May 2, 2008

 

Investors pledge more than US$3 billion to develop Pakistan's agri-sector

 

 

Investors, institutions and entrepreneurs at the first Middle East-Pakistan Agriculture and Dairy Investment Forum pledged over US$3 billion in new investments to Pakistan's agriculture and dairy sectors.

 

The event, which took place at Pakistan's Madinat Jumeirah on 29 April 2008, saw the participation of companies such as Nestle Pakistan Ltd, Tetra Pak, DeLaval, Millac Foods, Habib Bank Ltd., Al Rabie Saudi Arabia and Shakargunj Ltd.

 

Speaking to a group of more than 100 delegates, His Highness Sheikh Nahyan Bin Mubarak Al Nahyan, chairman of the Abu Dhabi Group, said, "Pakistan's economy has seen extra-ordinary progress with a wide range of reforms enacted in the areas of taxation, trade and tariffs, banking and finance, industry and agriculture, deregulation and privatization, fiscal transparency and governance." 

 

The sheikh said the results of these measures can be seen the in high levels of economic growth in the country.

 

The Forum was a showcase of Pakistan's dairy and agriculture sector for Middle East investors and for Pakistani and Gulf business houses to exchange contacts and experiences.

 

Huma Fakhar, managing partner of forum organizers MAP Group said, "The attractiveness of Pakistan to GCC investors in general, particularly in the fields of financial services, telecommunications, and real estate makes the agriculture and dairy sector the next frontier for investment."

 

Fakhar said this has especially come to light with recent rises in commodity prices and fears of an impending global food crisis.

 

He noted that Pakistan is the fifth largest producer of milk and has some 50 million dairy animals, the world's third largest herd.

 

During the Forum, MAP Services Group announced the setup of a Middle East Food Fund in partnership with various Gulf partners to act as a food production basket serving the region. The fund will invest in the agriculture sector in Pakistan, Egypt and Georgia for food and food-related products to be produced for the Gulf region.

 

Participants in the Middle East-Pakistan Agriculture and Dairy Investment Forum included the Abu Dhabi Group, which will be setting up new sugar mills and making additional agri-dairy investments in Pakistan.

 

Other companies include Engro Chemicals, which is investing US$1.6 billion in the sector over the next three years; the UK Department of for International Development (DFID), which has granted around US$50 million for a dairy and agriculture project in the province of Punjab and Abraaj Capital, which would be investing in dairy projects from a US$250-million fund to be announced for Pakistan.