Korea to invest in energy sector

KARACHI: Minister of State and Chairman Board of Investment (BOI) Saleem Mandviwalla has said that the Korean government has granted $180 million to Korean companies based in Pakistan for investing in the energy sector.

He said this while addressing a press briefing organised by the BOI to inform media about the upcoming Pakistan Investment Forum-Conference 2010, at a local hotel on Monday.

Mandviwalla said that the Koreans are particularly interested in alternative energy sources, especially solar energy.

Referring to the upcoming conference, he said that it would commence on July 13 and would focus on enlightening the world about investment opportunities in Pakistan. He said that currently, the investment entering the country is dismal and the conference would help attract foreign investors into the country.

He said that the forum is being held in collaboration with the Punjab government and several foreign investors are expected to attend the event.

The conference will particularly focus on investment opportunities in four key sectors of Pakistan’s economy which are power generation and energy technology, agriculture and dairy and livestock, logistics and infrastructure and communications and oil and gas.

“With business-friendly environments, robust economic indicators, untapped investment opportunities and a growing world-class infrastructure, Pakistan is one of the fastest growing emerging economies in the world today. Through the platform of Pakistan Investment Forum, we wish to open doors to new possibilities for investors and businessmen,” he said.

Mandviwalla also said that Pakistan provides relatively strong protection for foreign investors as according to a World Bank report it is ranked 19th worldwide in protecting investors.

Adviser to the Sindh CM on Investment, Zubair Motiwala said that the BOI has been holding such events, and this forum would be the third in the series, as foreign investments in Pakistan were not satisfactory.

He said that Rs2.5 billion investments were made in the outgoing fiscal year, while the potential was for several billions of rupees above this amount.

“The private sector cannot function without foreign investors’ participation and therefore steps to enhance revenues of the country are the need of the hour,” he stated.

He said that Pakistan has set up Special Economic Zones (SEZs) to create opportunities for international investments and “we need to promote them and let the world know about them if we are to progress further as a nation”.

Motiwala said that special attention will be given to the energy sector and Thar coal reserves in particular.

Engro already has made an investment in block four of Thar coal reserves for the production of 598 megawatts of electricity, he said. “There is an available capacity of another 2,400 megawatts for investors, and we invite foreigners to invest in this,” he added.

Motiwala also said that the government has prepared 13 guidelines-based feasibility reports which they give to investors each time they visit the country. He said that these reports are to inform all the international businessmen about the potential that Pakistan has in each sector.

Replying to a question, he said that if the industries were closing down, the government should be solely held responsible as it is the task of the government to conduct a feasibility study and see where the problem lies.

Published in the Express Tribune, June 15, 2010.