ISLAMABAD, Nov 15: Trans Polymers Ltd, a UK-based company, has planned to establish a polyethylene plant at Karachi with an initial investment of $480m.

A delegation of the company led by its chairman Peter Lloyd Cooper informed Privatization Minister Abdul Hafeez Shaikh about its plan to meet entire polyethylene demand of the country, stated an official announcement issued here on Tuesday.

Mr Cooper said that the plant would have an annual production capacity of 310,000 tons. The company would produce 80 per cent of its capacity (248,000 tons) in the first year of its establishment.

He said that the company would increase its annual production to 360,000 tons in the third year by meeting the entire demand of Pakistan for the commodity.

He informed the minister that the construction, commissioning and the warranty test of the plant would take an estimated period of 34 months. The plant would start production for commercial purposes in fourth quarter of 2008.

He said the plant would provide 2,000 jobs, particularly to the skilled manpower with a saving of foreign exchange of about $178 million annually based on the present prices and import level.

Mr Cooper said attractive opportunities were available in Pakistan for the investors in different fields including trading, energy, information technology, telecom, small and medium enterprises, mining, infrastructure, tourism and privatization of public sector entities.

The minister said that Pakistan had made strong economic progress due to the continuity of good governance and consistent economic policies of the government. He informed the delegation that the foreign direct investment (FDI) increased by 60 per cent ($1.52bn) during the last financial year. From July to September, in the current year, Pakistan received $329 million in FDI.

The minister said the country’s forex reserves had increased to $12.61 billion. In Pakistan, he said, 100 per cent equity was allowed in all sectors with a level-playing field for both domestic and foreign investors.

He said that the establishment of a polyethylene plant in Karachi would help the country in saving the foreign exchange.