South Punjab Forest Company
A Public Sector Company registered under Section 42 of the Companies Act, 2017
South Punjab Forest Company (SPFC) is a not-for-profit public sector company incorporated in September 2015, under section 42 of the Companies Act 2017, established by the Forestry, Wildlife & Fisheries Department, Government of the Punjab. Government of the Punjab, with a mandate to seek private investment on profit sharing basis, for raising tree plantations on blank forest land of the Government of Punjab in the Civil Divisions of South Punjab. The head office of the SPFC is based in Lahore. The organization aims to stimulate private sector investment alongside public money to reduce deforestation in Punjab and combine forest conservation with sustainable economic development. The investment objective of the company is to encourage investment in assets that can be established and managed on environmentally and socially sustainable basis. The Punjab Forest Department after approval of the Government of Punjab has assigned a blank area of 99,077 acres to SPFC mainly falling in D.G. Khan and Bahawalpur Civil Division at various sites, with variant areas. The aforementioned areas are generally under the category of Riverain Forests requiring considerable investment for afforestation, as the reliance has to be made on groundwater.
In view of this attractive opportunity, SPFC will act as a vehicle that combines socially and environmentally responsible forestry investment with unique potential for stable and attractive returns through participation in the value chain of competitive and sustainable industries. The company also aims to build a diversified timberland portfolio in terms of age, class and species that is intended to maximize the risk/return profile. The investors will aim to build a diversified portfolio of sustainable long-term profitable investments. Selected investors will invest in trees and other timber related assets with an emphasis on investments in high biological growth plantations and will be aligned with the three pillars of SPFC's business philosophy:
- Social and environmental sustainability
- A balanced portfolio of wood fibre end-uses
- Cost and quality competitive Projects
The company believes that this approach will generate both long-term capital appreciation for partners and an attractive and sustainable income yield. In future, SPFC will seek investments in forestry projects that are or will be certified by a reputable forest management certification scheme.