“One Belt, One Road, and Hangzhou” “ 一带一路在杭州 ” CCPIT Hangzhou July 09, 2015 杭州贸促会 2015 年 7 月 9 日 BUSINESS CLIMATE & INVESTMENT OPPORTUNITIES IN PAKISTAN 巴基斯坦商务环境及投资机会 1

2 1: Pakistan: Ultimate Investment Destination 巴基斯坦：无限投资目的地 2: Strengths of Pakistan 巴基斯坦的优势 3: Business Climate in Pakistan 巴基斯坦商务环境 4: Pak-China Economic Relations 中巴经济关系 5: Sectors and Industries for Cooperation 合作领域及行业 7. Conclusion 总结 6: Special Economic Zones in Pakistan 巴基斯坦特别经济区

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4 Population 人口 186 million 1.86 亿 years population 27% 岁人口 Middle Class 中产阶级 45% (85 million) （ 8500 万） Net FDI 外商直接投资 $1.6 billion 16 亿美元 Exports 出口 $ 25 billion 250 亿美元 Imports 进口 $ 42 billion 420 亿美元 Remittances 汇款 $ 16 billion 160 亿美元 GDP Growth GDP 增长 4.14 % On road to progress: expected annual economic growth of over 7% in years to come 预计经济年增长超 7% Youth: Young population, English knowing, skilled and trained 年轻人口，懂英语，有技能，接受过培训 KSE: among world’s top 5 performers in 2013 卡拉奇证券交易所在 2013 年跻身世界前 5 大 Bloomberg: ranked Pakistan 根据彭博统计，巴基斯坦的排位情况： a) 3 rd amongst top ten Best Performing Markets in 年最佳表现第 3 位 b) 14 th amongst top potential investment locations in 年最有潜力投资地第 14 位 Moody’s has upgraded Pakistan’s Economic Ratings 穆迪已提升了巴基斯坦的经济排名 ECONOMIC OVERVIEW ( ) 经济一览 （ ）

Rising disposable income 上升的税后所得 Compelling size of middle class 具有竞争力的中产阶级 Asset values rising 提升的 资产价值 Rising remittances 上升的 汇款 Accelerating Consumerism 加快消费 Low cost raw materials 低成本原材料价格 Educated work force 受过 教育的劳动力 Investor friendly policies 友好投资政策 Entrepreneur culture 创业文化 Corporate globalizing 公司全球化 Regional Connectivity 地区关联性 Low tariff regime 低关税制度 Growing Trade Intensity 推进贸易 Surging Domestic & Foreign Investment 促进国内外投资 PROMISING ECONOMIC OUTLOOK 经济展望 5

6 1: Geo - Strategic Location 2: Large Middle Class - Trained Workforce 3: Positive Economic Outlook 4: Huge Comparative Advantage 5: Attractive Investment Policies 6: Lucrative Investment Opportunities

STRENGTHS OF PAKISTAN 巴基斯坦的优势 7

 2 nd largest salt reserves 盐储存世界第二  3 rd largest copper reserves 铜储存世界第三  5 th largest gold reserves 金储存世界第五  5 th largest coal reserves 煤储存世界第五  6th largest producer of gas 天然气世界第六大生产国  Natural/mineral resources of estimated US$ 30 trillion. 矿资源约为 30 万亿美元 HUGE COMPARATIVE ADVANTAGE Mineral Resources 巨大的竞争优势 - 矿资源 8

Agriculture Resource Potential 潜在农业资源  World’s largest exporter of Cotton Yarn 世界最大棉纱出口国  3rd largest cotton consumer & exporter 世界第三大棉消费国和出口国  3rd largest exporter of Carpets and Rice 世界第三大地毯和稻米出口国  4 th largest milk producer 世界第四大牛奶生产国  4th largest producer of dates, mangoes 世界第四大红枣、芒果生产国  7th largest exporter of dried fruits 世界第七大干果出口国  8 th largest wheat producer 世界第八大小麦生产国  9th largest producer of Poultry 世界第九大家禽生产国  10th largest exporter of seafood 世界第十大海鲜出口国  11 th largest rice producer 世界第十一大稻米生产国 9

 1,046 km long coast line 1,046 千米长海岸线  262,800 sq. km arable land 262,800 平方公里耕地  199,900 km irrigable land 199,900 千米灌溉地  Largest canal system in the world 世界最大运河系统  105 trillion cubic feet of shale gas reserves 105 万亿立方英尺页岩气  175 billion tons total potential of Thar Coal is estimated, equivalent to 50 billion TOE (more than Saudi Arabia and Iran oil reserves) 预估约有 1750 亿吨煤矿，相当于 500 亿吨石油（多 于沙特和伊朗的石油储备）  340,000 MW potential for wind Energy 34 万兆瓦潜在风能  million MW potential for solar thermal & photovoltaic systems 万兆瓦潜在太阳能及光电系统  Over 60,000 MW hydel potential exists in northern areas of Pakistan 超过 6 万兆瓦潜在的水力发电在巴基斯坦北方地区 HUGE COMPARATIVE ADVANTAGE 巨大的竞争优势 10

INVESTMENT CLIMATE IN PAKISTAN 巴基斯坦投资环境 11

12 OUR FOCUS: BUSINESS FRIENDLY ENVIRONMENT 我们的关注点：友好的商业环境 u Ownership 所有者 Linkages 连接 Linkages 连接 Profits & Taxes 利润和税Taxes All sectors open to investments 所有行业都可投资 Up to 100% foreign ownership 可 100% 外资控股 Same treatment for local and foreign investments 当地和外国投资者享受同等待遇 Visa on arrival of 69 countries 为 69 个国家提供签证 Establishment of Branch & Liaison offices are allowed 允许建立分公司和子公司 Protection of FDI via acts of parliament (Acts 1976 & ‘92) 外商直接投资保护议会法案 1976&92 Bilateral investment protection agreements: 48 双边投资保护协议 Double Tax treaties: 52 双重税协议 No restriction on remitting capital, profits & dividends 资本汇回、利润及股息输 出无限制 25% tax relief on initial depreciation on plant, machinery & equipment costs 对工厂、机器和设备的初 期折旧进行 25% 税收减免 No sales / withholding tax on machinery import 对进口机械实行无 销售税 / 预提税 Linkages 连接 Investment Policy 投资政策 Protection 保护 Well developed Regulatory Framework facilitating the investors 健全的监管框架以帮助投资者Regulatory Framework 12

Source: SBP NET FDI – COUNTRY WISE (MILLION US$) 外商直接投资 - 按国家 （百万美元） 13

Source: SBP NET FDI – SECTOR WISE (MILLION US$) 14 外商直接投资 - 按行业 （百万美元）

PAKISTAN – CHINA RELATIONS 中巴关系 15

Wànsuì Bājīsītǎn Zhōngguó yǒuyì 中巴友誼萬歲

BILATERAL TRADE 中巴双边贸易 Source: SBP 17 Pakistan China trade crossed $ 15 billion in 年中巴贸易额达 150 亿美元 Target is to reach the figure of S20 billion till 年预计达 200 亿美元

18 MAJOR CHINESE COMPANIES 在巴基斯坦的中国公司代表  ZTE (Communication) 中兴通讯  CM Pak Ltd (Telecom) 巴基斯坦电信运营商  Huawei Technologies Co. Ltd (Communication) 华为科技有限公司  BGP (Pakistan) International (Petroleum) 中国石油东方地球物理  Metallurgical Construction Corporation of China (Petroleum) 中国冶金科工股份有限公司  China Harbor Engineering (Port & Shipping) 中国港湾工程  China Petroleum (Petroleum) 中国石油  Haier Pakistan Pvt Ltd (Electronics) 海尔  Pak-China Investment Company Pvt Ltd (Financial Business) 中巴投资  China State Construction Engineering Co. (Construction) 中国建筑工程  Sinohydro Corp (Power) 中国电建  Three Gorges (Power) 三峡电力  China Overseas Port Holding Company Limited (Port & Shipping) 中国海外港口控股公司

CHINA PAKISTAN ECONOMIC CORRIDOR 中巴经济走廊 19

Leadership of China is overseeing rapid strides in the Chinese economy. 在中国领导人监管下，中国经济高速发展 Help reinforce Asian and global economic growth. 有助于加强亚洲和全球经济的发展 Appreciate China's vision of 'Community of Shared Destiny', underpinned by "One Belt, One Road". 感谢中国倡议的 “ 一带一路 ” 下的 “ 命运共同体 ” Strong desire of the continents of Asia, Africa and Europe to cement their common bonds for a better future 亚欧非大陆的强烈愿望：加强合作，共创未来 20

Pakistan-China Economic Corridor (CPEC) is the critical connective plank of One Belt-One Road 中巴经济走廊是一带一路的关键连接点 CPEC Moved fast into the implementation phase in April 年 4 月，中巴经济走廊快速进入实施阶段 CPEC, a catalytic project combining the geo-strategic and geo- economic streams of our relationship. 中巴经济走廊，结合地理优势和经济优势，体现中巴友谊的连接 项目 CPEC will stimulate completion of the projects in the areas of transportation, infrastructure, energy and industrial development. 中巴经济走廊将推进交通、基础建设、能源及工业发展方面项目 的完成 Our determination to create win-win partnerships, which threaten none, but benefit all. 我们决心打造双赢合作伙伴关系，没有任何威胁，只有彼此受益 21

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 The initiative is a network of infrastructure, energy, industries & all development projects leading to socio-economic development of China, Pakistan & the whole region 该走廊覆盖基础建设、能源、产业及所有开发项目，促进中巴及 整个区域社会和经济的发展  CPEC will connect Gwadar to Chinese region, Xinjiang through highways, railways and pipelines 中巴经济走廊通过高铁、铁路连接瓜达尔和中国新疆地区  The corridor will run about 2,700 Kms and estimated construction cost is US$45 billion 中巴经济走廊全长约 2700 公里，预计总工程费将达到 450 亿美元  Project completion date is 2030 项目 2030 年竣工  Pipelines to transport oil & gas are planned 运输石油和天然气的管道在规划中 23

GWADAR 瓜达尔港  Connectivity - Pakistan – China – Middle East – Africa 连接 - 巴基斯坦 - 中国 - 中东 - 非洲  Mobility - Cut 12,000 Km route from Middle East to China 活动区域 - 中东至中国 1 万 2000 千米线路  Activity – Trade – Investment – Opportunities 活动 - 贸易 - 投资 - 机遇  Strategic location & deep sea port 战略地理位置和深海港口  Gateway for trade between China, the Middle East and Africa 中国、中东和非洲贸易入口  Oil from Middle East can be off loaded at Gwadar for transportation to China 来自中东的石油可从瓜达尔港卸货运至中国  China plans to build oil storage facilities and refinery at Gwadar port  中国计划在瓜达尔港建造石油储备设备并建造炼油厂 24

25  Pak-China Economic Corridor is the priority of Pakistan government and the manifestation of long standing cordial economic relations between Pakistan and China 中巴经济走廊是巴基斯坦政府的优先实施项目，也是中巴长期紧 密经济关系的见证  26 potential sites in all provinces identified from Khunjrab to Gwadar (2700 KM) 覆盖从红旗拉甫至瓜达尔（ 2700 公里）所有省的 26 个潜在投资 地  Each economic zone will target specific products and services, based on the availability of local raw material, workforce and other such factors 基于当地原材料、劳动力及其它因素，每个经济区旨在提供特定 产品和服务  Chinese investors can relocate their business in these SEZs 中国投资者可以在特别经济区内迁移业务位置 SPECIAL ECONOMIC ZONES ALONGSIDE CPEC 特别经济区在中巴经济走廊覆盖范围内

Financing of CPEC Projects 中巴经济长廊融资  Government 政府  Silk Road Fund: First Project of $ 1.65 billion investment 丝路基金：首次投资 16.5 亿美元  Karot Hydro Power Project in Pakistan with annual Power generation capacity of 3.2 billion kilo-watt hours 巴基斯坦卡洛特 (Karot) 水电站项目，年发电量 32 亿千瓦时  Asia Infrastructure and Investment Bank (AIIB) 亚洲基础设施投资银行  Joint Ventures of Pakistani and Chinese Banks 中巴合资银行  Industrial and Commercial Bank of China and Habib Bank of Pakistan Joint Financing to develop SEZs in Pakistan 中国工商银行和巴基斯坦哈比卜银行共同为巴基斯坦特别经济 区提供资金 26

SECTORS AVAILABLE FOR CHINESE INVESTORS 中国投资者可投资产业 27

Investment Attractive Sectors 极具吸引力的投资产业 Power Sector; Wind, Solar, Hydro, Shale gas 电力、风力、太阳能、水力、页岩气 Minerals Sector; Gemstones, Coal 矿产、宝石、煤矿 Oil and Gas Sector 石油及天然气 Agriculture and Food Processing 农业及食品加工 Textile Sector 纺织业 Construction Sector 建筑业 Cement Industry 水泥业 Iron and Steel 钢铁 28

29 POWER SECTOR: MOST PROMISING 电力产业：前途最有希望 u Incentives 激励 Linkages 连接 Linkages 连接 Protection 保护 20% ROE on local coal 地方煤炭 20% 净资产收益率 >17% ROE on all other 其它 17% 以上 的净资产收益率 Exemption from income, turnover, sales & withholding taxes 豁免所得 税，营业税，销售税及预提税 5% import duty 5% 进口关税 Guaranteed foreign exchange 外汇担保 Export credit 出口信贷 Equipment supply services 设备提 供服务 Thar Coal – 6600 MW 塔尔煤矿 兆 瓦 Indus Basin Cascade 印度河流域梯级 Transmission & Distribution 输配电 Privatization 私有化 Park, Port & Connectivity infrastructure 公园、停车场和基础设施 Protection against change in law, change in taxes & force majeure 对法律文书、税率变更及不 可抗力的保护 Protection against fuel prices & currency exchange 对燃料价格和汇率的保护 Tariff indexation against inflation 关税指数化抵制通货膨胀 Linkages 连接 Power Sector Projects 项目 Sovereign power purchase guaranteeguarantee 购电自主权保证

30  Construction sector enjoys 建筑业享有 a)Banks and DFIs extend credit facilities 银行及外商直接投资信贷 b)No custom duty on Import of Plant, Machinery and Equipment 工厂、机械、设备免征进口海关税 c)One window facility for Collection of levies like EOBI, Education Cess, Social Security, Professional Tax, etc 一个窗口征收雇员养老金制度税、教育税、社保及职业税等  Refineries are eligible to have 炼油厂享有 a)20 Years Income Tax Holiday 20 年所得税豁免 b)Waiver of 5% Workers Profit Participation Fund 5 ％的工人利润分配基金税豁免 c)Waiver of Development 0.5% of Value of Exports 出口总额的 0.5 ％ d)Sale of 90% share of pipeline specification gas to Government of Pakistan and 10% by E&P companies to any buyer. 出售 90 ％份额的管道燃气给巴基斯坦政府， 10% 通过 E&P 公司给到买家  Agricultural sector benefits 农业享有 a)Import of machinery on concessionary rates 进口机械的优惠利率 b)Subsidies at farm implements 农具津贴 INCENTIVES REGIME ACROSS SECTORS 跨领域激励

SPECIAL ECONOMIC ZONES IN PAKISTAN – 巴基斯坦特别经济区 —— A GOLDEN OPPORTUNITY FOR CHINESE INVESTORS 中国投资者的绝好机会 31

SPECIAL ECONOMIC ZONES 特别经济区  SEZs in Pakistan offers liberal fiscal incentives for Zone Developers & Zone Enterprises 巴基斯坦特别经济区为区内开发商和公司提供自由的财政激 励  Duty free import of plant, machinery and equipment and income tax holiday for 10 years 工厂、机械、设备免征 10 年进口税和所得税  Minimum land requirement is 50 acres with no maximum limit. All sectors open for investments 最小土地要求为 50 英亩，无最大限制，可投资所有行业  SEZs can be developed by Public or Private sector and through Public-Private Partnership 特别经济区可以公共、私人单独控股或公私合伙制  The SEZ Act 2012 provides regulatory frame work to encourage investors to develop SEZs and to protect their investments 2012 年特别经济区法案制定了监管框架，鼓励投资者的投资， 并保护投资者 32

INCENTIVE REGIME FOR SEZS & INDUSTRIAL ESTATES 特别经济区及行业激励政策  Gas, electricity and other utilities provided at the zero point of the Zones 经济区内提供天然气、电力及其他设施  Captive power generation in the Zones are encouraged 经济区内鼓励自备发电  Under Export Processing Zone Ordinance, concessional rate on import of machinery 根据出口加工区条例，对进口机械设备实行优惠价格  Well developed infrastructure 成熟的基础建设  EPZs & other industrial estates all over the country located at ideal business locations 出口加工区及其他工业区位于国家理想的商务场所 33

SOUTH KAZAKHSTAN CHINA KYRGYZSTAN UZBEKISTAN TURKMANISTAN IRAN AFGHANISTAN GULF STATES INDIA TAJIKISTAN AZERBAIJAN NEPAL BHUTAN BANGLADESH MYANMAR (BURMA) PAKISTAN DISPUTED TERRITORY ARABIAN SEA XIZANG (TIBET) CASA-1000 TAPI 四国天 然气管道 China Pakistan Economic Corridor 中巴经济走廊 Iran- Pakistan Gas Pipeline 伊 朗巴基斯坦天 然气管道 Booming China 崛起 的中国 Capital & Energy Rich Middle East 资金及能源 - 中东 Land locked Central Asia 中亚 Progressing South Asia 发展中的南亚 34

Invite the Chinese Hangzhou enterprises to join the projects of infrastructure, communications and energy in Pakistan 邀请中国杭州企业参加巴基斯坦基础建设、交通及能源项目 Pakistan is well placed and keen to utilize the opportunities of a knowledge based global society through greater connectivity 巴基斯坦地处有利位置，通过全球社会的紧密连接充分利用 分享知识所带来的机会 Believe that shared prosperity is the real prosperity 共享繁荣才是真正的繁荣 35

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