ISLAMABAD, 28 April 2003 — Pakistan has a proposal for the three trillion dollar question. More than 300 investors from Arab, Muslim countries and the West just have discussed it in Islamabad. This huge sea of money reportedly is the one that Arabs and Muslims wish to invest or relocate in the wake of 9/11.

Obviously Pakistan does not hope, or claim, on a major chunk of it. But, the “International Conference on Investment and Privatization in OIC Countries” was just trying to zero-in on, at least, a tiny bit of it.

Pakistan’s Board of Investment (BoI) and Islamic Chamber of Commerce and Industry (ICC&I) jointly sponsored this conference — the first of its nature ever held among 57 member nations of Jeddah-based Organization of Islamic Conference (OIC). Only days ago the sponsors were wondering whether enough investors will show up in view of the Iraq war? But, potential investors asked the organizers to go ahead with it. They thought the urgency to repark and relocate investments in new countries and set new destinations for the capital, has become even more compelling.

The participants from Arab and Muslim countries, particularly those from the Gulf, Saudi Arabia, and Middle East were prominent. President Pervez Musharraf asked the Muslim world to “exploit their human resource potential for socio-economic advancement.” “There is a need to chalk out a realistic path in view of the present international crisis situation,” in which OIC needs to play “a more proactive role,” he said.

Pakistan, Musharraf said, is now one of the most welcoming countries in the region as reforms and economic achievements of the last three years have steered it to a business-friendly and created a win-win situation, both for investors and the consumers.”

All major economic sectors are now totally open to foreign investment, 100 percent equity and maximum facilitation is allowed. There are no impediments from the government.

He also asked potential foreign entrepreneurs to interact with 600 multinational corporates, in business in Pakistan for years, and benefit from their experience. A majority of these multinationals are annually earning 20 to 60 percent profit.

Bank Alfalah Ltd. of the Abu Dhabi Consortium, for instance, had a record 70.68 percent profit before tax, and 43.48 percent profit after tax for calendar year 2002, its Chairman Sheikh Hamdan ibn Mubarak Al-Nahyan, has just announced here. It has 45 branches across Pakistan.

Minister for Investment and Privatization Dr. Abdul Hafeez Sheikh, said, besides selling majority shareholding of United bank Ltd. to Abu Dhabi Group, the government has separately sold Rs.4.0 billion worth state-owned enterprises (SOEs) through the bourses within the last few months.

Major SOEs like Pakistan State Oil, controlling the country’s 70 percent petroleum distribution and marketing; Pakistan Telecommunications Company Ltd. (PTCL) the state telecom monopoly; Habib Bank, the second largest commercial bank, electricity generation and distribution, oil, natural gas companies, and several manufacturing companies are on sale, and ready for investment. Pakistan’s export processing zones in major cities, including Karachi, are open for FDI. “Deregulation, privatization, and liberalization,” is the present government’s slogan for the economy and the investors.

Major fields for investment include oil, natural gas, tourism, telecom, corporate farming, health, education, IT, minerals, and small and medium enterprises.

As the economy looks buoyant, the country has all the hope to attract potential investors.