DISCLAIMER

The purpose and scope of this Pre Feasibility Study is to introduce the Project and
provide a general idea and information on the said Project including its marketing,
technical, locational and financial aspects. All the information included in this PreFeasibility is based on data/information gathered from various secondary and primary
sources and is based on certain assumptions. Although, due care and diligence has been
taken in compiling this document, the contained information may var y due to any change
in the environment.

The Planning & Development Division, Government of Pakistan, nor National

Management Consultants (Pvt.) Limited who have prepared this Pre-Feasibility assume
any liability for any financial or other loss resulting from this Study.

The prospective user of this document is encouraged to carry out his/her own due
diligence and gather any information he/she considers necessary for making an informed
decision

TABLE OF CONTENTS
ACRONYMS.....................................................................................................................iii
EXECUTIVE SUMMARY..............................................................................................iv
CHAPTER 1 - INTRODUCTION...................................................................................1
CHAPTER 2 NEED ASSESSMENT............................................................................2
2.1
2.2
2.3
2.4
2.5
2.6

INFLUENCING FACTORS.....................................................................................................................2
EXISTING HEALTH FACILITIES IN PAKISTAN...........................................................................3
NEED TO SET UP TERTIARY HOSPITAL IN PAKISTAN ..........................................................4
MAJOR FINDINGS.................................................................................................................................10
MARKETING IMPERATIVES/ ANALYSIS ....................................................................................11
CONCLUSION.........................................................................................................................................12

CHAPTER 3 TECHNICAL EVALUATION............................................................13

3.1
3.2
3.3
3.4
3.5
3.6
3.7

LOCATION...............................................................................................................................................13
FACILITIES AND PHASING ...............................................................................................................14
FLOW PATTERN ....................................................................................................................................23
INFRA STRUCTURE.............................................................................................................................26
SUPPORT SERVICES............................................................................................................................27
CAPITAL ITEMS....................................................................................................................................28
IMPLEMENTATION PROGRAMME................................................................................................29

CHAPTER 4 GOVERNANCE AND MANAGEMENT.........................................30

4.1
4.2

GOVERNANCE.......................................................................................................................................30
MANPOWER............................................................................................................................................32

CHAPTER 5 FINANCIAL EVALUATION..............................................................33

5.1
5.2
5.3
5.4
5.5
5.6

CAPITAL COST .....................................................................................................................................33

OPERATING RESULTS .......................................................................................................................33
CASH FLOW............................................................................................................................................34
PAYBACK PERIOD ...............................................................................................................................35
IRR ..............................................................................................................................................................35
ROE.............................................................................................................................................................35

LIST OF FIGURES
FIGURE 1 OPERATIONAL FLOW IN OPD.......................................................................................................16
FIGURE 2 PROJECT COMPLETION SCHEDULE ..........................................................................................29
FIGURE 3 MANAGEMENT STRUCTURE........................................................................................................31
FIGURE 4 DETAIL OF MANPOWER ..................................................................................................................32

LIST OF TABLES
TABLE 1 SOCIAL INDICATORS...........................................................................................................................2
TABLE 2 HEALTH FACILITIES ............................................................................................................................3
TABLE 3 PROPOSED DISTRIBUTION & BEDS.............................................................................................14
TABLE 4 PROPOSED PHASING AND FACILITIES ......................................................................................15

TABLE 5 PROJECTED CAPITAL COST ............................................................................................................33

TABLE 6 PROJECTED PROFIT & LOSS ACCOUNT.....................................................................................34
TABLE 7 PROJECTED CASH FLOWS ...............................................................................................................34

ANNEXURE- 1

PAKISTAN A PROFILE

ANNEXURE- 2

PROFILES OF MAJOR CITIES

ii

ACRONYMS
BP

Blood Pressure

CCH

Creek City Hospitalat DHA, Karachi

CDG

City District Government

DHA

Defence Housing Authority

ECG

Electrocardiogram

ENT

Ear Nose and Throat

GoP

Government of Pakistan

GP

General Practitioner

ICU

Intensive Care Unit

IPD

In-Patient Dept.

IV

Intravenous

M.O.

Medical Officer

MR

Medical Record

NICU

Neonatal Intensive Care Unit

NMC

National Management Consultants (Pvt.) Ltd.

OPD

Out Patient Dept.

OT

Operation Theater

P&DD

Planning and Development Division, GoP

P ICU

Pediatric Intensive Care Unit

SPC

Special Purpose Company

TH

Tertiary Hospital

iii

EXECUTIVE SUMMARY
Pakistans health indicators have shown little improvement over time. Although
the government has increased allocations for the health sector in the last few
years, a lot more needs to be done.

A number of private clinics and hospitals have been established to augment the
public sector. The government is now planning to invite the private sector in a big
way to set up all types of health related facilities including Tertiary Hospitals.
One such facility is presently coming up in DHA Karachi on a private-public
partnership basis. This model can be replicated elsewhere in the country as well.

In order to determine various parameters of such hospitals, the consultants

conducted a selected survey around DHA, Karachi with regard to Area profile,
General Perception, Hospital/ Clinics, Consultants views, Prevailing illnesses,
Pathological and Radiology Labs, Prevailing charges etc.. The details of the
survey results are given in Chapter 2 and it is assumed that similar conditions
prevail in other selected localities of Lahore, Faisalabad , Islamabad, Multan and
Quetta.

The major findings of the survey reveal that:

Population is literate (65% literacy rate). People visit doctors, if needed

Income levels are higher than other areas

Environmental conditions are generally good

Major illnesses are viral, bacterial, hypertension and seasonal

Most of the population belongs to middle class and affluent class generally go
abroad for major treatment/ surgeries spending huge amount of foreign
exchange.

iv

Existing hospitals/ clinics have adequate facilitates with Labs. However

everywhere, there is long waiting time because of shortage of beds, OTs and
specialists.

It can fairly be assumed that the above findings may be similar to the conditions
in other large cities of the country. In view of these findings it is concluded that
such tertiary hospitals may be set up in all major cities of Pakistan.

Tertiary Hospitals (THs) are proposed to be set up on 20 acres of land in all major
cities of Pakistan e.g. Lahore, Faisalabad, Islamabad, Multan, Peshawar, and
Quetta under the aegis of DHA at Lahore, DHA Islamabad and City District
Governments in other cities.

Beside hospital facilities, TH Complex will have Doctors Accommodation,

Serviced Apartments, Health and Wellness centers and medical Super Market.

TH will be ground plus five storeyed building, having 300 plus beds in the first
phase. All the major hospital facilities will be located on the ground floor.
However, provision should be kept to even double the capacity in future
depending on requirement.

The facilities of TH include OPD, Wards, Neuro and Cardiac Surgery,

Rehabilitation Centre, Dentistry, ENT, Ophthalmology, Neurology, Cardiology,
etc. beside support facilities e.g. laundry, kitchen, clinics for specialists solid and
liquid waste management, Administration, stores, staff accommodation etc..
Most of the facilities will be set up in 1st Phase (2 years). The remaining facilities
will be set up in next 3 years. The details have been provided in Chapter 3.

A detailed flow pattern of patient right from his reception, waiting area,
registration to consulting and examination room has been discussed in Chapter 3
as well.

The Infra-Structure facilities of TH e.g. water, power, telecommunication, gas air

conditioning, sewage disposal have been discussed in Chapter 3. The details of
capital items e.g. generator, medical equipment, office equipment, furniture,
ambulance and other transport etc. have been given in the same Chapter.

The hospital is estimated to be completed in three to five years as per schedule

given.

TH is proposed to be operated by a Special Purpose Company (SPC) jointly

owned by carefully selected private parry/ Group and concerned civic agencies
such as in case of Lahore, DHA; Islamabad, DHA; Faisalabad, FDA or CDGs and
so on. The details are given in Chapter 4.

The sharing of equity between the private party and civic body may be 75% to
25% approximately. The private party will manage the TH preferably in
collaboration with selected foreign specialists to ensure delivery of top quality
service.

TH will be run by the Board of Directors of the Special Purpose Company.

Including the Chairman, and a Chief Executive Officer. The total manpower of
the TH will be 194.

TH will be set up with total capital investment of US$ 40 million.

vi

The major financial indicators are as under:

S. No.
1.
2.
3.
4.
5.
6.

Items
Capacity Utilization (%)
Projected Revenue US$ million
Operating Expenses
US$ million
Net Profit US$ million
R.o.E after tax%
I.R.R %

1-yr.
45
11.6

2-yr.
55
14.0

5-yr.
85
23.0

8.4

9.6

13.0

2.24
11
-

5.43
16
-

22.00
31
19.3

The project will pay back all its investment in 3.2 years.

vii

CHAPTER 1
INTRODUCTION
Pakistans health indicators have shown little improvement over time. Although
the government has been increasing budgetary allocation for the health sector yet
it is having little effect due to increasing population on one hand and falling
health standards on the other.

The increasing middle income and upper income classes can afford to pay for
health services at market rates. The success of many private sector hospitals all
across the Country are a testimony to this. However, most of the private hospitals
only provide health care facilities in a few areas, leaving a number of areas either
partially covered or not covered at all. In view of above, Planning Division
Government of Pakistan is endeavoring to bring in private investment for setting
up Tertiary Hospitals in Major Cities of Pakistan.

In the recent past the DHA Karachi has embarked on setting up Creek City Hospital
in partnership with local and foreign investors. The foreign investors from UK
besides investment will also manage the proposed hospital. DHA has contributed its
share of capital for this project in the form of 16 acres of prime land. The
establishment of this hospital will greatly help the residents of DHA, Clifton and
other areas of the City.

Similar type of private-public partnerships may be established and the above model
replicated to establish world class Tertiary Hospitals in Lahore, Faisalabad,
Islamabad, Multan, Peshawar and Quetta.

It is proposed that the Tertiary hospitals proposed for all the cities mentioned above
may initially have 300 beds with provision for doubling them in future depending on
market requirements.

CHAPTER 2
NEED ASSESSMENT
2.1

INFLUENCING FACTORS
Several factors influence the establishment of a hospital in a locality. Although it
is true that in a developing country like Pakistan, where the health care
infrastructure is far below the international standard the decision to set up a new
hospital or any number of hospitals in a city, becomes easy and automatic. Still in
order to ensure continued financial support for building, maintenance and
operation of a hospital, certain important parameters are to be determined first.

At the macro level, worsening health condition in Pakistan is reflected in the very
high rate of mortality, child death and low life expectancy in comparison to
regional developing and neighboring countries as given in the table below:

TABLE - 1
SOCIAL INDICATORS
Infant
Mortality
Country
Rate per 1000
Year 2002
Pakistan
64
82
India
63
67
Sri Lanka
74
16
Bangladesh
62
52
Nepal
60
60
China
71
30
Bhutan
63
54
Thailand
69
24
Philippines
70
29
Malaysia
73
8
Indonesia
67
34
Source: World Development Report 2003
Life
Expectancy
Year 2002

Mortality
Rate under 5
per 1000
Year 2002
105
93
19
77
91
39
92
28
38
8
45

Population
Avg. Annual
(%) Growth
Year 2002
2.2
1.7
1.4
1.7
2.2
0.8
2.9
0.7
2.2
2.3
1.3

The human development indicators for Pakistan particularly health are still low
despite the fact that some progress has been made in recent years. The inter-

country comparison of health indicators given in Table-1 shows that the national
health status is characterized by high population growth (2.2%), low life
expectancy (64.0/years), high infant mortality rate (82/1000) and child mortality
under 5 years (105/1000). This is due to the shortage of health care personnel,
uneven distribution of health facilities in the country, lack of medicines, regional
disparities in the health care services and scarcity of administration of healthcare
facilities. This calls for further expansion in health facilities all over the country.

2.2

EXISTING HEALTH FACILITIES IN PAKISTAN

Medical facilities in the country have improved significantly over the years.
However, there still remains a very large gap between the availability and
requirements. At present, there are 108,062 registered doctors, 5,530 dentists and
46,331 nurses in the country which comes to a population doctor ratio of 1,404
persons per doctor 27,414 persons per dentist and the availability of one nurse for
3,296 persons. There are about 906 hospitals, 4,554 Dispensaries, 5,290 Basic
Health Units and 552 Rural Health Centres. The availability of hospital beds in all
medical facilities has been estimated at 98,684 which comes to population bed
ratio of 1,536 persons per bed. USA Public Health Services regards a general
average of 200 person per bed as adequate. Thus Pakistan is far behind this ratio.

TABLE - 2
HEALTH FACILITIES

Health Manpower

Upto 2001-02

Registered doctors
Registered dentists
Registered nurses
Population per Doctor
Population per Dentist
Population per Nurse
Source: Economic Survey 2003-04

96,248
4,622
40,114
1,516
31,579
3639

Upto 2002-03

Upto 2003-04

101,635
5,068
44,520
1,466
29,405
3,347

108,062
5,530
46,331
1,404
27,414
3,296

2.3

NEED TO SET UP TERTIARY HOSPITALS IN PAKISTAN

In view of the appalling conditions of health care in Pakistan, GoP has launched
various health schemes to better the lot of the people. Yet public allocation in
health sector is not even 01% of the GNP. It would, therefore, be desirable to
facilitate private sector to invest in setting up large tertiary Hospitals in almost all
the major cities of Pakistan e.g. Karachi, Lahore, Faisalabad, Islamabad, Multan,
Peshawar, Quetta etc. Profiles of these cities are given in Annexure 2.

In order to determine various parameters of such Hospitals, a selected survey was

conducted around DHA in Karachi, with regard to the following:

Area Profile

General perceptions

Hospitals and Clinics

Consultants view

Prevailing Illnesses

Pathalogical and Radiology Labs

Prevailing Charges.

It is presumed that the conditions with regard to the above areas would be similar
in all major cities of Pakistan e.g. Lahore, Islamabad, Faisalabad, Multan,
Peshawer and Quetta etc. and findings of this survey will, more o less, be the
same for each of these cities.

2.3.1

AREA PROFILE

EDUCATIONAL LEVEL
According to the recent census, the literacy ratio of the area is 67.5%
and female 63%)

(male 72%

Out of the total educated persons in the area, 23% are at primary level, 23% at
middle level, 30% at matric and intermediate level and 11% at graduates and post
graduate level.

The education profile of the affluent areas of the cities mentioned above will be
similar.
OCCUPATION
The economically active population in the area is 28% of its total population 36%
of the population is aged 10 and above. The children below 10 are 24% while
11% are students and 6% all others.

Among the employed population about 44% are privately employed, followed by
27% self-employed and 17% Government employees.

The mix of occupations may be different in each city.

INCOME LEVELS
Of all the earning groups, about 15% earn upto Rs. 7,000 per month. About 30%
of the residents earn between Rs. 7,000 Rs. 15,000 per month, 40% between Rs.
15,000 Rs. 50,000 and 15% more than Rs. 50,000.

There maybe similarities to this in the larger industrialized and effluent cities such
as Lahore, Faisalabad, Islamabad, Multan etc. However, the income maybe lower
in other cities.
GENERAL ENVIRONMENTAL CONDITIONS
People are generally conscious of hygiene and cleanliness in the residential areas.
However, in many commercial areas the conditions are below environmental
standards in terms of land, air and water. Availability of potable water is often
problematic in the area with regard to its source, quality and costs.

This may be true in all other cities mentioned above.

2.3.2

GENERAL PRACTITIONERS/ CLINICS

From the survey of clinics, it was found that the following diseases are commonly
prevalent in the areas, fees charged, medicines prescribed, investigation advised
etc., were identified as under:

PREVALENT DISEASES
TOTAL NO. OF PATIENTS
SEEN IN A DAY
100 150
50 - 100
50 - 100
Below 50
Below 50
50 - 100
100- 150
100 - 150
50 -100
50 -100
100 - 150
Below 50
Below 50
Below 50
Below 50
Below 50

NAME OF DISEASE
Viral Fever
Malaria Fever
Common Pain
Hepatitis (A+B+C)
Jaundice
Vaginal Infection
Worms
Diarrhea
Hypertension
Common Skin diseases
Indigestion
Pneumonia
Ulcers
Tuberculoses
Typhoid
Diabetes

SERVICES AVAILABLE AT CLINICS

The services generally available at clinics are following:

Stitches, Enema, Dressing, RBS by Glucometer, Stomach Wash, Stomach,

BP examination, Cold Sponging, Injection IV, etc.

FEES CHARGED
The fees charged ranges from Rs. 100 to 300 for consultation and medication by
GPs.
The cost of other services varies from Rs. 50 to 100

MEDICINES PRESCRIBED
GPs generally prescribe common antibiotics, antipyretics, antidiarrhoeals,
bronchodialators, tranquilisers, Skin Ointments, IV fluids, and pain killers for
various diseases. Lab investigations are also advised where required.

SERVICES NOT AVAILABLE

Services which were not available at the clinics run by the GPs include:

Oxygen inhalation, Steam inhalation, Nebulization, Circumcision, Blood

Transfusion etc.

The findings of the above survey of GPs/ Clinic will be quite applicable to other
large cities mentioned above.

2.3.3

HOSPITALS
There are few hospitals in the area with good facilities and some top class
consultants/specialists on their panels. Almost all these hospitals have private
wards and general wards The charges range from Rs. 500 Rs. 1000 for general,
Rs. 1500 Rs. 2500 for semi private and Rs. 2500- 4000 for private rooms.

The hospitals possess almost all the facilities to treat various diseases and
undertake surgery, if needed. Some of the hospitals possess facilities like ICU,
Casualty, NICU, PICU, Ventilator, Cardiac monitors etc. Angiography and
Angioplasty are also done in some of the hospitals.

The services of specialists consultants are also available in most of the hospitals
whose charges range from Rs.500 1000 per patient.

The number of patients visiting the hospitals range 200 (small) 300 (large) per
hospital.

Some hospitals provide high quality patient care in broad range of secondary and
tertiary care services, supported by personnel staff and facilities. Care is available
to all patients in need. Consulting clinics in hospitals have following specialties:
MEDICINE
-

Allergy
Cardiology
Dermatology
Diabeties
Gastroenterology

Infectious diseases
Neurology
Pulmonary
Obstetrics and Gynecology

Neurosurgery
Orthopedics
Pediatric
Vascular

SURGERY
-

Cardiology
Dentistry
ENT
General Surgery
Lithotripsy

The hospitals have their own diagnostic services both in radiology and pathology.
They also have 24 hours-run pharmacies.

The situation of hospitals may be different in each city depending on the planned
location of the hospital.

2.3.4 DIAGNOSTIC FACILITIES

RADIOLOGY
The major Radiological labs visited possess adequate radiology facilities e.g. Xrays, ultrasound, MRI, CT Scanning etc. Some of the tests include:

Chest (routine)

Cerebral angiogram

Abdomen

Biopsy

Cervical spine

Endoscopies

Skull

Etc

Barium meal

Ultrasound tests include:

-

Pregnancy

Abdomen

Biopsy (ultrasound guided)

Etc

Availability of MRI and CT Scan facilities may not be available in some of the
cities mentioned above, which brings out an urgent need to establish them.
CLINICAL LABORATORY
The hospitals have either their own facilities or collection points for various
clinical tests e.g:

Blood Transfusion (including cross matching)

Chemistry (all types of blood tests, liquids/fragile, cholesterol, closures at

fasting, triglycerides, pregnancy serum etc.

Hematology (Hemoglobin, platelets, HIV, malaria, Bone marrow, Rh factor

etc)

2.3.5

Histopathology (small bios, large bios etc)

Microbiology (blood culture, urine D/R, stool D/R, fungus culture etc)

Cardio pulmonary tests (Ambulatory B.P. momentary, ECG, ECO, ETT etc)

PHARMACIES
The more frequently sold medicines are:

Antipyretics, Analgesics, Antibiotics, Antimalarials, Antihypertensive, Medicines

for

ulcers,

Psychogenic

Drugs,

Antidiarrhoeal

drugs,

Antiheminths,

Antihyperglycemics, Skin Ointments etc.

This is also confirmed by Pakistan Pharmaceutical Manufacturer Association,

Pharma Guide and the IMS for Pakistan.

2.4

MAJOR FINDINGS
Following are the major findings of the survey carried out in respect of existing
general conditions, clinics, hospitals, consultants,

pharmacies, diagnostic

facilities, etc. in Karachis DHA and Clifton area which would be quite similar to
DHA Lahore, Islamabad, Canal Colony Faisalabad, Multan Cant, Hayatabad and
Cantt Peshawar, etc.

Generally the population in the areas is literate (65% literacy rate) and aware
of their health care needs. They visit the doctors, if needed.

The income levels in the area are much higher as compared to other areas of
Karachi.

The environmental conditions of the area are better than most other localities.

The major prevailing illnesses are viral and bacterial diseases/fevers,

hypertension, stomach ailments, skin diseases etc.

The cross-section of the society comprises middle income group, Government

or privately employed (44%), self-employed (27%). The privately employed
population includes labor force (27%). Out of these categories the labor force
for their health care is covered by group insurance and social security, the
others by their employers under various agreed terms and condition of their
employment.

The

affluent

class

generally

go

abroad

for

major

treatment/surgeries and spend huge amount of foreign exchange.

Existing hospitals have good facilities both in medicine and surgery. They
possess specialist clinics supported by operation theatres and diagnostics

10

facilities both in radiology and pathology. The consultancy charges vary from
Rs.500 to Rs.1000 per patient.

The GPs and small clinics, however, charge much less. They do not have
elaborate operation and testing facilities.

All hospitals are crowded with long queues

There is long waiting time for admission in the hospitals on account of acute
shortage of:

2.5

Beds

Operation room facilities

Specialists doctors / surgeons

MARKETING IMPERATIVES/ ANALYSIS

From the above findings of the survey, it can be seen that the existing health
care facilities in the area, although adequate, are not affordable to the
population in general.

The residents of the area have to go out of their localities for routine medical
and surgical facilities.

Workers in private sector, who are covered by social security (ss), get their
treatment by the SS hospitals, whose services are below average.

Self employed, like shopkeepers, traders etc., earning a middle level income
have to pay for their familys medical treatment from their savings, ending up
spending all their savings.

Government employees have to avail whatever meager services are offered by

government run hospitals.

There is long wait for treatment both in medicine, surgery and hospitalization.

11

2.6

CONCLUSION
In view of the above findings and marketing analysis, it is imperative to set up
Tertiary Hospitals in each of the above cities to provide the following
conveniences to the patients.

Reasonable cost for treatment (detailed competitive costs and charges for all
hospital facilities have been discussed in Chapter 4 ahead)

Reduction in waiting time.

Nearness to residences, thus eliminating unnecessary travelling.

Assistance in providing specialist services, to be made available in the

Hospital Complex.

It is also concluded that such Tertiary Hospitals should be set up in all major
Cities of Pakistan.

12

CHAPTER 3
TECHNICAL EVALUATION
3.1

LOCATION
Tertiary Hospital (TH) should be located in all major cities of Pakistan e.g.
Karachi, Lahore, Faisalabad, Islamabad, Multan, Peshawar, and Quetta. The TH
should be built under the aegis of DHA at Lahore and Islamabad City district
Governments in other cities. One such hospital is already under implementation at
DHA (Phase VIII) Karachi under the name of Creek City Hospital (CCH).

THs alongwith its support facilities will form a Complex as under:

TH

Doctors Accommodation

Service Apartments

Health and Wellness Centre

Medical Super Market.

The TH Complex may be spread over an area of 20 acres with built up area of the
TH as 30,000 sq. meter consisting of ground floor initially with provision to go
upto 5th floor. All the hospital facilities will be located on ground floor along
with private wards.

13

3.2

FACILITIES AND PHASING

THs will be a 300 beds hospital with phasing as per the following table:

TABLE - 3
PROPOSED DISTRIBUTION & BEDS
Timing

Built up Area of
Hospital
BEDS
- Adult
- Maternity
- Pedriatics
- Others
Total

Phase 1
Yr-1 & Yr-2

Phase 2
Yr-3

Phase 3
Yr-4

Phase 4
Yr-5

Total

18,000 m2

5,000 m2

5,000 m2

2,000 m2

30,000 m2

40
20
20
20
100

70
20
90

90
90

20

200
20
40
40
300

Detailed breakdown of all the TH facilities and their phases is given below in
Table 4.

14

TABLE - 4
PROPOSED PHASING AND FACILITIES

?
?
?
?
?
?
?

PHASE-1
YR-1 & YR-2
OPD
? Mortuary
Diagnostic Center
? Laundry
MRI, CT Scan.
? Kitchen/Dining Facility
Nuclear Medicine
? Stores
Radiography.
? House Keeping Office
Pathology Lab.
? Maintenance Workshop
Endescopy Suite
? Power Generation
? Waste Management
Dialysis Suite
Physio Therapy
Facility
? Hospital Pharmacy
Lithotropsy
Opedriatics
? Health & Wellness
Facilities, Exec. Screening
Blood Bank
? Staff Accommodation
OT suites & ICUs
Wards (106 Beds)
? Doctors Accommodation
High dependency Unit ? Serviced Apartments
Admin. Block
? Medical Super Market

?
?
?
?
-

FACILITIES
PHASE-2
YR-3
Wards (92 beds)
Out-Patient
Consultancy Rooms &
Facilities
Augmentation of
Support Services
Other Specializations
Cardiology
Angiography
Angioplasty
Heart bypass surgery
Dermatology
Plastic Surgery
Neurology
Ophthalmology
ENT
Dentistry

PHASE-3
YR-4
? Additional Wards (96
beds)
? Addition of further
specializations and labs.

?
?
?
?
?
?

PHASE-4
YR-5
Wards (30 beds)
Neuro Surgery
Cardiac Surgery
ICUs (Add.)
Catheterization Lab.
Rehabilitation
Centre

3.2.1

OUT PATIENT DEPARTMENT

Some major facilities have been described below. The operational flow in OPD is
illustrated as under:
FIGURE - 1
OPERATIONAL FLOW IN OPD
Registration OPD
MED Records

Reception &
Enquiry Waiting

Waitin

C L

Admission
Office

X
Ray
Hospital
inpatient

Lab

Other
Investigations

Inj Room
Dressing
Dispensary

The OPD is an integral part of the hospital organization, collaborating with the inpatient department (IPD) in the diagnosis and treatment of diseases. Therefore, all
the diagnostic and therapeutic facilities of TH will be used in common and similar
will be the situation in case of medical staff. OPD will have separate entrance and
direct communication with I.PD. It needs to be situated on ground floor.

There will be General O.P.D as well as casualty / emergency. Both types of

medical cases can be dealt with in General O.P.D but in TH, the provision for a
separate casualty / emergency department would be considered where severe &
acute emergency cases along with supportive emergency cases would be dealt by
senior R.M.O / Doctor on duty. But initially for a short period of time, the doctor
on duty in O.P.D should be able to deal with all medical cases. The doctor on duty
would be senior and competent enough to diagnose and treat the patients.

16

Before coming to the General duty doctor, the patient will be registered. His
particulars, complaint & past history will be briefly noted down at the Reception /
Enquiry / Registration Counter / Front Office. The patient will be given a small
card / ticket mentioning on it the Medical Record (M.R) Number and his /her
necessary particulars as well as a large file or card in a protective cover on which
the doctor on duty would prescribe the treatment and at the same time would feed
the information in computer.

It order to facilitate the work in OPD, the component units will be carefully
planned and logically arranged as under:

Waiting Room

Medical Staff Room

Admitting Office

Supervisors Office

Appointment Office

Record Office

Head of OPD office

Dressing Rooms

TH will follow the minimum standard organization which has been found
practical by the American College of Surgeons. Briefly it is given under:

ADMINISTRATION:

Medical Services for OPD shall be organized under

supervision and direction of qualified administrative officials of the TH.

FACILITIES: Adequate and properly arranged facilities and accommodation

shall be provided for patients, medical staff etc., in addition to necessary
equipment.

PERSONNEL: OPD shall be provided with sufficient para-medicinal staff

and other personnel.

CONFERENCES: Regular review and conferences will be held to analyze

the clinical work of OPD.

17

RECORDS: Complete records of OPD patients shall be maintained both in

hard and in soft form.

SERVICES: Clinical laboratories, x-ray and other diagnostic and therapeutic

services of the TH shall be available to OPD patients.

CLINICS:

Adequate number of clinics will be provided in OPD with

sufficient space, equipment and facilities as well as the required personnel

which includes medical, nursing, technical and clinical staff.

Following clinics are recommended to be housed in OPD:

3.2.2

Medicine (Internal and Family)

Cardiology

Gynecology

Pediatrics

Surgery

Dental

Ophthalmology

Orthopedics

ENT

Neurology

Dermatology

Vascular

PATHOLOGICAL LABORATORY
The Pathology laboratory will be located at such a place that it will be easily
accessible to all clinical departments. Preferably also on the ground floor
Laboratory service is extensively used by outpatients and, therefore should also be
easily accessible to the outpatients. Separate entrance for the outpatient and
inpatient areas will be desirable.

The TH laboratory will consist of clinical pathology, microbiology, biochemistry,

hematology, and histopathology etc. sections. To serve these sections, associated
service areas will be required.

18

For patients sent to the laboratory, provision for waiting rooms and toilet facilities
have to be catered for. Staff requirements such as common room, changing room
and toilet facilities will also be part of laboratory. Administrative areas will
consist of specimen receiving counters separately for outpatients and inpatients,
result-distribution counters and office space for pathologists.

3.2.3

RADIOLOGY LABORATORY
State-of-the-art radiology lab will be set-up as an important component of the
Diagnostic Center.

Radiology Lab is used by outpatients, inpatients and emergency cases. Therefore,

its location has to be taken into consideration ready for accessibility from all
wards, OPD and casualty department.

All radiology Labs have potential radiation hazards. The design of the
radiography room and directional placement of x-ray machines in them have to be
done to reduce scattered radiation to the minimum and should be according to
existing regulations against radiation.

Both MRI and CT scan facilities will be available for the outpatients as well as for
the in patients of the TH

In Radiology Department the facility of ultrasonography will also be provided to

patients for which a separate room along with machine and other necessary
accessories will be established.

3.2.4

NEONATAL INTENSIVE CARE UNIT (N.I.C.U) AND PEDIATRIC

INTENSIVE CARE UNIT (P.I.C.U.)
This department will have incubators for critically ill / premature babies and as
well as phototherapy arrangement and other facilities for new born babies. This
unit will be equipped with oxygen, baby carts, crash carts, infant warmer and

19

baby resuscitation trolley for all emergencies. This area can be used as Nursery
for a short period of time just after the delivery of baby or otherwise baby may be
kept with mother.

There will be a P.I.C.U for critically ill children. For this purpose glass partition
can be arranged in the N.I.C.U room as the R.M.O / consultant would see through
the glass and would be able to control both the units.

The facility of air-conditioning will be provided as it is mandatory.

3.2.5

OPERATING THEATRE (OT) & BLOOD BANK

A properly functioning Blood Bank is a pre-requisite for both the operation
theatres as well as Emergency section of OPD. The TH will have a world class
Blood Bank having requisite facilities for blood transfusion, screening, extraction
of different elements from the blood, storage, etc.

OT is the heart of the hospital. It is capital and skill intensive. In order to achieve
maximum utilization, OT will operate on shift basis and under efficient
organization.

OT requires its own sub-organization, consulting and supervisory services,

workrooms, sterilizing room, dressing rooms for surgeons and nurses, scrub
rooms, operating rooms for specialties and general use.
The organization of OT includes the following:

Administration

Consultation

Supervisor

Records

Coordination

Tests

Nursing

Conferences

Preoperative study

Post Operative care

20

3.2.6

LABOUR ROOM (DELIVERY SUITE)

The most important facility of Labour Rooms (Delivery Suite) provided with all
sort of Labour room facilities i.e. supply of oxygen, good lighting arrangement,
air-conditioning, baby resuscitation trolley, baby corts, instruments, gynae couch
etc.. This important unit will work for 24 hours equipped with senior and
experienced female staff and female doctors.

There would be recovery rooms for mothers after delivery. This area can also be
used as baby nursery for a short period of time.

3.2.7

IN-PATIENTS DEPARTMENT (I.P.D)

The nursing unit, also called the ward is a grouping of accommodation for the
patients with services facilities which enable a team of nurses to care for
inpatients under the best possible conditions. Also included under one roof are
patient beds, the nursing station, the service area, storage area, work area and
sanitary area.

Total Number of Beds. 100 will be located at first floor and ground floor. The
remaining 200 beds will be setup on the 2nd and 3rd floors, if needed.
The ward will have the following support facilities:

NURSING STATIONS
The nurses station is the nerve centre of the ward unit. Its position will be such
that the nurse can keep watch on as many patients as possible so it could be
achieved by the provision of transparent glass to see through it. Paging system
and intercommunication system panel will also be installed at a convenient spot in
the nurses station.

21

DOCTORS DUTY ROOMS

Separate rooms for use of resident doctors i.e.. Male and Female are required in a
ward unit. It can also serve as a clinical conference room. It will have an
examination couch, desk, chairs and a wash basin.

SANITARY FACILITIES
Toilet and bathrooms need to be provided in single bed (Private Room) and twobed rooms (Semi Private) as well as in wards.

WASH BASINS
The nature of work in hospitals demands a high standard of hand cleanliness.
Therefore, easily accessible wash basins have to be provided at appropriate
places.

DIRTY UTILITY ROOM AND SAFAI WORKERS CLOSET

The room required for emptying and cleaning of bedpans, urinals, and sputum
mugs and for temporary storage of stool and urine specimens is termed the dirty
utility room. It will be fitted with a slop sink or bedpan washer for emptying and
cleaning of bedpans and fly proof cupboards for storage of stool / urine
specimens.

TREATMENT AND DRESSING ROOMS

These are the rooms where dressings, minor treatment including special
examinations, lumber puncture, intravenous injections administrations or other
treatment and procedures which cannot be carried out in the patients beds are
performed.

WARD PANTRY
Although the main meals will come from the central kitchen, it is desirable to
have facilities for reception, warming and distribution of meals on a ward basis.

22

CLEAN UTILITY ROOMS

A room is required for storage and preparation of materials, equipment and
supplies such as infusion fluids and sets, sterile packs from CSSD, dressing drums
and for setting up of treatment trolleys and trays.

3.2.8

ADMINISTRATION

AND

FINANCE

AND

ACCOUNTS

DEPARTMENTS
In addition to the above medical facilities, organization will also have
Administration and Finance and Accounts Departments to look after the activities
related to these departments.

3.3

FLOW PATTERN
On outpatient visits, patient flow usually progresses from enquiry and registration
to waiting, then to examination rooms, and thereafter to investigation facilities,
and lastly the pharmacy.

The area required for the outpatient department should be adequate to

accommodate the reception and waiting hall, waiting rooms, registration and
outpatient medical records, clinics, toilet facilities, and the injection and dressing
room, pharmacy, minor OT and circulation routes, scales of space for outpatient
department can hardly be standasized in view of the varied requirements and
range of services provided. For planning premises, half, square foot for each
expected annual outpatient visits is considered to provide adequate space in case
of most general hospitals.

3.3.1

RECEPTION AND ENQUIRY (FRONT OFFICE)

The Front Office will be used as reception and enquiries which is necessary at the
entrance lobby from where patients seek information, procedures and so on. This
has to be located at a prominent place at the entrance of the department and also
in close proximity to the emergency and casualty department. The entrance lobby
should connect with public facilities and with a tea and snack bar.

23

The reception and enquiry will be prominently signposted and will have good
communication through telephone and intercom sets with all clinics and other
departments.

A well illustrated, easily understandable guide map showing locations of all

clinics and adjunct services units will be prominently displayed in this location.
Moreover, all payments will be made on reception counter (Front Office) of
endorsing printed receipts for patients particulars. The receptionist will receive
the fees.

The patient now would be directed the contact to Registration counter / Medical
Record room to show the receipt and to get the ticket bearing M.R No. and a
prescription card / file to show these two things to the doctor on duty sitting in
general O.P.D / casualty.

3.3.2

WAITING AREA
There will be a main entrance hall where people first arrive and get registered. On
entering, the patient should find himself or herself in the entrance hall faced by
the reception and enquiry counter.

Adequate number of toilet facilities will be provided separately for males and
females.

3.3.3

WHEELCHAIR AND TROLLEY BAY

For patients who cannot walk, stretcher trolleys or wheelchairs will be required
to carry them through the department. A place to park them should be provided at
the very entrance to the Out Patient Department. Adjoining to the reception and
enquiry room (Front Office) would be good location. The issue and replenishment
of trolleys and wheelchairs should be catered for.

24

3.3.4

REGISTRATION COUNTERS AND MEDICAL RECORD ROOM

The registration counter and outpatient medical record room should be
conveniently located, preferably close to the reception enquiry.

All patients have to be register themselves at the outpatient registration counter.

Each new patient will have to be given a registration number in the form of a
ticket, and an outpatient card will be made for him / her which will be sent to
doctor on duty sitting in the General O.P.D / Casualty / Emergency. The doctor
will examine the patient and prescribe the treatment on the treatment card feeding
the same in the computer simultaneously. If the patient could not be diagnosed by
the doctor on duty than he would seek the expert advice from the pertinent
consultant through internet / help desk even showing the condition / vitals /
history of patient.

On subsequent visits, the patient will show his M.R No & pay the fee / charges at
front office / reception, will get printed receipt by receptionist bearing the M.R.
No and when the patient presents his / her ticket at registration counter, his or her
folder will be taken out from the record room and it would be handed over to the
patient and the patient will be sent to the doctor on duty / or to the concerned
consultant to whom the patient would have been visiting. The doctor / consultant
will retain patients card / folder and will feed in the computer about patients
condition / history and treatment to be given. He will write down on card / folder
as well as give the printed paper / prescription by dot matrix printer. The folder
will be deposited back in the medical records room by the clinic staff at the end of
the day and are restored to their appropriate place by the medical records clerk. It
will be the prime duty of medical record room staff to check all daylong cases
whether these are already fed in the computer or otherwise.

A centralized registration and record system, wherein all outpatient visits are
registered and record kept at one place has advantages of conserving manpower
and space, as opposed to the decentralized registration and record system.

25

3.3.5

CONSULTING AND EXAMINATION ROOMS

The essential point for consulting and examination rooms is that privacy of
consultation should be assured and the flow of patients should be smooth. This
aspect has been discussed in OPD Sector.

3.4

INFRA STRUCTURE
To establish and to operate in a smooth and proper manner following public
utilities of will be required which are mentioned here:

3.4.1

WATER
For planning purpose, the overall requirement of water in TH is estimated at about
300 to 400 liters per bed per day. Storage capacity for five days requirement must
be built at the site.

3.4.2

SEWAGE DISPOSAL
Liquid and semisolid effluent in the hospital originate from all departments and
service areas. Solid waste from hospitals is approximately 1 kg per bed per day.
Liquid effluents will be about the same as the hospitals requirement of water i.e.
between 300 to 400 liters per bed per day.

Adequate arrangements will have to be made to handle and dispose-off hazardous

solid waste and effluents.

3.4.3

POWER
Requirement of electric power is approximately 1.5 kw on a per bed per day basis
(total 150 kw). This includes the needs of all departments and services including
power requirement of X-Ray department, operation theatres, laboratories, central
sterile supply department, laundry, and kitchen. The stand by generator would
however, be of higher specification to cater to the increased requirement and
future expansion of the facility.

26

3.4.4

GAS
The facility of gas is essential for various purposes i.e., hospital kitchen, cafeteria,
pantry, labs, for sterilizations, laundry etc. and preferably for generation of
electricity as well.

3.4.5

TELEPHONE / INTERCOM
TH will need to have adequate phone and Intercom system.

3.4.6

AIR CONDITIONING
There are some areas in TH where facility of air-conditioning is a must e.g. OT,
labour room, recovery rooms, Neo-Natal Intensive Care Units, P.I.C.U. Private
Rooms, Semi Private Rooms, General Wards, Reception Area, Emergency, OPD,
Offices etc. may also need to be air-conditioned.

3.4.7

PA SYSTEM & BELL SYSTEM

The TH will need to be equipped with a PA and bell systems for the rapid
communications in settled and emergency states. All rooms, floors and
departments will be connected for this purpose.

3.5

SUPPORT SERVICES
In TH, following will be needed as support services:

Hospital Stores

Hospital Pharmacy

Hospital Kitchen

Security Systems

Gift Shop

Hospital Works / Maintenance Department

Laundry

Cafeteria

Ambulance Service

27

3.6

Seminar Room / CONFERENCE Room

Landscaping / Parking

CAPITAL ITEMS
The capital items of TH include medical equipment for OT, Sterilisation, Ward,
Labour rooms, L.C.U, Radiology Lab, Emergency, Hospital Linen, Nursery
(ICU+PICU), Pathological Lab, Oxygen Supply etc. besides office equipment,
Computers, Vehicles, Ambulances, Electrical and Mechanical equipment,
Furniture and Fixtures, etc.

28

3.7

IMPLEMENTATION PROGRAMME
The implementation of the Project will commence with the selection of private party by the 2nd quarter of 1st year. Simultaneously, design and
preparation of contracts and their processing will also be undertaken. This activity will be followed by construction and procurement.
Before the hospital is operational, some key personnel e.g. Administrator, nursing supervisor, accountant, housekeepers, engineers, etc. will
already have been employed to assist the hospital in running order. Gradually, under the guidance and direction of the Administrator and
supported by Board of Directors , the organization of medical and other staff will be completed and soon the Hospital is prepared to function.
After the selection of personnel and also during their time of employment, comprehensive training programme for them will be organized
which may include: general orientation; on-the-job-training; follow-up training; re-training etc. In the meantime, various hospital
standardization Manuals for patients satisfaction, Accounts, Marketing, Operations etc. will also be prepared.
TH is expected to be completed and inaugurated in 2 year as per schedule illustrated below:
FIGURE - 2
PROJECT COMPLETION SCHEDULE

S.
NO.
1.
2.
3.
4.
5.
6.

YEARS
ACTIVITIES

1
Q1

Q2

2
Q3

Selection of Private Party

Design / Arrangement of
Contract
Construction (civil, elect,
furnish)
Procurement / furnishing
Manpower Deployment
Training and Preparation of
Manuals
29

Q4

Q1

Q2

Q3

Q4

CHAPTER 4
GOVERNANCE AND MANAGEMENT STRUCTURE
4.1

GOVERNANCE
The THs are proposed to be owned and operated by special purpose companies
jointly owned by a carefully selected private party/ group and the concerned civic
agencies such as in the case of Lahore, DHA; Islamabad, DHA; Faisalabad FDA,
Islamabad CDA; Multan, MDA; Peshawar PDA; Quetta, QDA, etc.

Each civic agency will provide land for the specific purpose of building TH in the
city which will form its equity share in the special purpose company.

The sharing of equity between the private party and the civic body maybe 75% to
25% or thereabouts. Both the parties will be represented on the Board of Directors
of the special purpose company in the ratio of their shareholding.

The private sector party will manage the TH preferably in collaboration with
selected foreign specialists to ensure delivery of top quality service.

TH will be governed and run by the Board of Directors of the SPC and 3
Directors as shown below:

Chairman, Board of Directors

Chief Executive Offices

Administrator

Director Finance and I.T.

Director Support Services.

The organization is illustrated in fig. 3

30

FIGURE - 3
MANAGEMENT STRUCTURE

TH Board

Chairman
Board Members
Chief Executive
Officer
Public
Relations
Internal Audit
Legal

Director of
Nursing & Quality
Assurance

Medical Director
(Administrator)

Director of
Finance & IT

Quality
Assurance

MAC
Medical Staff
All Specialties
Radiology/
Radiotherapy

Finance
Medical
Records
Information
Technology

Education
OPD & Staff
Clinic

Pathology
Physiotherapy
Dietetics
Pharmacy
Library

Director Of support
Services

Marketing

Operating
Theatres
A&E / ICU
O&G
Pediatrics

31

Procurement
General
Services
Human
Recourses
Maintenance
& Facilities

4.2

MANPOWER
The total manpower strength under the THs Administrator will be 194 as shown in fig. 4
FIGURE - 4
DETAIL OF MANPOWER
3 Shifts

SR.#

DESIGNATION

1 R. M. O.
2 Junior Doctor

3 Shifts

PRIVATE
ROOM
(40 BEDS)

3 Shifts

3 Shifts

SEMI PRIVATE
GENERAL
ROOM
(20 x
WARD
2 BEDS)
(5 x 4 BEDS)

1 Shift

CASUALTY /
EMERGENCY

OPD
CLINIC

12

4 Unit Clerks

5 Ward Boys

3 Nurses

2 Shifts

ULTRA
SOUND

2 Shifts

2 Shifts

RADIOLOGY

2 Shifts

3 Shifts

OPERATION
THEATOR

PATHOLOGY

ICU

3 Shifts

3 Shifts

1 Shift

LABOUR
ROOM

NICU

1 Shift

PHYSIOTHARAPY

---------- CONTRACT BASIS ----------

3 Shifts
HOSP.
MEDICAL
STORE

ADMIN

TOTAL
STAFF

14
3

18
3

50

10

6 Specialist

7 Asstt.

18

10

12

8 Dr. Anesthesia (Part Time)

9 Sr. Administrator

10 Asstt. Administrator

11 Chief Accountant

12 Accounts Officer

13 Accounts Asstt.

14 Cashier

15 Billing Staff

16 Recetionist

17 Drivers

18 HR Executive

19 HR Asstt.

20 Record Maintenance Staff

12

12

22 Peons

23 Gardener

24 Repair & Maintenance Staff

25 Telephone Operator

21 House Keeping Staff

24

21

18

15

12

12

62

194

CONTRACT BASIS

TOTAL

HOUSE
PHARMACY KEEPING & KITCHEN
SECURITY

CAFTERIA

LAUNDRY

CHAPTER 5
FINANCIAL EVALUATION
5.1

CAPITAL COST
Total capital required for each TH would be US$ 40 Million in debt-equity ratio
of 50 : 50
TABLE 5
PROJECT CAPITAL COST
Description
Land & Land Development

US $
Amount
5,000,000

Hospital Building & Construction

12,313,154

Staff Accommodation, Medical Super Market

1,500,000

Health & Wellness Center

1,000,000

Equipment (Including Furnishings)

15,205,948

Professional Fees

1,552,282

Contingency

3,428,616
Total Capital Cost

Financing Arrangements

5.2

40,000,000
%

Amount

Equity

50%

20,000,000

Debt

50%

20,000,000

OPERATING RESULTS
The operating results of the Project can be seen from the summarized Profit and
Loss Account for the next 5 years as given in the table below:

33

TABLE 6
PROJECTED PROFIT & LOSS ACCOUNT
US $
Description

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

11,579,270

14,364,728

18,552,564

21,511,711

23,184,272

Less: Direct Costs

5,816,020

6,709,629

8,036,216

8,983,451

9,533,460

Less: Overhead Cost

2,609,935

2,853,259

3,206,214

3,463,117

3,619,440

Operating Profit

3,153,315

4,801,840

7,310,134

9,065,143

10,031,372

Less Depreciation

1,625,000

1,625,000

1,625,000

1,625,000

1,625,000

Profit before Interest

1,528,315

3,176,840

5,685,134

7,440,143

8,406,372

Less: Financial Charges

1,925,000

1,725,000

1,525,000

1,325,000

1,125,000

Net Profit Before Tax

3,453,315

4,901,840

7,210,134

8,765,143

9,531,372

Tax @ 35%

1,208,660

1,715,644

2,523,547

3,067,800

3,335,980

Net Profit After Tax

2,244,655

3,186,196

4,686,587

5,697,343

6,195,392

Accumulated Profit

2,244,655

5,430,851

10,117,438

15,814,781

22,010,173

Turnover

5.3

CASH FLOW
The Projected Cash Flow for 5 years is given in the table below:

TABLE 7
PROJECTED CASH FLOWS
US $
Description

YEAR 2

YEAR 3

3,153,315

4,801,840

7,310,134

9,065,143

10,031,372

Interest Payment

1,925,000

1,725,000

1,525,000

1,325,000

1,125,000

Repayment of Loan

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

1,208,660

1,715,644

2,523,547

3,067,800

Total Cash Outflow

3,925,000

4,933,660

5,240,644

5,848,547

6,192,800

Net cash

(771,685)

(131,820)

2,069,490

3,216,596

3,838,572

Cumulative Cash Flow

(771,685)

(903,505)

1,165,985

4,382,581

8,221,153

Operating Profit

YEAR 1

YEAR 4

YEAR 5

Less Cash outflows

Income Tax

34

5.4

PAYBACK PERIOD
The payback period of the Project is 3 years and 2 months

5.5

IRR
The IRR of the Project is 19.3% which shows good health of the Project.

5.6

RoE
The average RoE of the Project is 22%

35

ANNEXURE 1
PAKISTAN - A PROFILE

INTRODUCTION

Pakistan is located in South Asia. It borders Iran to the southwest, Afghanistan to the
northwest, China to the northeast and India to the east. The Arabian Sea marks Pakistans
southern boundary.

The total area of Pakistan is 796,095 square kilometers and the country is divided
administratively into four provinces Balochistan, North-West Frontier Province, Punjab
and Sindh and numerous federally administrated areas. The disputed territory of Azad
Jammu & Kashmir lies to the north of Punjab.

ii

Pakistan has a diverse array of landscapes spread among nine major ecological zones
from north to south. It is home to some of the worlds highest peaks including K-2 which
at 8,611 meters above sea level is the worlds second highest peak. Intermountain valleys
make up much of the North-West Frontier Province, while the province of Balochistan in
the west is covered mostly by rugged plateaus. In the east, irrigated plains along the Indus
River cover much of Punjab and Sindh. In addition, both Punjab and Sindh have deserts,
Thal, Cholistan and Thar deserts respectively.

Most of Pakistan has a generally dry climate and receives less than 250 mm of rain per
year. The average annual temperature is around 27oC, but temperatures vary with
elevation from -30oC to -10oC during cold months in the mountainous and northern areas
of Pakistan to 50oC in the warmest months in parts of Punjab, Sindh and the Balochistan
Plateau. Mid-November to February is dry and cool; March and April bring sunny spring,
May to July is hot, with 25 to 50% relative humidity; Monsoons start in July and continue
till September; October- November is the dry and colourful autumn season.

Pakistan had an estimated population in 2005 of 160 million, 40% of this population was
less than 15 years of age. The major cities of Pakistan and their estimated populations
are; Karachi (16.0 million), Lahore (8.0 million), Faisalabad (6.0 million), Rawalpindi
(5.0 million), Multan (4.5 million), Hyderabad (3.0 million), Gujranwalla (1.8 million)
Peshawar (1.6) and Quetta (0.85). Islamabad, the Capital of the country, has a population
of around 750,000.

According to the 1973 Constitution, Pakistan is governed under a federal parliamentary

system with the President as head of state and a Prime Minister as head of government.
The legislature, or parliament, consists of the Lower House (National Assembly) and the
Upper House or Senate. Members of the National Assembly are directly elected for fiveyear terms.

Executive power lies with the President and the Prime Minister. The Prime Minister is an
elected member of the National Assembly and is the leader of the majority party in the

iii

National Assembly. An electoral college consisting of members of the national and

provincial legislatures elects the president for a five-year term.

After the events of 9/11, Pakistan has become a key US ally in the war against terror.
This alignment is totally in-line with the views of the majority of Pakistanis who practice
and preach a moderate version of Islam. The Government of Pakistan fully realizes the
need for promoting Islam as a modern progressive religion. The Government has chosen
the difficult option of fighting the war against terror by clamping down on Taliban and
Al-Qaeda remnants along the border with Afghanistan. The people of Pakistan fully
support the Government in its efforts to promote the true face of Islam.

The US Government fully backs and supports Pakistan in this war against terror. US Aid
which was stopped after the 1998 Nuclear Test has been restored and Pakistan will
receive US$ 3.0 billion over the next 5 years, divided equally between economic and
military aid.

Pakistan follows a very active policy of regional alliances for trade and economic
development. It is an active member of the South Asian Association for Regional
Cooperation (SAARC) which groups Pakistan, India, Bangladesh, Sri Lanka, Nepal,
Bhutan and the Maldives. It is also an active member of the Economic Cooperation
Organization (ECO) comprising of Turkey, Iran, Pakistan, Afghanistan, and the six
Central Asian Republics. Pakistan has an observer status at the Gulf Cooperation Council
(GCC) as well as ASEAN and Shanghai Cooperation Organization. Being a member of
WTO it conforms to most of the international trade regimes.

ECONOMY
Pakistans economy has made significant progress in the last six years. This has been
possible because of the Governments policy of initiating growth through domestic and
foreign direct investment. The GDP growth rate has increased from 1.8% per annum in
2001 to 8.4% per annum in 2005. Despite the devastating earthquake in October 2005,
the economy is expected to grow at over 6.6% in 2006. Pakistans GDP in 2005 was

iv

estimated at US$ 385.2 billion and its per capita GDP was US$ 2,400. The Countrys
credit rating has been upgraded by Moodys from Caa1 in 2002 to Ba3 i.e. stable in
2006.

Pakistan has over 3.5 million laborers working in various countries of the Middle East. In
addition, Pakistani technical and professional manpower is engaged in lucrative pursuits
in USA, UK, Canada, Malaysia, etc. These non-resident Pakistanis annually send over
US$ 4.0 billion in foreign remittances.

The Government of Pakistans policy of encouraging Foreign Direct Investment (FDI)

has seen it grow from a mere US$ 376.0 million in 1999 to more than US$ 1.5 billion in
2005 which is expected to grow to over US$ 3.0 billion in 2006.

In addition to Foreign Direct Investment, low domestic interest rates have meant that
there has been an upsurge in domestic investment; the weighted average rate of lending
has fallen from 16% in 1999 to approximately 8% in 2005.

The Governments economic policy has seen foreign currency deposits rise from US$ 1.7
Billion in 1999 to now US$ 13.0 billion in 2006; this has led to both low rates of inflation
and to a stable exchange rate.

With the Government of Pakistan targeting annual growth in the economy at 7.5% per
annum in the next 5 years, Pakistan is the country of choice for foreign and domestic
investors.

INFRASTRUCTURE
The National Highway Authority (NHA) has the responsibility for 17 of Pakistans major
inter provincial links called the National Highway including the Motorways, which are
access controlled and tolled highways. Total length of roads, under NHA, currently
stands at 8845 Kms.

These roads account for only 3.5% of Pakistans entire road network but cater for 80% of
the commercial road traffic in the country. Improvement and extension of the existing
network is, therefore, essential to develop remote areas and provide better connection
between the economic centers of Pakistan. In addition a first class road network is
essential if Pakistan is going to connect its all-weather Arabian Seaports with the
landlocked Central Asian Republics and Western China. The Government has initiated
work on the North-South Trade Corridor with planned investment of over US$ 60 billion.

In order to further speed up the development of the road network, the Government is
actively seeking the participation of the private sector to implement road projects on a
Build-Operate-Transfer (BOT) basis. A number of projects are currently being
implemented under the BOT concept and others are in the identification stage. These
BOT projects cover the construction of new roads as well as the upgrading of existing
roads.

Pakistan has about 1062 km of coastline on the Arabian Sea running from the Indian
border to the Persian Gulf. The Karachi Port is the premier port of Pakistan and is
managed by the Karachi Port Trust (KPT). Karachi port handles about 75% of the entire
national cargo. It is a deep natural port with a 11 km long approach channel to provide
safe navigation up to 75,000 DWT tankers, modern container vessels, bulk carriers and
general cargo ships. The Karachi Port has 30 dry cargo berths including two Container
Terminals and 3 liquid cargo-handling berths. KPT intends to cater for 12-meter draught
ships, which are the most widely used container vessels. In order to facilitate
accommodate and fast turnaround time of mother vessels, the KPT is offering to the
private sector the opportunity to develop a terminal on BOT basis. In addition KPT has
plans to develop a Cargo Village on 100 acres. This Cargo Village shall serve as a
satellite to the port, integrating container, bulk and general cargo handling as well as
providing processing plants for perishable exports. With direct connection to the National
Highway Network, as well as National Railways Network the cargo village shall also
alleviate the problem of upcountry trade with cost effective storage/handling services in
the vicinity of the port. A master plan is under preparation and all the units within the

vi

village shall be allocated to the private sector on BOT and Build-Operate-Own (BOO)
basis within the next year.

Pakistans second Sea Port, Port Qasim is located 50 kilometers to the South East of
Karachi. It is the Countrys first industrial and multi-purpose deep-sea-port. Currently it
is handling 23% of Pakistans sea trade. Port Qasim has attractions and advantages for
investment both in port facilities and port-based industrial development. Port Qasim
Authority from the very beginning has actively sought the help of the private sector in the
development of its port structure. Some of the projects which have been completed with
private sector involvement include; dedicated oil terminal developed in private sector on
BOO basis at a cost of US$ 87 million to cater for oil imports with a handling capacity of
9 million tons per annum, a container terminal developed by P&G Group, Australia, at a
cost of US$ 35 million on BOO basis, for chemicals imports a facility in collaboration
with Vopak of Netherlands on BOT basis at a cost of US$ 67 million. Some of the
projects which the Port plans to develop with the private sector on the basis of BOT
include; establishment of a second oil jetty, establishment of a dedicated coal and
clinker/cement terminal and the establishment of a marine workshop and dry dock
facilities.

To encourage industrial development the Port Qasim Authority has reserved 300 acres of
land on a prime location in the Eastern Industrial Zone (EIZ) for allotment of plots to
Overseas Pakistanis to induce and encourage foreign investment and provide them an
opportunity to establish small size industries in Pakistan. Each plot is measuring 100
square yards at a very low cost on attractive terms and conditions. This is in addition to
existing 1,200 acres of industrial zone which houses a number of auto assemblers such as
Toyota, Suzuki, Chevrolet and the Textile City spread over 1,250 acres.

The Pakistan Merchant Marine Policy 2001, has deregulated the shipping sector and aims
to attract investment; both local and foreign, public and private, by offering a range of
incentives. The new policy in addition to offering duty-free import of ships, offers many
new incentives to local and foreign investors including Income Tax exemption till 2020.

vii

Pakistan's annual seaborne trade is about 45 million tons, just 5 per cent of which is
carried by the national carrier Pakistan National Shipping Corporation (PNSC), the
country's annual freight bill surpasses staggering $ 1.5 billion which is causing a colossal
drain on foreign exchange resources, the marine policy aims to reverse this situation to
some extent.

The Shipping Policy aims to revive and augment national ship-building/capacity to meet
20 per cent ship construction requirements of the country merchant marine and entire
requirements of support and ancillary crafts. The policy also aims to rejuvenate and
expand the ship repair potential to undertake the entire range of repairs and maintenance
of 50 per cent of Pakistani Flag ocean-going vessels and all ancillary sectors. The new
Shipping Policy offers many financial incentives for potential investors. It offers tax
exemptions and concessional tax measures backed by assurances. It also aims at
simplifying the rules by deregulating the sector.

To begin with, ships and floating crafts tugs, dredgers, survey vessels, and specialized
crafts purchased or bareboat chartered by a Pakistani entity flying the Pakistani flag
will be exempt from all import duties and surcharges till 2020. The policy accords shopbuilding and ship-repair the status of an industry under the investment policy which is
entitled to all incentives contained therein.

To attract foreign investment, all port and harbor authorities in Pakistan will allow all
ships and floating crafts 10 per cent reduced berthing rates when the same are berthed for
purposes of repair and maintenance. Under the Policy, ships and all floating crafts are
considered bonafide collateral against which financing can be obtained from Banks and
Financial Institutions subject to policy of the financial institution.

There are 42 airports in the country managed by the Civil Aviation Authority (CAA). Out
of these, five airports; Lahore, Karachi, Islamabad, Peshawar and Quetta are international
airports. The CAA is planning to develop a new international airport at Islamabad for

viii

which land has been acquired and it is planed to fund the US$ 250-300 million on BOT
basis.

The Pakistan International Airlines (PIA) is the national flag carrier flying to 46
international and 36 local destinations. Other Pakistani airlines in the private sector
include, Aero Asia, Air Blue, Shaheen Air International and Pearl Air. In addition to
direct flights from most parts of the world, Pakistan can also be accessed through the
regional hubs of most international airlines, which operate through airports in the Gulf
countries.

The Pakistan Railways provides an important nation-wide mode of transportation in the

public sector. It contributes to the countrys economic development by catering to the
needs of large-scale movement of freight as well as passenger traffic. Pakistan railway
provides transport facility to over 70 million people and handles freight above 6 million
tons annually.

The Pakistan Railways Network was based on a total of 11,515 track kilometers
(including track on double line, yard & sidings) at the end of 2001-2002. This network
consists of 10,960 kilometers of broad-gauge and 555 kilometers of meter gauge.

Pakistan Railways has launched modernization activity with rehabilitation and

improvement plan both for its infrastructure and rolling stock including prime mover.
The ongoing schemes worth over US$ 500 million are progressing satisfactorily and have
brought a radical improvement in service. The railways is gearing up to the challenge of
providing improved connectivity to Iran, India, and link the upcoming Gwadar Port to
Afghanistan and onward to Turkmenistan.

Pakistan Telecommunication Limited (PTCL) dominated Pakistans telecommunications

market for the fixed-line services. Today the Pakistan Telecommunication Authority
(PTA) has the role of a regulatory body and is responsible for implementing the telecom
deregulation policy. For a long time, Pakistan lagged behind in the region as far as

ix

telecom access is concerned. With cellular mobile revolution taking place, Pakistan's
tele-density currently stands at 10.37%, with gross subscribers base of fixed (5.05
million) as well as mobile subscribers (10.54 million) touching 15.59 million for a
population of 160.0 million.

The Telecomm Sector has attracted the largest FDI in Pakistan with approximately
US$ 1.5 billion having been invested in 2005.

At the moment there are six companies providing mobile phone services in Pakistan, with
the largest of them, Mobilink (owned by Orascom Telecom) with nearly 50% of the
market share, other foreign players include MCE, Telenor and Warid.

In addition Wateen Telecom, a subsidiary of UAE-based Al Warid Telecom, has

launched a US$ 75.0 million project to lay an optic fiber optic backbone across the
Country. The first segment of the project of 800 kms would stretch from Karachi to
Rahimyar Khan and would be further linked with the rest of the country up to Peshawar
through 63 cities. When completed the backbone would be 5,000 kilometers, long
spanning the length and the breadth of Pakistan and would facilitate both the corporate
and residential segments, providing voice and high-speed data services on a converged
wireless network.

Pakistan in 2005 had 70 operational providers of internet services across 1,900 cities and
towns of the Country catering to about 2 million subscribers. In addition the Government
has reduced bandwidth rates for high speed board band internet connections and the
number of subscribers in this category is expected to grow to 200,000 by end of 2006.

AGRICULTURE
Agriculture accounts for nearly 23 percent of Pakistans national income and employs 42
percent of its workforce. Nearly 68 percent of the population lives in rural areas and is
directly or indirectly dependent on agriculture for their livelihood. Livestock is the single
largest contributor 47 percent share in the national income. The major crops; cotton,

wheat, sugarcane and rice contribute 37 percent to agriculture while the minor crops like
oilseed, spices, onion and pulses contribute another 12 percent.

Pakistan is the fifth largest producer of milk in the world. The per capita availability of
milk at present is 185 liters, which is the highest among the South Asian countries. Milk
production in Pakistan has seen a constant increase during the last two decades. The
production has increased from 8.92 million metric tons in 1981 to 28 million metric tons
in 2005. There is a large and untapped potential in the dairy industry. With a population
of 160 million, a significant demand for dairy products exists in Pakistan. There is a need
for establishing modern milk processing and packaging facilities based on advanced
technology to convert abundantly available raw milk into high value added dairy
products. In addition, with improved conditions for milk pasteurization, availability of
chilled distribution facilities and consumer preference for the low cost pasteurized milk,
the sector provides unique opportunity for investment in establishing pasteurized milk
production plants.

There is also great scope for establishing related industries in the form of an efficient
milk collection system and refrigeration & transportation facilities. The sector offers
opportunity to foreign investors for establishing a joint venture for the production of
dairy products, particularly dried milk and infant formula milk for which great demand
exists in the neighboring countries like Afghanistan, Iran, UAE and Saudi Arabia.

Out of the 28 million tons of milk produced per annum in Pakistan, only 2.5 to 3 per cent
reaches the dairy plants for processing into variety of dairy products. Pakistans dairy
industry produces Ultra Heat Treated (UHT) Milk, Pasteurized Milk, Dry Milk Powder,
and Condensed milk. Other major milk products produced by the dairy industry include
butter, yogurt, ice cream, cheese, cream and some butter oil. Approximately half of the
0.3 million tons of milk available to the industry is processed into UHT milk, 40 percent
into powdered milk, and the remaining 10 percent into pasteurized milk, yogurt, cheese
and butter etc. Major players in the sector include Nestle, Haleeb and Engro Foods.

xi

Pakistan produced 1.1 million tons of beef, 740,000 kgs of mutton and 410,000 kgs of
chicken meat in 2005; in addition it also produced approximately 5 billion eggs in 2005.
Processed meat is exported to Saudi Arabia, UAE, Oman, Bahrain, Qatar and Kuwait in
the Middle East and Malaysia in the Far East. Pakistan exports around 40,000 live
animals and 2.83 million kg of meat to the Gulf.

Cotton is an important non-food crop and a significant source of foreign exchange

earning. It accounted for 10.5 percent of the value added in agriculture and about 2.4
percent of the GDP in 2005. Pakistan in 2005 produced about 14.5 million bales of
cotton.

Rice is a high value added cash crop and is also a major export item, it accounts for 5.7
percent of the total value added in agriculture and 1.3 percent of the GDP. Production of
rice in 2005 was about 5 million tones. In 2005 rice became the second largest export
from Pakistan when the country exported rice worth US$ 934 million. In addition to high
value Basmati rice, Pakistan also exports IRRI 6 parboiled rice and IRRI rice to Africa.

Sugarcane is an intensive cash crop and serves as the major raw material for production
of white sugar and gur. Its share in the value added in agriculture is 3.6 percent and 0.8
percent in the GDP. The total sugarcane crop in 2005 was estimated at 45 million tones.

Wheat is the leading food grain of Pakistan, and being the staple diet of the people, it
occupies a central position in agricultural policy. It contributes 13.8 percent to the value
added in agriculture and 3.2 percent of the GDP. The size of the wheat crop in 2005 was
estimated at 21.0 million tons.

In addition to the above, Pakistan also produces bajra, jowar, tobacco, barley, oilseed,
pulses, potato, onion, chillies etc.

xii

The Government of Pakistan has launched a plan to promote Corporate Agriculture

Farming and has offered a number of incentives to develop the sector including the
provision of land and other facilities.

MANUFACTURING
In the post quota regime, total exports of textile increased from $ 6.5 billion in 2004 to
$ 7.4 billion in 2005. Pakistan textiles are poised to achieve $ 10 billion exports by June
2006. This growth is largely driven by the continuity of government policies, positive
macroeconomic indicators, tariff rationalization, removal of sales tax on textile
chain, deregulation, lower interest rates, increased market access, public-private
partnership programs and the creation of a hassle free environment by the government.

The Government of Pakistan continues to take steps to further develop the textile sector
focusing on bridging the skills gap promoting research and development activities,
facilitating an increase in the number of women employees, outsourcing of specialized
work and simplification of procedures. To facilitate value addition in the textile
sector, world class departments in various disciplines related to textile industry are being
set up in three universities. These departments will have linkages with corresponding
foreign departments of high repute.

In the past 5 years, approximately US$ 5.5 billion have been invested in the textile sector
with the major investments being in spinning ($ 2.6 billion), weaving ($ 1.5 billion), and
textile processing ($ 600 million). A Rs.10 billion, Pakistan Textile City facility located
on 1,250 acres of land near Karachi is in the process of being set-up. This will have its
own desalination plant, effluent treatment plant, a self-power generation plant and all the
other modern facilities required for industrial production. It is expected that the Textile
City will lead to an increase in exports of US$ 400 million and provide jobs to 60,000
workers

Pakistans leather exports in 2005 were US$ 883 million which is the second largest
export sector after textiles. It is expected that exports will cross the US$ 1 billion mark in

xiii

2006. Major exports include finished leather; both for garments and footwear, finished
leather garments, leather work gloves, and other leather products. The major centers for
the manufacture of leather and leather products are; Karachi, Lahore, Sialkot and Kasur,
it is estimated that there are more than 700 tanneries operating in Pakistan employing
more than 100,000 persons, in addition another 150,000 workers are employed in the
value addition sectors. In order to promote the industry, the Government has zero-rated
the sales tax on the leather sector and is working to ensure that the industry conforms to
international waste management standards.

Pakistans light engineering sector consists of twenty-eight sub-sectors including

consumer durables and other industrial products. The surgical instrument manufacturing
sector which forms part of light engineering sector is clustered around Sialkot and
exports 95% of its production. There are about 2,500 large, medium and small sized units
with the industry employing about 50,000 skilled and semi-skilled workers. The surgical
goods sector produces both disposable and reusable instruments. The product range
consists of more than 10,000 different items.

The cutlery industry which in 2005 exported goods worth approximately US$ 31 million
is mainly concentrated in the locality of Wazirababd, Nazimabad and Allahbad in
Gujranwalla district. There are approximately 300 units and 25,000 people are directly or
indirectly employed by the industry. The industry has great export potential and requires
better marketing strategies.

The auto parts sector consists of more than 1,200 vendors who are supplying to about 84
Original Equipment Manufactures (OEM) massive capacity increase in Pakistan. The
total investment in the vendor industry exceeds Rs.10 billion and employs more than
40,000 skilled and semi-skilled workers and also brings in more than US$ 160 million in
the form of export earnings.

With the local auto assemblers planning to increase production to 500,000 units by 2008
from the 2006 production figure of 170,000 units, the vendor industry is gearing up for.

xiv

Although the industry has made considerable progress on its own, the need is for joint
collaboration with foreign companies which will not only bring production techniques
but also help in marketing the production of the local vendor industry.

There are a total of 42 assemblers of motorcycles in Pakistan who between them

manufacture 600,000 motorcycles a year, it is expected that the production will increase
to 1 million units a year in the next two years. The main manufacturers of motorcycles in
Pakistan are; Honda, Yamaha and Suzuki who between them command more than 80%
of the domestic market

There are 11 Fertilizer units operating in Pakistan with an installed capacity of 6 million
tones out of which nitrogenous fertilizer has a capacity of 4.9 million tons and phosphatic
fertilizer has a capacity of 1 million tons. Wheat being the most important crop 45% of
the total fertilizer consumption is in this Sector. Cotton consumes 21%, rice 10%,
sugarcane 8% while the remaining 16% is consumed by other crops.

Out of a total of 24 cement plants, currently 22 units are operative, 17 companies being
listed on the Karachi Stock Exchange. The country, at present, has an installed capacity
of producing 17.55 million tons of cement per annum, mainly Portland cement. It is
envisaged to increase installed capacity (also by expansion) to 28.21 million tons per
annum by 2008. New projects as well as capacity increases in existing units should boost
production capacity to about 7 million by 2007.

The demand for cement is expected to be robust, as the Government of Pakistan has
initiated a massive reconstruction drive in the earthquake hit regions of Northern Pakistan
and Azad Kashmir. In addition large quantities of cement will be required for the mega
construction projects initiated by the Government of Pakistan including the construction
of large dams and road projects. Also the industry has good prospects for exporting
cement to Afghanistan where reconstruction work is on-going on in that Country.

xv

Pakistan is the twelfth largest producer of sugar in the World; it ranks fourth in sugarcane
production and holds seventh position in yield, which is about 50 tons per hectare.

The sugar industry has 76 units installed mostly in Punjab and Sindh. The total capacity
of the industry is estimated at 5 million tones per annum. In order to provide incentives to
the growers, the Government determines a support price keeping in mind the production
costs and profits of other crops. The Government and the Industry are trying to increase
cane yield to ensure an increase in the total production of sugar.

The demand for Steel has undergone a dramatic increase in 2005; the total consumption
of steel in 2005 is estimated at 5 million tons as against a domestic production of only 3.2
million tones. The biggest producer of domestic steel is the Pakistan Steel Mills with a
capacity of 1.1 million tones per annum. In addition to the Pakistan Steel Mills there are
approximately 350 steel re-rolling mills in the country, which mainly cater to the needs of
the construction industry.

The demand for steel is expected to further surpass production because of increased
demand due to economic activity and construction of large dams and infrastructure
projects in the Country. The Government is encouraging the private sector to come
forward and invest in mini steel mills and in the mining sector. The Government in an
effort to increase production, is in the process of privatizing major light and heavy
engineering concerns.

OIL, GAS & ENERGY SECTOR

The Pakistani economy is expected to grow at a rate of 7 to 8 percent over the next five
years. In order to sustain the growth momentum a rise in levels of income and increased
availability of goods and services, the country is following a policy to increase the supply
of and the conservation of energy.

In 2005 the consumption of petroleum products in household and agriculture exhibited

sharp decline to the tune of 16.8 and 16.2 percent, respectively. The decline in the use of

xvi

petroleum products was mainly on account of the availability of alternative and relatively
cheaper fuels in the form of natural gas and LPG

Historically, the country is dependent on oil imports. The crude oil import for 2005 was
about 8.3 million tons, equivalent of US$ 2,606 million. The import of petroleum
products import was 5.7 million tons, an equivalent of US$ 1,998 million. The total
annual import bill for the year 2005 was US$ 4,604 million. Due to increase in
international prices of crude oil, the import bill in 2006 is expected to be US$ 5,500
million. Pakistan has five refineries, namely, National Refinery, Pakistan Refinery,
Bosicor, Pak Arab Refinery and Attock Refinery; annual oil refining capacity is 12.82
million tons. In the downstream oil marketing business, the main players are; Pakistan
State Oil (100% owned by the Government of Pakistan), Caltex, Shell and Total.

Pakistan has an interesting Geo-dynamic history of large and prospective basin (onshore
and offshore) with sedimentary area of 827,268 sq. km. So far about 844 million barrels
crude oil reserves have been discovered of which 535 million barrels have already been
produced. A Prognostic potential of total endowment of hydrocarbons has been estimated
as 27 billion barrels of oil. To date various national and international exploration and
production companies, resulting in over 177 oil and gas discoveries, have drilled more
than 620 exploratory wells. Indigenous production of crude oil during the year 2005 was
66,079 barrels per day. The main companies in the upstream chain include; BHP
Petroleum, Lasmo Oil, Shell, OMV Pakistan etc.

Pakistan is among the most gas dependent economies of the world. Natural gas was first
discovered in 1952 at Sui in Balochistan province that proved a most significant and the
largest gas reservoir. After successful exploration and extraction, it was brought to
service in 1955. This major discovery at Sui followed a number of medium and small size
gas fields in other parts of the country.

So far about 52 TCF of gas reserves have been discovered of which 19 TCF have already
been produced. Natural gas production during 2005 was about 3.7 billion cubic feet per

xvii

day. Pakistan has well developed and integrated infrastructure of transporting,

distributing and utilizing natural gas with 9,063 km transmission and 67,942 km of
distribution and service lines network, developed progressively over the last 50 years.

Natural gas sectoral consumption during 2005 was: power (43.7%), fertilizer (16.4%),
cement industry (1.2%), general industry (19.5%), domestic (14.8%), commercial (2.3%)
and Transport (CNG; 2.1%).

Gas importation projects envisage about 1500 to 2000 km long pipelines connecting
regional gas supply sources such as Turkmenistan, Iran and Qatar to the domestic
pipeline network bringing in more than 1.5 billion cubic feet gas per day. With further
extension, the imported gas can also reach the Indian market.

Pakistan started using Compressed Natural Gas (CNG) as transport fuel through
establishment of research and demonstration CNG refueling stations by the Hydrocarbon
Development Institute of Pakistan (HDIP) at Karachi in 1982 and at Islamabad 1989.
CNG is now fast emerging as an acceptable vehicular fuel in place of oil. Pakistan is third
largest user of CNG in the world after Argentina and Brazil. As many as 835 CNG
stations have been set up in the country by December 2006 and 200 stations were under
construction. With 850,000 CNG vehicles on the road, the CNG sector has attracted
Rs.20 billion investment while another Rs.2 billion is in the pipeline, providing 16,000
jobs.

Large diesel vehicles (buses and trucks) being the major consumer of HSD are now the
next target for substitution by CNG for economic and environmental reasons. Meanwhile
a private company has imported some CNG diesel dual-fuel buses for Karachi and plans
are also underway for local manufacturing of these buses.

The total power generation capacity of Pakistan is 19,540-mw. In order to sustain a

higher GDP growth rate of 78 percent, the Government is planning to increase its power
generation capacity by 143,000-mw in the next 25 years, to 162,590-mw.

xviii

The 25-year Energy Security Plan (ESP 2005-2030) approved recently by the
Government envisages increase in nuclear power generation by 8,400-mw to 8,800-mw
by the year 2030 from current nuclear power of 400-mw. The ESP envisages the share of
nuclear power to increase to 4.2 per cent of country's total energy mix from the current
rate of 0.8 per cent. The current energy mix has (highest) 50 percent share of gas, 30
percent oil, 12.7 per cent hydel, 5.5 per cent coal, 0.8 per cent nuclear and zero percent
renewable energy.

The additional 143,053-mw would include 8,400-mw of nuclear power, 26,200-mw

hydel-power, 19,753-mw coal based energy, 9,520 mw renewable energy, 1,360-mw oil
based and 77,820-mw gas based power production.

By the year 2010, the country would have an additional power of 7,880-mw and hence
total capacity would reach 27,420-mw. This additional power would not include any new
plant in the nuclear sector, but hydel generation would increase by 1,260-mw, coal based
increase of 900-mw and renewable energy increase of 700-mw. A minor increase of 160mw would take place in the oil-based generation while gas based power production
would increase by 4,860 mw.

xix

IMPORTANT CONTACTS
Secretary,
Ministry of Commerce,
Govt. of Pakistan,
Block A, Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9208692,
www.commerce.gov.pk

Deputy Chairman,
Planning and Development Division,
Ministry of Planning & Development,
Govt. of Pakistan,
Block P, Pakistan Secretariat,
Islamabad.
Office Tel: 92 (51) 9211147, 9202783
www.mopd.gov.pk

Secretary,
Ministry of Health,
Govt. of Pakistan,
Block C , Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9211622
Fax No: 92(51) 9205481

Secretary,
Planning and Development Division,
Ministry of Planning & Development,
Govt. of Pakistan,
Block P, Pakistan Secretariat,
Islamabad.
Office Tel:92 (51) 9211147, 9202783
www.mopd.gov.pk

Secretary,
Ministry of Food, Agriculture and
Livestock,
Govt. of Pakistan,
Block B, Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9203307,9210351
Fax No: 92(51) 9210616

Secretary,
Ministry of Finance,
Govt. of Pakistan,
Block Q, Pak. Secretariat,
Islamabad.
Office Tel: 92 (51) 9201962
Fax No: 92(51) 9213705
www.finance.gov.pk

Secretary,
Ministry of Ports & Shipping,
Govt. of Pakistan,
Block D , Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9215354
Fax No: 92(51) 9215349

Secretary,
Ministry of Industries, Production &
Special Initiatives,
Govt. of Pakistan,
Block A, Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9210192, 9211709
E-mail:secretary@moip.gov.pk
http://www.moip.gov.pk

Secretary,
Ministry of Tourism,
Govt. of Pakistan,
Block D , Pak. Secretariat,
Islamabad.
Office Tel: 92(51) 9213642
Fax No: 92(51) 9215912
Email:secretary@tourism.gov.pk

Secretary,
Ministry of Communication,
Govt. of Pakistan,
Block D, Pak. Secretariat,
Islamabad.
Office Tel: 92 (51) 9201252

xx

Chairman,
Securities and Exchange Commission
of Pakistan,
National Insurance Corporation
Building,
Jinnah Avenue,
Islamabad-44000,
Telephone: 92-51-9207091 (3 lines)
Fax: 92-51-9204915
Email: enquiries@secp.gov.pk
www.secp.gov.pk

Governor,
State Bank of Pakistan,
I.I. Chundrigar Road,
Karachi. Pakistan.
Phone: 111-727-111 Fax: (+92-21)
9212433-9212436
www.sbp.org.pk
Chairman,
Board of Investment,
Govt. of Pakistan,
Attaturk Avenue,
Sector G-5/1,
Islamabad.
Tel: 92(51) 9207531, 9206161
www.pakboi.gov.pk

Chairman,
Export Promotion Bureau,
Govt. of Pakistan,
5th Floor, Block A
Finance & Trade Centre,
Shahrah-e-Faisal.
Karachi.
Tel: 92-21-9206462-70
Fax: 92-21-9206461
www.epb.gov.pk

Chairman,
Pakistan Telecommunication
Authority,
Head Quarter Sector F-5/1,
Islamabad.
Tel: 92-51-2878143,9225326,
Fax: 92-51-2878155
E-mail: chairman@pta.gov.pk
www.pta.gov.pk

Chairman,
Engineering Development Board,
Govt. of Pakistan,
5-A, Constitution Avenue, SEDC
Building (STP), Sector F-5/1,
Islamabad,
Tel: 92-51-9205595-98
Fax:92-51-9205595-98
Email: edb@edb.gov.pk
www.engineeringpakistan.com

Chairman,
Oil & Gas Regulatory Authority,
Tariq Chambers, Civic Center,
Melody Market, Sector G-6,
Islamabad.
Tel: 92-51-9221705
Fax: 92-51-9221714
Email: chairman@ogra.org.pk
www.ogra.org.pk

Chairman,
Alternative Energy Development
Board,
Govt. of Pakistan,
344-B,Prime Minister's Secretariat,
Constitution Avenue,
Islamabad.
Phone No: 92-51-9223427, 9008504
Fax No: 92-51-9205790
E-mail: support@aedb.org
www.aedb.org
Chairman,

Chairman,
Pakistan Electronic Media Regulatory
Authority,
Green Trust Tower,
6th Floor, Jinnah Avenue, Blue Area,
Islamabad
Phone#:0092-051-9222320/26/32/40/42
E-Mail: ctv@pemra.gov.pk
www.pemra.gov.pk

xxi

Small & Medium Enterprise

Development Authority,
6th Floor, LDA Plaza, Egerton Road,
Lahore.
Tel: 92-42-111-111-456
Fax: 92-42-6304926
E-mail helpdesk@smeda.org.pk
www.smeda.org.pk

Karachi Cotton Association,

The Cotton Exchange,
I.I Chundrigar Road,
Karachi, Pakisan.
Tel : 92-21-242-5007, 241-2570,
Fax : 92-21-2413035
Email: contact@kcapak.org
www.kcapk.org

Managing Director,
Private Power and Infrastructure
Board,
50 Nazimuddin Road, F7/4,
Islamabad, Pakistan.
Tel: 92-51 9205421,9205422
Fax: 92-51 9215723,9217735
Email: ppib@ppib.gov.pk
www.ppib.gov.pk

President,
Federation of Pakistan Chambers of
Commerce and Industry,
Federation House,
Sharea Firdousi, Main Clifton,
Karachi.
Tel: 92-21-5873691,93-94
Fax : 92-21-5874332
Email : fpcci@cyber.net.pk
info@fpcci.com.pk
www.fpcci.com.pk

CEO,
Competitiveness Support Fund,
House No. 53,
Street 1, F-6/3,
Islamabad.
Cell: 92-300 856 5277
Email: arthur.bayhan@telefonica.net
www.competitiveness.org.pk

President,
Karachi Chamber of Commerce
Industry,
Aiwan-e-Tijarat Road,
Off Shahrah-e-Liaquat,
Karachi.
Tel: 92-21- 241 6091-94
Fax : 92-21- 241 0587
Email: info@ karachichamber.com
www.karachichamber.com

Chairman,
Pakistan Software Export Board,
2nd Floor Evacuee Trust Complex
F-5, Aga Khan Road
Islamabad - 44000
Tel: 92-51-9204074
Fax: 92-51-9204075
www.pseb.org.pk

President,
Lahore Chamber of Commerce
Industry,
11, Shahrah Aiwan i Tijarat,
Lahore. Pakistan.
Tel: 92-42 -111-222-499
Fax : 92-42 -636-8854
www.lcci.com.pk

Managing Director,
Karachi Stock Exchange (Guarantee)
Limited,
Stock Exchange Building, Karachi.
Tel: 92-21-111-001122
Fax : 92-21-241 0825
Email: info@kse.com.pk
www.kse.com.pk
Chairman,

xxii

Secretary,
Overseas Chamber of Commerce and
Industries,
Chamber of Commerce Building,
Talpur Road, P.O. BOX 4833,
Karachi.
Tel: 92-21-2410814-15
Fax: 92-21-2427315
E-mail: info@oicci.org

President,
Rawalpindi Chamber of Commerce
and Industries,
Chamber House, 39 - Mayo Road
(Civil Lines),
Rawalpindi.
Tel: 92-51-5111051-54
Fax: 92-51-5111055
E-mail : rcci@isd.wol.net.pk
www.rcci.com.pk

xxiii

ANNEXURE II
PROFILE OF MAJOR CITIES
KARACHI
Karachi, the capital of the province of Sindh and the largest city in Pakistan, is ranked as
the fifth largest city in the world. The city is the financial and commercial hub of
Pakistan and an important regional port. It is located on the coast of the Arabian Sea,
northwest of the Indus River delta. Karachi accounts for the largest share of Pakistan's
gross domestic product (about 35%) and generates about 65% of the national revenue.
Karachi claims the highest per capita income in South Asia of about $ 6000 and is the
nucleus of regional business and technological activities. The city has one of the highest
literacy rates in Pakistan and is the home of several important academic and research
institutions. With an estimated population of approximately 16 million, Karachi is one of
the largest cities in the world. Karachi is located on the coast and as a result has a
relatively mild climate. The level of precipitation is low for most of the year. However,
due to the city's proximity to the sea, humidity levels usually remain high throughout the
year. The city enjoys mild winters and hot summers. Karachi also receives the tail end of
the monsoon rains. Since summer temperatures are quite high (the end of April through
the end of August are approximately 35 to 40 degrees Celsius), the winter months
(November through March) are mild.

The head offices of most of Pakistan's public and private banks are located in Karachi.
Nearly all of these are situated on I.I Chundrigar Road (Karachis Wall Street) which is
fast becoming home to the high-rise headquarters of major corporations as well. Besides
banking and finance, Karachi also hosts the offices of foreign multinational corporations
as well as local corporations. It is home to the largest stock exchange of Pakistan: the
Karachi Stock Exchange (KSE).

Karachi also has a formidable industrial base. There are five large industrial estates
mostly located in the periphery of the main city. The main industries are textiles, lea ther,
pharmaceuticals, steel, and automobiles. Apart from these, there are many cottage

Page 1 of 10

industries in the city as well. Karachi is also known as software outsourcing hub of
Pakistan. It has a rapidly flourishing Free Zone with an annual growth rate of nearly 6.5
per cent. An expo centre has also been set up in Karachi which is now available to host
many regional and international exhibitions.

The recent trend of ICT (Information & Communications Technology), electronic media
and call centres has become a significant part of Karachis business hierarchy. Call
centres for foreign companies have been targeted as a significant area of growth, with the
government making efforts to reduce taxes by as much as 80 per cent in order to gain
foreign investments in the IT sector.

Many of Pakistans independent television and radio channels are headquartered in

Karachi. Geo television, Ary Digital and Aaj TV are the most popular ones. These
entities generate huge business revenues for the city in advertising and provide jobs and
entertainment. These popular TV channels are available on satellite and can be viewed all
over the world.
The Port of Karachi and Port Qasim are the two main ports and are central to all shipping
in Pakistan. The Karachi Port Trust is building a 500-foot high Port Tower with a
commercial and recreational centre. Integrating into Karachis skyline, the main feature
of the venture shall be a revolving restaurant, a viewing gallery offering a panoramic
view of the coastline and the city. The Tower is planned to be located at the Clifton
shoreline.
The city has a modern international airport called the Jinnah International Airport,
Pakistan's busiest. The city's old airport terminals are now used for Hajj flights, cargo
facilities, and ceremonial visits from heads of state. Additionally, the city also has two
other airstrips that are primarily used by the armed forces. The national flag carrier,
Pakistan International Airlines (PIA), and several private airlines are headquartered in
Karachi.

Page 2 of 10

Karachi has a large number of highly prestigious institutions of higher learning. These
include University of Karachi, Institute of Business Administration, Baqai Medical
University, NED University, Agha Khan University, Dow Medical University, Ziauddin
Medical University, Jinnah Medical University, Sindh Medical University, Hamdard
University, Sir Syed University Of Engineering & Technology, HEJ Institute of
Chemistry, Textile Institute of Pakistan, Institute of Business Management and over 200
other colleges.

The city of Karachi is at present undergoing a major uplift through a special

implementation package of Rs. 29 billion, which involves the construction of roads,
underpasses, flyovers, recreation parks, beach front beautification, up-grade of sewerage
and solid waste management systems, and an increased supply of 100 million gallons of
water per day.

LAHORE
Lahore is the second largest city in Pakistan and is the capital of the province of Punjab.
It is located near the river Ravi and the Indian border, at 3134'N 7420'E (31.560000
North, 74.35000 East). Lahore, ranked as the 24th largest city of the world, is estimated
to have approximately 8.5 million inhabitants.

Lahore is the second largest financial hub of Pakistan after Karachi, and has various
industrial areas including Kot Lakhpat and the new Sundar Industrial Estate (near
Raiwand). At the centre of Lahore's economy is the Lahore Stock Exchange (LES),
Pakistan second largest stock exchange which is linked to the Karachi Stock Exchange
(KSE). The sin gle biggest investment is of over 200 million dollars. It has offices of all
the provincial government departments including LDA, WASA, provincial assembly and
the Punjab High Court.
The City of Lahore is home to numerous IT firms, many of which have head offices in
Lahore. The city is also famous as the hub of handmade carpet manufacturing in
Pakistan. At present, hand-knotted carpets produced in and around Lahore are among

Page 3 of 10

Pakistan's leading export products and their manufacture is the second largest cottage and
small industry. Ninety-five percent of the carpets are produced for export, Turkoman,
Persian and Caucasian designs are crafted since they meet the popular taste abroad.
Lahore is famous for single -wafted designs in Turkoman and Caucasian style, and
double-wafted Mughal types.

Lahore is largely thought of as the cultural centre of Pakistan ever since its accession by
the Mughal Empire in the 16th century CE. This is apparent by the vast array of historic
buildings, architecture from the pre-Mugha l, the Mughal and the British periods, and
through the cultural events held throughout the year. Lahore will soon be home to the
tallest hotel in Pakistan, the new Pearl Continental Hotel. It is widely said that the city of
Lahore never sleeps with food & restaurant businesses, serving a variety of cuisines all
night long. The markets are usually open long into the night as well.

As Lahore expands, the previous residential areas are being turned into commercial
centres and the suburban population is constantly moving outwards. This has resulted in
the development of the Liberty market (for women), the MM Alam Road (for continental
food), the new Jail Road which has one of the largest office buildings in Lahore, and the
new eight-lane Gulberg Boulevard which has some of Lahore's largest shopping centres.
The suburban populations from these areas are moving into less busy areas and this
development has resulted in a thriving construction industry and several large housing
projects, prominent amongst which are the Bahria Town, Lake City project, Eden Villas
and a project by the Abu Dhabi Group (a joint Pakistan-UAE partnership) to construct a
new city on the outskirts of Lahore (larger is size than Abu Dhabi).

Lahore is one of the most accessible cities of Pakistan. In addition to the historic Grand
Trunk Road a.k.a G.T. Road, a motorway between Lahore and Islamabad was completed
in the year 2000. Lahore has the highest number of underpasses in Pakistan, mainly due
to the governments efforts to effectively link one end of the city to the other.

Page 4 of 10

The Pakistan Railways, headquartered in Lahore, provides an important mode of

transportation to the farthest corners of the country. The railway system provides a vital
network for goods transportation, an economical means of transportation for tourists,
sightseers, and pilgrims, and for the many people that live in the rural areas and
working/educating in the major cities. The railways network is an integrating force and
forms the lifeline of the country.

Lahore has bee n known as the City of Colleges as it rightly claims to have the oldest
university of Pakistan The Punjab University. Other notable institutions of higher
learning include the King Edwards Medical University, the Fatima Jinnah Medical
University for Wome n, GC University, the FC College & University, the Lahore
University of Management Sciences (LUMS), the Kanaird University, the Lahore
College for Women and over 100 other colleges and institutions.

DHA Lahore is a modern well planned residential area which compares well with DHA
Karachi, DHA Islamabad and cantonments of Multan, Quetta and Peshawar. The
demographic profile of DHA Lahore is very similar to the above mentioned areas.

FAISALABAD
Faisalabad is the third largest city in Pakistan with an estimated population of 7 million.
It is an important industrial centre located in the Punjab province, west of Lahore. The
city-district of Faisalabad is bound on the north by the districts of Gujranwala and
Sheikhupura, on the east by the Sahiwal district, on the south by Toba Tek Singh district
and on the west by the district of Jhang.

Faisalabad is the second largest industrial city of Pakistan and is also known as the
Manchester of Pakistan as it houses a large number of Textile Mills. Faisalabad is a ric h
city having a mix of both agricultural and industrial activities. Recently Faisalabad has
been connected to the motorway system and M3 connects it with Lahore. M4 is under
construction, which will connect Faisalabad with Multan. As such Faisalabad will
become an important link in the North-South Trade Corridor of Pakistan.

Page 5 of 10

The Government of Punjab has recently initiated a large program for upgrading the
infrastructure of the city. This includes development of roads, upgrading of water supply,
sanitation, sewerage and solid waste management. Furthermore, a number of housing
schemes have also been initiated. A program is underway to shift the industries to
specially developed industrial zones outside the city. As a consequence the city is
developing into a modern metropolis.

Faisalabad has several higher education institutions including the famous Agriculture
University Faisalabad, the Textile Institute, the Nuclear Institute of Agriculture Biology,
the Ayyub Agriculture Research Institute, the National Institute for Biotechnology &
Genetic Engineering (NIBGE), the Punjab Institute of Nuclear Medicine, and the Punjab
Medical College.

The international airport of Faisalabad is approximately ten kilometres from the city
centre, and is a major transit point for exporting goods to other parts of Pakistan and
abroad. Passenger flights are run by the national flag carrier, Pakistan International
Airlines (PIA), and several private airlines. There is also a public bus network within the
city and many privately operated rickshaws and taxis. The central railway station
connects Faisalabad with all major cities and most minor towns and cities of Pakistan.

MULTAN
Multan is a city in the Punjab Province, and is the capital of the Multan District. It is
located in the southern part of the province, and is a historically significant city. It has a
population of over 4.2 million (according to 1998 census), making it the sixth largest city
in Pakistan. It is built just east of the Chenab River, more or less in the centre of the
country, and about 966 km from Karachi. Multan is known as the 'City of Pirs and
Shrines', and is a prosperous city of bazaars, mosques, shrines and superbly designed
tombs.

Page 6 of 10

Multans economy is based on cotton largely and it has a large number of cotton ginning,
spinning and weaving mills. In addition, Multan is surrounded by orchards of Mangoes
and a variety of other fruits. It also has a large leather tanning industry. Agricultural
tractors and implements are produced in and around Multan.

Multan is now rich in schools and educational campuses, many of which mushroomed in
the last decade. This growth of quality educational institution is visible in the prestigious
institutions of the Bahauddin Zakariya University, formerly known as Multan University,
the Govt. College on Bosan Road, the Govt. Science College and the popular Govt.
Degree College for Women. Prominent for its medical education, facilities and alumni,
Multan also boasts the Nishtar Medical College.

The Multan International Airport has flights to major cities in Pakistan and rest of the
world. Multan is connected with National Railway and trains go in all directions.
Similarly, it is located on the National Highway and is in the process of being connected
with M4 (to Faisalabad) and M5 (to Rahimyar Khan) and onward to M9 and to the
Karachi Port.

The City District Government of Multan has initiated a number of large development
schemes to improve the overall infrastructure including water, sewerage, roads, solid
waste management etc. Both the government and private sector have initiated work on a
number of new and modern housing colonies. Multan is frequently visited by people
living in surrounding areas such as Khanewal, Burewalla, Bhawalpur, Bhawalnagar, etc
for shopping, business and other needs.

PESHAWAR
Peshawar literally means City on the Frontier in Persian and is known as Pai- khawar in
Pashto. It is the provincial capital of Pakistan's North-West Frontier Province. In ancient
times the city was known as Purushapura when it was officially founded by the Kushans.
Peshawar covers an area of 1257 square km and has an estimated population of around
2.2 million at present.

Page 7 of 10

Peshawar being located close to the Afghan border also handles a lot of trade with that
country. Traders of the city regularly visit Kabul and other towns of Afghanistan for
business purposes. As such it is a rich town with a lot of wholesale and retail trade
activity.

The Peshawar International Airport serves the city and the province of the North-West
Frontier as the main international airport. It is used by all airlines of Pakistan as well as
many international airlines including Emirates and Qatar Airways who have regular
flights to the Gulf. The city is linked to the main motorway (M1) to Islamabad, as well as
the K arakorum Highway, to all of the major cities of Pakistan including Karachi, Lahore,
Islamabad, Rawalpindi, Faisalabad and Multan. The city also has roads that lead to China
and to Afghanistan, through the famous Khyber Pass. The central railway station run by
the Pakistan Railways links the city to the national railway network and to Afghanistan.
In the city, there are a variety of modes of transport, namely; coaches, buses, auto
rickshaws, yellow taxis, horse carts etc.
The main educational institutions of Peshawar are: University of Peshawar, University of
Engineering and Technology (NWFP), Khyber medical college, Edwards College, NWFP
Post-Graduate Medical Institute, Khyber College of Dentistry etc.

The Peshawar Development Authority and City District Government of Peshawar are
responsible for all affairs of the city. There are a number of modern housing schemes
including Hayatabad, etc., which has the upper middle class and upper class residents,
having similar demographics as DHA in Karachi, Lahore and Islamabad.

QUETTA
Quetta is the capital of the province of Balochistan and is also known as the "fruit
garden" of Pakistan. It is located in the densely populated Quetta District, which lies in
the northeast of the province, and is situated in a valley surrounded by three different
mountain ranges with a road to Kandahar in the northwest. Quetta is located 1680 meters

Page 8 of 10

above mean sea level and as such has a temperate climate. It covers an area of 2653
square km and has an estimated population of 760,000.
Quetta houses the offices of Balochistan government, the provincial assembly, the
Balochistan High Court and offices of a number of UN Agencies and international NGOs
dealing with Afghan refugees and related matters. It has a rich tradition of trade with
Afghanistan and Iran and as such it has a large business class inhibiting its modern
residential areas.
Although Quetta is on the western edge of Pakistan, it is well connected with the country
by a wide network of roads, railways and airways. Quetta is connected to Lahore by a
727 mile long railway line. Similarly it is also connected by railways with Peshawar (986
miles away) and Karachi, which is 536 miles away. Many Internet Service Providers and
almost all major mobile phone companies are operating in Quetta.

Of the many educational inistitutions in Pakistan, Quetta is home to the prestigious

military Command and Staff College, which was founded by the British, recently
celebrated its hundredth anniversary. The University of Balochistan (established in 1974),
The Balochistan University of Information Technology & Management Sciences, the
Sardar Bahadur Khan Women University are some of the other universities situated in
Quetta.

ISLAMABAD
Islamabad, the capital city of Pakistan, is located at 3340'N 7310'E in the Potohar
Plateau in the northwest of that country. It is situated within the Islamabad Capital
Territory, though the area has historically been a part of the crossroads of the Punjab
region and the North-West Frontier Province (the Margalla pass being a historic gateway
to the North-West Frontier Province, and the Potohar Plateau historically a part of the
Punjab). The city houses the offices of the federal government, the parliament, Supreme
Court and the entire diplomatic corps along with the offices of UN Agencies and

Page 9 of 10

international NGOs. The headquarters of Pakistan Air force and Pakistan Navy are also
located in Islamabad. Armys new headquarters are under construction.
Islamabad has a population of nearly 1 million and is a well planned modern city. It
enjoys all the four seasons, spring and autumn being exceptionally colourful. Islamabad
is well connected by a road network and through national airlines with the other parts of
the country. A new airport is being built to handle the increasing air traffic.

Islamabad can rightly boast about the numerous Research & Development institutions
and educational institutions located within the city. These include PARC, NARC, PAEC,
PSF, COMSTECH, QAU, AIOU, FUI, NUST and others. The major universities in
Islamabad include Bahria University, Air University, Shifa Medical College, Riffah
Medical College, Intl Islamic University, SZABIST, Mohammad Ali Jinnah University,
Al Huda University, and Foundation University etc.

The Capital Development Authority (CDA) is responsible for managing the affairs of
Islamabad. DHA Islamabad is a new city being developed by local and foreign
developers from Dubai, Malaysia, etc., because of its scenic beauty, four seasons, seat of
the Federal Government and location of foreign embassies and UN agencies. Many
business families of Karachi, Lahore and Faisalabad maintain offices and residences in
Islamabad. In spite of being a city of bureaucrats, Islamabads demographics are very
similar to those of other commercial and business hubs in the country.

Page 10 of 10

Study Commissioned by:

EMPLOYMENT & RESEARCH SECTION,
PLANNING & DEVELOPMENT DIVISION, GOVERNMENT OF PAKISTAN,
PAKISTAN SECRETARIAT, P- BLOCK, ISLAMABAD
Tel: (92-51) 921 2831, Fax: (92-51) 920 6444