Dubai: The newly established investment board of the Punjab government in Pakistan is in talks with a number of UAE-based food brands offering them lucrative investment opportunities.
"Punjab can serve as a production base for the UAE-based food brand as it offers fertile agriculture land, plenty of livestock, enough water and, above all, cheap skilled labour force," said Pir Saad Ahsanuddin, vice-chairman and CEO of the Punjab Board of Investment and Trade (PBIT), a professional body established about six months ago by the Punjab government.
PBIT is the government's first-ever professional interface for the public-private partnership and its aim is to help investors set up business through a one-window operation without any hassle.
Ahsanuddin said that the PBIT delegation was visiting Dubai to meet potential investors, especially with companies dealing in food products. "The response has been very good and we hope to strike some big deals," he said. "Punjab is committed to ensure that [an] investor can maximise returns within the most liberal and investor-friendly policy framework possible," added Ahsanuddin while speaking at a business and investment seminar organised on Monday in Dubai by Javed Malek, Ambassador at Large of Pakistan in the UAE. Some leading Pakistani and Emirati businessmen attended the seminar and appreciated the PBIT's professional approach to facilitate potential investors.
He said that the Punjab government has recently passed a Private Public Partnership Act 2009 providing full security to investors. One of the key features of the new law is that it allows an international arbitration guide in case of any disputes. "We have rethought ... investment policies and we are ready to help investors set up businesses within 60 days. Our focus is on the private sector as we hope to create one million jobs every year in this sector," said Ahsanuddin.
Incentives
Some of the incentives to investors include permission for a hundred per cent foreign equity, advanced tax ruling, equal treatment of local and foreign investors, no mandatory government sanctions, no sales tax on import of machinery, a wide network of export processing zones and industrial estates, full exemption of customs duties and taxes on the import of capital equipment and a corporate income tax holiday for a period of five years.
However, when asked whether investors are scared to go to Pakistan for fear of their safety due to the law-and-order situation, Ahsanuddin said there are certain ground realities which the government was trying its best to cope with and the security situation is one of them. "I must say that challenges are there but opportunities are greater. Punjab is a safer and lucrative destination for investors because the return on investment is much higher than other regions," he said.
