Investment Potential in Khyber Pakhtunkhwa

Khyber Pakhtunkhwa is one of the five (05) Provinces of Pakistan, located in the North West of the Country. It borders with Afghanistan to the North West and has direct land route connection through Gilgit Baltistan Province with the People Republic of China to the North, on the West and South is the Federally Administered Tribal Area (FATA), Azad Kashmir to the East, Punjab and the Islamabad capital territory to the South East. The Province of Baltistan is located Southwards. The Province has an area of 74,521 KM with the population of about 22 million.

Khyber Pakhtunkhwa is blessed with abundance of natural resources of Oil & Gas (having share of 50% of country oil production), huge hydel generation potential (41.3% of country's hydel power potential), sizeable deposits of metallic and non metallic mineral together with precious and semi precious stones (78% of country's marble production and 20% of mining output). The Province of Khyber Pakhtunkhwa is located at an ideal geographical location, it has snow capped peaks of Hindukush with lush green valleys of scenic beauty and thus has enormous potential for the tourism industry.

Khyber Pakhtunkhwa offers a bundle of investment opportunities in all the major sectors of economy such as Energy & Power, Tourism, Mines & Minerals, Industries, Agriculture, Livestock and Fisheries, Public Transport, Housing and resource productivity & waste management. Which can be offered to the Chinese Investors.

Each sector is briefly explained as under:

Energy & Power

Khyber Pakhtunkhwa has aggregate hydro power potential of nearly 30000 MW.

Pakhtunkhwa Energy Development Organization (PEDO) has

identified potential of more than 6000 MW which can be developed through Public, Private or Public Private Partnership (PPP). PEDO has prepared an action plan to develop 3500 MW consisting of 29 projects over the next ten (10) years with the total cost of PKR 1200 billion.

Two more Hybel Power Potential (HPP) Shushgai Zandoli (144 MW) and Shogosin (132 MW), both in District Chitral, for which

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feasibility studies have been completed and will be executed in Public Private Partnership (PPP).

The total recoverable Oil resources in the Province are around 148 million US Barrels and probable Oil resources are over 500 million barrels. The total firm original recoverable gas resources in the Province are around 2.321 trillion cubic feet (TCF) and probable gas resources are over 9 trillion cubic feet (TCF).

According to the geological surveys conducted in Khyber Pakhtunkhwa, there are many potential sites where exploration ventures can be made. Given high success rate of drilling (a one - in - three success rate, better than the global average of one in ten).

Khyber Pakhtunkhwa offers low risk opportunity for oil exploration firms with market rate of return.

There is an excellent opportunity of investment in refinery in the Khyber Pakhtunkhwa.

Tourism

Every year, a large number of tourists from all over the country and abroad visit the scenic destinations of the Province including Swat, Kaghan, Naran, Galliat and Chitral. These scenic areas are open to both local and international investors to benifits from the huge potential for creation of recreational and adventure sports facilitations. Some of which can be Chairlift / Cable Car, Theme / Adventure Parks, Water Sports, Hotel / Resort in the mountainous area of Galliat and Swat.

Mines & Minerals

The Province is blessed with huge resources of Mines & Minerals. Northern part of the Province has vast reserves of marble / granite, cement grade lime stone, phosphates, soapstone, chromite, nepheline syenite & other industrial minerals beside gemstone and metallic minerals. Southern part of the Province has extensive potential of industrial rocks and minerals which include rock salt, gypsum, clay minerals, limestone, silica sand, iron ore and coal etc.

Estimated resources of marble in the Province: About 3.0 billion tonsEstimated resources of granite: About billion of ton

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The Province has significant reserves of Gemstones including Garnet, Corundum / Ruby, Emeralds, Topaz (pink, yellow, white and other shades), Ruby and Sapphire.

Agriculture, Livestock & Fisheries

The abundantly available varieties of fruits and vegetables are offering opportunities to both local and foreign investors to set up facilities for promotion of natural fruit and vegetable based products such as Juices, James, Jellies, Pickles and Squashes.

There is an investment opportunity for establishment of date processing plant at D. I. Khan, Sheep farming in Mansehra and fisheries at Tarbela and Khanpur Lake.

Public Transport

Establishing high quality inter / intra city rapid transport services for all cities of Khyber Pakhtunkhwa and between Khyber Pakhtunkhwa's major cities to Islamabad, Lahore etc are yet another area for foreign investment.

The Provincial Government is working on different options to utilize the main arteries including the existing railway track / corridor for alternate use of public transport system. Once the feasibility study is complete, the project will be offered to private investors.

Housing

Housing Department through its authority has taken an initiative of establishment of mega housing scheme "Mega Education City" on 3000 Acre at M1 Colonel Sher Khan Interchange, District Nowshera.

The scheme will shortly be offered to private developers, having expertise in developing such schemes.

Resource Productivity & Waste Management

Municipal Solid Waste (MSW) can be processed to produce a variety of products, such as Refuse Derived Fuel (RDF), compost and Energy besides processing of recyclable materials.

Provincial Government has already invited private investors for establishment of waste to energy plant at Peshawar based on Municipal Solid Waste (MSW).

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Special Economic Zone (SEZ)

Sarhad Development Authority (SDA) is working on establishment of special economic zone at industrial estate Hattar, Phase - 7.

SDA have already allotted plots measuring 3 Acre and 5.5 Acre to Chinese investors in industrial estate Hattar and Export Processing Zone (EPZ) Risalpur respectively.

In addition to above the Chinese investors have also worked in number of projects in Khyber Pakhtunkhwa which include Gomal Zam, Indus Highway etc. Further SDA can allot plots to the Chinese investors in industrial estate Hattar, Gadoon Amazai, Nowshera and D. I. Khan for setting up industrial unit.

List of potential projects is attached.

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