KARACHI, Dec 2: Prime Minister Shaukat Aziz expects the inflow of direct and portfolio foreign investment with privatization proceeds will range between $2 and $3 billion in the current fiscal year and expresses the confidence that the investment will up to constitute 25 per cent of the GDP by 2007.

“We are soon announcing a package for investment in the electric power generation sector,” he announced on Friday while inaugurating the First Pakistan Industry Conference organized by Mediators, a private consultancy, with the support of the Site Industry of Association and the Board of Investment.

Besides the prime minister, the inaugural session of the two-day conference was attended by Sindh Governor Dr Ishratul Ibad, Sindh Chief Minister Dr Arbab Rahim, federal ministers Jehangir Tareen and Dr Hafeez Sheikh and Sindh Industries Minister Adil Siddiqui. Business leaders Mirza Ikhtiar Baig and Siraj Kassem Teli were also present.

The industrial growth, Mr Aziz stressed, relied heavily on electric power supply and there was immense potential of investment in this sector. He expressed the hope that there would be an aggressive investment in electric power generation projects.

The Prime Minister endorsed Industries Minister Jehangir Tareen’s observation on the need for expansion of hotels which are enjoying 100 per cent occupancy and are unable to meet the growing demand.

Recounting some of the recent achievements, he said a 22 per cent growth in exports and a 20 per cent rise in revenue collection in the first four months of the current fiscal year was an ample manifestation of sound economic policies of the present government.

“We have unleashed creative forces in the business,” he said while forcefully projecting private sector’s role as the main driver of growth and development and recalled that when tariff rates were being brought down a few years ago “there are many in this room who were apprehensive of the outcome of government reforms”.

“But what has happened is an all-round growth in industry, agriculture and services sectors.” The prime minister reiterated his government’s position to continue with the reforms in the coming years.

“In a changed global scenario when goods and services are moving freely across the borders, the industry that seeks shelter behind high tariff walls cannot survive. Eventually, performers will survive and grow and non-performers will be wiped out,” he remarked.

Mr Aziz said that in the world trade, Pakistan did not seek a preferential treatment but a fair and equitable treatment. He said developed countries offered subsidies to their agriculture sector, which was hurting many developing countries like Pakistan.

He made a specific reference to the textile industry in which about $5 billion were invested in the last four to five years that now competes in the international market and is capturing more and more share.

Pakistan, he said, had been struck with a great tragedy on October 8 when a powerful earthquake hit parts of Azad Kashmir and NWFP. It killed 76,000 people and maimed many more and has left behind thousands of orphans and widows and traumatized people.

Foreign donors pledged $6.2 billion assistance to Pakistan on October 19. The bulk of this assistance is in the form of soft loans. The prime minister urged the business community to rise up to the occasion and enter into partnership with the government for owning a school, hospital, dispensary, village and homes.

Industries Minister Jehangir Tareen in his speech called for stretching industrial investment beyond Karachi, Hyderabad and Lahore to the hinterland in Mirpurkhas, Khairpur, Rahim Yar Khan, Dera Ismail Khan and other places.

He announced the steps being taken to make land available to the interested investors. He said a 1,500-acre of land was being made available from Pakistan Steel, while 5,000 acres were also being developed in Karachi for this purpose.

Sindh Industries Minister Adil Siddiqui said the industry had expanded in Sindh during the last six years and more industries would come up in coming years.

Others who addressed the conference were Site Association of Industry chairman Mirza Ikhtiar Baig and Siraj Kassem Teli.

The prime minister also gave away more than two dozens Site export trophies, special awards and medals to those who performed well in the year 2005.