Coca-Cola to invest $350m in Pakistan
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ISLAMABAD: A delegation of the Coca-Cola Company, led by its President Eurasia and Africa Group Nathan Kalumbu, met Finance Minister Ishaq Dar on Thursday and briefed him about the company’s investment plans in Pakistan.
The finance minister said the government offers a liberal investment regime and facilitates all foreign investors in accordance with existing regulations of the country, according to a statement issued by the Ministry of Finance.
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Nathan Kalumbu apprised the finance minister that encouraged by the economic turnaround and stability achieved by Pakistan in the last two years and the positive rating accorded to it by international rating agencies, the company has already started implementing its plan to invest over $350 million in the country.
He added that Coca-Cola is already a leading US investor in Pakistan.
Unveiling the investment plan, Kalumbu stated that three new plants were being established at Karachi, Multan and Islamabad and the fresh investment would further contribute to strengthening of economy and job creation.
He said Pakistan is ranked 7th in size in Coca- Cola’s Eurasia and Africa group which includes 84 countries and the company accords its due importance in terms of production, marketing and other commercial activities.
He said the company presently employed over 4,000 persons, a number that would increase significantly with the new cache of investment.
Published in Dawn, October 9th, 2015
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Comments (40) Closed
Oct 09, 2015 06:58am
IT companies, Energy and Utilities Transportation, etc companies are investing in ASIA while the best Pakistan can afford is Coca Cola. This is funny and sad at the same time.
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Oct 09, 2015 08:18am
The government will have to spend 10x this amount in increased health care costs as a result.
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Oct 09, 2015 08:40am
@PIYUSH its about job creation..doesnt matter which company..its all about money..IT company will not put food on poor ppls kitchen stove..coca cola is worlds number 1 most popular brand..dont underestimate them..they are billions business market
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Oct 09, 2015 08:58am
@Mazhar Khan Really? Is that because desi alternatives are healthier? I highly doubt that a creamy lassi filled with sugar is healthier than a Coke. Critical thinking is important my friend
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Oct 09, 2015 08:59am
Good.
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Oct 09, 2015 09:01am
@PIYUSH :) true
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Oct 09, 2015 09:10am
Once they start sucking the groundwater then it is difficult to stop them. Many Indian states stopped Coke and Pepsi plants because their plants brought disasterous ground water level and affected 1000s of vilages
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Oct 09, 2015 09:12am
*nimbu pani* is much healthier...diabetes can be deadly.
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Oct 09, 2015 09:27am
Computers are unhealthy, tablets unhealthy, tv is unhealthy, mobiles and mobile towers are unhealthy. What should be a healthy investment then?
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Oct 09, 2015 09:30am
yeah, that's what we need, more junk food !!! boys, its called Google, have a look at what these soda companies have done to millions and millions of people. Riddle me this, how come a bottle of cola costs less than bottle of water?
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Oct 09, 2015 09:51am
We want investment in technology and production sectors rather than these disease injectors investment.
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Oct 09, 2015 09:51am
@PIYUSH In energy, transport, wind and solar energy the investment is many times more in Pakistan. Only in wind power there is an investment of 1.5 billion USD. In nuclear power China is constructing two bi 2x1100 MW nuclear power plants near Karachi.
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Oct 09, 2015 09:56am
Its just beginning. Pakistan is endowed with so many resources. I think so many sector are either underperforming or none. Let peace prevail and sky is limit.
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Oct 09, 2015 10:19am
appreciated....will create alot of jobs..
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Oct 09, 2015 10:25am
Did Pakistan know that where ever companies like Coco-cola will setup that area will have severe Ground Water crisis. Ground water level falls into danger zone where this colddrink companies setup their plant and drink all the water from Ground as well as surrounding area.
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Oct 09, 2015 10:34am
More "Energy" to Pakistan!
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Oct 09, 2015 10:39am
I hope a chilled bottle of coca cola will help them to cool down and think positively
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Oct 09, 2015 10:41am
Coca Cola is unhealthy.
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Oct 09, 2015 10:53am
No matter how much people say, it is not good.. You should see this as a good thing for FDI in Pakistan .. this will definitely create jobs. Think positive guys..
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Oct 09, 2015 11:01am
@divend yes it is healthier than coke. Creates lesser waste and pollution and keeps the money flow inside the country. go do the research before saying anything else.
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Oct 09, 2015 11:01am
@natey Yes it will create jobs, i agree, but when our PM Mr Modi is doing this, people are criticizing him non stop in India which is a sad thing. They arnt realizing how many jobs the "make in India" is gonna create. i hope people come to know the real Modi who is working 16 hrs daily to make india developed country ASAP
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Oct 09, 2015 11:03am
oh no... please keep this sweet poison away
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Oct 09, 2015 11:12am
All fizzy, aerated drinks like Coke and Pepsi are dangerous to health. It causes diabetes, obesity, tooth decay, osteoporosis(bone weakening), joints pains, high blood pressure, intestinal ulcers and a host of other diseases...should be banned in the country.
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Oct 09, 2015 11:28am
Good. This is what we need. Look at India, so many western multinational companies going there and giving jobs to people there along with improving their lifestyle.
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Oct 09, 2015 11:30am
As already we facing acute shortage of drinking water across the homeland . Beverage companies use the well water for the manufacturing of carbonated soft drinks. The technology (Reverses Osmosis R/O ) use to get the desirable quality of water. Normally R/O plant works on the wastage of 40 % (Raw Material input) and it carries high TDS ( Total Dissolve Solid) .This undesirable quality water drainage out , which have a high potential to damage the soil characteristic and bring the farmers in financial set back .
If the Government is welcoming the foreign investment , following actions should also take to ensure the good health of natives and future requirement of water
Start the health awareness programs likes which types of diseases can generate from excess intake of carbonated soft drinks
Production capacity and annual targets must be locked by GoP to save the drinking water reserves
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Oct 09, 2015 11:40am
Add to the diabetic number in the country.
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Oct 09, 2015 11:43am
When the west is turning their back on Cola, they are turning to countries like ours
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Oct 09, 2015 11:52am
Investment in the knowledge economy like IT, pharmaceuticals, mechatronis & electronic etc. is progress. Investment in a bottling plant whose machinery will be imported to produce sweet fizzy drinks that will cause an epidemic of rotten teeth and diabetes is NOT progress.
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Oct 09, 2015 11:55am
As already we facing acute shortage of drinking water across the homeland . Beverage companies use the well water for the manufacturing of carbonated soft drinks. The technology (Reverses Osmosis R/O ) use to get the desirable quality of water. Normally R/O plant works on the wastage of 40 % (Raw Material input) and it carries high TDS ( Total Dissolve Solid) .This undesirable quality water drainage out , which have a high potential to damage the soil characteristic and bring the farmers in financial set back .
If the Government is welcoming the foreign investment , following actions should also take to ensure the good health of natives and future requirement of water
Start the health awareness programs likes which types of diseases can generate from excess intake of carbonated soft drinks
Production capacity and annual targets must be locked by GoP to save the drinking water reserves
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Oct 09, 2015 12:11pm
Massive Coke investment in a Third World country like Pakistan where we have the likes of Ishaq Dar to welcome them. Obviously!
These aspartame and other carcinogenic ingredient loaded poisons are experiencing a steady decline in consumption the West. Where else would investment divert except in countries like ours?
The Cigarette industry has shown the way to others
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Oct 09, 2015 12:15pm
Pakistan on the way to progress now.The trust of the world is restoring now. The government should simplify the process to encourage foreign investors invest here restricting the involvement of bureaucracy.
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Oct 09, 2015 01:04pm
It testifies to the fact that the trust of the investors around the world is restoring in Pakistan now. The Government of Pakistan should take bold steps to simplify the procedure of investment in Pakistan eliminating the bottlenecks purposely contrived by the bureaucracy.
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Oct 09, 2015 01:05pm
Congrats!
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Oct 09, 2015 02:25pm
It testifies to the fact that the trust of the investors around the world is restoring in Pakistan now. The Government of Pakistan should take bold steps to simplify the procedure of investment in Pakistan eliminating the bottlenecks purposely contrived by the bureaucracy.
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Oct 09, 2015 04:47pm
Their investment in Pakistan is part of their long term strategy to grow their business in Asian markets since due to health awareness in the West, consumption of soda has decreased over the years. This is similar to the tobacco market which dumps all its poison in our markets which is not only looked EXTREMELY down upon in West but is also heavily taxed (yes more than it is here). So if you think they are doing us any favor by investing here or this is an attractive market because of its tax and business policies you might want to think again.
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Oct 09, 2015 07:04pm
This is same as getting 500 million dollars on 8% interest rate...a very sad news indeed
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Oct 10, 2015 02:50am
Is it just me or almost every time any kind of (good or bad) news is published under business tag, more than half the PAKISTANIS end up criticising that.
Cm on be happy, just make some tough regulations on water use, and give more teeth to your food safety authority and you are good to host MNC like coca cola.
Come on show some positive attitude.
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Oct 10, 2015 04:39am
Not a good news, for sugar is main the reason for diabetes in Pakistan. Bad enough the cricketers are embarrassingly wearing logos , looking like walking billboards, of these slow people killing products on their jersey and shirts, and the TV is full of these awful commercials – these pop drinks are as bad smoking.
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Oct 10, 2015 10:18am
@natey there is a difference. What PIYUSH said makes sense, considering the long run picture of the economy. It might create more jobs, but jeopardizing health of millions with their product.
However, if we get IT companies, or Energy/Utilities for that matter, we will get more sustainable growth and will even move towards more development led growth. This will also lead to more employment and more awareness towards gaining required skills through higher education.
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Oct 10, 2015 02:55pm
Worst kind of investment. Unhealthy (Coke and McDonalds probably created the obesity epidemic in the US). Unproductive. Wasteful. And extremely high margin business in which the profits are repatriated abroad. For those that don't already know, the parent companies like Pepsi and Coca Cola sell their concentrated formula at a mark up which allows well over 90% + gross profit margin and then spend heavily on marketing and walk away with unbelievable profits. The local bottlers aren't earning and retaining crazy profits locally. It is the international owners.
Also fun fact. Coke is so strong that it is recommended as toilet cleaner and for polishing chrome/steel bumpers that have faded.
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