The National | 16 May 2009
Sarmad Khan
Investors from the UAE are considering a number of investments in Pakistan, despite escalating violence in the north-west of the country. Pakistan is relying on attracting investment from the region to boost its economy, which is struggling with a huge foreign debt and large fuel and food import bills.
The Abu Dhabi Group may invest up to US$600 million (Dh2.2 billion) in a power plant project in Pakistan and is considering further investments in the energy sector.
“We are fully committed to our investments in Pakistan and are not worried about this phase of violence,” said Bashir Tahir, the chief executive of Abu Dhabi Group, a consortium of business investors. “We have done a feasibility study on a 500 megawatt (Mw) power plant and are looking at an investment of about $500 million to $600 million in that project.”
Pakistan is facing a serious power shortage. According to Waqar Khan, the investment minister, the country will have to add about 15,000Mw in the next decade to maintain economic growth, which is being hampered by countrywide power cuts.
“Some 2,500Mw of projects will come online this year, but Pakistan has about 4,500Mw annual shortfall,” he said last week.
Mr Khan met top officials from Abu Dhabi National Energy (Taqa) and Masdar in his second visit in less than three weeks to try to secure investment. He said both companies had expressed interest in acquiring existing power generation and supply units, installing new units and initiating alternative energy projects.
To secure an alternative fuel for power plants and reduce natural gas shortfalls, Mr Khan said he was holding discussions with Qatari officials about liquefied natural gas supplies, which could improve power generation by 10 per cent to 20 per cent.
The Abu Dhabi Group, which owns stakes in a number of Pakistani firms including Wateen Telecom, Warid Telecom, United Bank, Bank Alfalah, and Alfalah Insurance, planned to meet Pakistan’s Board of Investment next month, Mr Tahir said.
Emirates Investment Group (EIG), which is based in Sharjah and owns a stake in Emirates Global Islamic Bank (EGIB) in Pakistan, said it was also considering investments in the country, particularly in property, affordable housing, agriculture and energy projects.
“EIG already has substantial investments and the group is further exploring investment opportunities in the country,” said Raza Jafar, the company’s vice chairman. “Investment in Pakistan has a higher profit ratio compared to other countries of the region.”
EIG also planned to increase the number of EGIB branches from 42 in 25 cities to 100 in 45 cities by the end of the year, Roger Bayat, the company’s country representative in Pakistan, told Reuters.
The group is also in the process of acquiring unutilised farmland in Pakistan and is seeking international partners to start commercial farming and export fruit and vegetables to GCC countries.
Several UAE investors last year acquired more than 16,000 hectares in Pakistan’s Balochistan province for about $40m.
Enshaa, a property developer partly owned by EIG, is among five UAE developers which have said they are considering investments to build six million low-cost housing units, a project on offer by the Pakistan government on a public-private partnership basis.
The telecommunications and IT, financial services and oil and gas sectors have been the major recipients of foreign investment in Pakistan this year and several deals are close to conclusion, according to a senior Pakistani diplomat in Abu Dhabi.
Etisalat, which owns 26 per cent of Pakistan Telecommunication, the country’s largest telecoms company, plans to acquire a controlling stake in the firm and bid for a 3G licence. Etisalat is also pushing services beyond major cities into rural areas, which according to Mr Khan could cost as much as $1bn in equipment and infrastructure.
Sarmad Khan
Investors from the UAE are considering a number of investments in Pakistan, despite escalating violence in the north-west of the country. Pakistan is relying on attracting investment from the region to boost its economy, which is struggling with a huge foreign debt and large fuel and food import bills.
The Abu Dhabi Group may invest up to US$600 million (Dh2.2 billion) in a power plant project in Pakistan and is considering further investments in the energy sector.
“We are fully committed to our investments in Pakistan and are not worried about this phase of violence,” said Bashir Tahir, the chief executive of Abu Dhabi Group, a consortium of business investors. “We have done a feasibility study on a 500 megawatt (Mw) power plant and are looking at an investment of about $500 million to $600 million in that project.”
Pakistan is facing a serious power shortage. According to Waqar Khan, the investment minister, the country will have to add about 15,000Mw in the next decade to maintain economic growth, which is being hampered by countrywide power cuts.
“Some 2,500Mw of projects will come online this year, but Pakistan has about 4,500Mw annual shortfall,” he said last week.
Mr Khan met top officials from Abu Dhabi National Energy (Taqa) and Masdar in his second visit in less than three weeks to try to secure investment. He said both companies had expressed interest in acquiring existing power generation and supply units, installing new units and initiating alternative energy projects.
To secure an alternative fuel for power plants and reduce natural gas shortfalls, Mr Khan said he was holding discussions with Qatari officials about liquefied natural gas supplies, which could improve power generation by 10 per cent to 20 per cent.
The Abu Dhabi Group, which owns stakes in a number of Pakistani firms including Wateen Telecom, Warid Telecom, United Bank, Bank Alfalah, and Alfalah Insurance, planned to meet Pakistan’s Board of Investment next month, Mr Tahir said.
Emirates Investment Group (EIG), which is based in Sharjah and owns a stake in Emirates Global Islamic Bank (EGIB) in Pakistan, said it was also considering investments in the country, particularly in property, affordable housing, agriculture and energy projects.
“EIG already has substantial investments and the group is further exploring investment opportunities in the country,” said Raza Jafar, the company’s vice chairman. “Investment in Pakistan has a higher profit ratio compared to other countries of the region.”
EIG also planned to increase the number of EGIB branches from 42 in 25 cities to 100 in 45 cities by the end of the year, Roger Bayat, the company’s country representative in Pakistan, told Reuters.
The group is also in the process of acquiring unutilised farmland in Pakistan and is seeking international partners to start commercial farming and export fruit and vegetables to GCC countries.
Several UAE investors last year acquired more than 16,000 hectares in Pakistan’s Balochistan province for about $40m.
Enshaa, a property developer partly owned by EIG, is among five UAE developers which have said they are considering investments to build six million low-cost housing units, a project on offer by the Pakistan government on a public-private partnership basis.
The telecommunications and IT, financial services and oil and gas sectors have been the major recipients of foreign investment in Pakistan this year and several deals are close to conclusion, according to a senior Pakistani diplomat in Abu Dhabi.
Etisalat, which owns 26 per cent of Pakistan Telecommunication, the country’s largest telecoms company, plans to acquire a controlling stake in the firm and bid for a 3G licence. Etisalat is also pushing services beyond major cities into rural areas, which according to Mr Khan could cost as much as $1bn in equipment and infrastructure.
