ISLAMABAD (Khaleej Times) — Qatar here signed several agreements and memorandums of understanding (MOUs) with the government for $2 billion worth new investment in Pakistan, the prime minister's adviser on finance, economic affairs, and revenue division Salman Shah said.

He told Khaleej Times that Qatar has decided to invest in various sectors particularly power, tourism, hotel, and infrastructure projects.

Finance Minister of Qatar Yousef Hasan Salman, he said, has held wide ranging discussions with senior Pakistani officials and found Pakistan an important place for investment.

Salman Shah said that Qatar was further exploring new avenues for investment in Pakistan. "I have had a very fruitful meeting with the Qatari finance minister and this will be very good for both the countries," he said.

"For us it is very encouraging that foreign direct investment (FDI) is coming here in a big way especially from Qatar, the United Arab Emirates (UAE), and Saudi Arabia". However, he said the government needs to further improve the overall security environment to boost investment in the country.

Giving the details, Talat Miyan, executive director of Board of Investment (BOI) told this correspondent that Qatar has identified five major areas to make new investment that also includes an industrial zone and an important power project in Pakistan.

He said Qatar has proposed to set up a $500 million power project at Checho-ki-malian, near Sheikupura, Punjab. Similarly, he said in Khaniwal, a livestock farm on five thousand of acres has been planned to be established by Qatar at a cost of around $100 million.

"The Qatar government has informed us that it is interested to build two five star hotels each in Karachi and Lahore at a cost of $150 million," the executive director of BOI said.

He said Qatar is also interested to make roughly $1 billion investment at Lahore-Sialkot industrial zone. Also, Qatar government, he said, was negotiating with National Logistics Cell (NLC) to enter into a joint venture with it for constructing a multistory building in Islamabad for offices and other business activities. The project, he said, would cost about $100 million.

Qatar, he said, has shown keen interest to set up a cement plant near Thatta, Sindh at a cost of $100 million. "The issue of launching a new airline has also been discussed for which Qatar has shown a lot of interest," Talat Miyan added.

Responding to a question, he said all these new projects by Qatar will be set up during the next two to three year period. The power project, he said, could be set up within this year as certain homework has already done by the Qatar government.

He said Qatar is also interested in establishing “Qatar Islamic Bank” for which initial negotiations have been held with the central bank and the Ministry of Finance. To a question, he said Qatar will be required to arrange 49 percent equity for establishing an airline while 51 percent equity is needed to be arranged locally. "This issue may take time but other five projects are expected to be finalized soon between the two governments."