Singapore based company willing to bring $2bn investment to Pakistan

A Singapore based company is willing to bring USD 2 billion investment in Pakistani shipping sector which would help create nearly four thousand jobs in the local industry.

Currently Pakistan is paying four billion dollar freight to foreign ships which can be saved, Chairman of Global Radiance Group Abdul Latif Siddiqui said in an interview with The News.

At present the country has nine ships, three tankers and six bulk carriers where less than 65,786 seafarers, 18,988 officers and 46,798 crew are employed.

We are earning around half billion US$, whereas country like Philippines is generating over US$ 6 billion annually from shipping industry, mainly through providing human resource, Siddiqui added.

Pakistan enjoys good potential in shipping, he said adding that nationalization in 1970s hit it badly.

"In the 70s however, the gap was filled by Gokal shipping who managed a large fleet (approximately 380 ships of various sizes) creating enough jobs."

As for national shipping is concerned, state-owned Pakistan National Shipping Corporation (PNSC) is running only nine ships, while Bangladesh have more than 100 ships.

Global Radiance chairman said Pakistan is paying US$ 4 billion annually for the freight which can be saved substantially with own ships. Further adding, with CPEC/Gwadar a huge economic potential for shipping is emerging but we are not prepared to grab the opportunity. 'Besides, when fleet is added it will create further jobs and support complimentary industries as well.'

"PNSC tankers are only used to carry oil for Pakistan however there's more appetite considering present and future requirement due to CPEC and oil refinery."

About the investment plan by his company, Abdul Latif Siddiqui said Global Radiance Group basis present future import and export projection keeping in mind addition import and export because of how CPEC will be thoroughly studied to establish various size, types of ships to be built to ensure maximum utilization of every vessel:

• First stage: Global Radiance propose to build 50 new ships of desired type and size
• Global Radiance will manage these vessels to ensure maximum profitability
• The ships would start commissioning within 18-24 months .
• On the average, a ship would cost 20-35 and up to 50 million USD depending on the type and size of the vessel
• The ship would pay off its entire cost within 10 years becoming an asset besides yielding other obvious multifarious profits.
• GR will ensure technical management of the ships meeting international standards with its well-reputed professional expertise.
• GR will also facilitate commercial management of the ships to improve the financial matrix substantially.
• In case, the proposal /model is agreed in principle, the same may be replicated for inclusion of cruise ships attracting tourists and providing economical pilgrimage facility to the nation besides optimizing economic potential.

In a question that in order to bring 2 billion US$ investment in Pakistan in shipping sector what he is looking from govt of Pakistan Abdul Latif Siddiqui says, "The proposal needs no financial assistance from the Government. What we request from the Government includes:

• Incentives for importers and exporters in form of rebates and competitive freight charges. This would ensure sustained availability of cargo thereby generating enough to pay off its cost installments,
• Appropriate legislation for importers and exporters to restrict transportation of cargo through foreign shipping companies when local ships are available for the job,
• Guarantees to regularly pay off the installments and not to divert the income generated by the fleet on any other head till clearance of its loan.

Siddiqui concluded the plan by saying that if government is desirous to bring more foreign investment it has to be serious to put right people for right jobs to respond the foreign investor by immediate response.

Otherwise foreign investors don't wait for long and move to more attractive places to invest and we hope Prime Minister Imran Khan proves to be the best person to accommodate for foreign investors, he added.