Professional Documents
Culture Documents
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 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
LOCATION...............................................................................................................................................13
FACILITIES AND PHASING ...............................................................................................................14
FLOW PATTERN ....................................................................................................................................23
INFRA STRUCTURE.............................................................................................................................26
SUPPORT SERVICES............................................................................................................................27
CAPITAL ITEMS....................................................................................................................................28
IMPLEMENTATION PROGRAMME................................................................................................29
GOVERNANCE.......................................................................................................................................30
MANPOWER............................................................................................................................................32
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
ANNEXURE- 1
PAKISTAN A PROFILE
ANNEXURE- 2
ii
ACRONYMS
BP
Blood Pressure
CCH
CDG
DHA
ECG
Electrocardiogram
ENT
GoP
Government of Pakistan
GP
General Practitioner
ICU
IPD
In-Patient Dept.
IV
Intravenous
M.O.
Medical Officer
MR
Medical Record
NICU
NMC
OPD
OT
Operation Theater
P&DD
P ICU
SPC
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.
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
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.
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.
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 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.
vi
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
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
Area Profile
General perceptions
Consultants view
Prevailing Illnesses
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.
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.
2.3.2
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
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.
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.
Chest (routine)
Cerebral angiogram
Abdomen
Biopsy
Cervical spine
Endoscopies
Skull
Etc
Barium meal
Pregnancy
Abdomen
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:
2.3.5
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:
ulcers,
Psychogenic
Drugs,
Antidiarrhoeal
drugs,
Antiheminths,
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
affluent
class
generally
go
abroad
for
major
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.
There is long waiting time for admission in the hospitals on account of acute
shortage of:
2.5
Beds
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.
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)
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).
TH
Doctors Accommodation
Service Apartments
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
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
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.
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
Admitting Office
Supervisors Office
Appointment Office
Record 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:
17
CLINICS:
3.2.2
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.
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.
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
3.2.4
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.
3.2.5
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.
Administration
Consultation
Supervisor
Records
Coordination
Tests
Nursing
Conferences
Preoperative study
20
3.2.6
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
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
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.
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
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.
3.3.1
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.
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
24
3.3.4
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
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.
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
3.5
SUPPORT SERVICES
In TH, following will be needed as support services:
Hospital Stores
Hospital Pharmacy
Hospital Kitchen
Security Systems
Gift Shop
Laundry
Cafeteria
Ambulance Service
27
3.6
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
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:
Administrator
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
3 Shifts
HOSP.
MEDICAL
STORE
ADMIN
TOTAL
STAFF
14
3
18
3
50
10
6 Specialist
7 Asstt.
18
10
12
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.
12
12
22 Peons
23 Gardener
25 Telephone Operator
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
12,313,154
1,500,000
1,000,000
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
5,816,020
6,709,629
8,036,216
8,983,451
9,533,460
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
1,528,315
3,176,840
5,685,134
7,440,143
8,406,372
1,925,000
1,725,000
1,525,000
1,325,000
1,125,000
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
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
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
(771,685)
(903,505)
1,165,985
4,382,581
8,221,153
Operating Profit
YEAR 1
YEAR 4
YEAR 5
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.
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
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.
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 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.
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.
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.
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
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.
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 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.
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
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.
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.
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
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.
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.
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
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.
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