Pakistan's Economic Coordination Committee (EEC) is expected to give the go-ahead to a new incentive package for a proposed petrochemical unit at Port Qasim.

With the body's first major meeting of the current financial year due to take place within the next few days in the city of Karachi, industry chiefs are confident prime minister Syed Raza Gilani will announce a number of incentives, including a tariff protection of 20 per cent against imports of petrochemicals to the country, in order to encourage private investment in the project.

In return, a private firm is believed to be ready to invest €470 million in the first phase of the Polyethene and Polypropene-producing plant, with a further €1 billion earmarked for additional production facilities close to the port.

Furthermore, official sources have told the country's Daily Times newspaper that the company has also called on the EEC to ensure that a 20 per cent import duty gap between raw materials imposed for the construction and production processes at the new plant and final products imported into Pakistan so as to give it adequate protection.

The proposals are set to be discussed this week, with the EEC also due to look into attempting to boost the ability of Pakistani companies to invest overseas in order to boost their operations.