In line with the vision of Chief Minster Shahbaz Sharif, Punjab Board of Investment and Trade (PBIT) is facilitating an agreement ceremony of about half a billion dollar in dairy sector by a Dutch company, to make Punjab province self reliance in food security.
The agreement is expected to be signed by the end of May during the visit of high-level Dutch delegation to Pakistan, Chief Executive Officer Punjab Board of Investment and Trade (PBIT) Amena Cheema said.
Talking to Business Recorder, she shared a concept paper according to which silos will be constructed in all the districts of Punjab for the storage of wheat. According to the concept paper PBIT will facilitate an investment of approximately 3.5 million dollars for the construction of silos at different locations in Punjab. The project has been conceived with zero percent debt, however leverage would lead to higher net returns for the investor.
The most interesting aspect, from an investor point of view is that at present, long-term storage capacity in the form of proper silos is virtually non-existent. Considering the fact that the government procures and stores grain as a policy, any investment in a silo project has an automatic and secure revenue stream in the form of rentals.
The need of the industry today is modern silos, which can store grain that may effectively be fumigated and provide protection against insect infestation. While sharing concept paper of future project of Saaf Pani, Amena Cheema said that total outlay of the estimated cost of the Saaf Paani project is approximately Rs 170 billion ($1600 million). The purpose of this project is to provide safe drinking water to the people of the whole province.
Amena Cheema said that during her recent visit to Italy she shared the lucrative investment opportunities present in Punjab with the Italian investors. She also said that during her visit to Italy she discussed in detail the prospects of investing in Saaf Pani and Grain Silos projects.
She told the investors that feasibility study, survey and planning task of 13 districts of Punjab have been completed through the help of professional consultants and sector experts.
Amena said recently PBIT has facilitated signing of six agreements between Punjab and Chinese province Shandong to promote trade through enhanced mutual visits of their businessmen and a combined working group to increase cooperation in different sectors including energy, industrial parks, textile, infrastructure and water treatment.
She also proposed to organise a Punjab-China private investors’ conference in July this year. The CEO maintained that the conference would help identify the mutually advantageous sectors and areas of collaboration between investors and the government. It will also provide the opportunity to showcase potential projects to the Chinese business community.
While giving the details of the agreements with Shandong, she said that apart from six agreements, during the ceremony Punjab Chief Minister Shahbaz Sharif and Shandong Vice Governor Xia Geng signed one MoU to set up various special economic zones in all over Punjab.
According to details Shandong Yongtai Paper Mill and Roshan Packages (Pvt) Ltd signed one memorandum of understanding to set up a paper mill in Punjab while another MoU was signed between Jinan Sinox International Co Ltd and the Reshma Power Generation (Pvt) Ltd to provide heavy fuel oil treatment and emulsification technology services for better environment.
Jin Fang Cotton Technology will set up a feeding and slaughtering processing centre in Punjab and the Qingdao Hengxing University will hold exchange students programmes. Shandong Provincial Enterprises also signed a memorandum of understanding with Foreign Investment and WOW Solutions (Pvt) Ltd to set up investment promotion service cooperation.
Source: Business Recorder