ISLAMABAD: To make foreign investment attractive in the country, Pakistan has assured Saudi investors of 14 to 50 percent profit and transfer of its blackout.
Sources said that apart from attractive profits, Saudi investors have been assured that according to the nature of the project, they will be able to transfer their capital back to their country in a period of 3 to 9 years.
During the visit to Pakistan, the Saudi delegation asked a lot of questions regarding various projects including agriculture, mining and Diamir Bhasha Dam, in these sectors the government has indicated maximum profit. Initially, Pakistan is looking at an investment of 25 billion dollars. But, now the expectation is to invest up to $5 billion by June 2025. The only concern of Saudi Arabia was the transfer of profits, which Pakistan may prevent due to foreign exchange difficulties.
Sources said that Pakistan has assured the Saudi investors that priority will be given in the transfer of profits. In this regard, Prime Minister Shahbaz Sharif has already issued instructions to the State Bank.
Earlier, Pakistan had given similar privileges to China under the CPEC project, which resulted in Chinese investment of 25 billion dollars.
Member of National Assembly of PML-N Bilal Azhar Kayani said that the profit rate has been estimated on the basis of expected investment, it should not be considered as an offer, the actual profit on investment will be decided during the technical negotiations.
According to sources, a 50% return on investment has been estimated at the greenfield mine development project Khuzdar, which is the third largest mining project after Ricoh Deck and Thar Coal. Has been installed. The second project of 34% profit on Saudi capital is the establishment of a cattle farm in Punjab containing 30,000 cattle, which will produce six thousand tons of meat annually, the investment volume is 25 million, and the investment return period is three years.
Sources said that Saudi Arabia wants to get 50 thousand acres on lease for corporate farming. The Agricultural and Livestock Company has expressed interest in this project, in this regard, a memorandum of understanding is likely to be signed during the Prime Minister’s visit to Saudi Arabia next week. Sources said that the capital period of 22% profit will be six years, due to water scarcity, the project is not expected to be completed soon.
The investment in the semiconductor and chip manufacturing project is expected to be 27 million dollars, with a rate of return of 17 percent and a payback period of seven years. The project of 2 billion dollars of railway line has also been offered to Saudi, on which the profit rate is 20 percent.
