KARACHI, May 17: An edible oil processing and packaging plant is being set up near Port Qasim at a cost of Rs750 million by the International Multi-Group of Companies (IMGC) in collaboration with Desmet Ballestra (SEA) Ltd, Singapore.

A fax message issued by the company said that a contract to this effect was signed by IMGC chairman Sheikh Amjad Rasheed and Andre Gheyse of the Singapore firm.

The working capital need of the project is around Rs1.25 billion.

The financing for the project will be provided by Saudi Pak Industrial and Agricultural Investment Company and Habib Metropolitan Bank.

Other banks have also issued letter of intent to participate in financing.

According to the fax release, Prime Minister Syed Yousuf Raza Gilani is expected to perform the stone-laying ceremony next month.

The project is expected to be completed by June next year while partial production is likely to commence from January 2009.

Besides supplying to the local market, the project envisages significant volume of export. Some 500 persons are expected to get jobs in the project.