh Board of Investment

Sindh _ Trade is Our HeritageSindh, the cradle of Indus civilization, has remainedthe economic hub of Pakistan since its creation in1947. Cities of Sindh have remained prominentcentres of trade and enterprise in the regionthroughout history. With such glorious past, thrivingindustrial base, abundant natural resources,well-developed infrastructure, competitive humanresource, two seaports, sophisticated communicationsnetwork, modern financial and servicessectors, and investment-friendly policies, Sindhemerges as the most promising destination forinvestment and business.

Economy of SindhSindh, Pakistan’s second largest provinceplays a pivotal role in the national economicand development agenda. The country’slargest port city, Karachi, is the financialcapital of the country. The Province comprises23.7% of Pakistan’s population and 18.34% ofits land area. It has the highest concentrationof urban population at 49% as compared toan overall country average of 32.5%, making itthe most urbanized province in the country.With 23.7% of country’s population, itscontribution to the national GDP is around 30%and is contributing 65-69% of national taxcollection. Sindh has 54% of country’s textileunits, 40% of its sugar mills, 20% of pulp andpaper mills and 35% of edible oil processedlocally. Sindh accounts for 34% of totalindustrial capacity in large-scalemanufacturing and 25% of small-scalemanufacturing.Despite global economic slowdown towardsthe end of 2008 and Pakistan’s unmatchedcontribution to international cause for peaceby playing a key role as the frontline state,Sindh’s manufacturing sector has beenresilient and investments have continued topour in the economic cycle. MNCs and localenterprises such as P&G, Coke International,Lotte Group of South Korea, Al Tuwairqi Steel Mills, Engro Corp., JS Group, National Foods, Agha KhanFoundation, wind energy investors (Zorlu, United Energy, NBT, Fina, Hydro China, FFC Energy), IsmailIndustries, Pakistan Cables, General Cables USA, and many others are committed to makeinvestments worth around US$ 8 billion in the province in the coming years.

Economy of SindhSindh’s diversified economy also comprises awell-developed agricultural base supportedby a vast irrigation network on the mightyIndus. Sindh grows a variety of field andhorticultural crops with wheat, cotton, rice andsugarcane contributing to 70% of the totalcropped area. Horticulture contributes tomore than 90% banana, 55% dates, 13%guava, 40% onion, 85% red chillies and 34%mango of entire country’s production. Sindhproduces 36% of rice, 27% of the sugarcane,25% of cotton and 15% of wheat in thecountry. In 2011-12, Sindh produced 600,000tons of Mango, 71,000 tons of Guava and350,000 tons of Dates. This provides immenseopportunity for setting up export-orientedagro-processing industry in the province.Sindh’s coastline of 352 km with thickmangrove forests is a very productiveresource, which provide for 48% of Pakistan’sfish export. Moreover, 71% of marine resources,65% of freshwater fish resource and 100% ofsaltwater fish resource of the country arelocated in Sindh.In the context of livestock, 28% buffaloes, 27%cattle, 24% sheep, 28% camels and 40%poultry of Pakistan is found in Sindh. Thelivestock and poultry headcount of 40 million(approx.) provides a strong base for dairy and at processing industry for local and export purposes.Sindh is rich in natural resources. Around 60% of the country’s oil fields and 40% gas fields are locatedhere and contribute 56% and 71% of Pakistan’s daily oil and gas production respectively. Sindh hasone of the largest coal reserves in the world (185 billion tons) in Thar, Sonda, Lakhra and Badin. Sindhalso has a huge potential for renewable energy with 180 MWs run-of-river hydel potential, 60 km wideand 18km deep wind corridor with a potential of 50,000 MWs and more than 300 days of sunshinewith 5.3 KWh/m2.

Competitive Advantages of SindhKarachi - Financial Capital of Pakistan• Nucleus of headquarters of major financial institutions and business houses• Karachi Stock Exchange – country's largest and most vibrant stock market• Total listed companies 590, market capitalization of Rs. 3.6 trillion (US$ 37.42 billion) & listed capitalof Rs. 1,069 billion (Approx. US$ 11.13 billion). Average daily share volume 153 million as of June 30,2012.• Out of 2,743 industrial units 2,078 (76%) are located in KarachiCoastline — 352 KMsTwo Major PortsPort Qasim• Multipurpose Terminal, Container Terminal, Liquid Chemical Terminal, Grain Terminal and OilTerminalKarachi Port• Container Terminals, Bulk Cargo Terminals, Oil Piers, Ship Repair Jetties, Shipyard and EngineeringFacilityFish Harbours• Karachi Fish Harbour- 28 major fish processing plants, 2 large auction halls, landing area, 40 tonflake ice machine, unloading wharf, boatbuilding facilities and a slipway. Handles about 90% ofthe fish and seafood catch in Pakistan and 95% of fish and seafood exports from Pakistan.• Korangi Fish Harbour — a new facility built to relieve pressure on Karachi Fish Harbour and to caterto growing fisheries production, large trawlers and processing vessels.

Competitive Advantages of SindhRegional Powerhouse of the Future• Thar coalfield — potential for 100,000 MWs for 300 years (175 billion Tons).• Wind corridor — 50,000 MWs potential. Over 30 projects with installed capacity of 2000 MWs havealready established.• Huge potential for solar energy – 5.3 KWh/m2.• 180 MWs run-of-river hydel power potential.• Oil - 56% of country’s production. Natural gas — 71% of country’s production.Wide Network of Industrial Estates• SITE Limited (Karachi, Sukkur, Benazirabad, Tando Adam, Nooriabad, Hyderabad, Kotri, and SuperHighway).• Industrial Areas — Port Qasim, Korangi, FB. Area, North Karachi, and Landhi.• National Industrial Parks (Bin Qasim and Korangi Industrial Parks).• Export Processing Zone (EPZ), Karachi.• Khairpur Special Economic Zone• 34% of Large-Scale Manufacturing (LSM) units and 25% of Small-Scale Manufacturing (SSM) units inSindh contribute 25% to industrial production of the country.Airports• Jinnah International Airport• Four domestic airports (Hyderabad, Benazirabad, Sukkur, and Larkana)• Airstrips at several locations (Jacobabad, Dadu (Sehwan), Islamkot)

Competitive Advantages of SindhLarge Agricultural and Aquacultural Base• Agriculture – 23% of country’s production.• Abundant land, extensive irrigation network and favorable climate.• Year-round crop production (wheat, cotton, rice, sugarcane, fruits and vegetables).• Sizeable fisheries and livestock production.Large Agricultural and Aquacultural Base• One of the largest coal reserves in the world (185 billion tons) in Thar, Sonda, Lakhra and Badin.• Huge reserves of granite of 26 billion tons in Nangarparkar, Thar desert.• 350 million tons of marble reserves in Dadu and Thatta districts.• Fairly large salt lakes in Khairpur, Benazirabad, Sanghar, Dadu, and Tharparkar.• Huge reserves of l imestone in Khairpur, Dadu, Jamshoro, Larkana, Sukkur, Hyderabad, Thatta andKarachi.• Other mineral reserves: silica sand, celestite, FulIer’s earth, fire clay, china clay,• Large reserves of minerals like dolomite, laterite, bentonite, sandstone, chalk, gypsum, and so on.

Competitive Advantages of SindhStrategic Location as a Regional Hub• Strong and Iongstanding links with China, the Middle East and South Asia.• Potential gateway to the Central Asia Republics.Large and Growing Domestic Market• Around 40 million consumers with increasing incomes.• An emerging middle-class moving to enhanced consumption habitsWell-Established Infrastructure and Legal System• Comprehensive road and rail network as well as air and sea links.• Sophisticated telecommunications and IT services.• Business-friendly legal system including the most well-established legal and institutionalframework for public-private partnerships in the country.Human Resource• Trained, educated, and competitive• Internationally compatible

About SBISindh Board of InvestmentSindh Board of Investment (SBI) was establishedwith broad-based responsibility for promotion ofinvestment in all sectors economy in theprovince, facilitation of foreign and domesticinvestors for speedy materialization of theirprojects, and enhancement of competitivenessthereby contributing to socio-economic developmentof the province of Sindh.The wide range of services provided by SBIinclude providing disseminating information onthe opportunities for investment and facilitatingcompanies looking for joint venture partners. SBIacts as a one-stop shop for prospectiveinvestors, both domestic and foreign, byproviding necessary information and assistancein coordination with other Governmentdepartment and agencies.

SBI TEAM

About UsVisionTo develop and promote an investment-friendly environment that boosts economic activity, bringsvalue addition to all sectors of economy and encourages public-private partnership forsocio-economic development of Sindh.Purpose• Materialize the Sindh Government's resolve to strengthen business environment in the province ofSINDH as the principal investment agency of the province to facilitate foreign and domesticinvestors.• Provide a bridge between the Government and business community.Functions of SBI• Act as the focal point and one-stop destination for all investment related activities in theprovince.• Provide framework for implementation of Investment Policy of the Federal Government and tosupport provincial endeavors.• Provide platform for public-private interaction and promotion of public-private partnerships.• Provide One-Window Operation at the provincial level for facilitation of domestic and foreigninvestors seeking land, approvals, concessions, facilities and support from the provincialdepartments and authorities.• Business partnerships and matchmaking facilities.• Investment and business research on prospective projects in agro-processing sector facilitatingsubsidies, concessions and approvals from the Government.• Provide alternative dispute resolution mechanism for cases/sprosecution initiated againstmembers of trade and industry under various commercial, industrial, labor and taxation lawsenforced by the provincial departments.• Suggest improvements in regulatory framework and procedural system for trade and industrialactivities in the province.

Government of Sindh:Composition of SBI BoardMuhammad Zubair Motiwala,Additional Chief Secretary, Planning & DevelopmentDepartment Secretary, Finance DepartmentSecretary, Industries & Commerce DepartmentSecretary, Agriculture DepartmentSecretary/Member (Land Utilization), Board of RevenueSecretary, Livestock & Fisheries DepartmentDirector General, Sindh Board of InvestmentChairmanMemberMemberMemberMemberMemberMemberMember/SecretaryPrivate Sector Members:PresidentPresidentPresidentPresidentMr. MaqsoodMr. Ali JahangirMr. Anjum NisarMr. Syed Mahmood Nawaz ShahMr. Jawad BilwaniMr. Abdul Jabbar EngineerMr. M. Rehan SaeedDr. Ibrahim Shah BukhariMr. Junaid MakdaMr. Abdul Razzak ParachaMr. Zaigham Adil RizviKarachi Chamber of Commerce & lndustryHyderabad Chamber of Commerce & IndustrySukkur Chamber of Commerce & IndustrySindh Chamber of AgricultureIsmail Group of Industries, KarachiDirector, Jahangir Siddiqui & Co Ltd.Former President, KCCISindh Abadgar BoardChariman, Pakistan Apparel ForumFormer Chairman, SITE Association, KarachiChief Executive, JB Saeed Cattle FarmFish Farmer/Vice Chancellor Preston UniversityChairman, Pakistan Hosiery AssociationChief Executive, Universal Fashions (Pvt.) Ltd.Director Projects, Al Tuwairqi Steel Mills

About SBIInvestment Policy and IncentivesThe World Bank’s 2011 report on Ease of DoingBusiness ranks Pakistan as 2nd best in SouthAsian region in terms of trading across borders,access to credit and protection to investors.The investment policy of Pakistan is competitiveand liberal offering a wide spectrum ofopportunities to foreign and domestic investorsin all sectors of the economy. There is norequirement for obtaining any permission fromfederal or provincial governments beforesetting up industry in any sector or place exceptfor arms and ammunitions, high explosives,radioactive substances, security printing,currency and mint, and alcohol production.

Investment PolicyFacilitation and creation of friendly environment for investors is the prime objective of theGovernment of Sindh. Sindh Board of Investment, focal agency for investment, is tasked withproviding conducive platform with one-window operation. Government of Pakistan has devisedinvestment-friendly incentives to attract as much FDI as possible.Ease of Investment• Reduction of minimum foreign equity requirement for a project from US$ 0.5 million to US$ 0.3million.• Repatriation of 100% capital, profits, royalty, technology and franchise fees allowed.• Zero import duties on capital goods, plant and machinery equipment not manufactured locally.• Enhanced First Year Allowance for depreciation from 50% to 75% of plant machinery andequipment for infrastructure and agriculture projects.• Zero-rated import tariff on agriculture machinery (not manufactured locally) for registeredcorporate agricultural projects.• Zero import duties on raw materials used in the production of exports. Sindh EnterpriseDevelopment Fund (SDF) for agro-based industries:• Subsidizes 100% KIBOR (Karachi Inter Bank Offer Rate) on capital cost 50% KIBOR on workingcapital.• Comprehensive duty-free facilities for investors.Investment Laws• Foreign Private Investment (Promotion & Protection) Act ,1976• To provide for the promotion and protection of foreign private investment in Pakistan.• Act No. XII of 1992• Provides for furtherance and protection of economic reforms.• Special Economic Zone Act, 2011.• Public Private Partnership Act and Policy.Fiscal Incentives for Corporate Agriculture Farming (CAF)• 0% custom duty and sales tax on import of agricultural machinery, equipment and implementsunder• SRO 575(l)/2006 dated 5th June, 6.• Exemption of duty on transfer of land for CAF.• Initial depreciation allowance @ 50% of machinery cost.• Dividends from corporate agriculture farms are not subject to taxes.• Farm income given more favourable treatment than income from other s sources.

Highlights of Progress 2011- 2012Policy ParametersGovt. PermissionRemittance ofcapital,profits, dividends, etcUpper Limit ofForeignequity allowedMinimum InvestmentAmount (MS)Customs duty onimport of PMETax relief (IDA, % ofPME cost)Royalty & TechnicalFeedManufacturing SectorNon - Manufacturing SectorAgriculture Infrastructure &SocialService including IT& Telecom ServiceNot required except4 specified IndustriesAllowedNot required except specific licenses fromconcerned agenciesAllowed100%No5%50%No restriction forpayment of royalty &technical fee.100%0.3%0%50%100%0.3%5%100%0.15%0 - 5%Allowed as per guidelines - Initial lump-sum upto$100,000-Max Rate 5% of net sales - Initial period 5 yearsS. No.Name of CountrySigning DateS. No.Name of CountrySigning DateS. No.Name of CountryS. No.Name of Country1234567891011121314151617181920212223AustraliaAzerbaijanBangladeshBelarusBelgo-Luxemburg Economic UnionBosniaBulgeriaCambodiaChinaCzech RepublicDenmarkEgyptFranceGermanyIndonesiaIranItalyJapanKazakhstanKuwaitKyrgyz RepublicLebanonLoas07.02.199809.10.199524.10.199522.01.199723.04.199804.09.2001=27.04.200412.02.198907.05.199918.07.199616.04.200001.06.198301.12.200908.03.199608.11.199519.07.199710.03.199808.12.200317.03.198323.08.199509.01.200123.04.2004242526272829303132333435363738394041424344454647MalaysiaMauritiusMoroccoNetherlandOmanPhilippinesPortugalQatarRomaniaSingaporeSouth KoreaSpainSri LankaSwedenSwitzerlandSyriaTajikistanTunisiaTurkeyTurkmenistanU.A.EUnited KingdomUzbekistanYemen07.07.199503.04.199716.04.200104.10.198809.11.199711.05.199917.04.199506.04.199910.07.199508.03.199525.05.198815.09.199420.12.199712.03.198111.07.199525.04.199613.05.200418.04.199615.03.199526.10.199505.11.199530.04.199413.08.199211.05.19991234567891011121314151617181920212223242526AustriaBangladeshBelarusBelgiumCanadaChinaDenmarkFinlandFranceGermanyGreeceHungaryIndiaIndonesiaIranIrelandItalyJapanJordanKazakhistanKenyaRepublic of KoreaKuwaitLebanonLibyan Arab RepublicMalaysia2728293031323334353637383940414243444546474849505152MaltaMauritiusNetherlandsNigeriaNorwayOmanPhilippinesPolandQatarRomaniaSaudi ArabiaSingaporeSouth AfricaSri LankaSwedenSwitzerlandSyriaThailandTunisiaTurkeyTurkmenistanU.A.EU.KU.S.AUzbekistanAzerbaijan

Investment PolicyEnergy & Power• Concessions of policy available to all sectors i.e. private, public-private and public sectors.• Proposals on raw sites or without feasibility studies allowed.• Thrust on development of power projects based iniIndigenous resources and fuels especially coaland renewable• Tariff (for solicited bids) through international competitive bidding.• Two-part tariff comprising CPP (Capacity Purchase Price) and EPP (Energy Purchase Price). Hydelprojects in the private sector will be implemented on Build-Own-Operate-Transfer (BOOT) basis.However, thermal projects will be established on BOOT or BuiId-Own-Operate (BOO) basis.• To promote indigenous engineering industry to develop power projects with cumulative capacityof at least 2,000 MW by the year 2015.

Policy for Development of Renewable Energy for Power GenerationSalient Featuresi) Invites investment from the private sector for following categories of proposals:a. Independent power projects, or IPPS (for sale of power to the grid only)b. Captive-cum-grid spillover power projects. (i.e., for self-use and sale to utility)c. Captive power projects (i.e., for self or dedicated use)d. Isolated grid power projects (i.e., small, standalone)ii) Except for category (a) above, these projects will not require any LOI, LOS, or IA from theGovernment.iii) Electricity purchase NTDCA/CPPA from qualifying renewable energy-based generation projectshas been made mandatory.iv) Permits an investor to generate electricity based on renewable resources at one location andreceive an equivalent amount for own use elsewhere on the grid at the investor’s own cost ofgeneration plus transmission charges (wheeling).v) Allows net metering and billing so that a producer can sell surplus electricity at one time andreceive electricity from the grid at another time and settle accounts on net basis. This will directlybenefit the economies of small-scale, dispersed generation and optimize utilization of installedsystem.vi) De-licenses and deregulates small-scale power production through renewable resources (up to5 MW for hydro and 1 MW for net-metered sales) to reduce the transaction costs for suchinvestments. This will be particularly beneficial for micro, mini and small hydro as well assolar-based electricity production.vii) Lays down simplified and transparent principles of tariff determination.viii) Insulates the investor from resource viability risk, which is allocated to the power purchaser.ix) Facilitates projects to obtain carbon credits for avoided greenhouse gas emission, helping toimprove financial returns and reducing per unit costs for the purchaser.

Investment IncentivesIncentives for Development of Indigenous Coal ResourcesI. Thar coalfield declared as Special Economic Zone, and the projects of development of Thar (alsoincluding coal mining and power generation) declared as "Project of National Security").II. 20% (US Dollar based) IRR to firms which achieve financial close before 31st December, 2015 formining and power projects based on indigenous coal and additional half a percentage IRR i.e.20.5% IRR for firms which financial close by or before 31st December, 2014.III. Zero percent customs duties on import of coal mining equipment and machinery includingvehicles for site use.IV. Exemption on withholding tax to shareholders on dividend for initial 30 years.V. Exemption on withholding tax on procurement of goods and services during project constructionand operations.VI. Exemption for 30 years on other levies including special excise duty, federal excise duty, WPPFand WWE.

Public-Private Partnership FrameworkIn line with the global trend and particularly in line with its development objectives, Government ofSindh took a bold initiative of setting up a Public Private Partnership Unit in Finance Department tolaunch the projects of extreme socio-economic significance in PPP mode. In particular, the PPP Unitwas established to achieve following objectives:• Promoting social development and inclusive economic growth through development ofinfrastructure.• Ensuring sustainable long-term funding for infrastructure development through mobilization ofprivate investments.• Ensuring technical, economic and financial viability of infrastructure projects through adequateproject preparation.• Improving the efficiency of management, operation and maintenance of infrastructure facilitiesthrough introduction of modern technology and management techniques.• Achieving a larger scope and better quality of infrastructure services for end users through theadditional financial and human resources mobilized from the private sector.• Ensuring financial sustainability of infrastructure services through full cost recovery supplementedby viability gap funding (VGF), if necessary, and• Protecting the best interests of all stakeholders including end users, the Government and theprivate sector.Regulatory FrameworkTo ensure that the projects to be developed in PPP mode are properly scrutinized and approved, ahigh- powered PPP Policy Board under the chairmanship of Chief Minister has been establishedwhich is also represented by various public and private sector members. All the projects undertakenby PPP Unit, on recommendations of various Government agencies, are approved by the PPP PolicyBoard, to the point of execution of the project.Legal FrameworkTo provide a firm legal framework, the Public Private Partnership law has been enacted. The PPP lawis based on an inter-country comparison incorporating international best practices, and is consistentwith the other components of the enabling PPP framework. Apart from specifying the various sectorsand PPP modalities covered, the law outlines the institutional arrangements for PPPs, specifies thegovernment agencies acting as the public sector partners, assigns the responsibility for PPP projectidentification and preparation, stipulates the rules, procedure and responsibility for the selection ofthe private sector partners, lists the main terms and conditions of PPP agreements, outlines the typesof government support, and defines the cost recovery and risk sharing principles.Financial SupportTo enable departmental PPP Nodes to undertake feasibility study and related project preparationProject Development Fund has been created. Furthermore, to support the execution of projects ofsocio-economic significance, which the government agencies would otherwise either not initiate orbe able to complete, Viability Gap Fund has been created. Both of these funds will encourage theagencies/departments to pursue the government’s objectives regarding PPPs.

Investment ChannelsSETTING UP LIAISON / BRANCH OFFICES OF FOREIGN FIRMDESCRIPTIONBRANCH OFFICELIAISON OFFICESCOPE OFACTIVITIESMEETINGEXPENSESA branch office is set up by a foreign firm toexecute the contracts awarded to itActivity will be restricted to the workmentioned in the agreement / contractsignedCannot indulge in commercial / tradingactivites"All expenses will be met out offundstransferred from abroad throughnormal banking channel and convened tolocal currency account or from the amountsreceived through execution of theagreement / contract"Activities is restricted to the promotionofproduct(s), provision of technical adviseandassistance, exploring the possibilty ofjoint collaboration and export promotion(these activities are to be mentioned in theapplication)Cannot undertake any commercial /trading activities"All expenses will be met out offundstransferred from abroad throughnormal banking channel and converted tolocalcurrency accountREMITTANCEFACILITYHIRING OFFOREIGNNATIONALSIMPORT ANDEXPORT OFMACHINERY"Remittance of profits etc. is allowed subjectto submission of information / documents asrequired in terms of Para13 Chapter XIV ofthe Foreign Exchange Manual of SBP."Employment of foreign nationals shall bemade subject to the prior approval of theGovernment as per policy and inaccordance with the policy ofPakistanization.Import / Export of machinery andequipmentand its re-export shall begoverned by theImport / Exportpolicies of the GovernmentN0 remittance facility allowedEmployment of foreign nationals shallbemade subject tc the prlcr approval of theGovernment as per policy andinaccordance with the policy 0fPakistanizationNillREGISTRATIONWITH SECPMandatoryMandatoryFINALIZATIONOF CASEPERIOD OFPERMISSION6 - 8 weeks;3 - 5 years; renewable6 - 8 weeks;4 - 5 years; renewable

Investment ChannelsSETTING UP LIAISON / BRANCH OFFICES OF FOREIGN FIRMDESCRIPTIONBRANCH OFFICELIAISON OFFICEDOCUMENTSREQUIREDSix sets of the following documents arerequired:1. Application form2. Copy of registration of the foreigncompany duly attested by PakistanMission3. Copy of Articles and Memorandum ofAssociation4. Copy of agreement / contract in case ofBranch Office5. Copy of Company Profile6. Copy ofResolution / Authority letter of thecompany to establish branch office inPakistan.Six sets of the following documents arerequired:1. Application form2. Copy of registration of the foreigncompany duly attested by Pakistan Mission3. Copy of Articles and Memorandum ofAssociation4. Copy of Company Profile5. Copy of Resolution / Authority letter ofthe company to establish liaison office inPakistanRENEWALFollowing documents are required:1. Copies of valid agreements / contractsalong with their duration2. Income tax returns (for the last 3 years)3. Copy of latest Audited Accounts4. Proceeds Realization CertificatesFollowing documents are required:1. Activity report2 . Receipt and Payment Statement3. Proceeds Realization CertificatesTAXTREATMENTThe corporate tax rate of 35% appliesNil"CHANGE OFADDRESS/TELE ETC,"Has to be intimated to the Board ofInvestment and other concerned quartersHas to be intimated to the Board ofInvestment and other concerned quarters"DOCUMENTS REQUIREDFOR CLOSURE"1. Request letter for closure2. Activity Report, Proceeds RealizationCertificates, and Audited Accounts forthe last permitted period3. Copies of press clippings regardingclosure4. Confirmation from tax authoritiesthat allassessments and dues are clear.1. Request letter for closure2. Activity Report, Proceeds RealizationCertificates, and Receipt and PaymentStatement for the last permitted period3. Copies of press clippings regardingclosure4. Confirmation from tax authorities that alldues are clear."

Investment ChannelsVisa PolicyWork Visa Policy/ProcedureWork visas are granted to foreign technical and managerial personnel for the purpose of impartingtechnical know-how and skills to the local population. The duration of work visa is two years.According to the visa policy, cases of grant or extension of work visas and conversion of businessvisas to work visas are processed within 4 weeks by Board of Investment (BOI), Islamabad.Procedure• The sponsors registered in Pakistan apply on the prescribed application form along with requisitedocuments to BOI to process their applications. On receipt of completed documents fromsponsors, BOI analyzes the documents and forwards the cases to the concerned quarters for theirviews/comments.• If no adverse report is received within stipulated period of O4 weeks, BOI issues recommendationfor the grant/extension/conversion of business visa into work visa to the Ministry of Interior, Pakistanfor issuance of visa advice to Pakistan Missions abroad/Regional Passport Offices in Pakistan.• If any adverse report is received from the concerned quarters, the work visa is cancelledimmediately.Business Visas for Businesspeople/InvestorsTo facilitate travel and stay in Pakistan for foreign businesspeople and investors, business visa policieshave been considerably relaxed. Pakistan Missions abroad are authorized to grant multiple-entriesvisa of five years’ validity within 24 hours to businesspeople of 66 countries of Business Visa List (BVL),with the duration of each stay restricted to three months and only on production of any of thefollowing documents:• Recommendation letter from Chamber of Commerce & Industry of the respective country of theapplicant.• Invitation letter from business organization duly recommended by the concerned tradeorganization/association in Pakistan.• Recommendatory letter by Honorary Investment Counselors of BOI.• Recommendatory letter from Pakistani Commercial Attaché posted in Pakistan HighCommissions/Embassies/Consulates General abroad.

Highlights of EventsAbout SBI

Highlights of Events 2010 - 2011Sindh Investment Conference, 2010Sindh Board of Investment organized the first-everSindh Investment Conference in April 2010 to highlightattractive investment opportunities in Sindh. Theconference was inaugurated by Dr Ishrat ul IbadKhan, Governor of Sindh and attended by Syed QaimAli Shah, Chief Minister of Sindh, Dr Abdul HafeezShaikh, Advisor to Prime Minister on Finance and Mr.Saleem Mandviwala, Minister of State for Investmentalso attended the event along with dignitaries frompublic and private sectors.The Conference conveyed a collective message thatGovernment of Sindh is committed to initiate publicprivatepartnerships to convert Sindh into a new hub of global trade and investment destination ofchoice. The conference highlighted immense potential of Sindh province for inward and outwardinvestment promotion.The conference was organised in collaboration with Karachi Chamber of Commerce & Industry(KCCI), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Trade DevelopmentAuthority of Pakistan (TDAP), Pakistan Stone Development Company (PASDEC), Small and MediumEnterprises Development Authority (SMEDA), National Industrial Parks (NIP), Environment &Alternative Energy Department (GoS), Livestock & Fisheries Department (GoS), AgricultureDepartment (GoS), Mines and Mineral Development Department (GoS), Coal and EnergyDevelopment Department (GoS), Tourism Department (GoS) and private sector companies.In the conference potential investors and bankers signed five Memoranda of Understanding (MoUs)with the Sindh Board of Investment (SBI) for investment of around US$ 400 million as foreign directinvestment in alternative energy projects and Rs. 7.5 billion of local investment in marble sector inSindh.• M/s Azur Solar Group, a German company, signed an MoU with SBI for establishing a solar powerproject of 50 MW in Sindh.• M/S. Iran-Pak Wind Power (Pvt) Ltd signed an MoU with SBI to develop a wind power project of upto 50 MW.• Pakistan Stone Development Company Limited (PASDEC) agreed with SBI, to assist theGovernment of Sindh to develop a Special Economic Zone with the name of Marble City, nearKarachi for bringing value addition to the processing of marble, granite and other dimensionstones.• Transatlantic Energy (Pvt.) Limited (TAEL) offered to invest for the development of a wind powerproject of 35 MW.

Highlights of Events 2011 - 2012International Coal Conference, 2011The province of Sindh is endowed with one of the largest coal (lignite) deposits in the worldcomprising 185 billion tons, which can generate 100,000 MW of electricity for the next 300 years. Outof these huge reserves, 175 billion tons are found in Thar.International Coal Conference, 2011 was the first major initiative by the Government of Sindh toshowcase Thar coalfield as critical to energy security of Pakistan. The purpose of this event was tocreate awareness, showcase the potential, attract investment and highlight Government of Sindh’sinitiative in the development of Thar coal deposits.The conference was depiction of Sindh government’s commitment to development of Thar coalfieldand its achievements in providing enabling environment for coal mining, power generation andother uses of coal.The conference was addressed and attended by highest level of political leadership and was alsohonoured by the Prime Minister of Pakistan as Chief Guest, Governor Sindh, Federal Minister for Water& Power, Government of Pakistan and Chief Minister of Sindh. Distinguished speakers from China,Australia, UK, Greece, Czech Republic, South Korea and Germany also presented their papers in theConference.More than 850 participants comprising renowned international and national coal sector specialists,potential investors, existing project developers, representatives of development financial institutions,diplomatic corps and other stakeholders attended the Conference.

Highlights of Events 2011 - 2012International Halal Conference, 2011The International Halal Conference, 2011 wasorganized by Sindh Board of Investment (SBI) on 22ndMarch, 2011 at Sheraton Hotel Karachi incollaboration with Halal Industry DevelopmentCorporation (HDC) of Malaysia to introduce theconcept of halal industry to both domestic andforeign investors. It is worth mentioning that halalmarket is more than a trillion dollar industry worldwideand Pakistan has yet to start working on it.The Chief Minister of Sindh Syed Qaim Ali Shahinaugurated the conference. He said that this was astep towards bringing awareness on the latest trendsin the world market and about growing popularity of Halal products and services. He expressedhope that the event will provide the entrepreneurs specially SMEs with prospects of developing halalproducts in Pakistan and facilitate them in exploring new avenues for Pakistani products.Sindh Board of Investment with the assistance of HDC envisages a proposal to develop a Halal Parkwith complete infrastructure to facilitate the growth of halal industry in Pakistan. The Halal Park will bea cluster of halal-oriented businesses/industries built in a special zone where halal product relatedservice support and infrastructure will be provided.The Malaysian delegation was led by Chairman HDC Tan Sri Dato and Dr Syed Jalaludin Syed Salimwho was also accompanied by CEO HDC Dato’ Seri Jamil Bidin and other senior officials of HDC.The Malaysian delegates in their presentations informed the participants of the potential of globalhalal market and the Malaysian experience in the fields of halal certification, training and marketing.They were enthusiastic about the opportunities that would unfold as a result of the collaborationbetween the Sindh Board of Investment and Halal Industry Development Corporation of Malaysia.Prospects of halal market can be appreciated by the fact that the global Muslim population isexpected to grow from 1.6 billion (at present) to 3 billion in the near future. Coupled with the fact thatnon-Muslims are increasingly accepting halal products and services, the global trade value for halalproducts is estimated at USD 1.2 trillion annually. The industry's massive potential has generatedinterest among the business community worldwide to opt for this new trend of industrialization.The main objective of the event was to deliberate on:• Prospects of Halal Industry in Pakistan• Development of Halal Park• Business Matchmaking• Halal Certifications and Standards• Halal Trade Promotion• Awareness and Training

Highlights of Events 2011 - 2012The Halal Food Conference and Business Matching, 2011After the remarkable success of International Halal Conference on 22nd March 2011 in collaborationwith Halal Development Corporation (HDC) of Malaysia, another initiative was taken by Sindh Boardof Investment to promote Halal sector in Pakistan.Thailand has very recently emerged as one of the keyplayers in global halal sector. Therefore, on theauspicious occasion of 60th Anniversary ofdiplomatic relations between Pakistan and Thailand,Sindh Board of Investment in collaboration with RoyalThai Embassy at Islamabad co-organized “The HalalFood Conference and Business Matching, 2011” on30th September, 2011.A delegation comprised of representatives from halalfood industry, certification bodies and public sectorparticipants from Thailand also took part in thisConference and Business Matching session. HisExcellency Mr. Kun Marut, Ambassador of Thailandaccompanied the Thai delegation for the event.The purpose of the Conference was to promotebetter understanding of halal food production andcertification procedure in Thailand and to promotebusiness cooperation and explore opportunities forjoint ventures in halal food sector between Pakistanand Thailand. The main objectives of the event wereas follows:• Highlight Prospects of Halal Industry in Pakistan• Halal Certifications and Standards (Local, Regional, and International)• Halal Trade Promotion between Pakistan and Thailand• Business Matchmaking between Entrepreneurs of Pakistan and Thailand• Awareness and Training on Halal Industry

Highlights of Events 2011 - 2012Korea Overseas Investment Fair (KOIF), 2011Korean Overseas Investment Fair (KOIF), 2011 was a unique event that provided an opportunity tointeract with more than 200 Korean companies that were interested in making overseas investmentto expand their business scope in the near future.The Korean National Trade & Investment Promotion Agency (KOTRA) organized this event on May19-20, 2011. The event was hosted by the Ministry of Knowledge Economy, Peoples Republic ofKorea. Main highlights of the events were Investment Cooperation Symposium, NetworkingLuncheon and Grand Reception, Overseas Investment Exhibition and Individual Country Seminar oninvestment environment, incentives and special projects. A major highlight of the occasion wasPakistan Country Seminar at KOIF, 2011 in which investment opportunities in Pakistan were presentedbefore Korean entrepreneurs primarily interested in overseas investment. Pakistan delegationenthusiastically participated in all events duringKOIF, 2011.The Chief Minister inaugurated the Korea Overseas Investment Fair, 2011 along with 12 otherdignitaries. He also gave a speech on the occasion informing about commitment of Government ofSindh for promoting investment in Sindh.Sindh Board of Investment also set up a pavilion in the exhibition with an aim to showcase investmentevent and opportunities available in Sindh. . More than 32 countries including France, Switzerland,India, Thailand and Japan participated in the Overseas Investment Exhibition. The investment fairwas visited by delegates of various countries who showed great interest in the energy sector,infrastructure development and other prominent sectors of the economy of Sindh.

Highlights of Events 2011 - 2012Sindh Investment Conference, Seoul, 2011The first ever Sindh Investment Conference was organized successfully in an overseas destination,that is, Seoul to promote investment potential of Sindh among foreign/Korean investors. Theconference was organised in collaboration with Korea Chamber of Commerce & Industry.The Conference was chaired by the Chief Minister ofSindh at Korean Chamber of Commerce andIndustry where 60 major Korean business groupsinteracted with our public and private sectorrepresentative to invest in Pakistan. He also held ameeting with the President of Korea Chamber ofCommerce & Industry to enhance trade andinvestment in the province of Sindh. 40 Koreancompanies participated who had successfulinteraction with Pakistani businessmen. An MoU wassigned between Investment Department,Government of Sindh and Korean Importers Association in order to boost exports from Sindh. Mr.Mohammad Younus Dagha, Secretary Investment signed the MoU on behalf of Government ofSindh while the Korean Importers Association was represented by their Chairman.

Highlights of Events 2011 - 2012Business Matchmaking Session, Seoul, 2011Sindh Board of Investment organised a successful business-to-business (B2B) session in collaborationwith Korean Importers Association (KOIMA) and Embassy of Pakistan in Seoul in 2011. The event wasaimed to performing matchmaking between Korean and Pakistani investors. The session wasattended by representatives of more than 32 Korean companies from textiles (garments & leatherauxiliaries), food and beverages (dairy sector and agro processing), energy (sources like solar, wind,waste-to-energy, and coal), infrastructure and construction, transport and so on participated.Leading businessmen from Pakistan accompanying the Chief Minister had fruitful B2B meetings withtheir Korean counterparts who showed great interest in Pakistani goods.During the event, an MOU was signed between Investment Department, Government of Sindh andKorean Importers Association (KOIMA) to boost exports from the province of Sindh to Korea.Memorandum of Understanding enabled opening of Korean market for Pakistani goods as thepresent level of trade is in favour of Korea. According to this understanding, the cooperationbetween the parties will be directed primarily at using the advantage of the importer potential of theAssociation to achieve higher levels of exports from Sindh and develop more cooperation in theareas of trade and business. It will also enable the establishment of direct contact between Koreanbusinessmen and Pakistani entrepreneurs. It was decided that Sindh Board of Investment and KOIMAwill exchange commercial information of sectors of interest for import to the Korean market.

Highlights of Events 2011 - 2012Sindh Investment and Trade Forum, Beijing, 2011The Chinese entrepreneurs have always contributedgreatly towards economic development of Pakistan.SBI believes that increased interaction betweenbusiness communities of two countries such asPakistan and China will further strengthen the bond ofunity established and sustained for many decades.Government of Pakistan aims to carry forward thistime-tested friendship of Pakistan and China to futuregenerations which is based on account of thefamiliarity and common understandings developedover a long period of economic cooperation. With thisaim in mind, SBI took an investment delegation to thePeople’s Republic of China from 15th to 19thNovember, 2011 with Chinese People's Institute ofForeign Affairs (CPIFA) as the host of the event.The delegation was headed by the Speaker of Sindh Assembly Mr. Nisar Ahmed Khuhro and wasaccompanied by Mr. Mohammad Zubair Motiwala (Chairman, Sindh Board of Investment), Mr.Mohammad Younus Dagha (Secretary, Investment Department) and other government officialsand private businessmen.During the delegation’s visit, Sindh Board of Investment and Government of Sindh were successful inpromoting the potential of Sindh among Chinese investors and successful interactions were madewith Chinese counterparts on G2G, G2B and B2B levels.From the platform of Sindh Board of Investment, Government of Sindh signed 4 MOUs with prominentChinese companies such as China Three Gorges, United Energy (Orient Group) in power and energysector worth around $ 10 billion during visit to People’s Republic of China. It was committed thatinvestment will be made by the Chinese companies in Thar coalfiled, wind power generation andwind turbine manufacturing facility in Sindh. Details of MOUs are mentioned below:i. Development of coal-based power projects in Sindh by China Three Gorges Corporation (4000MW from Thar coalfield and 300 MW at Sondha, district Thatta.)ii. Development of 1000 MW wind power projects in Sindh by China Three Gorges Corporation andthe Government of Sindh.iii. Development of wind turbine generators (WTGs) manufacturing facility in Sindh by China ThreeGorges Corporation.iv.Development of 150-500 MW wind power and other investment projects in Sindh by UnitedEnergy Pakistan Limited (United Energy Group, Hong Kong)

Highlights of Events 2011 - 2012Livestock, Dairy & Fisheries Expo and Seminar (LDF), 2011SBI places special emphasis on agro-based industries and value addition in livestock, dairy, andfisheries sectors which hold great potential for the economy. Keeping in view the above, SBIsuccessfully organised Livestock, Dairy & Fisheries Expo and Seminar (LDF), 2011 in which businesstransactions worth Rs 400 million were materialized.A memorandum of understanding was signed at LDF-2011 by 15 leading financial Institutions alongwith State Bank of Pakistan and Sindh government departments for promoting non traditional sectorsof the economy.One of the major strengths of LDF, 2011 was its diverse range of exhibits including both static and livedemonstrations. The event focused on following areas:• Health, Safety, and Environment Standards• Meat Processing Equipment• Machinery Demonstrations• Quality Assurance and Certification• Halal Products• Export Ventures• Value Addition in Milk Processing• Shrimp and Fish Farming

Highlights of Events 2011 - 2012Livestock, Dairy, Fisheries, Poultry and Agriculture Exhibition (LDFA), 2012After the success of LDFA, 2011, Sindh Board of Investment organized its second edition in Karachi on28th and 29th January, 2012 to highlight investment opportunities and promote the potential of thesesectors. The event was organized in collaboration with Livestock & Fisheries Department andAgriculture Department, Government of Sindh.Sindh, the most resourceful province of Pakistan, isblessed with a host of attractive business andinvestment opportunities. Sindh’s agri-economycontributes 23% to the country’s GDP. Keeping inview global food security concerns, its vastagricultural expanse has the capacity to becomeregion’s food basket. Introduction of technology,efficient irrigation systems, quality seeds, qualitypesticides and modern implements can help attainits true potential.Local and foreign investors have shown keen interestin investments in this sector. The huge gap betweenSindh’s aquaculture, livestock, dairy and agricultureproduction and the capacity to process the sameprovide opportunities for various types of investmentsin value addition.The Government of Sindh have taken variousinitiatives in terms of subsidized ¬financing, technicalsupport, research & development, and capacitybuilding of farmers. The livestock sector contributed11.4% to GDP in 2009-10. Pakistan earned USD 717million from leather exports in CY09 and a meagre$96 million from meat exports.There is a huge potential in the livestock, dairy,fisheries and agriculture sectors and Sindh withabundance of these resources, has the tendencyand capacity to produce more and generate moreincome from these sectors.

Highlights of Events 2011 - 2012Objectives of the Eventi. To engage the financial institutions and investors for development of these sectors.ii. To highlight investment opportunities for investors.iii. To bring the Government of Sindh and investors on one single platform in order to work towardsthe establishment of these sectors.iv. Focus on the export potential of these sectors.v. Identify the main shortcomings in the productivity of these sectors.vi. Suggest innovative ideas to overcome the existing shortcomings in the shortest possible time.vii. Identify different stakeholders in the industry, exploring different international markets.LDFA 2012 was a magnificent success whereby Rs 1 billion business transactions materialized. Overall,340 stalls were exhibited and more than 142 domestic and foreign companies participated in theevent. Participation of delegates from China, Japan, Switzerland, Sri Lanka, the United States ofAmerica (USA), the United Kingdom and Italy in the Seminar and Exhibition was also an indicator ofits success. More than 300,000 visitors attended the exhibition.

Highlights of Events 2011 - 2012Road shows and DelegationsEndeavours of SBI are not limited within the boundaries of the province of Sindh. Multi-sectoraldelegations are formed to portray Sindh as an investor-friendly zone and market the competitiveadvantages of Sindh around the world.Road show in Republic of Korea (South Korea)In May 2011, Sindh Board of Investment took an initiative toorganise a high-level investment delegation led by the ChiefMinister of Sindh and accompanied by Ambassador of theRepublic of Korea in Pakistan, Chairman of Board ofInvestment, Advisor to Chief Minister Sindh on Investment,senior government officers and leading businessmen to theRepublic of Korea. The effort was intended to promotepotential investment opportunities and projects among theKorean investors. It was also aimed at sourcing newtechnologies,business-to-business matchmaking, andlearning from Korean experience in various sectors ofeconomy.Road show in Korea was comprised of Sindh Investment Conference, 2011, B2B meetings, G2Gmeetings and participation in Korea Overseas Investment Conference (KOIF), 2011 (19th and 20th ofMay, 2011.)Meetings were also held with the Ministry of Land, Transport and Maritime Affairs, SambuConstruction, JKL Partners, Korean Chamber of Commerce & Industry, Doosan E&C, Lotte E&C,POSCO, KOSPO, Hyundai Heavy Industries and Lotte Group. Major achievements of the road showwere as follows:• Joint venture of Al-Tuwairqi Group with Slovenian companies on developing hydroelectric powrprojects in Sindh.• SBI succeeded in forming joint venture between two steel giants – POSCO and Al-Tuwairqi Steel ata net investment of $ 15 million in Sindh.• KOSPO, another energy giant, is also making investment in development of wind energy in Sindh.According to the MOU, KOSPO will establish wind power projects of total gross capacity of 2000MW in Gharo-Keti Bandar Wind Corridor in the province of Sindh. The project will be completed in5 phases as follows: 1st Phase: 200 MW 2nd Phase: 300 MW 3rd Phase: 500 MW 4th Phase: 500 MW 5th Phase: 500 MW

Highlights of Events 2011 - 2012Road Show in Russian FederationThe Chief Minister of Sindh, Syed Qaim Ali Shah led aninvestment delegation to Moscow and St. Petersburg whichconsisted of senior government functionaries/ officials andmembers of the private sector.During the visit, Protocol for Karachi-Saint Petersburg Sister Citieswas signed by the Chief Minister and Vice Governor of St.Petersburg, Mr. Alexander Prokhorenko as a result ofnegotiations on cooperation between the two sides. Theprotocol enunciates technology transfer in various sectors formutual benefit. It desires to establish greater affiliation betweenthe Government and private sector in the areas of financialservices, manufacturing, engineering, medical technologies,information technology, and marine sciences by working withlocal counterparts.Road Show in United Arab EmiratesSindh Board of Investment participated in the 3rd AnnualInvestment Meeting (AIM), 2012 at Dubai. The delegation wasled by the Chief Minister of Sindh and accompanied by privateand public sector participants.The 3rd edition of AIM highlighted financing options andemphasized trading possibilities in frontier and emergingmarkets with a strong focus on high-growth sectors. Thethree-day Annual Investment Meeting (AIM) brought together45 Ministers and Deputy Ministers form emerging economiesand frontier markets, along with project promoters from 60countries, with the aim to increase bilateral trade and spurforeign direct investments.At AIM 2012 exhibition, Pakistan pavilion was organised whereby Sindh Board of Investment alsoexhibited investment opportunities in Sindh in a dedicated stall. The purpose of participation in thisexhibition was to showcase all existing investable projects available in Sindh to prospective foreigninvestors. The exhibition was widely attended by prominent business groups, investment promotionagencies and potential investors.H.E Sheikh Muhammad Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Dubai DeputyRuler along with H.E Sheikha Lubna bint Khalid, the Minister for trade, United Arab Emirates visitedSindh Pavilion at the AIM where the Chairman, Board of Investment Sindh briefed about immenseinvestment potential of Sindh particularly in agriculture, livestock, Thar coalfield, wind power,infrastructure development and solid waste management.

Highlights of Events 2011 - 2012Dates Exhibition and Seminar at Khairpur (DESK), 2011The 3rd Dates Exhibition and Seminar at Khairpur(DESK), 2011 was a major initiative of theGovernment of Sindh to showcase the potential ofdistrict Khairpur in the Province as an idealdestination for investment in dates processing andvalue added export industry. This event was result ofjoint efforts by Sindh Board of Investment and DistrictGovernment of Khairpur. SBI attaches greatimportance to enhancement of value addition inagriculture. The 3rd DESK, 2011 was a continuation ofeffort of government of Sindh, SBI and DistrictAdministration Khairpur to acknowledge theimportance of Khairpur District in production andexport of dates sector in Pakistan, whose true exportpotential is yet to be realized.The main objective of the event was to evaluate the commercial potential of dates grown inKhairpur region, to identify the gaps and shortcomings in the pre/post-harvest management,keeping in view international best practices and standards, to identify various players in the sectorand provide a platform for them to create business synergies in the entire value chain process, andto identify relevant players in the industry for putting up a modern dates processing facility in Khairpur.It was a two-day event comprised of a seminar and exhibition held on 1st and 2nd of Augustrespectively. The seminar and exhibition were inaugurated by the Chief Minister of Sindh, Syed QaimAli Shah.The biggest highlight of the event was the seminar in which representatives of relevant public sectororganizations, growers, research institutes working dedicatedly on date palm presented theirinitiatives and achievements for enhancement of yield quality and value addition. The Chief Minister,Sindh addressed the august gathering and reaffirmed the Government’s commitment to boosteconomic activity especially in Khairpur district and Sindh province. The presence of highest level ofpolitical leadership of the province including Chief Minister Sindh attested to the importance of datepalm for economic uplift of the people of district Khairpur and Sindh.Exhibition was attended by more than 400 visitors and around 70 exhibitors participated in the event.The participants’ enthusiasm very obviously reflected the growing confidence in the districtattractiveness to bring in investment flows from abroad as well as from domestic investmentcommunity for setting up dates processing plants. It also strengthened the confidence of investors inKhairpur district and contributed greatly to bring awareness regarding untapped potential of datepalm cultivation, processing and value addition.

Highlights of Events 2011 - 2012Mango Festival, UAE, 2012As an immediate outcome of Sindh InvestmentDelegation’s visit to UAE, Sindh Board of Investment (SBI)in collaboration with Agriculture Department organizedDubai Mango Festival in UAE from 13th to 16th June,2012. The event was a consequence of meetings heldbetween Agriculture Department, Government of Sindhand various retailers in the UAE on the sidelines of AIM,2012.The event promoted Pakistan’s wide range of mangoesin the local market by setting up special outlets atvarious shopping malls to enable residents to enjoy avariety of desserts made from mangoes grown inPakistan.The festival was inaugurated at Jumairah Emirates TowerHotel in Dubai and a three-day promotional campaignwas held at selected stores namely Al-MayaSupermarket, Unifruitti (Carrefour) and Lulu Hypermarketin UAE where mangoes were displayed and sold.The objective of Dubai Mango Festival 2012 was topenetrate the local markets by offering consumers ataste of Pakistani mangoes, which can compete withother varieties available in the local market.Around 500 tons of mangoes were sold in two weeksacross the UAE after successful marketing of Pakistanimangoes in the event. The buyers witnessed the priceescalating of Pakistan Mangoes from AED 3.65 per Kg toAED 7.5 per Kg.The Sindhri mango remained in focus as one of the mostfavourite mango varieties and much sought-aftervariety from among 50 others grown in Pakistan.The exporters received bulk quantity orders for export ofmangoes to M/S Al-Maya Supermarket & M/S Unifruitti(Carrefour) as per market demand.

About SBIInvestment SectorsProjects by SBICrop AgricultureLivestock, Fisheries, and DairyHalal IndustryEnergy and PowerMineral ResourcesInformation TechnologyUrban Governance and DevelopmentTourism

Investment SectorsInvestment SectorsProjects by SBICrop AgricultureProjects by SBILivestock, Fisheries, and DairyEducation Halal Industry City, KarachiSpecial Energy Economic and Power ZonesSindh Enterprise Mineral Development Resources FundInformation TechnologyUrban Governance and DevelopmentTourism

EDUCATION CITY,KARACHISindh - The Land of Endless Opportunities

ConceptRealizing that a nation’s greatest resource is its human resource, Education City is being developedwith a view to meeting the challenges of an ever-changing and complex world and to make Sindhand its capital Karachi a leader in quality education as well as research and development. It isintended to be a hub for the imparting and generation of knowledge in the presence of world-classinfrastructure and campus facilities and a pool of highly qualified academics. It shall provide achance to collaborate with like-minded people and the opportunity to transform ideas into reality.The concept of Education City has evolved out of the desire of successive Governments to empowerthe people by imparting them with the knowledge and skills comparable with the best internationalstandards. Education City aims to be a nerve-centre of excellence, which would bring together thebest of the intellect in the country and from abroad and to provide an environment most conduciveto learning.Distinctive FeaturesApproximately 9,000 acres of land notified as Education City in the year 2006.Core elements of EC are educational and health institutions that will provide locally relevantsolutions toPakistan’s challenge of higher education.Opportunity and attraction to remain and study in Pakistan.Educational institutions will create the opportunity for private R&D businesses as a component of EC.Residential and commercial development though restricted for the purpose of Education City only,will provide ‘quality of life’ or ‘character of community’ that is typical of educational communities.Run by the fully empowered Education City Board.Land has been earmarked for institutions.Governance and ProceduresEducation City Board In order to prepare meaningful structure and master planning of theEducation City project, Education City Act provides for the constitution of Education City Board. Theproposed Board will be headed by the Chief Minister, Sindh as the Chairman of the Board andChairman of Sindh Board of Investment will act as the Vice Chairman of the board. In addition therewill be seven (07) official members, which include secretaries of various concerned administrativedepartments and 5 private sector/stakeholders members.The Board shall be a body corporate having perpetual succession and a common seal with powers toacquire, hold and dispose of property, movable and immovable, and may, by the said name, sueand be sued.Sindh - The Land of Endless Opportunities

The Board shall exercise the powers and perform the following functions:• To provide strategic vision and set policy guidelines for all matters pertaining to Education City.• To control and supervise land allotment and land usage, and oversee master plans, standards, anddesign guidelines.• To approve the designs of facades and building plans proposed by the allottees and to ensure thatthe architecture of Education City adequately reflects the culture and heritage of the region.• To grant, renew or cancel the permit and to monitor and enforce the compliance of the terms andconditions of permit.• To decide whether to permit or renew a permit to an applicant as per the criteria mentioned inEducation City Act.• To decide the application for provisional allotment of unalloted land with reference to the criteriamentioned in Education City Act.• To be competent to grant lease to the permit- holder for a period of ninety nine years on the termsand conditions as may be prescribed.• To oversee and supervise development of the infrastructure including, but not limited to, light-raillinks, roads network, streetlights, pavements and to ensure the integration of an Education City withthe existing infrastructure.Application Procedure Education City Act provides a simple and transparent procedure forallotment of land. First, the Board shall consider an applicant for permit on the basis of years ofexperience, repute of institution, proposed facilities in the institution, proposed investment amount,certifications and accreditations, academic programs to be offered, and any other criteria deemednecessary. Second, only a permit-holder may be considered for provisional allotment of vacant landin an Education City based on reasonable landrequirement, permit-holder’s financial capability,permit-holder’s trackrecord of establishing andoperating similar facilities,and any other criteriadeemed necessary. Third,the Board may grantlease to a permit-holderfor a term of 99 years onthe terms and conditionsas may be prescribed.Sindh - The Land of Endless Opportunities

Participating InstitutionsArfa Karim IT & Media CityKarachi School for Business and Leadership (in collaboration with Judge Business School,Cambridge University)Shaheed Zulfikar Ali Bhutto Institute of Science & Technology (SZABIST)Sindh Madressa Islam UniversitySindh Institute of Urology & TransplantationQuaid-e-Azam Public SchoolJudicial AcademySir Syed University of Engineering & TechnologyZiauddin UniversitySaleem Habib FoundationHabib FoundationAga Khan UniversityRoots School SystemAll Pakistan Memon FederationIndus UniversityShaheed Benazir UniversityCurrent Status• Master plan is near completion which envisions state-of-the-art infrastructure and facilitiesaccording to international best practices. Master planning exercise commenced in December2010 after a briefing session held at the Chief Minister’s House in the presence of majoreducational institutions including allottees.• Education City Act is expected to be enacted by the Provincial Assembly of Sindh in the nearfuture.• Link road of Education City has been realigned to enhance connectivity not only with D.H.ACityand.• Education City but also with National Highway and Super Highway.• Development of Malir Expressway will connect the Education City with city centre of Karachi. Thishas been planned in close coordination with the Karachi Municipal Corporation.Sindh - The Land of Endless Opportunities

Investment OpportunitiesEstablishment of a Higher Education InstitutionInstitutions for higher education can be established after fulfilling all the requirements set by the HigherEducation Commission by domestic or foreign investors separately or in collaboration on the availableland in Education City. The end purpose is to set up carefully planned institutions of higher learning ofworld-class status.Infrastructure DevelopmentEducation City is spread over a very large area of 9,000 acres, which requires extensive urbaninfrastructure development. Interested foreign and domestic investors can look for profitableinvestments in the following areas:• Internal Road Network• Power and Electrification• Solid Waste Management• Telecommunications• Irrigation System• Natural Gas Supply• Drinking Water SupplySindh - The Land of Endless Opportunities

SPECIAL ECONOMICZONESSindh - The Land of Endless Opportunities

OverviewSpecial Economic Zone (SEZ) is a blanket term for various types of specialized zones with specific typesof enterprises operating in a well-defined geographic area where certain economic activities arepromoted by a set of policy measures that are not generally applicable to the rest of the country. Anumber of types of SEZs exist each with a different set of incentives such as Free Trade Zone, IndustrialEstate, and Industrial Park. Successful SEZs offer immediate access to high-quality infrastructure,uninterruptible power supply, clearly titled land, public facilities, and support services. In addition,streamlined regulatory enforcement, simpler business and establishment rules, expedited customsadministration, and other special administrative and approval procedures are also offered in suchzones.A number of successful economies like China, Malaysia, Thailand, UAE and India have developedseveral SEZs to attract foreign and domestic investment. This has triggered an unprecedented growthin their economies. China’s SEZs were first established in five coastal cities in 1980 (Hainan, Shenzhen,Shantou, Xiamen, and Zhuhai) and were areas where market economies could exist when the rest ofthe country was still under a planned economy. Malaysia has a very aggressive industrial policy thatincludes generous incentives and a network of industrial estates, parks, and zones. Currently, Malaysiahas over 200 Industrial Estates and Parks, 14 Free Industrial Zones (FIZ) and a number of specializedSpecial Economic Zones. Thailand has been very aggressive in setting up appropriate infrastructureand incentives to attract investment and the results have been clearly positive. The United ArabEmirates, in response to a fear of becoming overly dependent on fossil fuels, has set up free zones asan engine to diversify the economy. The first free zone was Jabl-e-Ali Free Zone (JAFZA). Today, theUAE has over 12 free zones and counting. The success of these zones to date has stemmed fromhigh levels of infrastructure investment, true freedom from taxes and regulations, and effective clusterbuilding.Special Economic Zone Framework in SindhKeeping in view the great success of SEZs around the world, the Government of Pakistan has passedSpecial Economic Zone Act, 2012. According to the Act, the supervisory authorities for specialeconomic zones shall be respective boards of investment in the provinces. Following are the some ofthe key features:Infrastructure FacilitiesInfrastructure to support industries within the Zone with following guaranteed facilities:Roads Complete internal road infrastructure with connections to major modes of transportationsuch as highways, airports, and seaports.Electricity Uninterruptible power supply at a stable frequency.Sindh - The Land of Endless Opportunities

Natural Gas Adequate supply of natural gas.WaterFull Capacity for water demand within the SEZ.Sewerage/Drainage Availability of sewerage and drainage system.WastewaterArrangements of wastewater treatment facilities.Communications All communications infrastructure, including telephone and the internet.SecurityFool-proof security including secured perimeter wall or fence and otherrelevant equipment.Fire fighting Availability of effective fire-fighting services.Medical Facilities Adequate medical facilities.Maintenance Proper maintenance services.SEZ Development Approach1) The Feasibility Study shall include at a minimum the following components:(a) Market assessment of demand from targeted industries.(b) Price evaluation of the land and analysis for land pricing strategy.(c) Suitability assessment of the local area to support the targeted industries and the requiredinfrastructure and amenities.(d) Financial Model of the costs and revenue streams of the SEZ along with sensitivity analysis.(e) Economic Impact Analysis including estimates for job creation, tax generation, exportgeneration, and other benefits.2) SEZ Plan shall be maintained and updated throughout the operations of the SEZ, including at aminimum the following components:a) A Master Plan b) A Management Planc) A Marketing Plan d) A Capital Investment PlanIncentives and ProtectionsThe developer of a particular SEZ as well as all Zone Enterprises shall be entitled to the followingbenefits:(a) Onetime exemption from all customs duties and taxes for all capital goods imported intoPakistan for the development, operation and maintenance of a SEZ entity, subject to verificationand approval from the Board of Investment.(b) Exemption from all taxes on income generated from the development and operation of the SEZfor a period of ten years, starting from the date of signing of the development agreement.(c) With the objective of promoting hi-tech industries or particular regions, additional benefits canbe extended to a particular category of SEZs, Zone Enterprise, regions or sectors.(d) These benefits will not be withdrawn prematurely, and any change therein shall be to theadvantage of the developer of the SEZ, or the enterprise.Sindh - The Land of Endless Opportunities

Major Special Economic Zones in Sindh1. Marble City, KarachiOverviewKeeping in view the success of SEZs in developing specific sectors, both in the developed andindustrialized countries, the Government of Sindh is developing a State of the Art Industrial Enclave on300 Acres to uplift the marble and granite sector in Sindh. The Marble City project shall havetremendous investment and growth potential for entrepreneurs being based on cutting edge stonetechnology, innovation and services.The concept is based on cutting edge stone technology and custom facilities to create largest andmost technologically advanced industrial park for Dimension Stone (Marble & Granite) in Karachi. Thededicated entity namely “Sindh Stone Development Company” has been formed to develop theMarble City Project.Objectives• Value addition of stone and mineral resources of Sindh and Baluchistan• Attract Foreign Direct Investment for production and processing• Better Jobs in terms of working conditions• Increased income resulting from improved skills imparted by the training.• Increased direct and secondary job creation, supporting poverty alleviation.• Enhance exports of marble, granite and others stones.• Waste reduction and increased productivity in the stone sector.Key Facilities• Common Facility & Training Center (CFTC)• Captive Power Plant• Warehouse• Waste Water Treatment Plants/Slurry Management• Mechanical & Electrical Workshops/Services• Support facilitiesSindh - The Land of Endless Opportunities

Investment OpportunitiesInfrastructure development, captive power plant, quarrying (mining), training centre, warehousing,machinery manufacturing, machinery pool, water treatment facility.Sindh - The Land of Endless Opportunities

Khairpur Special Economic Zone (KSEZ)OverviewThe Government of Sindh has developed an industrial zone on 140 Acres of land on main NationalHighway. The zone is dedicated to the agro-based industry which has world-class features andamenities comparable with any industrial zone in the international arena. The KSEZ project issupplemented by a dedicated waste-to-energy captive power plant, which will ensure anuninterrupted power supply to all the enterprises within the zone. The Khairpur Special Economic Zone(KSEZ) is being developed in Khairpur District as a future hub for agro-processing and other relatedindustries on a location strategically positioned for proximity to date growing areas, transportation links,and access to labour. The Zone will provide inherent benefits of essential supporting amenities to small,medium, and large enterprises to grow and flourish in a conducive environment.Synopsis: Khairpur DistrictKhairpur, the land of many a splendour that preserved the essence of its history in the form ofpresent-day monuments and archaeological heritage to attract the tourists, is now all set to welcomeboth local and foreign entrepreneurs. Khairpur district is located in northern Sindh covering an area of15,910 sq. km. The Khairpur city is well-connected to the rest of the country by the railway mainline andthe National Highway. The Sukkur Airport is approximately 20 minutes' drive from Khairpure. The districthas a predominantly agro-based economy with dates, banana, wheat, mangoes, guavas, cotton,sugarcane and many other types of horticulture.Competitive AdvantagesKhairpur's key advantages are predominantly agro-based economy, geostrategic location,availability of skilled labour, presence of reputable MNCs, and growing affluent population. The uniquefeature of Khairpur is the cultivation and trade of high-quality dates, which account for 50% of totaldate palm production in the country.Investment OpportunitiesKhairpur Special Economic Zone (KSEZ) provides a perfect platform with the all basic infrastructurefacilities. The investments at KSEZ will be supplemented by the benefits that are offered under the SEZACT, 2012. Following are some of the key sectors which offer huge potential for investment within theKSEZ:Non-Food ProcessingSpeed processing and distribution, feed mills, compost and other organic fertilizers, medical herbprocessing, chip board manufacturing, cotton ginning, and furniture.Sindh - The Land of Endless Opportunities

Agro and Food ProcessingFruits and vegetable processing (pulp, nectar, juices, pickles), packing and export houses, flourmills,biscuits, breads and other bakery products, ice cream and dairy products, spices, and bottled water.Light Engineering / ManufacturingDate dehydrators, farm equipments and implements, packaging, bicycle, hand pumps, electric watermotor, electric fan, building materials and so on.FacilitiesCommercial AreaRetail outlets, restaurants, fuel stations, auditorium, exhibition hall, business center, conference arena,offices, banks, warehousing and cold storage plants.ServicesTechnical/vocational training centre, common facilities for dates curing, laboratory with foodcertification centre, trauma centre, mosque, truck terminal, combined effluent treatment plant,proposed dry port at Sukkur.Utilities/InfrastructureModern and well-developedroad network andinfrastructure, 20 MWwaste-to-energy captivepower plant for uninterruptedpower supply, water supply,natural gas for industrial use.Sindh - The Land of Endless Opportunities

International Special Economic Zone (ISEZ), ThattaOverviewInternational Special Economic Zone, (ISEZ) will include an Expatriate Enclave with moderninfrastructure and tax incentive package such as exemption of custom duties and taxes strictly onimport of capital equipment. All the investment in the Zone for its development and subsequently forthe industries within the Zone will be supplemented by all the benefits of SEZ ACT, 2012.Project BriefThe Government of Sindh has earmarked 2,000 acres of land for International Special Economic Zoneon National Highway in Dhabeji area of Thatta District. The land is near Port Qasim industrial area,which is only 50 kms from Karachi Airport. It is an ideal destination for establishment of new as well asexisting businesses relocating from developed countries with availability of affordable and skilledlabour force, and state-of-the-art infrastructure.SBI will act as one-window facilitator for the project. Gas, electricity and other public utilities will beprovided by the developer at the doorstep of the Zone. Captive power generation will also be allowedto the developers of the Zone. The Provincial Government is engaged with Japanese, Korean, Chineseand other potential foreign investors to finalize arrangements for infrastructure development of theZone.Sindh - The Land of Endless Opportunities

Larkana Special Economic Zone (LSEZ), LarkanaOverviewLarkana is located in upper Sindh at a distance of about 85 km southwest of Sukkur. It is a major riceproducing district in Sindh and is also famous for its abundant tomato and guava production owing tothe network of barrage canals, which irrigate the entire area of the district. Its annual guavaproduction rose to 23,371 million ton and rice production touched the figure of 636,932 tons. The paddyproduction in the district has encouraged growth in the rice milling industry, which currently hastouched the figure of 300 mills in Larkana and surrounding areas.Project BriefThe Government of Sindh has allocated 500 acres for establishment of Larkana Special EconomicZone. The land is situated on a 220-feet wide road, located in outskirts of Larkana city near ArijaVillages. The land is located between Larkana Moen-Jo-Daro Airport and Larkana city, Sindh.Sindh Board of Investment has established a one-window facility for the project. All the public utilitiesincluding gas, electricity and other services will be provided at the doorstep of the Zone. Captivepower generation will also be allowed to the developer of the Zone. The Provincial Government hasengaged consultants for conducting feasibility study and providing transaction advisory services toexpedite the project.Sindh - The Land of Endless Opportunities

SINDH ENTERPRISEDEVELOPMENT FUND (SEDF)Sindh - The Land of Endless Opportunities

RationaleThe Government of Sindh with a vision to encourage development of small and medium enterprises(SMEs), to promote entrepreneurial mindset, and to give a major push to the wider agrarian economyhas created Sindh Enterprise Development Fund (SEDF) to provide a sustainable institutional and legalframework to achieve such objectives.SEDF aims to provide boost to value addition in the agriculture sector for multiple economic benefitson growth, intermediary services, and productivity. It also seeks to introduce farm-level interventions toimprove efficiency and profitability.VisionTo support entrepreneurship development based on Sindh's competitive advantages.MissionTo introduce technology and bring value addition in non conventional yet vital sectors of theeconomy by extending technical and credit assistance.Priority ClustersSEDF provides technical assistance and financial subsidy to Sindh-based enterprises, which are lookingforward to upgrade from basic skills to modern technology or set up green-field projects in thefollowing agrarian clusters:• Agro-Processing• Dairy• Livestock• Poultry• Fisheries• Horticulture• Storage and Cold Chain• Mining and Processing of Minerals• Energy (Use of solar, biogas, and wind as source of energy)Services by SEDFSpecifically, SEDF provides the following services to prospective agribusiness entrepreneurs:Technical Assistance• Facilitating applicants in preparing feasibility studies.• Helping the applicants in fulfilling the requirements of financial institutions.Sindh - The Land of Endless Opportunities

Financial SubsidySEDF’s main intervention is in the form of an interest rate subsidy as under:• 100% KIBOR part of the capital cost .• 50% of KIBOR part for the working capital.Selected individuals capable of setting up agribusiness projects can apply for a loan from anyfinancial institution for medium term (3-5 years).SEDF will pay 100% KIBOR for capital cost and up to 50% of KIBOR for working capital for threeyears which may be extended up to 5 years on successful review.The total monetary value of the SEDF interest subsidy shall not exceed PKR. 50 Million.SEDF financial support shall not exceed the total project cost of PKRs. 200 million.SEDF AchievementsUpgradation/BMR Scheme for Rice Mills in SindhSEDF is launching a BMR scheme for the ailing rice mills in collaboration with State Bank of Pakistan andparticipating financial institutions (PFIs). Currently, there are over 800 rice mills in Sindh, which wereestablished in the 1960s and 70s and used old hullers for rice milling. If compared with rice producingcountries like Thailand, Vietnam, China and Japan, most of the mills have outdated technology withoperational losses as high as 40%. Apart from the old technology, the rice mills are in run-downcondition as well because of extensive wear and tear and inadequate maintenance.SEDF’s objective is to modernize and restructure rice mills throughout Sindh in phases for greaterefficiency and profitability. The scheme entails 30% credit guaranteed subsidy of 6.25% againstrefinance interest rate to be extended by SEDF. The applicant is expected to pay only the principalamount and banking spread at 3-4%.Collaboration with USAID Agribusiness ProjectSindh Enterprise Development Fund has entered into an understanding with USAID’s agribusinessproject namely Agribusiness Support Fund (ASF) for close cooperation in the areas of horticulture andlivestock.Sindh - The Land of Endless Opportunities

Technical Assistance for Establishing Horticulture Processing Plants in SindhSEDF is in the process of procuring consultancy services to facilitate private sector in establishing foodprocessing plants which includes supply chain units such as cold storages and packing houses atstrategic locations in the province and to support marketing of the strategic horticulture productstowards the overall objective of boosting growth and job creation.These processing plants, which are primarily to be undertaken through private sector investment withthe assistance of consultants are expected to serve as a model facility attracting investors to set upsimilar processing plants and to fulfill the huge gap that remains in the agro products supply chain andprocessing industry, which can lead to export growth to higher paying markets especially the MiddleEast and Europe.The following regions have been identified in terms of various horticulture products:A. Sukkur Division: Dates, banana and other horticultural products.B. Larkana Division: Guava, tomatoes and other horticultural products.C. Hyderabad/Mirpukhas/Karachi Divisions: Mango, red chillies, tomatoes and otherhorticultural products.Projects Approved by SEDF BoardSEDF has committed financial subsidy (KIBOR) for plant machinery and working capital of the followingprojects:Sr.NoNameProject Size Capacity SEDF SubsidyDairy and Livestock01. Dairy Land (Pvt.) Ltd., Thatta Rs.180 Million 1500 cows Rs.19 MillionIntroduced modern dairy farming in Sindh ensuring better milk yield and compliance withbiosecurity standards. Generating direct employment for 250 people and indirectemployment for 150 people02. Lauripak Livestock (Pvt.)Ltd., Naushero FerozeRs.120 Million 700 animals Rs.7.03 MillionEstablished to practice modern dairy and livestock farming to cater to overseas marketneeds. The farm will generate direct employment for 110 people and indirect employmentfor 30 people.Sindh - The Land of Endless Opportunities

Sr.No NameProject Size Capacity SEDF Subsidy01.02.03.04.05.06.Reliance InternationalCommodities (Rice)Export, LarkanaHalal Rice Mills, JacobabadIsrar Rice MillsLeghari Rice MillsHaq Bahu Sultan Rice MillNoor Rice Complex, DaduRice Processing MillsRs.29.7 Million 9500 tons annuallyRs.100.5 MillionRs.174 MillionRs.60.5 MillionRs.169 MillionRs. 170 Million8000 tons annually13000 tons annually6000 tons annually13000 tons annually15900 tons annuallyRs.6.07MillionRs.7.63 MillionRs.20 MillionRs.4.87 MillionRs.15.1 MillionRs.15.1 MillionProvision of machines like color sorter and silky polisher would enable greater value additionin rural areas facilitating wider international market access.Rice Processing Mills01. Aquatech (Pvt.) Ltd.,JacobabadRs.161.6 Million 9600 tons annually Rs.20 MillionThis is the first fisheries feed mill in Sindh for provision of quality feed to several hundred freshwaterfish farms in SindhControlled Atmosphere Poultry Farms01.02.03.04.Ali Mohd Shah PoultryFarm, Tando AllahyarFahad Ghaffar Soomro(ECH Poultry Farm)Poultry Man, NooriabadAMSKA Poultry, HyderabadRs.52.3 MillionRs.27 MillionRs.51 MillionRs.52.5 Million60,000 Birds30,000 Birds60,000 Birds60,000 BirdsRs.9.8 MillionRs.6.09 MillionRs.10 MillionRs.10.2 MillionProvision of machines like color sorter and silky polisher would enable greater value additionin rural areas facilitating wider international market access.Cottonseed De-Linting and Ginning Mill01. National Seed Ventures, Rs.170 Million 25000 tons per Rs.23.3 MillionKotri Industrial AreaannumThe project includes de-linting plant, which is the first of its kind in the Sindh and will provideraw material for Chemi-Viscose Fiber plant in Benazirabad (presently shut down owing tonon-availability of raw material.)Sindh - The Land of Endless Opportunities

Crop AgricultureSindh's agriculture sector contributes 23% to the country's GDP. Keeping in viewglobal food security concerns amid rising prices of agricultural commodities, vastagricultural base of Sindh has the capacity to become region's breadbasket. Sindhhas abundant fertile land, water resources, and skilled work force to supportmodernized agrarian production. Introduction of technology, efficient irrigationsystems, quality seeds, quality pesticides and modern implements can help Sindhattain its true agrarian potential. Local and foreign investors continue to show keeninterest in this sector.The huge gap between Sindh's current agricultural production and actual potentialprovides opportunities for various types of investments in value addition. TheGovernment of Sindh has taken various initiatives in terms of subsidized financing,technical support, research and development and capacity building of farmers.Following investment opportunities have been identified keeping in view indigenouscrops and global best practices:• Fruit Processing Units• Fruit Pulping Plants• Dehydration Units for Fruits and Vegetables• Rice Processing• Clean Cotton Ginning• Cold Storage UnitsCrop Agriculture

RICESindh - The Land of Endless Opportunities

OverviewRice is the quintessentially Asian crop because 90% ofrice production and consumption is concentrated inthis region. It is the staple food for 50% of the world and75% of the world’s poor. In Pakistan, it is the secondstaple food after wheat. Pakistan is the 11th largestproducer and 5th largest exporter of rice. Rice is thesecond largest earner of foreign exchange aftercotton. Rice accounts for 4.9% of value added inagriculture and 1% of GDP of Pakistan. Major varietiesproduced in Sindh are Irri-6, Irri-9, D-98 while minorvarieties include Super Basmati. Lateefy varietydeveloped in Sindh is called “Sindhi Basmati.” Irri-6 andIrri-9 are long-grain varieties while D-98 and Superbasmati are extra long-grain varieties. Major ricegrowing areas in Sindh are Larkana, Dadu, Shikarpur,Qambar-Shahdadkot, Jacobabad, and Kashomoredistricts in upper Sindh while Thatta, Badin, and TandoMuhammad Khan are major areas in lower Sindh.Market AnalysisIn Sindh, rice is grown on about 2 million acres of landwith per acre yield at 45 – 50 maunds, which like allcrops in Pakistan does not reflect actual potential. Ricesector employs about half a million of rural labourforce. Overall, Sindh produces 35% of the country’s ricewith annual production at around 3.5 million tons ofwhich 2 million tons of milled rice is produced by morethan 800 rice mills. The main Irri-6 variety produced inSindh is not consumed locally because it does notappeal to local culinary tastes. As such, rice producedin Sindh is by and large exportable surplus. Annualexport earnings are about $ 1 bn with the price of Irri-6hovering around $450 per metric ton on average.Irri-6Irri-9D-98Super BasmatiSindh - The Land of Endless Opportunities

The major export destinations of Sindhi rice varieties are Africa, the Middle East and Eastern Europealongside Russia and Ukraine. Parboiled rice is considered nutritionally much superior to white milledrice because of distribution of nutrients uniformly across the grain. It also offers ease of cookingbecause it does not stick to utensils. Parboiling also strengthens the rice grain resulting in less breaking.Parboiled rice is in high demand in Nigeria, Saudi Arabia, and Russia. Parboiled rice fetches betterprice in the world market. Price per ton for parboiled rice is $470 for Irri-6, $720 for Irri-9, and $1170 forSuper Kernel Basmati.Investment OpportunitiesModernized Rice MillsState-of-the-art rice mills can be established in Sindh toproduced high-quality milled rice atcompetitive pricefor profitable export to various destinations especiallyunderbuyback arrangements.Rice Mill Manufacturing PlantsLocal capacity for manufacturing of rice mill machineryis limited and a significant proportion of components isimported from China, the UK and Japan. Machine toolsplants can be established in Sindh for localmanufacturing of high-quality milling machinery. A vastinternal market exists in this regard.Rice Bran Oil ExtractionRice bran oil is produced from rice bran, the brownupper layer of rice grain mainly being used for animalfeed, is considered to be a great health food across theworld. The price of rice bran oil is at least Rs 2000 ($ 20)per kg. Currently, there is a vast unmet demand for ricebran oil across the world. Rice bran oil plants can be setup in Sindh which are so far non-existent for extraction ofthis most valuable exportable product.Sindh - The Land of Endless Opportunities

COTTONSindh - The Land of Endless Opportunities

OverviewResearchers have found out that cotton cultivation was done for the first time in the world at Mehrgarh,a neolithic civilization near Quetta about 9000 years ago. Known by superlative terms like “King cotton”and “white gold”, cotton was the driving force behind the Industrial Revolution and remains humanity’sbasic need. It is the biggest source of a natural fiber that is almost completely cellulose in structure.Cotton is basic input for indigenous textile industry of Pakistan and is used for production of cotton lint,yarn, thread, cloth, and garments. Cotton is one of the four major crops of Pakistan and accounts for8% of the value-added in agriculture and contributes about 2% to national GDP. Cotton is cultivatedin Sindh on more than 1 million acres in Naushero Feroz, Benazirabad, Sanghar, Thatta, Badin, Sukkar,Ghotki, Hyderabad, Jamshoro, Mirpur Khas and Sukkur, Umar Kot, and Tharparkar. The two popularvarieties of cotton grown in Sindh are NIAB and newly introduced Bt (genetically modified variety). Thecotton staple grown in Sindh is of medium length and medium-long although medium staple is morewidespread. There are over 350 cotton ginning mills in Sindh mostly in central Sindh but also found inother districts where cotton is grown.Market AnalysisCotton and cotton derivatives constitute about 55% ofall national exports annually. However, export of rawcotton is not beneficial in that finished goods can resultin 10 times more export earnings. The ginning mills inSindh produce on average 3 – 4 million bales of rawcotton annually with each bale on average measuring50” x 20” and weighing 170 kg. Cotton shrub producestwo end products: lint and cottonseed, both of whichare adequately being utilized in Sindh but linter coveringon cottonseeds has not been properly utilized. Despiteindigenous cotton cultivation, Pakistan has been a netimporter of cotton since the mid-1990s. Usually,American pima cotton and Egyptian cotton is importedalong with other lesser varieties of cotton. Cotton sectorin Pakistan is completely deregularized in that there areno subsidies in the form of support prices. Spot rates(per maund/40 kg) are determined in the open market(cotton exchanges) on daily basis.Sindh - The Land of Endless Opportunities

Cotton Fruit De-Linted Cottonseed Cottonseed with LinterViscose FibreInvestment OpportunitiesCotton BalesCotton YarnSeed ProductionInvestment is the need of the hour for development of better quality and high-yield cotton varieties oflong and extra-long staple such as the quality pima cotton of the USA. Buyback agreementscan be made in this regard.Modernized Ginning PlantHigh-tech and high-volume modernized cotton-ginning plants can be established in Sindh forproduction of clean and contamination-free cotton.Delinting PlantDelinting plants can be established to make use of linter covering on cottonseeds to make better useof linter as well as cottonseeds. Linter thus recovered is used for manufacturing of viscose fibre andother products.TextilesTextile industry of Sindh is highly well-developed and is always a good avenue for investment.Sindh - The Land of Endless Opportunities

RED CHILLIESSindh - The Land of Endless Opportunities

OverviewThough chilli peppers originated in South and Central Americasome 3000 years ago, South Asia is also known for its predilection forspicy foods and for cultivation of a myriad of chilli varieties. InPakistan, Sindh holds the position of top producer of red chillies, aspice liked for its strong pungent taste and red colour. Its hot,pungent taste is owing to the presence of capsaicin, a chemicalsubstance that also quickens digestive process and possesses greatmedicinal value. Apart from this, red chillies are also a very goodsource of vitamins A, B, C, and contain high quantities ofmagnesium, potassium, and iron. Red chillies are used primarily asspice is foods and beverages in whole form or in powdered form. Inaddition, red chillies are used as main ingredients in various types ofsauces, vinegars, ketchups, and pickles. Oleoresin, a compoundextracted from chillies is also sought-after because of its use asartificial flavouring and colouring agent in various foods. Chillipeppers are, therefore, one of the key spices being traded in theworld market in the present day.Red Chillies in KunriDundicut from Mirput KhasMarket AnalysisPakistan continues to remain among the top five producers in the world. Sindh is the largest producerof red chillies with annual production at 85,000 tons which amounts to 85% of the country’s produce.The top producers of red chillies are India, China and Mexico. In Sindh, red chillies are being cultivatedon an area of nearly 40,000 hectares with per hectare yield at 1.9 metric tons. In Sindh, a small town ofKunri, once called the “Chilli Capital of Asia” alone produces 55% of Sindh’s produce. Other cultivationhubs are Mirpur Khas, Sanghar, Badin, Tando Muhammad Khan, Khairpur, Shikarpur, and Ghotki. Themain varieties from Kunri are Desi, Mexi, and Nageena while Talhari, a winter variety is from Badin.Ghotki is from Ghotki and Khairpur and Sanam is cultivated in the outskirts of Karachi. However,Dundicut or Loungi variety from Mirpur Khas which is round-shaped is mainly used for chilli powder.The varieties grown in Pakistan are of high quality and clearly superior to other varieties grown in theregion.The top importing countries in the world are the USA, UK, Netherlands, Germany, Japan, Malaysia andsome countries from the Middle East. Pakistan has realized only a fraction of its potential as producerof red chillies. Despite better varieties, Pakistani red chillies fetch lower price than Indian varieties.Proper post-harvest handling and marketing of Sindhi red chillies are the needs of the hour.Sindh - The Land of Endless Opportunities

A number of initiatives are being taken by variousorganizations to improve the quality and quality ofred chillies production. Agribusiness Support Fund, aproject of USAID is funding the construction of 588solar dryers in Kunri, which have resulted in reductionof drying time from 8-10 days to 4-5 days and a 20%increase in income. Moreover, Ministry of Industries,Government of Pakistan has started the funding of adehydration plant consisting of 02 state-of-the-arthot-air dehydration units at a cost of Rs 192 million.The plant will dehydrate 30 ton red chillies a day andwill function as a demonstration unit as well as acommon facility centre. As a result, farmers will beable to get their chilli produce dehydrated at nominalrates. The plant is likely to start functioning in 2013.Investment OpportunitiesDehydration PlantPrivate sector investment in dehydration plant for red chillies in Sindh is undoubtedly a profitable areaof investment. Currently, chillies are being sun-dried which leads to time lags and quality reduction. Adehydration plant for red chillies can not only be run on commercial basis but other vegetables likeonions and garlic can be also dehydrated in the same plant.Chilli Powder MillChilli powder is used in all sorts of food recipes across South Asia. Currently, National Foods and ShanFoods are the major producing companies of chilli powder in Pakistan. Chilli powder is not only highlysaleable product but it also has long shelf life. Such mills can be set up in Sindh especially near cultivationhubs for wide-ranging benefits to all concerned.Paste and Ketchup UnitSauces and ketchups based on red chillies are in intensive use in homes and restaurants in Pakistanand across the region. Industrial units for preparation of chilli sauces and ketchups based in Sindh area lucrative investment opportunity.Sindh - The Land of Endless Opportunities

DATESSindh - The Land of Endless Opportunities

OverviewDates are an iconic part of Muslim culture and one of the few fruits mentioned repeatedly in the holyQuran. In fact, dates production is mainly concentrated in the Muslim world especially the Middle East.Dates are a very nutritious and delicious fruit containing mainly carbohydrates and several types ofsugars but also proteins, vitamins, and minerals. A kilogram of dates contains 2500-3000 calories.Pakistan is the 4th largest producer of dates with total annual production at around 650,000 tons in theform of over 300 varieties. Of the many varieties produced in Pakistan, Aseel, Karblain, and Kupro areconsidered the best varieties of Sindh. Begum Jhangi and Mozavati are the best varieties ofBalochistan while Dhakki is the best variety of Dera Ismail Khan in KPK. Sindh alone contributes morethan 55% of the total dates production in Pakistan and the share is on the rise. In Sindh, the highestconcentration of date palm is in Khairpur district where date palm trees grow like weeds and produceabout 90% of dates in the province.Market AnalysisSindh produces 350,000 tons of dates annually with eachdate palm carrying a weight of about 80-90 kg on average.Dates are produced in two forms as either fresh dates or drieddates. Fresh dates are exported to the USA, Canada, France,Bangladesh, Indonesia, Malaysia, and UAE while 90% of drieddates are exported to India usually via Lahore. Datesprocessing has not been able to gain a foothold in Pakistanbecause of which true potential of dates production has notbeen fully realized. Processing occurs at two levels. One is basicprocessing consisting of the simple steps of fumigation, washing, drying, weighing and packaging inorder to convert dates into table fruit. The whole date can also be processed to make unpitted ornut-stuffed dates for higher price. Further processing can be done for value addition by making datepaste, date vinegar, date syrup, and a wide range of confectioneries derived from dates.Because of lack of modernized processing and prevalence of age-old methods, Pakistani fresh datesare considered industrial quality by the developed world and fetch only one-third the price ofprocessed dates at only $ 600 per ton. However, fresh dates generally earn double the export price ofdried dates, which are in reality a devalued form of dates. In Sindh, about a dozen basic-levelprocessing plants exist in Thehri area of Khairpur some of whom have managed to get ISOcertifications. The consumption of dates increases manifold during the holy month of Ramadan.However, Pakistan has not been able to take full advantage of this market. In fact, Pakistan importsdates during Ramadan because of lack of cold storage and processing facilities.Sindh - The Land of Endless Opportunities

“Golden Harvest” andage-old dehydration methodBaking for Dried DatesDate Palm in DrovesInvestment OpportunitiesDates Dehydration ChambersInvestment is required for establishment of modern datesdehydration chambers for value addition. TheseAseel Dateschambers reduce ripening time from 9-8 days to 5-4 days and increase profitability alongsideenhancing quality of dates.Dates Processing PlantsDates processing plants are the essential need of dates sector in Sindh either for processing of freshdates in simple or value added form and/or for production of dates derivatives like paste, syrup,vinegar and so on. The scope of value addition and profitability is immense. The cost of such aplant is Rs. 30 m with an IRR of 30% and payback period of 2.5 years. The first investors in this field willdefinitely have a great first-mover advantage.Investment in Khairpur Special Economic ZoneDate processing plants can ideally be established at Khairpur Special Economic Zone, an specialeconomic zone being developed by the District Administration of Khairpur under supervision of SBI.The zone has a total area of 136 acres and will be equipped with a 20MW captive power plant.There will be zero duties on import of machinery as well as tax breaks for the first 10 years. The zoneis ideally located on the main National Highway.Sindh - The Land of Endless Opportunities

GUAVASindh - The Land of Endless Opportunities

OverviewAlthough guava, a tropical fruit, originated in Central and South America, it is South Asia that has cometo dominate the production of guava. Pakistan today stands as the second largest producer of guavawith India as the largest producer in the world. While guava is considered an exotic fruit in Europe, inSouth Asia it is a common man's fruit because of its widespread availability during the season. In fact,recent studies have established its very high nutritional value with four times as much vitamin C as inoranges and abundant quantities of vitamins A, B, calcium and dietary fibre. As a result, it is beingconsidered a "superfruit." It is also one of the few fruits which have two harvesting seasons: one in summerand another in winter. However, it is the winter crop that has better quality and higher quantity, whichis the reason why a number of farmers intentionally deblossom guava trees in summer to get the bestwinter crop. There are two major varieties of guava: "apple guava" – the most widely known varietybearing green or yellow skin colour and "strawberry guava" with red or orange skin colour. Guava is ahighly perishable fruit with a short shelf life, which necessitates processing and manufacture of derivatives.Market AnalysisPakistan produces around 560,000 tons guava annually with 58,500 hectares of land under its cultivation.Sindh is the second largest guava producer in the country with annual production at around 71,000tons. Larkana district in Sindh is the leading contributor in guava production accounting for 45% ofSindh's produce annually. Other production hubs are Hyderbabd, Naushero Feroz, Mirpur Khas, NawabShah and Khairpur districts. The main varieties produced in Sindh are Thadharami (pink-fleshed), RiyaliSindhi, Allahabadi (seedless), Ramzani and Indian. At the domestic level, guava is mainly consumedas fresh fruit while internationally consumption of guava as fresh fruit has not yet taken foothold. In fact,during the winter season because of large production volume in the absence of cold storages andprocessing plants as much as 40% of guava is wasted. There is a pressing need for establishment ofguava pulping units and plants for production of guava nectars and juices because the trend forconsumption of guava juices and nectars has taken hold in Pakistan.Globally, there is a vast unmet need for guava pulp and guava juices and nectars which could besuccessfully met by Pakistani guava produce, a large portion of which goes to waste anyway. A numberof other guava derivatives are being produced internationally like jams, jellies, and even guava oil. Allof these can be easily produced in Sindh with the introduction of modern processing. Canada remainsthe biggest importer of Pakistani guava. Other key importing countries are UAE, Saudi Arabia, UK andQatar.Sindh - The Land of Endless Opportunities

Investment OpportunitiesCold Storage UnitA cold store is a basic component of cold chainrequired by horticultural products. In Sindh, there is asevere shortage of cold storages despite the fact that acold storage is always a multi-purpose facilitywhere a wide-range of products can be stored and, assuch, it is a never-fail investment initiative. Cold storesof various storage capacities like 2,000 tons, 5,000 tons oreven 10,000 tons are highly likely to be a lucrativebusiness. New technologies especially IndividualQuick Freezing (IQF) should be explored which aremainly used for frozen foods.Guava Pulping PlantA guava pulping unit is a simple plant to extractguava pulp, the essential raw material for guavajuices and nectars. To enhance commercial viabilityand profitability, investors should target for amulti-purpose pulping plant where mangoes andtomatoes could also be processed.Guava Juice/Nectar PlantBecause of the high nutritional value of guavas,guava juices and nectars are getting popularespecially in Pakistan and the Middle East. Such plant islikely to be high-returns and low-risk investmentventure. Vertical integration with pulping unit can bedone for higher profitability.GuavaGuava PulpGuava JuiceSindh - The Land of Endless Opportunities

BANANASindh - The Land of Endless Opportunities

OverviewBanana, one of the oldest cultivated fruits in the world, is currently the fourth largest fruit crop in theworld. Banana is a tropical fruit and grows in warm and humid climates on well-drained lands but highwinds, frost, and excessive heat are harmful to the plant as well as the fruit. Banana tree is not a treein reality but a large herb and the fruit is technically a berry. Banana plant consists of a pseudostemthat grows from a base called corm. The modern seedless banana varieties reproduce asexually fromsucker shoots that grow from the corm. A full-grown banana tree develops rapidly within 7 to 8 monthsand given appropriate climate it can grow fruit throughout the year though at a time only one largebunch is produced. Banana and plantain, a green-skinned starchy fruit, fall in the same genus Musa.However, because of different characteristics, the edible banana is called “dessert banana” whileplantain is called “cooking banana” because it is inconvenient to eat without cooking.Banana is a highly nutritious fruit which is particularly rich in easily digestible carbohydrates, dietary fibreand minerals especially potassium, magnesium and manganese. It also contains significant quantitiesof vitamin C and smaller quantities of vitamins A and B. Because of this unique nutritional value, its lowprice, and abundant production banana remains a sought-after fruit. In Pakistan, Sindh remainsundisputed leader in banana production because growth conditions suitable for banana areavailable in this province only. In Sindh, the production hubs are Benazirabad, Khairpur, Thatta, Badin,Hyderabad, Sanghar and Mirpur Khas. Southern Sindh is particularly suitable for banana cultivationbecause of moderate climate.Market AnalysisIn Pakistan, banana is grown on nearly 35,000 hectares with annual production at around 140,000 tonsout which 85% produce is contributed by Sindh alone. The main variety produced is Dwarf Cavendish(locally “Basrai”) which constitutes 98% of total produce while the rest comprises Giant Cavendidh orWilliams hybrid variety. However, because of lack of controlled-atmosphere storage facilities andprocessing, improper post-harvest handling, and perishability of the fruit about 30% of banana produceis wasted annually. Globally, India is the largest producer of banana followed by Brazil but bothcountries end up consuming most of their produce leaving little for export. On the other hand, thelargest exporters are Ecuador, Colombia, the Philippines, and Taiwan. Honduras and Guatemala inCentral America are also major exporters to the USA. Ecuador and Colombia have made greatheadway in the post-harvest handling of banana.Across the world, banana is mainly consumed as a fresh fruit. In fact, it is considered ideal fruit forathletes, the sick, the elderly, and babies. Worldwide, the USA, the EU, Japan, the Middle East aremajor importers of banana. In addition, there is a great demand for dried banana products especiallybanana powder which is used in various jams, health drinks, desserts and so on. There is alsowidespread demand for banana pulp across the worldis smuggled to Afghanistan and Iran,Sindh - The Land of Endless Opportunities

which remains a challenge for the state machinery. However, with properpost-harvest management banana can be successfully exported from Sindhto Central Asia, the Middle East and even continental Europe, which are majorconsumers of banana but lack indigenous production. Also, the quantum ofbanana production can be increased in Sindh by shifting from cultivation ofsuckers to tissue-culture technology, which can prevent diseases and ensureuniform growth of banana plants across the farm.Some initiatives are being taken in Sindh to increase quantity and quality ofbanana cultivation in Sindh. In 2009, Agribusiness Support Fund, a project ofUSAID started the establishment in Tando Allah Yar of a tissue-culture researchand development centre at a cost of Rs. 1.45 m. The centre is fully functionalnow and provides tissue-cultured banana plantlets on charge basis. Becauseof this facility, a local grower from Tando Allah Yar has successfully startedcultivation of a disease-free variety of Giant Cavendish banana called “GrandNaine” or G9.Investment OpportunitiesDwarf CavendishGiant CavendishBasic Processing Plant with Packing HouseThe post-harvest processing of banana requires a simple plant, which promiseshigh returns. Banana is harvested raw from the plants for artificial ripeningBanana Powderbecause ripening on banana plant results in low-quality fruit. After carefulcutting and transport to the processing plant, bananas form entire bunch aredipped in water to bring down temperature uniformly. After that, bananasare carefully washed and air-dried. After grading, bananas are packed incardboard, wooden or plastic boxes with ventilation holes and suitablecushioning material for transport. If transported in controlled atmosphere at130 Celsius with proper ventilation, then the shelf life of bananas can be 3 to 4Banana Pulpweeks.Banana Powder UnitAs already mentioned, there is vast demand for banana powder across the world. The plant requiredfor production of banana powder is simple and requires small investment but promises high returns.The shelf life of banana powder is also much higher than the fresh fruit.Banana Pulping UnitBanana pulp is also in significant demand in the world. The pulping unit is simple and requires smallinvestment. For greater profitability, the same plant can carry out pulping of mango, guava, or tomatowith the addition of a few components.Sindh - The Land of Endless Opportunities

MANGOSindh - The Land of Endless Opportunities

OverviewMango – “King of Fruits” is one of the two most delicious and admired tropical fruits in the world alongwith pineapple. The fruit is native to South Asia and Southeast Asia and is national fruit of Pakistan, India,and the Philippines. Mango is a highly nutritious and healthful fruit containing rich quantities of prebioticfibre, vitamins A and C along with smaller quantity of vitamin B, protein, and minerals. Mango is atropical fruit and thrives in sandy loam soil with hot and dry weather in well-drained land. Water-loggingor frost are harmful for the mango tree and fruit. Worldwide there are hundreds of varieties of mangoeswith different colours, sizes, shapes, and weights. In general, it has an inedible skin covering juicy pulpunderneath with which stone or seed is attached through fibre. India is the world’s largest producer ofmangoes while Pakistan is the 6th largest producer. In Pakistan, Sindh and the Punjab are the mainproducers of mangoes. In Sindh, the main districts where mango is cultivated are Mirpur Khas, TandoAllah Yar, Khairpur, Sanghar, Naushero Feroz, and Matiari.Market AnalysisSindh produces a large number of mango varieties including Sindhri, Saroli, Dasehri, Sunehra andsmaller quantities of species native to the Punjab like Langra, Chaunsa and Anwar Ratol. Of these, 70%of mango production comprises Sindhri, which is considered by many to be the “King of Mangoes.”There are five criteria for judging the quality of mangoes as under:1. Sweetness should not be excessive2. Peel should be thin3. Pulp should be thick with lower fibre content and small stone4. Colour of peel should be preferably yellow5. Size should be largeOn all these counts, no mango variety in the world can compete against Sindhri variety from Sindh.The total annual production of mangoes in Pakistan is around 1.6 - 1.8 million tons out of which 0.6 - 0.7million tons comes from Sindh (40%). Like all crops in Sindh, the true potential of mango production hasyet to be realized because productivity per unit of area is low in Sindh at a mere 8 tons per hectare.Smaller landholding, better crop management, and scientific approach to use of inputs will definitelyyield higher results.A part from low productivity, traditional lack of processing has created a bad imageof mangoes from Pakistan. As a result, average export price of mangoes from Sindh hovers around $360 per ton while carefully processed and packaged mangoes from other countries convenientlyfetch more than $1000 per ton. In addition, post-harvest management is also lacking. Mangoes shouldbe properly plucked to avoid flow of sap on the peel which causes sap marks alongside encouraginginfestation. Mangoes should not be dropped on the ground to avoid physical injuries and cutsbecause of which infestation and rotting takes place. Also, mangoes should be transported within 12hours to cold storage or processing plant in order to prolong shelf life and preserve quality.Sindh - The Land of Endless Opportunities

Sindhri – The King of MangoesA Treatment Plant for MangoesInvestment OpportunitiesMango Treatment PlantsProper processing of mango is the dire need of the hour in order to capture big price differential aftervalue addition. For processing of mangoes there are two technologies available: hot water treatment(HWT) and vapour heat treatment (VHT). However, some experts argue that for Pakistani mangohot-water treatment is the best procedure. The plant costs about Rs. 20 million but the returns on thisinvestment are high because treated mangoes sell for around $ 1500 per ton in the internationalmarket. Durrani Associates in Karachi are the pioneers in hot-water treatment of mango and theirtreatment plant is being considered one of the largest in the world.Mango Pulping PlantsMango pulp is in high demand by food companies nationally and across the world because it is thebasic ingredient for mango juices. Currently, there is a shortage of mango pulping units in Pakistan. Thisis a major investment opportunity available in Sindh.Mango Drying UnitsDried mango products are in high demand the world over because in dry form the mango can notonly be used for a wide variety of purposes like manufacturing of mango powder, mango juices,mango jams and so on but also because the dried mango has much better shelf life. Currenly, thereis only one pilot plant for this purpose in Tando Allah Yar while many more are needed. A goodinvestment opportunity.Sindh - The Land of Endless Opportunities

Livestock, Fisheries, and DairyLivestock plays an important role in the economy of the country. More than 6.5million families consisting of 30-35 million people are involved in livestock farming. Inrural Pakistan, it complements agriculture income by converting crop residues,agriculture byproducts and wastes into milk, meat wool, hair, and so forth. Livestocksector contributed approximately 55.1 percent of the agriculture value added and11.6 percent to national GDP during 2011–2012. While other development sectorsexperienced saturation and decline there has been an increase in livestock sectorin the current financial year.Poultry contributes enormously to food production by playing a vital role in thedomestic economy. It has great potential and can play a significant role in thenational economy by contributing to food security of the country, reducing pressureon demand for mutton and beef while earning foreign exchange.Pakistan is endowed with a coastline of about 1,120 kilometers, out of which 325 kmfalls in Sindh containing 71% of the country’s marine fisheries resources. Sindh offers alarge scope for exploitation of marine wealth. The fisheries sector plays an importantrole in the alleviation of poverty, achievement of food security and earning offoreign exchange.Annual production of milk in Pakistan is about 35 billion litres making it 4th largest milkproducer in the world. There is visible potential for production of an additional 3billion litres. Dairy sector continues to see moderate growth in Pakistan while thepotential for growth is enormous. With better breeds, fodder, and husbandry thepotential of dairy development can be realized.Following areas have been identified for investment:• Controlled-Atmosphere Poultry Farms• Feed Mills• Hatcheries• Livestock Farms• Silage Plants• Meat Processing PlantsLivestock, Fisheries, and Dairy

LIVESTOCKSindh - The Land of Endless Opportunities

OverviewLivestock sector plays a critically important role in the agro-based economy of rural Pakistan. It is highlylabour-intensive and involves a large segment of rural work force. In Pakistan, livestock contributed11.6% to national GDP and provided 55.1% of value addition in agriculture sector during 2011-12. Whileother sectors and sub-sectors are suffering from saturation and stagnation, livestock sector continuesto register an optimistic real growth rate of 4% annually. Livestock sector also produces a vast array ofbyproducts especially leather whose exports earned US$ 1.1 billion during 2010-2011 which amounts tothe 4.4% of total exports in 2010–11 and constitutes third largest export of Pakistan after cotton andrice. About 40% of the rural households in Pakistan own livestock, which provides 11% of their income.Livestock is an important component of rural agriculture in Pakistan because the animals are not onlyused for ploughing and transport but also fulfill household needs for dairy products like milk, butter,whey and yoghurt. It also enhances income of rural households and can act as a safety net in case ofcrop failures especially in rain-fed areas.Market AnalysisCertain factors make the prospects of livestock husbandry especially profitable in Pakistan: largecattle population, vast agricultural inputs to be used as fodder, and seasonal cross-border movementof large number of cattle from India to Pakistan. Livestock population in Pakistan mainly comprisescows, buffaloes, sheep, goats, camels and poultry. According to recent livestock census, totallivestock population in Sindh was about 46.3 million heads. Sindh possesses quality livestock gene poolin the form of Nili-Ravi and Kundi breeds of buffalos, Red Sindhi and Thari breeds of cows, Kachhi,Kooka and Dumbi breeds of sheep and Kamori, Bari, and Teddy breeds of goats. Thari cow isespecially well-known for rapid weight gain. There is also vast potential for utilization of byproducts oflivestock like leather, bone, hair, and blood, which are used for diverse purposes.Red Sindhi Cow Thari Cow Kundi BuffaloThe demand for livestock in Sindh is increasing rapidly on account of high population growth at a rateof 2.03%, increase in per capita income, and changing dietary patterns. As such, the livestock growthshould be at 5-7% per annum in order to meet domestic demand for meat. Apart from large domesticmarket, the strategic location of Pakistan gives it a unique advantage: it is situated between theSindh - The Land of Endless Opportunities

Kamopri Goat Bari Goat Teddy GoatMiddle East and Southeast Asia and these regions are facing meat deficiency. Pakistani livestockresources can fulfill the needs of the surrounding regions. Abundant livestock resources of Sindh can beutilized to tap into the global halal market that today stands at US$1.3 trillion.Investment OpportunitiesLivestock FarmsSindh is a land of tremendous opportunities for establishinglivestock farms for fattening purposes. Livestock farms can beestablished on various scales depending on the financial capacityof the investor.Modernized SlaughterhousesThere is a vast unmet demand for modernized slaughterhouses inSindh, which can be set up under various arrangements includingpublic-private partnerships, joint ventures and so on. Such facilitiesare needed for slaughtering of animals under hygienic conditions.Products2020(Million Tons)Meat Processing PlantsMeat processing plants can also be established in Sindh because these have been demonstrated asbeing highly profitable. In fact, slaughterhouses and processing plants can be vertically integrated toachieve greater economies of scale.Investment in Bhambhore Livestock and Dairy VillageFor investors in livestock and dairy sectors of Sindh, Livestock and Fisheries Department, Government ofSindh is building a dedicated hub for livestock and dairy farms in the form of this Village. It is situated only230 km from Karachi and comprises 2,500 acres of land. Infrastructure of this village will be developed byGovernment while the investors will be able to get long-term lease for plots of various sizes on attractiveterms. The project is in development phase.MillkBeefMuttonSupplyDemandGAP43.43 98.91 55.481.43 3.74 2.311.03 2.50 1.47Sindh - The Land of Endless Opportunities

DAIRYSindh - The Land of Endless Opportunities

OverviewThe nutritional importance of milk can never be overstated considered as it is by all to be the mostcomplete of foods. With annual production of over 35 billion litres of milk, Pakistan today is the 4thlargest milk producing country in the world. There is visible potential for production of additional 3billion litres of milk with a growth rate faster than any other sector or sub-sector of economy. Milkconstitutes in terms of value over 27% of agriculture economy. Of the total milk production in thecountry, 70% is rural-based and 30% occurs in urban areas. Global consumption of milk hit the all-timehigh mark of 282 billion litres and is expected to grow at a compound annual growth rate of 2.2% until2012. As such, dairy sector has assumed great importance in Pakistan.Market AnalysisSindh possesses 27% of buffalos and 23% of cattle herd of thecountry. The main dairy breeds are Kundi buffalo, and RedSindhi and Thari cows. Kundi buffalo and Red Sindhi cow areespecially known for their high milk yield. Sindh also hasadequate agricultural base to supply fodder and silageneeds of dairy farming in the province. Currently, a 40%supply-demand gap exists despite production of such alarge volume of milk in Pakistan. Of the total production, bulkis consumed by the local population in the form of raw,unprocessed milk. Only 3-5% of milk produced in the countryis processed in one of the two ways: UHT or pasteurization.At the domestic level, buffalo milk is preferred while for exportpurposes cow milk is produced because of differences intaste. The domestic consumer in Pakistan is price-consciousbecause of low purchasing power and low elasticity ofdemand for milk. There are seasonal variations in milkproduction in Pakistan like fall in milk supply during summerwhen the demand for milk is high resulting in price increases.Over 90% of milk produced is collected and supplied in rawform through a tier of middlemen. Government of Pakistanenvisages end to sale of raw unprocessed milk in large urbancentres because of related health concerns.Red Sindhi CowThari CowKundi BuffaloSindh - The Land of Endless Opportunities

Investment OpportunitiesModernized Dairy FarmsHigh-efficiency modernized dairy farms for production of pasteurized milk can be established inSindh on the pattern of Dairyland Farm in Dhabeji and Metro Dairy Farm in Nooriabad. Though theamount of seed capital is somewhat high, the payback period is very small (2 years) and returns oninvestment are very high.Milk Processing PlantsMilk processing plants for production of UHT milk as well as powered milk are another avenue forhighly profitable investment in Sindh. Recently, Engro Foods has established a state-of-the-art milkprocessing plant in Sukkur.Silage PlantsPlants for production of fermented fodder called silage can be installed in Sindh to meet thetremendous unmet need of high-nutrition fodder. Such a plant has to be complemented withfodder cultivation to make it commercially viable. The internal demand for silage is large andconfirmed.Investment in Bhambhore Livestock and Dairy VillageFor investors in livestock and dairy sectors of Sindh, Livestock and Fisheries Department,Governmentof Sindh is building a dedicated hub for livestock and dairy farms in the form of this Village. It issituated only 230 km from Karachi and comprises 2,500 acres of land. Infrastructure of this village willbe developed by Government while the investors will be able to get long-term lease for plots ofvarious sizes on attractive terms. The project is in development phase.Sindh - The Land of Endless Opportunities

POULTRYSindh - The Land of Endless Opportunities

OverviewPoultry is a blanket term for husbandry of domesticated birds like chickens, ducks, geese, turkeys,ostrich and so on for production of meat and eggs. Of these, chickens are the most numerous poultrybirds in the world and annually 50 billion chickens are reared and consumed worldwide. Worldwidethere are two methods of poultry husbandry whether for meat or eggs: intensive farming andfree-range farming. The former refers to high-efficiency farming involving high stocking density andstrict controls while the latter refers to a more natural approach to husbandry in which poultry birds aregiven freedom of movement for certain hours a day with lesser stocking density.Poultry is arguably the most important subsector of Pakistani agriculture in terms of affordable foodsupply. It is one of the most well-developed and vibrant segments of national economy growing at arobust 8-10% annually as opposed to 4% growth rate of livestock sector. Poultry sector provides directand indirect employment to 1.5 million people in Pakistan. Poultry meat contributes 25.8% of overallmeat production in the country and the share is increasing. In Pakistan, poultry farming is generallybeing practiced either as urban commercial intensive farming or as rural free-range farming.A ModernControlled-AtmospherePoultry FarmPoultry HatcheryChicken Feed MillMarket AnalysisPoultry farming started in Pakistan on commercial basis in the 1960s. Poultry industry has very importantbackward and forward linkages with other sectors and industries. Poultry meat and eggs take littletime to produce and market and, as such, poultry is a profitable business. Poultry industry can bedivided into three components: poultry farming, hatcheries, and chicken feed mills. Poultry farmingitself consists of:• Broiler farming (for production of meat)• Layer farming (for production of eggs)• Breeder farming (for reproduction)Sindh - The Land of Endless Opportunities

Pakistan produces around 834,000 tons of poultry meat annuallywith per capita consumption at 4kg per month. In addition, 3809million tons of eggs are produced annually. A total of Rs 300 bnhave been invested in the poultry sector and there is still immenseroom for expansion.In Sindh, there are more than 5,200 poultry farms and despitedamage caused by floods the poultry industry is on the rise. Poultryfarms are situated in districts Dadu, Mirpur Khas, Sanghar, Khairpur,Tando Muhammad Khan, Karachi, and Hyderabad. The ruralSindh is especially suited for poultry farming because of lowhumidity but hot climate became an issue, which has been solvedwith the introduction of environmentally-controlled poultry farms.In Sindh, a large supply-demand gap exists in poultry farmsbecause there are not enough indigenous poultry farms. At themoment, poultry products from the Punjab are bridging the gapbut the transport costs and wastages result in relative priceincrease in Sindh as compared to the Punjab.Investment OpportunitiesControlled-Atmosphere Poultry FarmsEnvironmentally-controlled poultry farms are being established in Sindh rapidly because mortality hasbeen brought down to 2-3% only as compared to the traditional poultry farms wherein mortality couldbe as high as 10-15%. Also, dispensation of food and medicine is uniform and accurate which results inoptimal growth. As such, there is great opportunity to invest in control farms especially on large scaleto generate economies of scale.Meat Processing PlantsPoultry meat processing plants can be established on the pattern of enterprises like K&N Foods andMon Salwa because they offer high returns and low risk with high initial cost. Currently, there is littlecompetition in this field and first investors will gain foothold within a short time.Feed Mills and HatcheriesFeed mills and hatcheries are basic requirements of poultry farms but currently only a few hundreds ofboth exist in Pakistan. While demand is high from thousands of poultry farms the supply is low, which isresulting into high feed costs for poultry farmers. In any case, feed mills and hatcheries are greatavenues for low-risk and high-returns investments in Sindh.Sindh - The Land of Endless Opportunities

FISHERIESSindh - The Land of Endless Opportunities

OverviewAcross the world, the intake of seafood is on the rise because it is not only a rich source of animal proteinbut also that of minerals and good cholesterol among many other ingredients. In addition, the terrestrialsources of food supply are under strain because of rapid population growth and, as such, there is aneed to diversify food sources. Sindh is blessed with a vast array of fisheries resources. It has a coastlineof 352 km which contains 71% of Pakistan’s fisheries resources. The coastal waters are well-suited forfisheries production with just the right salinity and temperature characteristics. Indus Delta spread over40,000 hectares consists of 18 major natural creeks along with a large number of smaller creeks,backwaters, and mudflats all of which are naturally suited for fisheries production. The Indus Delta hasthe potential to produce 800 million kgs of fish and shrimp in the medium term. Although the contributionof fisheries sector in GDP is a mere 1%, the sector provides direct employment to 400,000 people andindirect employment to another 600,000. Therefore, fisheries sector has assumed great salience in theeconomy of Sindh in general and Pakistan in particular.Market AnalysisIn contrast to other countries, the coastalbelt of Sindh has over 40 species of fish andshellfish and 15 species of shrimp. However,four shrimp varieties are dominant in thecoastal region of Sindh: penaeus indicus(Indian White Shrimp), penaeus merguiensis(Banana Shrimp), penaeus monodon (TigerShrimp) and penaeus vannamei (PacificWhite Shrimp). Climatic specifications ofSindh’s coastal belt are as follows:Major marine species of fish found in the costal belt of Sindh are as under:Red SnapperMilkfishBlackPomfretGrouperSea BassStripedThreadfinAir TemperatureWater TemperatureSalinityHighest tideMean High TideMean Sea Level5 – 41 celsius8 – 34 celsius0 – 47 ppt3.84 m3.20 m2.06 mGrey MulletBrownStripedGrouperRed MulletSea BreamSindh - The Land of Endless Opportunities

Major marine species of fish found in the costal belt of Sindh are as under:YellowbackSea BreamRed MulletP. Indicus(IndianWhite Shrimp)P.Merguiensis(BananaShrimp)P.Merguiensis (Banana Shrimp)GrunterSea BreamP. Monodon(Tiger Shrimp)Mud CrabWhitePomfretCroakerBlueSwimmerCrabJellyfishThe total annual production of fisheries is merely 0.7 million tons and valued at $300 million. The domesticconsumption of fisheries at 1.8 kg per capita in Pakistan is the lowest in the region while in the Far Eastthe per capita supply is 12-13kg. Marine capture fisheries account for about 400,000 m tons and 20%of it is exported. Shrimps constitute 60% of the total fisheries export in the country. The annual growthrate of fisheries in 2010-11 was 1.9%. Total annual export earnings from fisheries are only $200 millionthough there is an easily achievable potential for $ 1 billion of export earnings. The major exportdestinations are China, Thailand, Malaysia, the Middle East, Sri Lanka, and Japan. On the other hand,fisheries are one of the main sources of animal protein in the advanced world and, as such, the worldmarket for fisheries is over $95 billions.A number of initiatives are being taken by various organizations to enhance the quality and qualityfisheries production in Sindh. Competitiveness Support Fund, a project of USAID has conducted valuableresearch into the fisheries sector and has also published Sindh Fisheries and Aquaculture Strategy,2010-2013. In addition, a demonstration shrimp farm was established at Garho, district Thatta on AmbraCreek in the 1980s with the help of Asian Development Bank. The farm comprises 24 ponds of varioussizes. Government of Sindh has also established hatcheries at Hawsbay in Karachi and Chilya in Thattafor supply to seed to entrepreneur. National Institute of Oceanography provides seeds and consultancyservices for fish and shrimp farming on charge basis.Recently, an area of 20,000 acres has been earmarked along the coastal belt of Sindh in Thatta andBadin districts by the Livestock and Fisheries Department, Government of Sindh to grant land on long-termlease to prospective investors in fish and shrimp farming on attractive terms. Following are the identifiedsites from the earmarked area:Sindh - The Land of Endless Opportunities

District Sub-District/Taluka Village/Deh Area (in acres)Thatta Ghorabari Gambua 800Thatta Ghorabari Jharyoon 50Thatta Ghorabari Adhano 100Thatta Ghorabari Mahel 425Thatta Jati Oranga 4000Thatta Shah Bundar Allah Dino Wada 500Thatta Shah Bundar Babli 4000Thatta Keti Bundar Naghewari 2441Badin S. Fazil Rahu Girhari, Ahmed Raju4 & 68527Investment OpportunitiesInfrastructure DevelopmentEnormous opportunity exists forcollaboration on the survey, masterplanning, and environmental impactassessment of coastal region along withinfrastructure development. Thiscollaboration can be done onpublic-private partnership mode formutual benefit of all concerned.MaricultureMariculture is so far non-existent on thecostal belt of Sindh though there issignificant inland aquacultureproduction. Mariculture is highly advantageous because it is not hampered by lack of water as inthe case of inland aquaculture and the costs are very low as well because of cultureactivities in natural environment. Mariculture can be practiced in the form of pen culture orcage culture along the coast of Sindh for highly profitable production of marine fish.Sindh - The Land of Endless Opportunities

Shrimp FarmingShrimp farming is considered across the world to be highly profitable venture but commercialshrimp farming has not been able to gain foothold in Sindh. Garho Farm at Thatta demonstratedpotential for such farming but only for a brief time. However, recently a private entrepreneur hasestablished state-of-the-art shrimp farm by the name of Reliance Aqua Farm. In fact, shrimpfarming is the wave of the future and promises great returns on investment.Hatcheries and Feed MillsEstablishment of further hatcheries and feed mills is part of market infrastructure that can be done oncommercial basis. Currently, there is no feed mill for making shrimp feed or fish feed. Feed for fish isbeing purchased from the Punjab while shrimp feed is being imported from abroad.Shellfish and Crab FarmingGreat potential exists in the form of untapped niche markets like that of mud crab, blue swimmercrab, jellyfish, other shellfish, and fish oils in Sindh. Such farming is best suited for maricultureactivities.Flake Ice PlantsFlake ice plants are also needed for improving post-harvest management of fisheries resources ofSindh. Fisheries products are highly perishable and delicate and require cold chain and carefulhandling for preservation of quality. However, ordinary ice is not suitable for the purpose because itpunctures the flesh of fish and shrimps. The latest alternative is flake ice which does not stick into fleshof fish and shrimps and maintains quality of seafood. This is a very profitable venue for investmentespecially near the coastal areas.Seafood Processing PlantsSeafood processing plants can be built near the coastal belt of Sindh for further value addition as onthe pattern of successful Mahi Foods company which processes and exports fisheries products.Sindh - The Land of Endless Opportunities

Halal IndustryThe halal industry is an emerging sector and the fastest growing business across theworld, which is attracting both Muslims and non-Muslims with its wholesome, hygienicand contamination-free process in food production. The global value for trade ofHalal foods and non-food products even now is estimated at US$ 1.3 trillion annually.The halal market does not merely cover food and beverage. In fact, the global halalindustry extends well into pharmaceuticals, cosmetics and other consumer goods,food services, finance, logistics and even tourism.The key areas of the halal industry can be categorized into following components:• Food Products: Livestock, Processed Food and Beverages, and Food Retailing.• Pharmaceutical: Drugs, Vaccines, Nutraceuticals, etc• Cosmetic and Personal Care• Additives and Ingredients: Food products, Non-food products.• Lifestyle: Apparels, Restaurant and Hotels.• Services: Logistics, Standard Auditing and Certifications, Finance, Research andTechnology Development.Halal Industry

SBI INITIATIVESON HALAL INDUSTRYSindh - The Land of Endless Opportunities

IntroductionSindh Board of Investment (SBI) in collaboration with Halal Industry Development Corporation (HDC) ofMalaysia is working dedicatedly to develop halal industry in Pakistan.SBI and HDC are committed to effectively implement the provisions of the Memorandum ofUnderstanding signed between the two parties on 1st December, 2010 in Kuala Lumpur, Malaysia fordevelopment of halal sector in Pakistan.Malaysia is one of the key players in global halal sector, the others being Australia, Brazil, Thailand,India, and so on with China, France and Japan having plans to enter soon. Pakistan will be one of thosefew Muslim countries who have taken concrete steps to develop halal industry and play due role in thetrillion dollar global halal market, which continues to grow.OverviewThe main objectives of this collaboration are:• Create Awareness about the Prospects of Halal Industry in Pakistan• Halal Certifications and Standards• Development of Halal Park• Halal Trade Promotion• Business Matchmaking• Awareness-Raising and TrainingHalal lndustry Development CorporationHalal is not merely a way of life _ it is a global industry. With its multi-sectoral nature, the developmentof halal industry is contributing enormously to all facets of economic growth across the world.Established on 18 September, 2006, Halal Industry Development Corporation coordinates the overalldevelopment of the halal industry in Malaysia. Focusing on development of halal standards, audit andcertification coupled with capacity building for halal products and services, HDC promotesparticipation and facilitates growth of Malaysian companies in the global halal market.Intent on building a global halal community, HDC brings the Malaysian halal industry in unison towarda common goal. By nurturing growth and participation of local businesses into the global halal market,HDC sets the bar for halal best practices in Malaysia to enrich the development of halal standardsglobally. HDC has now joined hands with SBI to bring its knowledge and experience towardsdevelopment of halal Industry in Pakistan.Industry OverviewHalal is an abbreviation of the Arabic term halalan tayyaban (halal and wholesome).The term describesgoods or actions that are permissible and wholesome according to Shariah laws and Islamic principles.Sindh - The Land of Endless Opportunities

Stating that all things are originally wholesome, halal is a criterion to distinguish pure, wholesome, andnon-intoxicating foods from harmful, intoxicating or, otherwise haram goods. Non-halal or haramgoods are the ones prohibited or strictly forbidden to Muslims.Halal is often associated with safe, clean and nutritious food, prepared according to Islamic principles.But in fact, the concept of halal applies to personal care and cosmetic products, pharmaceuticals,as well as finance and other services.Market AnalysisThe prospects of halal market can be viewed by the fact that the global Muslim population isexpected to grow from 1.6 billion to 3 billion within a few decades. Coupled with the fact thatnon-Muslims are increasingly accepting halal products and services, the global trade value for halalproducts is estimated at US $ 1.3 trillion annually. The industry's sheer potential has attracted interestfrom the business community worldwide, hastening the move towards the development of globalhalal standards while extending to activities such as logistics and packaging.Halal CertificationHalal certification provides assurance to all Muslim consumers that the product in their hands has beenproduced while fulfilling the Shariah law. To the non-Muslims, halal products are quality products simplydue to the concept of halalan tayyaban (Halal and wholesome) as halal certification requires that allbusinesses comply with GMP and HACCP requirements. Thus, products certified under Halalcertification are Halal products which are safe to consume or use, nutritious, and of high quality.Halal ParksSindh Board of Investment has devised a proposal to build a Halal Park with full-fledged infrastructureto facilitate the growth of the halal industry in Pakistan. The Halal Park will be a cluster of halal-orientedbusinesses/industries built in a special zone where they will be provided infrastructure and halal-relatedsupport services. HDC will assist the Government of Sindh in establishing Halal Park in Karachi.The objective of halal parks is to improve the economic performance of the participating companieswhile minimising their environmental impact. Components of this approach include the ‘green' designof park infrastructure, cleaner production processes, pollution control, availability of and accessibilityto raw materials and ingredients, energy efficiency, inter-company linkages and liaisons, andconsolidated services from public agencies such as halal certification as well as linkages for logistics,marketing, and halal traceability.Sindh - The Land of Endless Opportunities

HALALCERTIFICATIONSindh - The Land of Endless Opportunities

Halal CertificationHalal certification provides assurance to all Muslim consumers that a food item so certified fulfills theShariah law, which is binding on all Muslims. Even to the non-Muslims, halal products are quality productssimply due to the concept of halalan tayyaban (halal and wholesome) as halal certification requiresstrongly advises all businesses to comply with GMP and HACCP requirements. Thus, products certifiedunder halal certification are halal products which are ideal to consume or use, nutritious, and of highquality.Process and RequirementsHaIaI Certification Process GuidePhase 1 Phase 2Phase 3• Application Online• Processing of Document• Payment of Fees• Site Audit• Sampling & Analysis (if necessary)• Audit Report• Review & Approval Panel• Issuance of Certificate• Monitoring & RenewalThere are three types of certification schemes which cover consumable and non-consumable productsand food premises and abattoirs/ slaughterhouses.ProductsThis scheme comprises all manufactured consumable and non-consumable products based on thefollowing categories:Food Cosmetics PharmaceuticalsPremisesThis scheme covers all permanent eating places as follows:Hotel Kitchen/ Commissary Franchise Outlet/ Food Court RestaurantAbattoirsPlace/Premises for slaughtering or processing animals.EligibilityApplicants who are eligible to apply for halal certification are categorized as follows:Manufacturer/producer Distributor/trader Sub-contract manufacturerRepacking Food premises AbattoirSindh - The Land of Endless Opportunities

Guidelines1. Food manufacturer/food premises/abattoir must only produce/manufacture/sell/distribute halal productsonly.2. Businesses must ensure that sources of ingredients are halal and deal with suppliers who supply halalmaterials or the suppliers are halal certification holders.3. Those companies which are classified either as multinational corporation or small and medium industrymust form an internal Halal Audit Committee and appoint one Islamic affairs executive (Islamic studiesexpert) to handle and ensure the compliance with halal certification procedures.4. During preparation, handling, processing, packaging or transporting of product, the product must beclean and free from any non-halal ingredient(s).5. Apparatus and facilities in the premises must be clean and free from being contaminated by substanceconsidered as najis (filthy) or harmful to health.6. The transportation is only used for halal products.7. The company must stress on the cleanliness of tools, transportation, production area and surrounding areain line with Good Manufacturing Practice or GMP.8. All workers are required to practice code of ethics and good hygiene practices as follows:• All workers to obtain medical vaccination.• All workers are required to practice good health care and personal hygiene especially those who workin production facilities must wear special attire for factory or decent and clean (if without specialattire) which follows healthcare procedures and personal healthcare. This is applicable topermanent workers, temporary workers, management staff, visitors and others.• A worker must always take care of his/her health and wear suitable attire, head and mouth cover,suitable gloves and shoes.9. A worker must always wash his/her hands with soap as follows:• Before starting any activity of food handling.• After using the toilet.• After handling raw materials or contaminated substances.10. Workers are not allowed to wear any jewelry or accessories, watch and others in the food processing areawhich may cause contamination to the food product.11. Workers must always be working and functioning at the designated place like "check point".12. Workers must be committed and responsible with the stipulated halal policy.13. Religious worshipping items are strictly forbidden in the premises/food processing area.Sindh - The Land of Endless Opportunities

Energy and PowerSindh with its proven reserves of oil and gas, lignite coal, and Gharo–Keti Bandarwind corridor, run-of-river hydroelectric potential, and year-round sunshine is tippedas the regional powerhouse of the future. Only Thar coal reserves offer fuel for100,000 MW of electricity for 300 years. The Government of Sindh is in the process ofpreparing bankable feasibility in joint ventures with private sector to set upmechanized mining of coal reserves of Thar and Badin and subsequent powergeneration projects. It intends to have 30% energy produced on coal by the year2030. Sindh is also blessed with a Wind Corridor (60 kms wide and 180 km long) atGharo–Keti Bandar, which has an estimated potential to produce 50,000 MW ofelectricity providing lucrative investment opportunities in this sector. Studies haveshown potential of at least 180 MW of run-of-river hydel power generation. The cattlecolonies of Karachi provide a unique opportunity for biogas generation andthousands of tons of daily production of organic fertilizer.• Coal-fired power plants in Lakhra, Badin, Sonda and Thar• Coal gasification (surface and underground)• Wind power• Hydroelectric power• Solar power and other sources of renewable energyEnergy and Power

COAL RESOURCESSindh - The Land of Endless Opportunities

IntroductionCoal is one of the three key fossil fuels meeting the energy needs of the world. It is used for powergeneration of 40% of world’s electricity generation. In countries like the USA, Australia, Germany, Chinaand India the use of coal for power generation ranges from 25% to 70%. In some countries like Germanyand South Africa, coal is being used as vehicular fuel by converting it into liquid. Coal can also beliquefied or gasified to provide fuel for electricity generation as well as for industrial and domestic uses.Pakistan with its 185 billion tons of coal reserves in Sindh alone produces only 50 MW of electricity fromcoal, which constitutes only a minuscule 2% of total electricity produced in the country. The optimalutilization of coal resources of Sindh particularly those of Thar coalfield is the unavoidable need of thehour for Pakistan.Resource BaseGeological Features of Thar CoalfieldThe hot sandy desert of Thar houses one of the largest lignite coal reserves in the world. The lignite isdark brown, grayish black or black in colour and the coalbed is covered by a large overburden. Thisoverburden with a total depth varying from 150 m to 230 m consists of three types of materials: sanddunes, alluvium, and sedimentary rocks. Sand, which constitutes bulk of the overburden, is about 80 mdeep. In addition, three aquifers (water-bearing zones) naturally exist over coalbed, at coalbed level,and below coalbed at average depths of 50 m, 120 m, and 200 m respectively. Because of this peculiargeology, mining in Thar presents some unique challenges to prospective investors.Volume of Coal ResourcesIn Sindh, total coal resources are estimated at 185 billion tons out of which 175 billion tones are foundin Thar coalfield alone. Thar coalfield contains arguably the largest lignite deposits in the world, whichis spread over 9000 sq. km and is located at a distance of 380 km from Karachi in the Thar desert, whichis one of the most peaceful and harmonious regions in the country. Thar is the 9th largest desert in theworld and is also one of the most densely populated comprising 91,000 inhabitants, whose mainsources of income are crop agriculture andlivestock. Thar coal resources have an estimated Thar coalfield(billion tones)175.506potential of generating 100,000 MW of electricitySonda-Jherruk, Thatta7.112for a period of 300 years. About 10 billion tons ofcoal reserves also exist in Lakhra, Sonda, Jhampir,Lakhra, Dadu1.328and Badin in Sindh. Following is the completebreakdown of coal resources in Sindh:BadinTotal1.35185.278Sindh - The Land of Endless Opportunities

Quality of Coal ReservesCoal reserves found in Sindh are generally of very good quality contrary to popular misconceptions.Thar lignite coal, despite some drawbacks, is of far better quality than lignite coal used in most countriesfor power generation. Thar lignite has a stripping ratio of 6.6:1 and heating value of 5000 Btu/Ib. Acomparative analysis is given below:Comparison of Thar Coal with Other Coal ReservesDepositTharNeyvelli, IndiaKosovoRhenish Area, GermanyHambach, GermanyHungaryGreeceStripping Ratio (m2 : t) Heating Value (Btu/lb)6.5 : 15,0007:15,2001 : 133504.9 : 138306.3 : 145109 : 1305010 : 12159A complete chemical analysis of coal reserves found in various parts of Sindh is given below:ANALYSISCOALFIELDMoisture%VolatileMatter %FixedCarbon %Ash % Sulphur %CalorificValue(Btu/Lb)RANKThar 46.77 23.42 16.66 6.24 1.16 5774 Lignite BSonda-Jherruk34 27.9 25.2 151.0to 2.826762to11029Lignite A toBituminous CLakhra 28.9 28 25.2 184.7to7.04622to 7552Lignite tosub-BituminousBadin15.4to 29.829.8to 39.831.0to 36.68.2to 14.63.4to 7.46740to 1100Lignite A tosub-BituminousSindh - The Land of Endless Opportunities

The volume and quality of Thar coal reserves have been confirmed by the following national andinternational bodies:1. United States Geological Survey 2. RWE, Germany3. Shenhua Group Corporation, China 4. Oracle Coalfields, UK.5. Sindh Engro Coal Mining Company 6. Pakistan Geological Survey7. Sindh Coal AuthorityMarket AnalysisPakistan’s energy needs are being met by hydroelectricity and thermal power plants run on importedfurnace oil and indigenous natural gas. The seasonal variations as well as reduction in the flow of riverwater, dwindling gas reserves in the country, and skyrocketing prices of petroleum products in the worldmarket have given rise to dramatic reduction in generation and supply of electricity in the face ofburgeoning demand for electricity. The nuclear energy being generated is in small amounts. The endresult is the prevailing power crisis in the country manifested in the form of expensive electricity, whichhas destroyed competitiveness of indigenous industrial units, and frequent power outages and powerrationing across the country.There is now realization in Pakistan that the only way out of the present energy crisis is optimal andspeedy utilization of coal reserves of Sindh particularly those of Thar coalfield. This is the reason whyGovernment of Pakistan has established Thar Coal & Energy Board (TCEB) to expedite developmentof Thar coal reserves. In fact, the Prime Minister of Pakistan has issued directives that in the future allthermal power plants shall utilize coal from Thar and the existing power plants will be retrofitted to allowuse of coal from Thar. In addition, coal from Thar once mined will be used in cement factories and willalso used to produce various types of liquid fuels. Moreover, coal from is desperately needed fordomestic heating purposes in northern parts of Pakistan where because of shortage of coal and naturalgas, currently precious forests are being cut to supply firewood. Thus, domestic and foreign demandfor coal from Sindh is vast and assured.Enabling EnvironmentAn enabling environment has been created by the Government of Sindh for attracting and retaininginvestments in Thar coal projects as under:Incentives• 20% (dollar-based) internal rate of return (IRR) is guaranteed to firms that achieve financial closebefore31st December, 2015 for mining and power generation based on indigenous coal andadditional0.5% IRR will be given to firms that achieve financial close by 31st December, 2014.• Full repatriation of capital, capital gains, dividends, and profits allowed.Sindh - The Land of Endless Opportunities

• Foreign nationals concerned with Thar coal projects and in possession of FBR's "Passbook" areallowed duty-free import of foodstuffs and consumer goods valued up to US $ 1000.00.Concessions/Exemptions• Zero percent customs duties on import of coal-mining equipment and machinery includingvehicles for siteuse.• Exemptions on withholding tax to shareholders on dividend for initial 30 years.• Exemption on withholding tax on procurement of goods and services during project constructionand operation.• Exemption for 30 years on other levies including Special Excise Duty, Federal Excise Duty, WPPF,and WWF.Governance and ProceduresThar Coal & Energy BoardTo provide one-window operation to investors in Thar coalfield, theGovernment of Pakistan has constituted a high-powered Thar Coal & Energy Board consistingof Chief Minister of Sindh as Chairman along with federal and provincial ministers andsecretaries, which represents all stakeholders to manage the development process of Thar coalfield.The Board is fully empowered to grant approvals to Thar coal projects and other related activities.Application Procedure The allocation of blocks in Thar coalfield is conducted within the frameworkof Sindh Mining Concession Rules, 2002. Accordingly, initially international competitive bidding is heldafter which successful candidate gets an Exploration Licence after signing a Memorandum ofUnderstanding (MOU) with Sindh Coal Authority. The Exploration Licence is usually awarded for aperiod of 01 year for conducting bankable feasibility study (BFS) but may be extended on validgrounds. The licence-holder is required to submit quarterly progress reports and adhere to the termsand conditions of the licence, which if not fulfilled may result in cancellation of license. After BFS,the Exploration Licence is converted into Minin Lease for a period of 30 years.ProtectionsSpecial Status Thar coalfield has been declared "special economic zone" with all the termsand conditions pertaining to it and the projects undertaken in Thar coalfield will be considered"projects of national security."Double Taxation No double taxation will be done for project on Thar coalfield. This is in linewith Pakistan's agreement with 52 countries of the world for avoidance of double taxationincluding China.Continuance The favourable policies, incentives, and procedures for investment in Tharcoalfield will continue and will not changed to the detriment of the investors.Sindh - The Land of Endless Opportunities

Available InfrastructureRoad ConnectivityThar coalfield is currently connected with Karachi via a single-lanemetalled road with carrying capacity of 70 tons.Communication Telephone connectivity is available in Islamkot and Thar while fibre-optic linefor the internet has been laid from Mirpur Khas to Mithi. This will be extended to Thar coalfield in thenear future.Electricity An 11 kV power supply line has been extended to Thar coalfield from Islamkot GridStation and a 200 W transformer has also been installed.Drinking Water Water supply line from Mithi to Islamkot and from there to Thar coal site hasbeen installed. In addition, multiple reverse osmosis water plants have been established todesalinate groundwater for provision to project staff and local population free of cost.Accommodation Thar Lodge, a 20-room accommodation for foreign and domestic investorshas been completed.Developing InfrastructurePower GridFollowing the preparation of feasibility study by NTDC for evacuation of 10,000 MWfrom future Thar power plants, ECNEC has approved connection of Thar coalfield with nationalpower grid, which will be carried out in phases. The estimated cost is US $ 1 bn for connectivity withthe grid.Road Network Works and Services Department is planning to upgrade Road network fromKarachi to Thar coalfield is being upgraded via two routes, that is, Hyderabad-MirpurKhas-Naukot-Mithi and Thatta-Badin-Mithi for facilitating transport of heavy machinery fromseaport for the coalfield.Water Supply The GoS has planned to supply 300 cusecs of drinking water to Thar coalfield byrealigning Nara Canal and by constructing Makhi Farash link canal at an estimated cost of Rs 27 bn.Effluent Disposal A huge volume of effluent is expected from mining and power generationactivities at coal site. Therefore, Irrigation and Drainage Department has studied various modes ofdisposing of wastewater from coalfield. Initially, 50 cusecs of effluent are being planned todisposed of.Airport Civil Aviation Authority is executing the building of an airport at Islamkot at en estimatedcost of Rs. 972 m, which will be borne by the Government of Sindh.Railway Link PRACS has conducted feasibility study for constructing a broad-gauge railway linkfrom Hyderabad to Islamkot.Sindh - The Land of Endless Opportunities

Investment OpportunitiesTwo investment streams are available for Thar coalfield:1. Acquiring a new block for utilization of coal.2. Collaboration with existing investors having leased blocks.Within the two streams, a number of projects can be considered as under:Coal MiningProjects aiming only at mining of Thar coal are also allowed. Such investors can sell their coal to awide range of buyers inside and outside the country.Mine-Mouth Power GenerationLignite is vulnerable to spontaneous combustion because of which the preferred mode of powergeneration is at the mine mouth. Standalone mine-mouth power plants can utilize coalproduced by standalone coal-mining enterprises.Integrated Mining and Power Generation ProjectsBoth coal mining and mine-mouth power generation can be combined for greater profitability.Coal Gasification (Surface or Underground)Coal gasification is a technology-intensive undertaking, which can produce combustible gases forpower generation purposes. Underground coal gasification is a comparatively unreliabletechnique but it can save the hassle of actual coal mining. Surface gasification currently offersbetter promise to prospective investors.Coal LiquefactionCoal liquefaction is a reliable process which is being used by corporations around the world suchShenhua Group in China for production of a variety of fuels. A number of well-defined techniquesexist for liquefaction of coal.Coal DehydrationLignite coal is porous and contains abundant moisture, which if removed vastly increases theenergy efficiency of lignite. University of Melbourne has lately patented a new techniquecalled "coldry."Sindh - The Land of Endless Opportunities

WIND POWERSindh - The Land of Endless Opportunities

OverviewPakistan is a developing and energy-deficient country. Despite its rich coal and gas reserves, Pakistan,like other countries of the region is facing a serious challenge of energy crisis. The main cause ofenergy crisis in the country is imbalanced energy portfolio in which imported inputs like furnace oilwere given preference. The solution to these problems is the use of renewable energy resources. Therenewable energy resource gives many environmental and economical benefits in contrast toconventional energy sources.Resource BaseSindh is blessed with a most precious wind corridor. It is in fact a goldmine as resource can be utilizedwithout much difficulty. As per latest estimates this corridor alone can generate electricity up to 50,000MW if utilized to its optimal capacity. The Gharo - Jhimpir wind corridor is 60 kms wide and 180 kms longwith monthly average wind speeds exceeding 7-8 meters per second, which are one of the highestwind speeds in the world.Incentives and FacilitationTo attract local as well as foreign investment, Government of Pakistan has announced some mostlucrative incentives for investors in the Renewable Energy Policy 2006, which are listed below:• Specific-purpose land available for the list of the projects to eligible investors on extremely attractiveminimum annual rentals US 17 cents per sq yard/annum for direct impact area (Footprints/DirectImpact Area as per newly notified Statement of Conditions).• Upfront tariff of 14.67 cents / KWH for all those investors who are ready to complete projects in 18month time (CoD) and achieve Financial Close by December, 2012.• Long-term (20 years) throughput agreements with the Power Purchaser i.e. WAPDA backed by GOPthrough Implementation Agreement and Sovereign Guarantee. Guaranteed purchase of allelectricity produced by the project for the entire concession period (20 years).• Comprehensive coverage to investors against political risk and risk of change of law through forcemajeure provisions.• Guarantee of buyback of the facility in case of termination of the project.• Wind data available from various sources accounts for 5 years, enabling a great degree ofaccuracy for the purpose of calculation of wind speed, direction, density, frequency, etc.• Coverage of Wind Speed Risk (for those who do not opt for upfront tariff).• Comprehensive tariff regime on a cost-plus basis.Sindh - The Land of Endless Opportunities

• Fiscal incentives through a zero tax/duty regime. Only contribution to national exchequer wouldbe through a 7.5% withholding tax on dividends declared across the life of the project.• Guaranteed Attractive Return on Equity ("ROE") — 17% to 18% — offered under the NEPRA tariffguidelines.• Carbon Emission Reductions (CERs) available on a shared basis with the Government of Pakistan.• Environmental issues facilitation by AEDB to investors including EIA and relevant Governmentpermissions.Sindh - The Land of Endless Opportunities

Current StatusPrivate Investment InitiativesGiven the present policy announcedby the Government of Pakistan wherean upfront tariff of about 14.66 centshas been announced for fast-trackprojects, the wind power projects areestimated to yield about 20-22% IRR.This has led to a massive upsurge ininvestor interest and the Governmentof Sindh has received innumerablerequests for allocation of land forthese projects. At present 32 projectswith installed capacity of 2200 MWare in progress:Sr.No.01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.31.32.Name of CompanyChina International Water and Electric CorpSachal Engineering Works Pvt LtdWind Eagle LtdAl Abbas Steel GroupGul Ahmed Energy LtdGreen Power (Pvt) LtdBeacon Energy LtdMaster Wind Energy LtdZephyr Power Pvt LtdLucky Energy Pvt LtdMetro Power Co. (Pvt) LtdSapphire Wind Power Co.TenageGenerasi LtdDawood Power LtdZorlu Energy Pakistan LtdFauji Foundation Company LtdIran Pak Wind Power Pvt LtdHAWA Energy Pvt LtdDeewan Energy GroupTricon BostonTitan Energy Pakistan Pvt LtdTapal Wind EnergyIsmail Power Pvt LtdAkhtar& Sons GroupFina Energy LtdChina Sunec Energy Pvt LtdHartford Alternative Energy Pvt LtdPakistan Wind Energy LtdNBT Wind Power Pvt LtdUnited Energy Pakistan Pvt LtdHYDROCHINA XIBEI ENGINEERINGSindh Renewable Energy Company (Pvt.) Ltd.Size ofland inAcres11506801382274964816561460140825406961553137248811720114812501250125068-0266-0069-0062-34424-0018-33320-0046-051209-03200-01000-01000-0ProjectCapaicty50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW50 MW150 MW10 MW10 MW10 MW10 MW50 MW2.4 MW50 MW5 MW500 MW150 MWs100 MWs100 MWsSindh - The Land of Endless Opportunities

Govt. Initiative: Sindh Renewable Energy CompanyBeing the owner of land and the wind resource Government of Sindh is the main stakeholder ofrenewable energy (wind and solar) generation. The Wind Corridor in the southern districts is agoldmine and as strategic and important as the coal. In fact, its strategic importance is more as it iseasily doable and can yield results urgently.To lead from the front Sindh Board of Investment with the approval of Government of Sindh decidedto invest in renewable energy projects. The main objectives are to:i) Get a technological handle on the wind power projects to be able to regulate the sector moreefficiently,ii) Develop an internal research and development capacity for a robust and proficient participationin the sector and finally,iii) Be able to generate resources that can then be ploughed back into these regions, i.e., Thatta,Jamshoro and even Badin and Thar region for undertaking infrastructure development, humandevelopment and creation of better livelihoods for the local indigenous population for a more“inclusive and humane development where development of local population is not treated asresidual but central.”In order to achieve this goal Government of Sindh through Sindh Board of Investment, FinanceDepartment established Sindh Renewable Energy Company (Pvt.) Limited (SREC) as special purposevehicle. This SPV is mandated to undertake investment/point venture projects in renewable energysector (wind and solar).Sindh - The Land of Endless Opportunities

HYDROELECTRICPOWERSindh - The Land of Endless Opportunities

IntroductionPakistan's total hydroelectric (hydel) power generation potential is about 55,000 MW. However,Pakistan has not been able to exploit this potential because of lack of proper transmissioninfrastructure at hydel sites and paucity of funds. Hydel projects also have an exceptionally longdevelopment period, which make them particularly unsuitable for short-term needs. The powergeneration capacity of hydel projects is also vulnerable to seasonal fluctuations in water flow and ishighly dependent upon the availability of sufficient water in the reservoirs. This result is fall in electricitygeneration during times of low rain or a fall in the water level of the rivers. This has contributed toregular nationwide power rationing and a reduction of industrial production.Resource BasePakistan’s major hydel potential lies in the Khyber Pakhtunkhwa, Gilgit-Baltistan, Azad Jammu andKashmir (AJK) and the Punjab provinces. Hydel potential in Sindh stands relatively low compared toother provinces. However, this potential can contribute to the national electricity grid in mitigating tosome extent the grave power crisis in the country.Province / AreaProject inOperationProject underImplementationinPublic SectorProject inPrivateSectorProjectwhere noFeasibilityEstablishedProjectwhereFeasibilityEstablishedHydelPotentialUn-tappedTotalHydelPotentialMWMWMWMWMWMWMWNWFP3767.2635841410201.914211.918698.1PUNJAB169896N.A349.653752.174101.825895.82AJK1036.1973.8828.71329468.21797.24635.82GILGIT-BALTISTAN93.73218N.A11719576.512295.512313.5SINDHN.AN.AN.A128.5549.5178.05178.05BALUCHISTANN.AN.AN.AN.A0.50.50.5TOTAL6595.0321722.8912.727536.25048.7732584.9741721.77Sindh - The Land of Endless Opportunities

Supply & Demand of ElectricityTotal Installed Capacity - 19404 MWSindh has an estimated hydropower potential of around 180 MWs based on various sites identifiedalong the Sindh canal network. The power generation potential varies from 2.29 MWs at Rohri to 33MWs at Guddu Barrage. The technical consultants have investigated feasibility of dams and otherwater reservoirs in the Kirthar mountain range of Sindh. This study indicated that owing to thenon-perennial flows only few of the sites in this region are suitable for run-of-river (ROR) hydropowerprojects. A number of locations like Nai Gaj Dam may be considered for power generation as part ofdam and storage reservoir project, but not as an independent run-of-river project. It is most likely thatsites on the canal headworks and fall regulators will be viable for the development of run-of-riverhydroelectricity preferably as a public-private partnership project. Studies have also identified sites onthe Rohri and Nara Canals as likely sites. Following table gives a snapshot of hydropower potential ofSindh:Sindh - The Land of Endless Opportunities

INVENTORY OF LOW HEAD HYDRO POWER POTENTIAL ATBARRAGES AND CANALS OF SINDHSR#PROJECTLOCATIONPOWERIN MWSR#PROJECTLOCATIONPOWERIN MW1234567891011121314151617181920212223242526272829303133PROJECTPROJECTCANALCANALCANALCANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALDESERT FEEDER CANALPAT FEEDER CANALGHOTKI FEEDER CANALGHOTKI FEEDER CANALGHOTKI FEEDER CANALGHOTKI FEEDER CANALGHOTKI FEEDER CANALGHOTKI FEEDER CANALCANALCANALCANALCANALGUNI(B)GUNI(B)LOWERLOWERUPPERUPPERDADU CANALBARRAGEKOTRI BARRAGERD 45+500RD 151+000RD 219+500RD 269+500RD 0+000RD 41+900RD 106+000RD 140+000RD 190+100RD 277+800RD 277+800RD 332+500RD 0+000RD 127+000RD 177+000RD 220+000RD 269+000RD 352+000RD 373+000RD 0+000RD 350+000RD 115+181RD 36+000RD 79+500RD 126+600RD 0+000RD 4+300RD 0+000RD 89+100RD 0+00015.4129.325.6245.8931.5253.860.8431.0621.9721.2420.4570.0360.360.0520.450.3850.0980.2070.2120.1340.0180.2670.1021.3886.8981.5550.3027.9740.0640.6480.6350.6733435363738394041424344454647484950515253545556575859606162636465DADU CANALDADU CANALDADU CANALDADU CANALFEEDER CANALFEEDER CANALFEEDER CANALNARA CANALNARA CANALNARA CANALNARA CANALNARA CANALNARA CANALNARA CANALNARA CANALNORTH WEST CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALROHRI CANALRICE CANALRICE CANALRICE CANALRICE CANALRICE CANALRICE CANALRD 250+600RD 331+912RD 382+500RD 420+400RD 158+200RD 0+000RD 102+000RD 342+389RD 0+000RD 25+000RD 135+000RD 335+000RD 395+000RD 472+000RD 560+000RD 0+000RD 0+000RD 264+470RD 328+456RD 424+859RD 442+161RD 522+767RD 578+522RD 617+770RD 646+571RD 764+650RD 0+000RD 194+740RD 230+000RD 254+000RD 339+100RD 372+1000.3530.2440.2450.0320.1830.580.3520.0342.69313.0237.6269.9257.3139.6149.5240.5835.2492.7032.2942.1992.193.0741.4690.8471.0750.0432.2772.0711.8380.7081.1160.352Sindh - The Land of Endless Opportunities

Investment Opportunity: Small Dams and ROR ProjectsGiven the acute shortage of electricity in Pakistan in general and in the province of Sindh in particular,and realizing the need for adequate power availability for economic development, the Governmentof Sindh decided to explore the possibility of generating electricity by tapping into the vast network ofbarrages and canals in Sindh. Under the provisions of the Power Policy, 2002 independent powerprojects (IPPs) above 50 MWs can only be initiated at the federal level whereas 50 MWs or below canbe initiated at the provincial level. However, the Constitution gives the right to provinces to implementprojects of any size if the provinces are themselves involved in the projects. Therefore, a province canprocess and implement a project larger than 50 MWs if it owns the project in its entirety or it developsa project on public-private partnership mode. Government of Sindh intends to explore thehydropower resources available in Sindh and initiate small dams and run-of-river hydropower projectsunder public-private partnership mode.Sindh - The Land of Endless Opportunities

ALTERNATIVE ENERGYSOURCESSindh - The Land of Endless Opportunities

Solar PowerIntroductionPakistan is geographically so situated that the radiation from the Sun almost directly hits the surfacethroughout the year and provides extended sunshine of eight (08) to nine (09) hours. Sindh, Balochistanand southern Punjab receive abundant solar radiation on the order of over 5.3 kWh/m2 per day and3,000 hours of sunshine a year, which is at the highest end of global insolation averages.Recent sharp decline in prices of solar panels together with manifold increase in energy efficiency ofmodern solar panels have made investment in this sector highly attractive for energy generation.Telecom repeater stations have already started converting their station from thermal generators tosolar-powered panels. Other areas of investment are off-grid remote villages’ electrification, telecomrepeater stations and conversion of tubewells for pumping groundwater from fossil fuel/on-gridgenerators to solar-energized pumps.Resource BaseInsolation is very high in Pakistan, it is recorded as 5.3 kWh/m² a day in North Sindh in South of Punjab.Government of Pakistan has also set a target to add and convert 5% of total power generation(approximately 1,000 MW electricity) from thermal to renewable energies. Massive investment in windpower generation in the wind corridor of Sindh has already started pouring in.Monthly average insolation at Babarband in district Thatta (approximately 100 km from Karachi) is givenas under:MonthsJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember20082485.892956.683455.483682.443653.283100.152009AllAnnual Average3222.323150.773454.563298.073516.613243.712740.952221.4081.985Watts hour/M23.150 KWh/m2, which increases substantialy as we move northwords.Sindh - The Land of Endless Opportunities

Investment OpportunitiesSolar-Powered TubewellsThousands of tubewells are installed in the north of Sindh and in southern Punjab for extractinggroundwater for irrigation purposes. These water tubewells operate on electricity and inflict hugeburden on the national power grid. Keeping in view the prevailing energy crisis, need has been felt tofind an alternative source of energy for these pumps without adversely affecting the availability ofirrigation water. Government of the Punjab has already initiated a project for conversion of all suchirrigation pumps on solar power thereby saving a major chunk of electricity for domestic and industrialuses.Sindh also has thousands of private as well as government pumps which are either running on dieselgenerators or electricity from national grid, which is putting enormous burden on power supplybecause apart from excess burden pilferage is also occurring due to non-regulation and mismanagementby the government departments. On the other hand, it is also putting heavy burden onprovincial exchequer in the shape of utility bills to the tune of billions of rupees.The total number of tubewells installed by the Irrigation Department through SCARP (Salinity Controland Reclamation Program) is 6,400 with varying discharge capacity. Power consumption of eachpump varies from 15 horsepower to 35 horsepower depending on the depth of subsoil water anddischarge in cusecs from each tubewell. Division-wise details about SCARP tubewells are given asunder:PROJECT-WISE DETAILS OF TUBEWELLSSCARP Khairpur Scarp (N.R), SCARP SukkurS. CapacityProjectBenazirabadProjectNo. in CusecsFresh Saline Total Fresh Saline Total Fresh Saline Total1 1.00 - 25 25 783 31 814 5 - 52 1.50 8 42 50 311 370 681 106 - 1063 2.00 30 63 93 281 222 503 407 - 4074 2.50 - -- - - 2 - 25 3.00 187 240 427 154 - 154 12 - 126 4.00 25 - 25 154 - 154 - - -7 5.00 25 - 25 174 - 174 - - -Total 275 370 645 1,857 623 2,480 532 - 532GrandTotalDischargein Cusec844 844837 1255997 199425593 1779179 716199 9953,657 7,588Sindh - The Land of Endless Opportunities

S.No.MotorHPSCARPKHAIRPURTubewellDivision,KhairpurTubewellDivision,N'FerozTubewellDivisionNo. 1,HalaSCARP, BenazirabadTubewellDivisionNo. 2,HalaDrainageDivisionLBOD,BenazirabadSCARPSUKKURRightBankTubewellDivision,RatoderoTotalTubewells1 5 25 - - - - - 2 27 1352 10 48 - 49 - - 49 - 97 9703 15 17 91 296 421 85 893 456 1378 206704 20 211 10 108 180 370 668 50 929 185805 25 34 148 27 141 222 538 10 582 145506 30 265 2 - - - 2 2 269 80707 35 22 156 - - - 156 - 178 62308 40 23 174 - - - 174 - 197 7880Total 645 581 480 742 677 2480 520 3657 77085TotalTotalHPConversion of tubewells will, on the one hand, save billions in public money by lowering electricity billsand, on the other hand, will provide environment-friendly energy. Government of Sindh is following theexample of Government of the Punjab in initiating the project for conversion of tubewells on solarpower.Solar Street Lights InitiativeSolar street lights were initially used mainly in the Third World countries or remote and off-grid areaswhere electricity is not always available, Today solar energy technology has evolved to its optimumcapacity and solar projects are appearing in both developed and developing countries. In fact, moreadvanced countries have now started using modern PV (photovoltaic) technology for their routineenvironment-friendly power consumption. Government of Sindh envisages installing solar street lights inbig cities in the initial phase.The advantages of solar-powered street lamps are many. Streetlights using solar technology can bequickly and easily deployed. Well-chosen solar-powered street lights give years of reliable andmaintenance-free operation. Also, solar street lights are very cost-effective because after initialinvestment, there is no other recurring expenditure. The maintenance expenses are low as well. Inaddition, solar street lights can operate independently of power grid thereby avoiding uncertainties inpower supply. Finally, solar-powered street lights are environment-friendly and sustainable.Sindh - The Land of Endless Opportunities

BiofuelsOverviewBiofuels are various types of solid, liquid or gaseous fuels derived from organic materials and livingorganisms, which can be used for generation of electricity, heat or as transportation fuel. Biofuels havecome recently come into spotlight because of shortage and rising prices of petroleum and natural gas,environmental concerns, and development of sophisticated processes that have made production ofsuch fuels possible. Biofuels are divided into two types. First-generation biofuels were derived fromsugars and oils through various processes with bioalcohols (usually bioethanol) and biodiesel as endproducts. Ethanol is predominantly being produced in the USA and Brazil through the process ofbacterial fermentation of corn, sugarcane, wheat, sugar beet and so on as feedstocks.Biodiesel isprevalent in the EU and is produced from animal fats and vegetable oils from various energy crops likesoybean, jatropha, mustard seeds, and sunflower through the process of transesterification withglycerol as a byproduct. There are other less commercially prevalent fuels like green diesel, syngas,and bioethers. First-generation biofuels brought to the fore food vs. fuel controversy becausefeedstocks for such fuels compete against food crops for land, water and soil nutrients. However,first-gen fuels are easy to produce. In contrast, second-generation biofuels are derived byfermentation of plant cellulose derived from forests as well as agriculture residue like bagasse fromsugarcane. This process yields ethanol like first-gen fuels. However, cellulosic fermentation is difficultand in experimental stages, but it is sustainable. As second-gen fuel, biodiesel has been successfullyproduced from certain types of algae and fungi as well.Market AnalysisPakistan produces only a fraction of its petroleum demand and covers the shortfall from extensiveimports, which result in high import bills. Similarly, natural gas is being produced indigenously but itssupply is decreasing because of certain imprudent policies, which is resulting in gas shortages in thecountry especially in winter. Therefore, there is a need to diversify our sources of energy like the rest ofworld. In this connection, Sindh has abundant land, adequate water and fertile soil to enableproduction of biofuels. However, production of biofuels especially ethanol and biodiesel must be doneonly after thorough research while keeping our ground realities in view. Net energy gains, costs ofproduction, availability of feedstocks, and environmental dimensions must always be kept in viewwhile choosing any fuel.Sindh - The Land of Endless Opportunities

Investment OpportunitiesBioethanolPossibilities of production of ethanol on sustainable basis shouldbe explored because although ethanol has lower energydensity than petroleum, it has high octane rating and is goodengine cleaner with only small amounts of carbon dioxideemissions. In North America, it is being currently used as fueladditive with petroleum products rather than as a fuel substitute.BiodieselBiodiesel has the same energy content as petroleum diesel andit was also found to be great engine deposit cleaner because ofwhich many European states have mandated mixing of 5%biodiesel with conventional diesel. However, sustainable basisof production must only be explored in Sindh.Waste-to-EnergyOverviewLike biofuels, a number of waste-to-energy technologies havealso been fine-tuned because of rising energy demand,dwindling fossil fuels, and concerns about environmental qualityall over the world. The development of waste-to-energytechnology has brought innumerable benefits to humankindand promises to offer more in times to come. This is becausewaste disposal is, in and of itself, a big challenge especially forurban centres across the world. With waste-to-energy plants,however, not only the volumes of waste can be dramaticallyreduced but also energy can be recovered in the form ofelectricity or heat or both. If combined with waste minimizationefforts and recycling, then waste-to-energy plants candrastically improve environmental quality around us.Sindh - The Land of Endless Opportunities

Waste-t-energy plants can either utilize thermal techniques or they can use biological techniques. Thetime-tested thermal technique is incineration, in which waste is burned at extremely high temperaturesleaving only smoke and ash. Earlier incineration plants raised a lot of outcry because they releasedlarge quantities of particulates, carbon monoxide and dioxins, which resulted in acid rain. However,modern incineration plants are very sophisticated, which give off cleaner emissions alongsidegenerating heat and electricity. Incineration can be done from mass burning in which waste is notsorted or processed or it can be done by making refuse-derived fuel (RDF) pellets by sorting andprocessing waste materials. Other thermal techniques are pyrolysis, thermal depolymerization, andplasma gasification process (PGP). As for biological approach, the best is biogas production throughanaerobic digestion, in which bacteria break down organic waste in the absence of oxygen. As aresult, methane is released, which is the key ingredient of natural gas.Market AnalysisThe management of municipal solid waste (MSW) and organic waste has turned into unmanageableproblems for Pakistan in general and Sindh in particular. The city of Karachi alone produces more than8,500 tons of MSW per day while the rural areas of Sindh are littered with crop residues and animalwastes. Animal manure, wood waste, crop residues like rice husk, bagasse form sugarcane, leaves andstems of banana trees and so on are available in the countryside of Sindh in vast quantities. In thisscenario, the adoption of waste-to-energy technologies is the pressing need of the hour that hold thepromise of disposing of waste materials alongside generating much-needed electric power.Investment OpportunitiesBiogas Production UnitsBiogas generation in Sindh can be done through use of biogasdigesters, which are inexpensive to manufacture and maintain.In addition, biogas is generated naturally at landfill sites, whichcan be harvested and upgraded for energy generation.Incineration PlantsModernized incineration plants are in urgent need in Sindh.These can be established on private equity or underpublic-private partnerships. KESC plans to establish 22 MWwaste-to-energy plant in Karachi.Sindh - The Land of Endless Opportunities

Mineral ResourcesBeing located in the southern part of Pakistan from east to west, Sindh comprises fourmain geological zones, namely, the Thar Desert, the Indus plain, Indus delta, andKirthar mountains. The mineral wealth of Sindh ranges from the fossil fuels (oil, naturalgas and coal) to the precious granite of Karunjhar and golden marble in Thatta.Sindh produces a variety of commercial clays which include Fuller’s earth, chinaclay, fire clay, and ball clay. It has large deposits of gypsum and sodium carbonate.It is endowed with large and extensive deposits of dimension stones, such as granite,marble, travertine, and limestone.For the development of remote areas of the province, particularly for alleviation ofpoverty, Government of Sindh accords priority to the development of mineralsector. Latest mineral explorations techniques are being acquired for effectivegeological data generation and identification of exploration targets.The contribution of minerals sector to the GDP has increased on commercialexploration of granite, marble and china clay deposits. The discovery of large coalresources in Thar at 175 billions tons has offered a vast indigenous source of energy.Keeping in view the vast potential of mineral reserves, there exist opportunities in thefollowing areas:• Coal mining and dehydration• Mechanized mining and processing of granite and dimension stones• Salt mining and refining• Mining and processing of other mineralsMineral Resources

DIMENSION STONESSindh - The Land of Endless Opportunities

Introduction“Dimension stone” is a general terms for a wide variety of natural rocky materials found in the crust orupper layer of the Earth, which are used primarily as premium building materials or for ornamentalpurposes. Dimension stones are not only beautiful in appearance but also strong, durable, andenvironmentally clean. A wide variety of dimension stones with varied colors, textures, patterns, anddurability are found in nature. Some are igneous rocks like granite and bluestone (basalt), others aresedimentary rocks like limestone and sandstone and still others are metamorphic rocks like marble andslate. A number of minor dimension stones also exist like alabaster (massive gypsum) and soapstone(massive talc) among many others. Dimension stones have been used throughout human history forbuilding beautiful edifices or monuments such as palaces, parliament of numerous countries, templesand so on. The use of dimension stones decreased with increase in the use of modern concrete andceramics. However, lately the use of dimension stones has picked up because of their "green" nature,beauty, and durability.Tremendous advances have occurred in the quarrying and processing of dimension stones and mineralsacross the world. Quarrying, the form of open-pit mining done for dimension stones, is done with theuse of sophisticated mechanized cutters equipped with diamonds tips and hard metal blades tominimize wastages. For processing of the stones, a number of finishes are now possible, which areselected depending on the specific use of the dimension stone. Polish finish gives the stone surfaceglossy finish, which brings out the true character of the stone but it is difficult to maintain. Honed finishprovides smooth, satin-like surface with little or no gloss. Bush-hammered finish produces a rough butuniformly patterned surface with the use of impact instruments like bush hammers. Sandblasted finishgives a flat, non-reflective, and irregularly pitted surface by impacting sand or metal particles at highvelocity the stone surface. Cleft finish is a natural split surface with an uneven surface. Thermal finishproduces a textured, non-reflective surface by passing extremely hot flame over the stone surface. Inaddition, embedded computers allow mining machinery to create complicated and beautiful designs.Resource BaseDimension stones have played a dominating role in the rich architectural history of Sindh and theirinfluence can be found in majestically built historical buildings in Karachi and other parts of Sindh.Dimension stones are found in western Sindh where terrain is hilly and sedimentary rocks arepre-dominant. The best quality dimension stones of Sindh are commonly known as Indus golden marbleand coral limestone. While the large deposits of golden marble occur at Sonda (Daduri area) in Thattadistrict, significant reserves of coral limestone are present in Bado Jabal, Bhago Thoro Jabal and otherparts of Jamshoro district. In addition, huge reserves oflimestone of dimension-stone quality are presentat numerous locations in Thatta and Jamshoro districts.Sindh - The Land of Endless Opportunities

Indus Golden MarbleThe scattered outcroppings of Indus golden marble in Sondaarea near the famous Keenjhar lake in Thatta district are spreadover nearly 100 sq. km with estimated reserves of 50 million tons.The main locations are Lakho Pir, Daduri, Sheikh Ismail, Pir FatahAli Shah, and Sumar. It is light to dark yellow, with a uniquegolden hue. The stone is calcareous, that is, rich incalcium-based compounds. The rock is highly Iithified, whichmeans that the stone is highly strong and durable with littleporosity.Indus Golden MarbleKirthar (Coral) LimestoneKirthar coral limestone, also called coral marble, is another important dimension stone which is largelyfound near Sehwan (Bado and Bhago Thoro Jabal hills) areas. Bado Jabal is about 21 km to the southof Manchar Lake. This target area covers an area of about 46 sq. km. The area in general is easilyaccessible in all weathers. Bhago Thoro Jabal is about 5km to the south of Sehwan town, Jamshorodistrict. The preliminary results of the ongoing project indicate that this limestone can also compete inthe market due to its beautiful texture.Kirthar Coral LimestoneThe limestone is light milky white and off white colors at fresh surface. It is highly fossiliferous (full offossils), which gives it its unique appearance and is commonly crystallized. The reserves seem to be ofreasonable size.Sindh - The Land of Endless Opportunities

Other Dimension Stone DepositsHuge deposits of dimension stones are found in Sari Singh area of Thano Bula Khan area in Jamshorodistrict. The yellow-colored limestone and light pink-colored limestone are the main varieties used formaking blocks, designed bricks, and rock- and split-faced small slabs. The deposits occur in Mattar,Gidari, Purkani, and Mol areas. The stones from this area are being used locally and also are suppliedto markets urban centres of Sindh.Investment ConditionsCurrent Mining ActivitiesIn Sindh, quarrying methods being employed are by and large outdated. In general, large blocks ofabout 10-20 tons are quarried by split and wedge method. In other areas, the dimension stones aregenerally mined manually. As such, small blocks of stone are separated from the rock mass by initiatingcracks through manual hammering by a sharp-edged or chisel-shaped tool. Mobile cranes are mainlyused for tilting, lifting and loading of the blocks.Sari Singh Yellow LimestoneA significant indigenous skilled labour force is available in all these areas, which has been engaged inmining activities for centuries. However, the mining methods they know are low-tech and crude, whichresult in wastages. However, with some training and exposure to modern mining techniques the localhuman resource is likely to be a great asset for prospective investors.Realizing the potential of the area, two plants have been established by the private sector out of whichone is a dressing yard in Daduri and the other is a complete processing plant in Jamshoro. The dressingplant in Daduri has the capacity of handling 10 - 20 ton blocks. The plant in Jamshoro has a completerange of facilities, from making slabs from blocks to cutting and polishing of tiles.Sindh - The Land of Endless Opportunities

Water ResourcesQuarrying and processing of dimension stones requires large amounts of water. In this connection, themineral-bearing areas of Sindh have water resources despite the fact that the areas concerned arebarren and hilly. Canal water is available up to Sonda area of Thatta but in Jamshoro distict canalsystem does not exist. In these areas, there is annual rainfall of 200 mm but only in monsoon season.There are vast groundwater resources, but in some places the subsoil water is not of drinkable quality.In some areas, tubewells have been established.Processing PlantsInvestment Opportunity: Modernized Quarrying and ProcessingThrough advanced quarrying technologies and adequate processing for value addition, the dimensionstones of Sindh have the potential of export to a large number of external destinations. Dimension stonesare in high demand in the US, Italy, Germany, Japan and other countries. The increased demand forthese stones in the construction sector has helped a rapid growth in dimension stone production. Witha large proportion of total world’s construction taking place in the Middle East, Sindh’s proximity to theregion can be exploited profitably. The need is of the hour is that modern techniques of zero-wastescientific mining should be employed along with latest processing and finishing methods in order toensure maximum value addition and profitability.Sindh - The Land of Endless Opportunities

GRANITESindh - The Land of Endless Opportunities

IntroductionGranite is essentially an igneous rock that is formed from magma and is considered one of the hardestsubstances in the Earth’s crust. It is a premium construction material used to impart high aesthetic finishto buildings and is becoming a material of choice for the construction of sculptures, commercialcomplexes, and premium residential structures. The granite stones are cut and trimmed to specific sizesand shapes and polished to suit the taste of uses. Pakistan is bestowed with large deposits of granitein NWFP, Baluchistan and Sindh. Extensive recourses of Sindh dimension stones deposits are present inthe mountainous areas of Nangarparkar, Sindh.Resource BaseLocation and GeologyIn Sindh, extensive deposits of granite of a total of 26 billion tons (15 billion tons minable) are present inNangarparkar area of Thar desert. The Nangarparkar igneous complex is located in the southernextremity of the Tharparkar desert near the Runn of Kutch covering an area of approximately 1000 sq.km. It is surrounded by Indian territory on three sides, thus forming an enclave of Pakistan within India.The road from Hyderabad to Nangarparkar is metalled, which is about 475 kms, e.g.Hyderabad-Badin-Mithi-Islamkot- Nangarparkar. Likewise Nangarparkar can also be reached viaKarachi-Thatta-Sujawal-Badin-Mithi-Islamkot-Nangarparkar. Nangarparkar is also at the other extremityon the Coastal Highway, the new road under construction. Its earthwork is completed. It connectsKarachi with Nangarparkar via Keti Bundar-Badin-Nangarparkar.Colours of Granite in NangarparkarColourWhiteGreyBlackPink to redGreenBlueGrey-bluishMineralsPure K-feldspars and plagioclasesQuartz , Ca - PlagioclasesPyroxenes, hornblendsK-feldspars, limoniteOvlivine, plagioclasesSodaliteSometimes quartz, feldsparsSindh - The Land of Endless Opportunities

Nangarparkar area comprises of main Karunjhar hill and isolated hillocks of limited altitude surroundedby sand-covered plains. The hillocks predominantly consist of 8 to 10 varieties of pink- and grey-colouredgranites. The hillocks include Voravoh, Churio, Berano, Parodharo, Dhedhvero, Dhingano, Chanida,Densi, Wadhrai, Ftanpur and Kharsar, amongst others. The principal range of Karunjhar is 19km in lengthand attains a height of about 305m. Geologically there is a variety of Quaternary deposits, subordinateand scattered Juro-Tertiary sandstones and clays overlying a basement that is termed as the Nangarigneous complex. It is divided into Dhedvero basic intrusion, Nangar pink granite and Karunjhar greygranite.StoneTypeGraniteDimension Stone Testing values per ASTM Standard SpecificationASTMStandardASTMC 615Absorption(max)per ASTMC 97%0.40%Density(min)per ASTMC 97lbs/ft 3160kg32,560Density(min)per ASTMC 97lbs/in 21,500Mpa10.35CompressiveStrength (min)ASTMC 170lbs/in 219,00Mpa131AbrasionResistance(min)ASTMC 241H a25Tested by Associzione Italiana Blocostuire (AIB), ItalyColourKarunjhar HillKarunjhar HillDiensv HillAverageVolumetric weight2.642.612.622.634 grs/cm 3Coefficient of water absorptionCompressive strenghtFlexure Strenght0.2912821780.311491190.3512151320.3131215 kg/cm 2143 kg/cm 2Friction wear resistance1.751.001.601.45 mmImpact strength50554550.0 cmsSindh - The Land of Endless Opportunities

ClimateThe climate of Nangarparkar is neither arid nor humid owing to the western coast of the Indianpeninsula. In summer the temperature rises to 50° C, whereas in winter the minimum is 12-15° C. Theaverage rainfall is about 200mm per year, while in the south it is up to 500mm per year mainly in themonsoon season.Water ResourcesPrecipitation in Nangarparkar is the highest than in any other part of Thar desert but most of the waterflows to the low-lying Runn of Kutch, after filling the ponds and ditches in Nangarparkar and partiallyinfiltrating under the surface thereby raising the water table. This recharge through rainwater runs for 4- 5 months after monsoon and is used by humans and animals.The hydro-geological studies and drill hole geology have shown existence of freshwater aquifer up tothe depth of 70-80 ft. Deep aquifers have also been discovered at different depths in exploratory drillwells (up to 400ft at Pooran wah), but none of these are of drinkable quality.Enabling EnvironmentPhysical InfrastructureElectricity: 11 KV feeder and 66 KV transmission lines have been laid out up to Nangarparkar.Telephone: PTCL and SM cellular companies available.Water Supply: Water pipelines have been extended and installed up to Khairo Ghulam.Shahfrom Islam Kot. At present, for domestic use freshwater is being pumped out and supplied atNangarparkar.Rest Houses: Provincial Buildings Department‘s rest houses available.Water ReservoirsSindh Irrigation Department has planned and put in implementation a gigantic surface water reservoirsplan. A large number of small dams and tanks are to be constructed. The construction has alreadystarted on the following six dams:Bhodesar dam, Mulji Bund, Khararo Bund, Runpur Bund, Lakhi-jo-Wandio Bund and Tobrio Bund.The work on Lakhi-jo-Wandio Bund and Bhodessar dam is at an advanced stage and is nearingcompletion. When completed, these dams will change the scenario at Nangarparkar. The whole areais expected to be lush green and blooming with agricultural crops. Simultaneously, the runoff, which ispresently lost in Runn of Kutch, will be saved and utilized for use by the local population. Moreover,enough water will be available for all sorts of mining activity in the future.Sindh - The Land of Endless Opportunities

Market AnalysisGranite in the form of slabs and tiles has several attractivefeatures, which, among other things, includes extra-finemirror-polish, scratch-free glossy surface and durability. Thedimensional stone is gaining increasing acceptance in thecivil construction industry all over the world. Italy, India,South Africa, Norway, Finland, Brazil, and Spain are majorimporters.Earlier, the leading exporters of granite were Spain and Italybut nowadays these countries have lost their dominanceto new entrants _ China, India, and Brazil. With averageannual production of only 5,676 metric tons, Pakistan hasbeen exporting only 3% of its total production. Some of theleading granite importers from Pakistan include Italy andSingapore. This reflects the investment opportunities existingin the sector which can be capitalized by making pre- andpost-mining value addition activities including precisioncutting and mechanized mining.Investment OpportunitiesThrough advance quarrying technology and adequateprocessing for value addition, the granite stones of Sindhhave the potential of export to a large number of countriesincluding the traditional customers such as North America,the Middle East and Western Europe. The increased demandfor granite in the construction sector has helped a rapidgrowth in granite production. With a large proportion oftotal world’s construction taking place in the region, Sindh’sproximity to the Middle East can be exploited profitably.The large granite deposits, with availability of surface aswell as groundwater, electricity and communicationnetwork, Nangarparkar, Sindh has the ideal potential forincreasing granite exports by value addition. The recentextension of road network to Nangarparkar, which hadremained inaccessible until recently, has brought viabilityto the mining and processing of this material.Sindh - The Land of Endless Opportunities

Information TechnologyThe robust economy of the province has nurtured a vibrant services sector. Thephenomenal profitability and growth of information technology sector recentlyhave attracted many multinational corporations and domestic enterprises intomaking sizeable investments in this area.The expanding economy and the internationally compatible human resource ofSindh present immense potential for investments in IT sector.Investment areas are as follows:• BPO (Business Process Outsourcing)• Software houses/development• Technology parks• Licensing• E-commerce and web portals• IT consultancy• Information security• Gaming and multimedia development• Hardware and network solutionsInformation Technology

ARFA KARIMTECHNOPOLISSindh - The Land of Endless Opportunities

IntroductionGovernment of Sindh started an innovative project to build a state-of-the-art IT City in Karachi,Pakistan. The project objectives are to build a “cluster concept” city which will comprise ITInfrastructure and facilities to help enable Sindh to become a regional centre. This city will be built ona 200-acres piece of land, which is already in the possession of the IT Department, Government ofSindh. Such a city will bring numerous financial and social benefits and is very much in line with theobjectives of the Sindh Government to promote and develop the IT sector in the province.GoalsIT City seeks to:• Spur the development of a knowledge-based economy.• Attract FDI and help create a boom in the IT sector.• Generate employment opportunities in IT and related sectors.• Generate foreign exchange revenues for Pakistan in the vital IT sector.• Act as a beacon for the development of first-rate infrastructure.The Trillion-Dollar Opportunity• As per studies carried out by NASSCOM, Gartner and Forester the current global spending oninformation technology professional services (ITPS) is US $1.045 trillion.• The trillion dollar ITPS opportunity is broken down into US$ 597 billion in IT services and software andUS$ 448 is business process outsourcing (BPO).• Out of the above spending, approximately US$ 280 billion can be outsourced to offshore locations,US$ 160 billion on IT services and software and US$ 120 billion on BPO.All global indicators project high growth in global outsourcing of about 7-8% for the next 5 years in ITPSand 11% in BPO.Why Pakistan?• Pakistan has progressively opened up its economy since 1999 and from 2001 Pakistanhas enjoyedan average annual 6-7% GDP growth.• In 2006, BearingPoint undertook a study which compared the top 36 countries with regard to ITcapabilities and cost of services.• Pakistan was ranked 1st in terms of lowest cost base (labour and occupancy for a benchmark of 200full-time employees).The cost of doing business in Pakistan is 8% of the cost of doing business in the US and is ranked at #1whereas India is ranked #15 at 30% of US cost.Sindh - The Land of Endless Opportunities

State of Current Infrastructure• Power Supply and Distribution• Roads• Water supply• Garbage collection• Waste Management• Security• Construction Materials• Building Codes and Monitoring• Wiring, Plumbing, HVACs• Modern Construction Techniques• Supporting Infrastructure• Paved Sidewalks• Dust patches• Overhead Wiring for Utilities• Public Transport• Parks and Leisure Areas• Conference Centers• Retail Experience: Shopping Areas, Malls• Hospitals• Libraries• Academic InstitutionsArea Description• 200 acres of land allocated in two parcels of 100 acres each.• The two sites are about 0.75 Km apart separated by a stretch of about 200 acres of open land.• The activities envisaged in the IT City can be greatly expanded in the future.Key Characteristics• Total Area:200 acres• Built-up Area:3.8m sq. ft• Green Space and Infra1.2m sq. ft• Estimated FDI: US$ 400m (Rs 50B)• Potentially Employ:300,000 people• Contribution to GDP:Rs. 200 BillionLocation and SiteSindh - The Land of Endless Opportunities

IT & ITES Services• Significantly easier access to high-speed Internet connectivity.• On-demand facilities for all knowledge workers.IT and Related Telecom Infrastructure• Growth opportunities for Internet, cable and broadband providers.• Facilities for software development.• Broadband and high-speed connectivityAcademia• IT research and development.• Engineering and technologySindh - The Land of Endless Opportunities

Benefits of the IT City• BearingPoint estimates the creation of 100,000 IT jobs with over US$ 1 billion in foreign exchange perannum in Pakistan.• It is the vision of the Government of Sindh’s vision to establish the IT City to catapult Pakistan onto theglobal stage and cement Pakistan’s place as an emerging and viable hub for global off-shoring.• Kickstart the IT/ITES and BPO industry.• Act as a great enabler for the knowledge worker market.• Would propel Karachi to the forefront of the ITES/BPO sector.• Generate a large number of jobs in multiple sectors such as construction, real estate, IT, R&D and soon.• Will attract FDI by making the BBS IT City, Karachi the instantaneous choice of Fortune 100’s andmajor global corporations.• Will become the hub of innovation through the setting up of more R&D labs thereby spawning morecompanies based on innovation.• Would provide a compelling and advanced work, life and leisure environment for the fast-pacedBPO/ITES industry.• Will put Karachi on the global map as the premier city in Pakistan for innovation and IT development.• A successful IT City is an engine of change and economic development.• It would help attract regional and global participants.• Allows various activities in IT and ICT to achieve critical mass.• Will generate economies of scale.• Will boosts related upstream and downstream industries.Job Creation• The project will generate thousands of new jobs immediately during the construction phase of theproject• Construction employment.• Will absorbs rural labor and semi-skilled workers.• Will permit large-scale participation from women workers.• For every PKR 10m invested in housing, nearly 290 industries in the material sector getactivatedbeside core-manufacturing sectors _ cement, steel and bricksSindh - The Land of Endless Opportunities

Urban Governance and DevelopmentThe Government of Sindh recognizes the importance of improving and expandingphysical infrastructure for sustaining economic and social development. Improvedquality and service coverage in power and water supply, sewerage treatment,transport and logistics are vital for its economy and the livelihood of its people. TheGovernment estimates that less than half of the infrastructure investment needs canbe met by public money and has therefore introduced a combination of policyreforms, institutional support, incentives, and financing modalities to encourageprivate sector participation in financing, constructing, and managing infrastructureprojects in Sindh. Following areas have been identified for investment underpublic-private partnership mode:• Urban Mass Transit• Solid Waste ManagementUrban Governance and Development

MASS TRANSITSYSTEMSSindh - The Land of Endless Opportunities

Karachi Mass TransitAbout 60% of people in Karachi rely on a public transport system that is heavily congested and doesnot meet the demand. About 60% of trips are made on public transport. The system is overcrowdedand unable to cope with demand.In the absence of any mass transport system, Karachi relies almost entirely on the road transport forurban transportation. A city the size of Karachi with a congested centre needs some form ofsegregated transit so as to increase the Central Business District’s transport capacity without burdeningthe road system any further.A well-functioning transportation system is important to any city. Accessibility amongst parts of the cityis crucial for production, trade and commerce. Transport is particularly important in Karachi not onlybecause the seaports of Karachi are so important to its manufacturing base. The fact that mosthouseholds spend 5 to 15 percent of their income on transport - more in some cases than on food -raises the prominence of the transportation system.There are many different options to consider and following highlights the main features of the masstransit options:Karachi Circular RailKarachi circular railway is one of the mass transitalternatives. A 50-km railway line already exists that linksthat connects several industrial and commercial districtswith other dense central parts of Karachi with 16 stations.Light Rail Transit SystemThere is a huge scope for investment on fast AC light-railtransit system from Sohrab Goth to Mereweather Tower(Corridor-I), where initially around 400,000 peoplecommute.The project may include laying a 15.2 km-long doubletrack (8 kms elevated and 7.2kms underground) forlight-rail transit system in the city at from Sohrab Goth toMereweather Tower having 14 stations (seven each onelevated and underground) tracks of the light-rail system.Later on, this facility would be extended up to NewSabzimandi on Superhighway.Sindh - The Land of Endless Opportunities

Bus Rapid TransitTitleLocationRationaleScope andStatusBenefitsRisksEnvironmentalSocialFund ModalityExec AgencyDevelopment of High-Capacity City Bus Routes and a Bus Rapid Transport System (BRTS)Jam Chakro, Karachi and Gondpass, Karachi.The existing fleet of buses and minibuses is old and in poor condition. In addition, there is no priority affordedto buses on the roads. There is an urgent need for the introduction of an integrated, efficient andeconomically sustainable bus transport system.The project would involve the provision of a fleet of buses (run by CNG or to Euro III diesel standard) whichwould operate along major scope and commuter routes which would be provided with priority (or dedicated)bus lanes. Existing local bus operators would be invited to take part in the scheme which would seek loprogressively replace the existing fleet with newer more environment-friendly buses.The benefits to the bus users would be significant in terms of comfort and speed of travel. There would beoverall benefit to other road users as the number of people using the bus system would increase resulting inless traffic overall.The risks are that the fare price would need to be raised to a point. Fare rise is risky when potential travellersfound it too expensive to use the service. Some element of subsidy would be required.The scheme should be environmentally beneficial. IEE should suffice for environmental construction involvedin creating dedicated bus lanes along existing roads.There should be only positive social impacts.Federal Government has committed Rs 5 billion over three years. Mechanisms for sustainable PPP arrangementsneed to be developed.CDGK Cost Estimated at Rs 5 BillionBRT Line Alignment And Estimated Cost (2008)BRT LINE ALIGNMENT LENGTH(Km)NO. OFSTATIONSESTIMATEDCOST (USD)LINE-1 Surjani Town to Cantt. Station 25 23 146LINE-2 Safoora Goth to Mazar 15.5 10 90.5LINE-3 Orangi Town to Board Office 4 4 23BRT Line Travel DemandNOTE:1. Costs include busacquisition programme.2. No resettlementrequired.BRTLINETOTAL NO. OFPASSENGER(1,000 PER DAY)MAXIMUM DEMANDAT A STATION(1,000 PER DAY)PEAK HOUR / PEAKDIRECTION TRAFFIC(PER / HOUR)LINE 792 115 11,500LINE 845 337 33,700LINE 64 23 2,300SOURCE: Study on Future Traffic Demand Forecast of Karachi by JICA, 2008.Sindh - The Land of Endless Opportunities

SOLID WASTEMANAGEMENTSindh - The Land of Endless Opportunities

Solid Waste ManagementIn its current form, the SWM system of Karachidoes not have the capacity to accommodatethe growing municipal wastemanagement demands of the city, which arecurrently estimated at 8,500 tons per day. It isestimated that the amount of municipalwaste could possibly double by the year2020, requiring immediate attention toimprovements in SWM system. Specialarrangements also need to be made forhazardous wastes from industrial, medicaland other sources.The recent study conducted by the ADB reveals that around 20% garbage is recycled at the householdlevel and subsequently again 20% at dust bin and landfill stage.Projects – Solid Waste Landfill SiteTitleLocationRationaleScope andStatusBenefitsRisksEnvironmentalSocialFund ModalityExec AgencySolid Waste Landfill SiteJam Chakro, Karachi and Gondpass, KarachiRegardless of wether waste-to-energy plant is constructed or not, there will be a need for a properlyengineered solid waste landfill site for Karachi. Currently, the only disposal facilities are two open dumpswhich lack environmental controls.Construction of a sanitary landfill facility to include necessary measures for disposal of industrial andcommercial wastes,and environmental controls for leachate, biogas, and so on.Proper disposal of solid waste (and of the ash and clinker from a waste-to- energy plant if one is constructed)is vital to protection of the terrestrial environment and ground and surface water resources.The need for careful siting, design and operation of the facility according to established best practices.Creation of a regulatory and enforcement environment which ensures that waste is disposed of at the site.Use of raw land,handling of large volumes of solid waste and the potential for major environmental damageand health risks to the public if project would require full EIA and extensive public consultation.The overallimpact of the project will be beneficial for the environment.There would be significant social issues related to plant location and operation. Extensive consultaion withneighbouring communities required.DBO (Design Build and Operate ) modality preferred or other PPP arrangement as appropriate.CDGK cost estimate of Rs 2 billion.Sindh - The Land of Endless Opportunities

Waste Reduction and RecyclingSWM SECTOR PERFORMANCE INDICATORSIndicatorPerformance2013Target2020Recycled waste as a percentage of total waste (tons) 40 Percent 50 PercentNumber of Karachi residents aware of and involved in 100 percent 100 Percentsolid waste management issues as a percentage of totalpopulation.Waste Collection, Transfer and DisposalNumber of waste generators serviced by municipal collection 90 Percent 100 Percent(residential and commercial) as a percentage of total numberof generators.Amount (tons) at residual waste reaching disposal sites as 90 Percent 100 Percenta percentage of total residual waste generation.Number of missed/late waste truck collection cycles as a 3 Percent 1 Percentpercentage to total cycles.Hazardous Wastes ManagementNumber of hazardous wastes generators serviced by 25 Percent 100 Percenthazardous wastes management system as a percentage oftotal number of generators.Amount (tons) of hazardous wastes processed through 25 Percent 100 Percentsystem as a percentage of total residual waste generation.Sindh - The Land of Endless Opportunities

TourismThe travel and tourism sector offers opportunities of employment, foreign exchangeearnings, and investment promotion – all leading to economic growth. The city ofKarachi with its modern urban facilities provides room for a lot of initiatives fordomestic tourism and local entertainment.Sindh has numerous tourist destinations which include 5,000 years old ancient site ofMoen-jo-Daro near the city of Larkana. Islamic architecture is quite prominent in theprovince at multiple locations such as Jamia Masjid, Thatta built by the Mughalemperor Shahjahan and numerous mausoleums which dot the province includingthe very old Shahbaz Qalandar mausoleum dedicated to the Iranian-born Sufi saint.Shrines of Sufi saints attract thousands of devotees from all over the world despitedifficult journeys and few facilities.Apart from attraction of historic sites, many scenic lakes like Keenjhar and Haleji, thebeaches of Karachi, geographical diversity of deserts like Thar and Umerkot, andtemperate hill stations at Gorak Hills and Bado Jabal have potential to attract touristsin Sindh. The Wildlife Department, Government of Sindh is actively working on aproject to develop eco-tourism potential of Kirthar National Park. The forests of Sindhinclude the scenic Pai and Miani forests.Tourism

KEENJHAR LAKE RESORTSindh - The Land of Endless Opportunities

Keenjhar LakeSindh is blessed with a number of natural and manmade wetlands that offer immense potential forgrowth of tourism industry. Keenjhar Lake (also known as Kalri Lake) is situated at a distance of 113 kmfrom Karachi, 70 km from Hyderabad and approximately 20 km from Thatta city, whch in itself possessesrich cultural, artisitic, and architectural hisory. Being the largest freshwater lake in Pakistan spread overan area of 145 sq km with an irregular shoreline of 192 km, and maximum depth of 8 meters, the KeenjharLake is an ideal location for eco-friendly tourism. Keenjhar lake is one of more than 1,800 wetlandscovered under Ramsar Convention. It was declared as a Game Sanctuary in 1971 and a WildlifeSanctuary in 1977, which attest to its unique importance.Keenjhar Lake - A Unique Resource• An untapped opportunity to utilize the serenity and the beauty of the largest freshwater lake inPakistan• Only 113 Km from Karachi, the biggest and most vibrant city in Pakistan.• Driving time (1.5 to 2 hours) perfect for family road trip.• A destination surrounded by nature, heritage and culture.• An important source of drinking water for Karachi and supports diverse freshwater fisheries.• A wide variety of breeding, passage and waterbirds make their way here in winter.• Has a rich flora of submerged, floating and emergent aquatic plants.• 5 minutes off the National Highway.• The site selected for development is spread over 750 kmhaving 270 degree view of waterfront with 8km shoreline.• Limited access as well as friendly and peaceful localpopulation provides better security.• Offers great flexibility for articulation of various integratedresort facilities.• Large untouched land (with no existing manmadestructures/facilities), which provides great opportunity tobuild according to desired standards.• A raised site with flat terrain suitable for infrastructure andother development works.Market AnalysisThe vast urban populations of Karachi, Hyderabad and othe urban centres in Sindhare entertainment-starved and usually travel long distances to northern parts ofthe country for recretational purposes. Apart from that, theSindh - The Land of Endless Opportunities

unique experience of Keenjhar having its clear blue water in lush and airy surroundings will surely attractvisitors from across the country. This place has an additional advantage in that while northern Pakistanis inaccessible in winter because of snowfall and extreme cold, the weather at Keenjhar is extremelypleasant all year round. Keenjhar lake area is also very peaceful while law and order conditions innorthern parts of the country remain unstable and unpredictable. Moreover, if properly developed,Keenjhar Lake Resort will also attract large tourist traffic from neighbouring nations, the Middle East,and continental Europe. It is estimated that annual spending by tourists to Keenjhar will likely fallbetween 89bn to 140bn. Occupancy levels also expected to be high, especially in summers forfacilities offering overnight stays. Corporate events and activities will likely avail high occupancy duringweekdays.Development StrategyThe project is to be executed under public-privtate partnership mode and approval has been givenby the PPP Policy Board under the chairmanship of the Chief Minister, Sindh. The project is beingsponsored by the Tourism Department, Government of Sindh with technical support by PPP Unit,Finance Department. It has been planned that Keenjhar lakeside will be developed as a world-classeco-friendly tourist resort, with a large recreational area to add to its economic viability. The projectwill consist of two development packages as under:Resort & Hospitality Zone (550 Acres)4/5 Star ResortConvention CenterGolf CourseChaletsWalk up ApartmentsPrivate Farm HousesServiced ApartmentRecreational Zone (200 Acres)Amusement ParkHandicraft ParkTheme ParkFood StreetMuseumBoating ClubBudget HotelsFor project development purposes, the Government hired a consortium of reputed consultancy firmsconsisting of Ford Rhodes Sidat Hyder & Co., Meinhardt Pakistan, Mohsin Tayebaly & Co., and ProjectProcurement International to develop a concept master plan, conduct feasibility study and providetransaction advisory services. As a result, the feasibility study and conceptual master plan have beencompleted. The Government also plans to provide land on long- term lease at concessional rates tothe private sector to develop supporting infrastructure for tourism activities, while it will provide linkssuch as road access and other utilities in connection with the development sites.Sindh - The Land of Endless Opportunities

Investment Opportunity• The project envisages to generate Rs 3.3 billion from the sale of farmhouses and golf coursemembership, leaving the funding gap of nearly 65%, which will be filled in through equity andcommercial loans.• The project IRR on free cash flow basis is estimated at a highly attractive rate of 24.5%.• Efforts are underway to obtain tax holiday for the development period for the project, which isexpected to save around Rs 1 billion.• The project is going to be:- an economic opening for the local population.- a tourist destination for the province.- a vehicle for Iake’s preservation as a Ramsar Site.- an icon of Government’s commitment to promote tourism and investment in the country.Sindh - The Land of Endless Opportunities

Planned Initiatives by the GovernmentGoS has or is in the process of taking several initiatives, which include:Early Works Package to improve the accessibility to the project at Keenjhar Lake.These include:• Development of 10 km main access road to project site from National Highway (NH-5).• Provision of infrastructure facilities to the project site including electricity, water and other utilities.• Landscaping, fencing and plantations on the main access road.• Launch of Karachi-Thatta-Hyderabad dual carriageway project as part of its larger plan to facilitatetravel in the area.• Conservation of cultural and heritage sites in and around Thatta city to encourage tourism.• Master planning of Thatta city.Sindh - The Land of Endless Opportunities

Sindh Board of InvestmentGovernment of Sindh1st Floor, Block-B, Finance & Trade Center, Shahra-e-Faisal, Karachi. PakistanTel: +92-21-99207512-4 Fax: +92-21-99207515Email: Info@sbi.gos.pk Website: http://www.sbi.gos.pk