ISLAMABAD, May 28: Al-Tuwairqi Group (ATG) of Saudi Arabia plans to invest around $1 billion in Pakistan's banking, textiles, steel and mineral sectors in the near future.

Chairman ATG Dr Hilal Hussein Al-Tuwairqi said on Friday that he considered Pakistan as the safest place for investment and it would be a major exporting country very soon.

He was talking to reporters after signing a memorandum of understanding with the government to set up a $100 million steel billets plant in the vicinity of Pakistan Steel (PS).

The MoU was signed by Javed Ashraf Hussain, secretary ministry of industries and production, on behalf of the Government of Pakistan. Liaqat Ali Jatoi, minister industries and production, witnessed the ceremony.

Realizing the potential of the growing Pakistani market the ATG would bring $1 billion more investment in the sectors like banking, food processing, textiles, minerals and fishing, Mr Tuwairqi said.

Mr Jatoi welcomed the ATG for setting up a steel billets plant in Pakistan and said the government would facilitate all the investors and would provide every possible assistance and incentives to them.

He said the government was expecting more investment from other countries at Gwadar Port, which has been declared Free Trade Zone and should be considered as a potential destination for investment.

The production capacity of the proposed steel billets plant would also be enhanced from one million tons to five million tons per year and 100 per cent production would be exported.

The steel billet plant will be declared as an Export Processing Zone. This will enable the project to avail the facilities and incentives available under the EPZ scheme. Pakistan Steel would provide a land of around 200 acres according to its requirement while the natural gas requirement is estimated at about 70 million cubic feet per day and electricity at about 120 MW.

On full production capacity, export potential are estimated at $180-$200 million per year and $900-$1,000 million in five years time. The group will undertake to buy-back all the product at cost plus basis. Around 1,000 people will be directly employed along with the indirect jobs to be created to the extent of 2,500 individuals.