SINDH IS OPEN FOR INVESTMENT

Introduction to Sindh• Geography: Sindh is one of the four provinces of Pakistan
ordnd
3 largest by size and 2 largest by population

Demography• Sindh’S Population is 47.886 million
o Rural Population 22.975 million (48%)
o Urban Population 24.910 million (52%)•Labour force of 55.93% of total Sindh’s population

Sea Ports in Sindh
Karachi PortBin Qasim PortThePort
issituatedinIndus
delta
is the oldest port of country, most ofregion at a distance of 28 nauticalforeign trade is conducted through miles in the south-east of Karachi.
Geographicallylocatedon
thetrade
this portroute of Arabian Gulf. The port
• Handles 60% of the nation’s cargo. currently caters for more than 40%of seaborne trade requirements ofthe country.

Sindh’s Major Sectors
Agriculture

Services

Industry

Automobiles,
Rice, Cotton, Wheat,Pharmaceutical,
Sugarcane, Fisheries,
Livestock

Finance
Textiles,&Insurance,Electronics, manufacturing,Transport, Storage

fertilizers, energy (power, oil& Communication,andHousinggas),minerals.

miningandConstruction&Agriculture

45%40%35%•

Major field crops arewheat, rice, sugarcane, andcotton; approximately 68%of the total cropped area isused for their production.

30%
25%
20%
15%
10%
5%
0%

Wheat

RiceSugarcane

CottonLivestock & Poultry
Sindh

has

tremendous

resources

when it comes to livestock;
The livestock and poultry headcountof 40 million (approx.) provides astrong base for dairy and meat
processing industry for local andexport purposes.

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Buffaloes Cattle

SheepCamels Poultry

Industries
Economic Zones

Types of Industries• Existing Zones (3)• Proposed Zones (3)• Industrial Estate (28)

• Oil & Gas• Marble & Granite• Agro-based• Livestock & Fisheries• Cement• Fertilizer• Automobiles• Textile• Pharmaceuticals

Services
Services sector accounts for 54 percent of GDP and little over onethird of total employment.
The expanding economy and the internationally compatible humanresource of Sindh present immense potential for the following
investment areas:• Information Technology• Telecommunications• Banking & Insurance• Health care
• Education•Tourism

Competitive Edge of Sindh
Financial Capital of Pakistan - Karachi• Headquarter of Pakistan Stock Exchange• Headquarters of Banks, Financial Institutions & Business houses• 42% of Large Scale Manufacturing located here
• Two Seaports and an International Airport
The Regional Power House of the Future• Thar Coal - 100,000 MW for 300 Years• Wind Corridor - 50,000 MW potential• Oil - 56% of country's production• Gas - 78% of country's production
Trained, educated & affordable workforce

Competitive Edge of Sindh
Large and Growing Domestic Market• Around 40 million consumers with increasing incomes• An emerging middle-class with growing consumption habit
Communications, Infrastructure and Airports
Comprehensive road and rail network• Modern International Airport in Karachi, and Three domestic airports inBenazirabad, Sukkur and Larkana• Air strips at several locations to ensure accessibility for development andtransportation•Sophisticated telecommunications and IT infrastructure
Well-Established Legal System• Well-established democratic constitutional and Legal Systems

Sindh Investment Potential
Development of Coastal area
Sindh is a repository of maritime resources of the country, itpossesses 71% of the total marine resources found along the 350
km long coastal belt
Fish & Shrimps farming
The coastal belt of Sindh has over 40 species of fish and shellfish
and 15 species of shrimps. The marine resources can be capitalizedby establishing fish and shrimp ponds to develop Mari-culture forenhancing production of high value marine/shrimp for export

Sindh Investment Potential•

Value addition in agricultural products
Sindh is producing multiple varieties of fruits and vegetables but
unfortunately due to post harvest handling and lack of processing facilities25% - 40% of agri-produce is wasted. Most of the fruits are consumed
fresh without any processing, while only 3% - 5% of fruits undergo
processing for value-added derivatives, out of which only 5% is exported.

•Value addition in main crops of cotton, wheat and Rice

• Roads Infrastructure & Public Transport
Karachi Circular Railway
Mass Public Transport Corridors (BRTs) in Big Cities of Sindh
Public Roads

Sindh Investment Potential• Energy
Sindh is rich in natural resources. It is estimated that Thar has thelargest coal reserves in the world (185 bn tones). Besides this,around 60% of the country’s oil fields and 44% gas fields are locatedhere and contributes 56% oil and 55% of Pakistan’s daily gas
production.
• Renewable Energyo 180x60KM Wind Corridor at Jhimpir (Thatta) has got Potential for
generating 60,000 MW
o One of the highest solar insulation in the world ranging from 52KWh-7.5/m /per day

Investment Department
How Do We Help
PromoteInvestment
Promotion Agencyof Sindh tofacilitate Foreign& Local Businesses

BridgePolicyActs as the Focal
ProvidesPoint for all
Framework forInvestment related implementatio
activities in then of Investment
ProvincePolicyDevelopSupports anddevelop PublicPrivatePartnerships

OSSOne-Window at
the Provincial levelfor facilitation oflocal and foreign
investors

Initiatives by Investment Department•i) Ease of Doing business reformsii) Special Economic Zonesiii) Sindh Enterprise Development Fund
• Cotton value addition Economic Zone
•Women Entrepreneurship and Artisaniv) Education Cityv) Marble Cityvi) Special Tichnology Zones•Public Private Partnership Unit

Steps Taken Under Ease of DoingBusiness• Doing Business website and Business Portal for Sindh Launched• Entrepreneurs can register themselves on-line with Labor , Industries
Department, SESSI and for Professional Tax• Tracking of Title /Lease Registration can be tracked on-line• Annual renewals and payments under Shop and Establishment ActandSESSI Act are online• Sindh building Control Authority (SBCA) has computerized approvals ofconstruction permits• Procedures, NOCs, permits required under 39 departments of Provincial
Government have been mapped for improvement and automation

Sindh Doing Business Reforms Council notified 9th April 2019.
Terms of Reference:
 To review & propose reforms aimed at improving business environment in Sindh andto transform Karachi as one of the most competitive business cities in South Asia.
 To propose reforms aimed at automation of regulatory procedures and approvals.
 To propose reforms for increasing online government to business regulatory interface.
 Advice on plans for sensitizing public/private sector stakeholder on reforms critical forbranding Sindh & Karachi as a competitive business destination in Pakistan andregionally.

 Provincial Steering Committee chaired by the worthy Chief Secretary,Sindh was notified in 2017. The PSC has held regular meetings to implement &monitor the Doing Business Agenda in Sindh.
 Dedicated Doing Business Reforms Implementation Unit (DBRIU)
established within Investment Department, led by a Director, 2 Managers
and 1 Communication Officer.
 In December 2019 & January 2020, the Provincial Steering Committee held
three (3) meetings and Investment Department held approx. a dozen meetings
with different agencies on the Doing Business.

 Reduced time & cost of Registering Business with Sindh Business Registration
Portal online from 17 days to 7 days.
 Reduced time for approval for construction permits from 60 to 30 days.
 Online Land Title Verification for grant of Construction Permit Reduced time in property registration from 208 days to 149 days.
 Online Employees Contributions & Benefits Portal (OTC) at SESSI.
 CPC (code of civil procedure) amended to provide for alternate commercial
dispute resolution with mediation.

Indicator

Overall - out of 190
Starting a business (reform)
Dealing with Construction Permits (reform)
Getting Electricity (reform)
Registering Property (reform)
Getting Credit (Other countries reformed faster)Protecting Minority Investors (Other countries
reformed faster)
Paying Taxes (reform)
Trading Across Borders (reform)
Enforcing Contracts
Resolving Insolvency (Negative Data Correction)

DB2020DB2019

10872

136
130

DB2020(EODBScore)61
89.3

DB2019(EODBScore)
55.31
81.89

112

166

66.5

53.59

123
151

167
161

64
48.6

44.75
45.63

119

112

45

45

28

26

72

71.67

161
111
156

173
142
156

52.9
68.8
43.5

47.05
60.12
43.49

58

53

59

59.86

Scope of Regulatory Reforms in Karachi:
Way Forward Under the CLICK ProjectProject Goals
 The Project aims to support Sindh Investment Department to improve

Business Environment in the province by streamlining and integrating
key regulatory processes, through;◦ Development of comprehensive registry of approvals, and their processmapping,◦ Process Re-engineering of 10 key agencies,◦ Automation of the agencies and integration into one portal.
9/30/202023

Sindh Enterprise Development Fund2011 - Incorporated as not for profit Company under section 42 of theCompanies Ordinance, 1984
About 5bn Rs. Loans disbursed under the facility

Vision“Support Entrepreneurship in agriculture sector based on Sindh’s Competitive Advantage”

Mission“Introduce technology and efficiency in agri-sector of the province to harness its true potential”
Objectivesi) Encourage investment in agriculture sector, inculcate entrepreneurial ability and to provide amajor push to the wider agri-economyii) Encourage and support private entities in agriculture sector for introducing modern machinery,

best practices as per international standardsiii) Work along the concept of seed to shelf model for profit maximization of Agri-businesses in
the provinceiv) Promote opportunities for value addition in agriculture sector for multiple economic benefits
on growth, intermediary services and productivity through Institutional Collaboration

Facilities

Priority Clusters

Technical Assistance:







 Preparing Feasibilities
 Obtaining Loan from Banks Preparation of SEDF’s Application (E-portal)

Financial Assistance:
 Payment of Interest (KIBOR) Rate Subsidy
 100% on capital cost
 50% on working capital

Dairy & Livestock
PoultryFisheries
Mango
BananaDates
GuavaRice
CottonRed Chilies

Credit Subsidization and Stimulated Investments
800

715

700

700

Amount in PKR Millions

600

480

500

400

350
300

200

270
180

170
12010002012

2013

8.2

5.4

5.21.12014

15.8

2015

Interest Rate Subsidy

2016

23.4

2017

30.5112018

Stimulated Investments

2019

PROJECTS’ SUMMARY
Number ofProjects

Employment
Generation

Size

Rice Cluster

31700

1,230

115

Livestock & Dairy Cluster

5345605

40

Fisheries
Poultry Cluster

175

290

50

9250

1,300

60

Horticulture Projects

5185

840

115

2140475

25

4110

390

10

Sub Total (Projects Materialized)

57

1, 8055,130415

Innovative Projects: Bank Financing is a
Challenge (Projects in Pipeline)

7525

3,050

135

Total

63

2,350

8,150550

Project

Cold Value Chain & E-Beam
Irradiation
Cotton Ginning & Oil Extraction

SEDF’s Assistance(PKR Million)

SINDH ENTERPRISE DEVELOPMENT FUND
Journey of SuccessSINDH DIGITAL STRATEGY ROADMAP(PKR 1.2 billion)

Key Interventionsa) Supporting tech-based startups through Incubators and Accelerators(PKR 500 million)b) IT interventions & Innovative Solutions in Goods and Service Supply Chain(PKR 700m)

Key Interventionsa) Supporting tech-based startups through Incubators and Accelerators(PKR 500 million)

FUND A COHORT[Fund a cohort at an existing
incubation center (up to 20startups for 4-6 months)]

ESTABLISHMENT OF
INCUBATORS(in Hyderabad, Shaheed
Benazirabad, Sukkur, and Larkana)

SECTOR SPECIFIC
INCUBATORS(Establishment of fintech andhealth-tech incubator in Karachi)

Key Interventionsb) IT interventions & Innovative Solutions in Goods and Service Supply Chain(PKR 700m)

FINANCINGSTARTUPSDIGITAL SKILLSTRAINING

BUSINESS SERVICETRAINING

STAGED GRAND
CHALLENGES(Provision of funds
through Co-investing,soft loans, Bridge Capital& Staged funding)(Develop a platform forDigital Skills Training)(Provision of Business Service
Training and Support)(Pvt. Sector to propose costefficient, tech-based solutions
for prevalent social issues)

CO-SPONSOR LARGESCALE TECHCONFERENCE(Major sponsor in Pakistan’s
leading Tech-conference)

Education City
• 9,000 acres of land have been allocated forEducation City
• 20 local and foreign institutions have been
allocated land for their campuses• Local and international educational
institutions will provide excellent highereducation• An opportunity to retain talent andproductive human resources in Pakistan• An opportunity to promote R&D

Public Private Partnership
Sindh PPP Act 2010
1st PPP law in Pakistan
Provides legal cover to the Institutional Framework• PPP Policy Board• PPP Unit
Regulates the contractual relationship between publicand private sectors
Proposes funding for viable projects

Investment Department
Government of Sindh.

24th December,2019

35

SINDH ECONOMIC ZONES MANAGEMENTCOMPANY (SEZMC)• The Government of Sindh has established SEZMC
to act as provincial SEZ Entity to better manage,
coordinate, monitor and facilitate investors in theprovince.
• The objective of SEZMC is to facilitate existing andnew Special Economic Zones to strengthen theindustrial base of Sindh.
• The federal government has passed SEZ Act in 2012
(Amended in 2016).
36

INCENTIVES FOR SEZSFor Developers• Exemption from all custom duties and taxes on plant and machinery imported into
Pakistan for the development, operation and maintenance of the SEZ• Exemption from all taxes on income accruable in relation to the development andoperation of the SEZ for a period of five years, starting from the date of signing ofthe Development Agreement.
• Availability of gas and electricity by federal government and water by provincial
government at the door step of zone

For Zone Enterprises• One time exemption from all custom duties and taxes on imports of plantand machinery into the SEZ for installation therein;• Exemption from all taxes on income• Developed Infrastructure at the doorstep of enterprises.
• Availability of utility services at the door step of each enterprise.

37

SPECIAL ECONOMIC ZONES - SINDH

Pak-CHINA:EXISITING
Together for 7decades

UNDER PROCESSPROPOSED

Naushero Feroz IndustrialPark
NIP (GoP)

Dhabeji SEZ – CPEC Project(GoS)

BQIP-NIP (GoP)

Sapphire SEZ(Private Sector)

Marble City Karachi (GoS)KCIP -NIP (GoP)

Naveena Steel(Private Sector)

KSEZ-SBI (GoS)38

Proposed

1.DHABEJI
SPECIAL ECONOMIC ZONEA CPEC PRIROTY PROJECT

39

Dhabeji SEZ – The mostviable SEZ of the region

Government of Sindh has allocated 1,530 acres of land
to be developed as Dhabeji Industrial Zone in Thatta, aPriority Project under China-Pakistan EconomicCorridor (CPEC). The project will facilitate potential
investors of China and other countries to establish newenterprises, or transfer their facilities to Dhabeji SEZ inPakistan.
Dhabeji will offer state of the art infrastructure, utilities
and other amenities at the doorsteps.
Dhabeji Industrial Zone will provide a gateway toCentral Asia, South Asia, Middle East and Africa. The
project is expected to generate employment
opportunities, create socio economic development andstrengthen poverty alleviation in the region besides
helping to boost country's exports.

ThattaSindh

Heavy & medium industry clusters

Dhabeji SEZ –Connectivity
Easy access to Port Qasim (22 Km) enabling raw
material import and finished goods export without
incurring major inland transportation costs and savingtime.
Easy access to Karachi Airport (35 Km) via national
highway enabling safe travel of foreign workers andmanagement personnel.
Direct access to the National Highway (0.5 Km)
enabling the transportation of goods to upcountry andCentral Asian nations utilizing the National TradeCorridor.
Access to:
Karachi – 22 million population,
Hyderabad – 7 million population,
Thatta – 3 million population.

Project Progress

1530 Acres of land for the project has been reserved/ earmarked by GoS.

A detailed feasibility study was carried out by Project Advisors.

A detailed feasibility study was conducted in April 2018 by Consortium of Consultants (EY FordRhodes,
Osmani&Co.,
RIAA
BarkerGilletteandIBA
Karachi.
Project land was transferred to SBI.
Project has been approved from PPP Policy Board chaired by Chief Minister Sindh.

Committed investor interest was secured from a number of Chinese developers andindustry groups.
Consortiumof consultants lead by EY Ford Rhodes, EA Consulting & RIAA Barker Gillettehave been hired for Transaction Advisory Services.

Project has been approved from PPP Policy Board,

Bidding package (RFP, DCA) has been approved by the TFEC on 15th Oct, 2019. Subsequently, theadvertisement
foradvisorsdevelopers’shallsolicitationcompetitive
biddingto
is alreadypublished
Transaction
now throughprepareinternationalbid documents
in orderhire developers
in underDaily Dawn,Jang, Business Recorder,
KhaleejBidding.
Times, China Daily and The Economist
PPPExpressmode Tribune,
under International
Competitive
dated 27th October 2019, 28th October 2019, 29th October, 2019, 30th October, 2019, 1st Novemberand 15th November respectively.
42

Proposed

2. MARBLE CITY

43

PROJECT OVERVIEW• Marble and Granite sector in Pakistan has huge
potential of investment and exports• GoS seek to establish a purpose built, secureindustrial park for the value-added stone & marbleproducts• Area: 300 acres• Investment Potential: PKR 18 Billion

Pak-CHINA:
Together for 7decades•

Marble and Granite sector in Pakistan has huge potential of investment and exports•

China is the largest importer of marble in the raw form (squared blocks). Marble slabs and tiles are exported to Saudi Arabia, the Middle East, US and Malaysia.

•Marble City Karachi seeks to establish a purpose built, secure industrial park for the value added stone & marble products

T H E P RO J E C T W I L L H AV E
F O L L OW I N G FAC I L I T I E S•••••

Warehouse
Common Facility Center/ Machinery Pool
Training Center
Small Mechanical Workshops
Grid/ Electricity Station

Ideally located on the National Highway44Thank You