IPOs of its food, fertilizer and power generation companies in 2011 are planned, Asad Umar, President of Engro Corporation, told Reuters in an interview. The group may also seek to be traded on foreign exchanges through a global depositary receipt (GDR) issue, most likely by the fertilizer firm, he added.
Engro's holdings are in the fertilizer, food, petrochemical and power sector generation sectors, where it has invested $1.7 billion in the past four years. This includes the world's largest single-train urea ammonia plant worth $1.1 billion.
Engro's net profit was Rs.6.79 billion rupees ($79.5 million) in 2010 and has a market capitalization of $892 million. Its shares have increased in value by more than 21 percent this year against a 1.7 percent fall in the country's main stock exchange.
It owes its success to a simple formula, Umar said.
"Investments are designed around the core strengths and needs of Pakistan's economy," he said.
"Agriculture is our biggest strength, so investments in food are designed to play on that strength, and energy is the single biggest requirement of the country."
It is also involved in a joint venture with the government of Sindh province to mine coal from Thar Block II, which would cost up to $4 billion, making it the biggest private sector investment in Pakistan's history.
The government has yet to provide plans for the infrastructure supporting the project's development and it would take another 18 to 24 months to raise the money once the government acts. Construction work is expected to take about four years.
A shaky security situation, a Taleban insurgency in the country's northwest, chronic power shortages, high inflation, and political uncertainty have put off long-term investors but Engro continues to remain bullish on the country.
"There are very real issues here, those are realities but there are also opportunities which people don't look at and recognize and therefore miss out," said Umar.
"Those who believe in Pakistan's potential and have invested in it, and done it with good value systems have ... all been rewarded for it."
That holds true for Engro as having been in Pakistan for over 42 years, it's amongst the favorite stocks to invest in for foreign investors as well.
According to Topline Securities, Engro is part of the top five companies foreigners prefer to invest in with an estimated holding worth $125 million.
But Engro recognizes the larger macro economic problems of the country as a real challenge especially the fiscal deficit.
"You just cannot survive with the current status quo...in a broad perspective, you need to re-prioritize the state, on how it collects taxes and revenues, from who it does so, in what form and how does it spend the money," said Umar.
The IMF and other donors have asked Pakistan to raise its tax-to-GDP ratio, which at only about 10 percent is one of the world's lowest, by implementing fiscal reforms and Umar said it needs to be at 15 percent.
Pakistan aims to keep its budget deficit under 5.5 percent of GDP in fiscal year 2010/11 (July-June).
"I am very bullish on Pakistan in the long run, but very concerned in the short to medium term," said Umar.