Meeting of German Business delegation and Administrative heads of Sindh Government held

Karachi, June 12, 2015 (PPI-OT): The round table meeting of Germany Business delegation led by State Secretary, Federal Foreign Officer of Germany Stephan Steinlein and Administrative heads of Sindh Government was held under the Chairmanship of Chief Minister Sindh Syed Qaim Ali Shah at CM House Karachi last evening.

The purpose of this meeting was offer and avail the trade, Business and Investment Partnership between both entities. In his opening remarks, The Chief Minister Sindh Syed Qaim Ali Shah said that Sindh has great potential of investment and he invited the German Companies to invest in infrastructure, Energy, Transport, Agriculture, Automobile and Consumers goods in Sindh.

He said that Pak-Germany had signed bilateral investment treaty in 2009 during PPP Government in centre that according to him has opened new doors of investment for both countries and now the volume of trade and Business between both countries is increasing year by year.

He said that Sindh is providing high standard delicious fruits, date, food-grain, cotton and rice which are very much popular in the world. We can further increase the trade in these sector in addition to availing lucrative investment opportunities in untapped areas of the Sindh. He said Sindh Government to provide all required facilities, incentives and fool proof security to the investing companies of Germany.

The State Secretary, Federal foreign office Germany Stephan Steinlein in his speech said that I am glad to come to Pakistan in the company of the high ranking business delegation some of the companies represented here are already engaged in Pakistan such as the METRO Group Simen, Bambordier, while other are looking for promising business opportunities specially in the Agriculture, Industrial engineering, Energy, renewable and Transport sectors.

He said that Pakistan is not only the political important partner for us but also very interesting regarding economic co-operation and Business opportunities. We already have longstanding excellent relations with Pakistan. I am convinced that it is important for Germany to keep Pakistan in our focus we know that Pakistan, Sindh and the Mega City of Karachi continue to be confronted with major infrastructure challenges.

He said that in April 2015 we had planned a Mega City conference in Karachi we would like to re-launch the project next year. He said that German Companies are interesting in the business opportunities offered by Pakistan. He said that infrastructure, renewable energy, Healthcare, Agriculture product and Textile Industry have been identified as high growth potential.

The Sindh Minister for Finance and Energy Syed Murad Ali Shah said that Sindh is blessed with vast availability of natural resources, cheap labour that makes the cost of production very competitive. He said that the Cost of Capital is at its lowest in decades. Inflammation is in single digit. Energy and infrastructure constraints are being managed by very effective Govt polices.

He further said that Sindh Govt has taken lead in customizing, industrial zones, which provides a tax free and custom duty exempt environment for industrial activity. He said that zones can be customized and developed for industrial clusters and it to offer great advantage to set up offshore manufacturing facilities for German Businessmen.

He said that this visit by German Businessmen to Sindh is very timely as there are countless opportunities that can be explored ranging from Agri-based business, very lucrative infrastructure projects, automobiles manufacturing plants, alternative energy projects, lights and heavy engineering, waste management and number of transport projects. He assured that visiting delegation for Govt support in facilitating investment and trade between both.

Energy Sector: While showcasing the investment opportunities in the energy sector, the meeting was informed by representative of energy department that Sindh was blessed with 186 billion Tones Coal reserves, besides it has potential to generate 55,000 MW wind corridor only in Thatta and Jamshoro District, 1000 MW form solar, 190 MW through run of river, 1800 MW from Bagasse cogeneration of 32 Sugar Mills, 500 MW by converting waste to energy only in Karachi, 550 MW from Geothermal only in Karachi.

In addition to that Sindh possess huge Oil and Gas reserves on-shore and off-shore in Trillions of cubic feet and on-shore wind energy potential. He said that Sindh Government welcomes Germen investment and expertise in the energy sector. Where other countries are already working.

Transport Sector: While high lighting on investment potential in the Transport sector, the meeting was informed that Karachi is a huge / thickly populated city, which is confronting transport challenges, which can be gauged from this fact that in Karachi 45 people competing for one bus seat as compared to 8 persons competing one bus seat in Hong Kong.

The Sindh Government prepared Master Plan to resolve the issue and this Master Plan recommended for revival of Karachi Circular Railway (KCR), Two Mass Rapid Transits (MRTs) namely Blue Line and Brown Line and 6 Bus Rapid Transits (BRTs) along major corridors. In order to integrate the all (BRTs/ MRTs) corridors a Sindh Mass Transits Authority is being created for which bill for enactment of SMTA has been tabled.

Sindh Government needs support in BRT’s Red Line Project which was supposed to provide aditing ridership to 350,000 passenger’s per-day. The PC-I of this 21.5 Km long corridor project is completed and it is estimated to complete between Rs. 12 to 15 billion in addition to that bus operations components of BRT are to be taken up in PPP mode of investment which demand 7,000 Buses for 355 routes in Karachi, 100 Buses from Karachi to other Divisional Head Quarters of Sindh in phase-I, 400 Buses for District Head Quarter in phase-II for which special package to potential investors be provided.

Besides establishment of Karachi Bus Terminal at Super High-way on 100 Acres of land, having capacity of 2,000 buses 350 buses operators to be completed with estimated cost of Rs. 3,000 million. Hyderabad Bus Terminal Project on 8 Acres capacity 160 buses estimated at the cost of 300 million.

Solid Waste: While displaying the solid waste potential in Big Cities of the Province, the meeting was informed that Karachi is generating 12,000 Ton per-day, Hyderabad 1,500 Ton per-day, Sukkur 800 Ton per-day, Larkana 500 Ton per-day and other districts head quarters each 200 and above Ton per-day.

The volume of garbage is fastly increasing in Karachi and it has been estimated that it to go upto 16,000 Ton per-day by 2020. In order to tackle this matter, Karachi has been divided in 6 zones, each has garbage transport station. Karachi is to be provided 3 land fill site and whole system is to be out sourced to international and local firms as such Sindh Government is looking support from any interesting company.

Infrastructure: The meeting was informed that Government of Sindh was looking for the support in lining of Rohri canal from R-D 645 to 705 at its estimated cost of Rs. 9 billion, lining of K-B Feeder canal from R-D 0 to 145 (44 Km) cost yet to be estimated, and construction of bridge over the River Indus between Ghotki, Kandh-Kot at estimated cost of Rs. 10 billion and construction of Dual carriage between Hyderabad and Tando Muhammad Khan (30.6 Km) at estimated of Rs. 3.5 billion.

The Germany companies invited to invest in the field of their interest. The German representative however expressed their interest in Energy, infrastructure Health care, Agriculture product, Transport, Textile industry and solid waste.

For more information, contact:
Mr. Allah Bachayo Memon
Press Secretary
Chief Minister House
Tel: +92-21-99202019
Cell: +92-300-3524057 (Ext: 336)