KARACHI, Dec 12: Japanese investors and their Pakistani partners are not happy with Port Qasim location for setting up an exclusive Japanese Investment Zone because of enormous need of money to be put in for development of the area as 200 acres shown to them by the Port Qasim Authority last month was virtually raw.
“The Pakistan-Japan Business Forum is meeting on Monday in Karachi with the Chairman of Board of Investment, Mahmood Mandviwala, to discuss this issue again,” Majyd Aziz told Dawn on Friday.
Majyd Aziz is vice chairman of PJBF and a former president of Karachi Chamber of Commerce and Industry who is also involved in preparation of a Japanese investment report.
The PJBF is now exploring Scheme-33 and proposed industrial enclave to be set up in the Northern Bypass area on Super Highway for Japanese investment zone.
The Monday’s meeting of the PJBF with BoI chairman is expected to discuss this issue. The BoI will be asked to negotiate with the Sindh government and industries department to offer a discount rate of the land.
Since Japanese investors have a big stake in automobile assembly in Pakistan, they are not happy with liberal import of reconditioned cars and two-wheelers from other sources. This issue is also expected to come up for discussion.
Almost 72 per cent of Japanese investment in Sindh is in automobiles. Japanese investment in Sindh during 2007-08 increased by almost 133 per cent to $131 million over 2006-07 when it was $64 million. Bulk of this investment was in automobiles.
Also causing concern to Japanese are reports of rise in street crimes resulting in increasing number of car and motorcycle snatching. It has pushed up the number of claims on insurance companies, mounted defaults of auto loans given by banks and leasing companies and eventually caused a marked drop in sales of automobiles. The PJBF meeting on Monday is likely to discuss this issue.
Last month, a delegation of PJBF held a meeting with the Port Qasim Authority where it was given a detailed presentation on the available port facilities and development plans for next five years.
The PJBF was shown land which lies between sea-shore and upcoming Textile City. The land is in depression and is said to be in need of a massive refilling that would cost more than Rs500 to Rs600 million.
Investors want a bigger exclusive investment zone area than 200 acres as way back in the year 2006 Dr Salman Shah, former Advisor to Prime Minister on Finance, had promised a 2,000 acres plot for this purpose to PJBF in Karachi.
Business circles in Karachi say that Japanese investors are of course as much concerned on law and order situation as Pakistanis are but are not dismayed.
“Japanese always take a long-term view and are convinced that Sindh offers promising business prospects in future, once the current tensions in area are brought under control by diplomacy and strong administrative actions.
Business circles say that Japanese see electric power generation sector full of investment prospects besides many other sectors. Senior Japanese scholars of economy in a business seminar about a year ago in Hyderabad recalled how Pakistan’s cotton helped their textile industry more than 50 years ago in making deep inroads in world export market.