ISLAMABAD, March 26: The visiting delegation of Pakistan-American Business Association (PABA) disclosed here on Friday that an oil refinery by the name of Indus Refinery would be set up in Karachi within three months with an investment of $85 million.

The OPIC and EXIM Bank have shown interest to finance this project. Around 200 acres of land has been identified in Port Qasim area.

A 12-member delegation of the association headed by the ex-governor of Virginia, James Gillmore III, in a meeting with the chairman of Board of Investment (BoI), Waseem Haqqie, discussed investment opportunities in various sectors including oil refinery at Karachi, Paraxylene plant, CNG stations, ship breaking, shipbuilding and setting up a shipping line in Pakistan.

The delegation informed the BoI chairman that in view of the improvement in the economy due to good governance, the PABA intend to promote business relationship further between the two countries by bringing more investment from the United States to Pakistan in different sectors.

The US investors also plan to make investment in the shipbuilding and operating a shipping line from Pakistan and are negotiating with Pakistan Navy for joint venture on construction of a small shipping yard near Korangi.

The PABA delegation included leading businessmen from American IT, trading, and shipping sectors. The BoI chairman explained that Pakistan suffered an image problem abroad especially in the US and Europe despite the fact that the perception was different from ground realities.

The strategic location of Pakistan with land route access to Middle East and Central Asian Republics offers huge market to investors with tremendous potential and opportunities.

Major irritants to investment in Pakistan like Afghan war and tension with India are now settling down, therefore it is the right time for investors to come to Pakistan and avail of the opportunities. He further asked Mr Gillmore that the US should now consider relaxing the negative travel advisory with regard to Pakistan.

Referring to the state of economy which was in a very bad shape when President Musharraf took over, the BoI chief said that due to structural reforms initiated by the president and later on continued and improved by the democratic government of Prime Minister Mir Zafarullah Jamali, the initiative have started delivering the desired dividends.

Mr Haqqie further said that the major focus of the government was now on education, acquisition of skills and new technologies. "The investment regime in Pakistan is very liberal we have opened up all sectors of the economy for the domestic and foreign investment as 100 per cent foreign investment is allowed and there is no restriction on remittance of dividends, technical fee, royalty and profits," he added.