AN international seminar on business opportunities organised by the Punjab government on November 6-7 offered an opportunity to foreign and local businessmen and investors to have frank and candid discussions on investment avenues in the province and explore areas for possible cooperation.

They ended up signing about 150 MoUs and agreements.

Following the improvement of the security situation, there is a discernible turnaround in business sentiments — a fact that has been acknowledged by international financial institutions, ratings agencies and fund managers.

Known as the land of five rivers, Punjab is the most populous, industrialised and developed province of Pakistan, with a population of 100m. Agriculture forms the core of the provincial economy.

Punjab’s share in the country’s large- and small-scale manufacturing is 39.2pc and 70pc respectively. On the whole, Punjab’s imprint on the national economy is significant.

The province has a large middle class with high purchasing power. The English-speaking youth, who happen to be graduates of top national and international universities, provide readily available and qualified human resource.

Punjab has identified 48 key projects worth $6.56bn

Punjab offers the most lucrative, secure and productive investment opportunities across different sectors such as infrastructure, mines and minerals, transport, industrial estates, housing and energy. It has made an effective investment policy framework that has been developed from the perspective of the investors.

The chief reason Punjab takes a lead when it comes to attracting foreign direct investment in Pakistan is that it has identified 48 key projects worth $6.56bn. The province has the systems that support transparency and fair competition, the infrastructural spine that will network all connectivity needs, and the workforce that has the skill and drive to make a difference in a competitive market.

The government is also committed to protect foreign and local investment with guaranteed and reasonable rates of return, coupled with high liquidity and no restriction on the movement of capital.

The Punjab Growth Strategy 2018 aims to make the province a “secure, economically vibrant, industrialised and knowledge-based province, which is prosperous and competitive”. The strategy aims to grow the provincial economy by creating favourable conditions for private investment. Besides focusing on reforms and the development of key sectors of the economy, it offers solutions to key challenges like underutilised manufacturing capacity, energy shortages, exports, unemployment, low productivity and skill shortages.

Energy continues to be a critical area for the success of investment ventures. There is no denying that 2-3pc of GDP is lost per annum owing to the worst energy crisis — a problem that needs to be tackled expeditiously.

The government introduced a National Power Policy that addresses all the facets of the energy crisis. There is a need to focus on broadening the energy mix by tapping all available resources, such as hydropower, coal, solar, wind, LNG and biomass. If all things go right, by the time the projects mature, enough electricity will be available to cater to the requirements of the growing economy.

The $46bn China-Pakistan Economic Corridor (CPEC) is President Xi Jinping’s flagship initiative ‘One Belt One Road’. Poised to connect Gwadar Port in southwest Pakistan with China’s northwest Xinjiang region, the corridor will have a huge network of highways, railways, industrial zones and pipelines to transport oil and gas.

About $36bn of the package will be spent on energy-sector development. Under CPEC, hydropower, coal, wind and solar projects will add a total of 10,400MW to the national grid. A Pakistan-centred road network will facilitate contacts between Pakistan’s neighbours on east and west, while the corridor will bring closer integration within regional economies.

The CPEC is a game-changer with the potential to transform Pakistan’s socioeconomic landscape, creating an enormous investment potential.

Punjab has all the ingredients for profitable investment in different sectors of its economy. A liberal investment regime is in place, which is complemented by a geographical advantage and a huge consumer market.

The basic principles of the province’s investment policy are: reducing the cost of doing business; cutting the process of doing business; and facilitating businesses with the creation of industrial clusters and special economic zones.

As presentations at the seminar made clear, Punjab offers the most attractive and secure return on investment. By holding the seminar, the government made a strong case for investment in energy, housing, mines and minerals, infrastructure, transport and industrial sectors.

It also focused on the transfer of expertise and management skills to expedite the process of development and fresh business ideas and technology to foster growth in the province.

Published in Dawn, Business & Finance weekly, November 16th, 2015