Pakistan Kakhudahafiz reported that Pakistan has offered major financial and tax free business incentives and infrastructure facilities to foreign investors as a big Saudi steel mills goes on stream.
These incentives were offered at the highest level by Prime Minister Mr Raja Pervez Ashraf. The prime minister’s came on the occasion of the inauguration of production at the just-built state of the art Tuwairqi Steel Mills Limited built by Al Tuwairqi Group of Industries of Saudi Arabia and South Korea’s Pohang Iron and Steel Company.
Al Tuwairqi Group has invested USD 350 million and Posco USD 16 million in the project. This first phase of TSML has been completed at a cost of USD 366 million. It will produce 1.28 millions tonnes of steel annually. It is the first steel mill in Pakistan built by the private sector.
The inauguration ceremony was highlighted by the prime minister’s unveiling of the pro FDI incentives plan. Prime Minister Mr Ashraf invited foreign and local investors to come up with industrial projects to be located at Pakistan’s Export Processing Zones.
Mr Ashraf said that “I urge foreign investors from across the globe to invest in Pakistan. I assure you full government support, facilities, a business-friendly environment and policies. At our EPZs we provide you with a huge number of incentives and exemptions.”
The key features of Pakistan’s investment policy include equal treatment to Pakistani and foreign investors, 100% share holding in projects and businesses an unlimited repatriation of the dividends, annual and accumulated profits. Highlighting these incentives, and still many more, the prime minister asked foreign investors, particularly those from Islamic countries to benefit from Pakistan’s EPZs.
Mr Ashraf underlining the need and scope for investment as well as the huge profit potential for investors, including expansion of the steel sector said that “At present the per capita steel consumption in Pakistan is 37 kilogram a year, which is among the lowest in the world, in comparison to the regional average of 208 kilogram and the world average of 181 kilogram a year. This presents an opportunity to the steel sector to grow manifold and for investors to tap into a largely unexplored market with significant upside potential.”
Dr Hilal Hussain group chairman of Al Tuwairqi applauding the help and financial incentives provided by Pakistan said that “By successfully completing the project, Tuwairqi Steel Mills Limited has demonstrated that investment process, infrastructure, and the cost of doing business are very favourable in Pakistan. I am confident that our project will provide impetus to those who are contemplating to open their businesses in Pakistan. I applaud the support and cooperation from government of Pakistan in timely execution of TSM project. We at Al Tuwairqi, feel honoured in introducing the world’s most advanced DRI technology, based on the Midres process, owned by Kobe Steel of Japan in Pakistan.”
Mr Joon Yang Chung chairman & CEO of POSCO said that “The TSML will significantly contribute towards Pakistan’s economy. Today, Pakistan’s economic development and structural adjustment calls for higher quality steel products to be manufactured in this country. At TSML, we will develop high performance products, featuring high strength, corrosion resistance, sustainability and light weight and improve the technological competence related to such products. To add to its success, Posco is determined in building a successful partnership with Al Tuwairqi to benefit from its presence in Pakistan and is fully focused to make TSML a world class steel making unit through possible expansion of initially set DRI plant using forward and backward integration.”
Source – Pakistankakhudahafiz.com
(www.steelguru.com)
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