Islamabad June 21 2023: Pakistan formed Special Investment Facilitation Council to attract foreign investment of USD 5 billion on immediate basis with target to attract USD 110 Billion in five to seven years.
“I have fervently advocated a unified approach to steer the country out of the economic challenges on a path to sustainable growth. Employing a whole-of-the-the-government approach, the coalition government has decided to set up a Special Investment Facilitation Council (SIFC) with a mandate to frame economic policies that ensure policy predictability, continuity & effective implementation to revive the economy” says Prime Minister of Pakistan Shahbaz Sharif.
He added, “By virtue of its composition, the SIFC will serve as a top decision-making forum to push through fundamental reforms in the structure of the economy. To begin with, the forum will focus on leveraging key sectors such as IT, agriculture, energy, minerals and mining, and defence production.”
”Attracting investment from friendly countries remains one of the key goals of the SIFC. The immediate task is to increase FDI to $5 billion” the premier added.
Pakistan have to pay external debt payments of USD 4 billion more than the central bank reserves during the first half that are not subject to rollover at a time when IMF program is going to finish in two weeks time. With dangerously low foreign exchange reserves and a steep debt repayment schedule looming for fiscal year 2024 that begins in July, Pakistan is facing a stark prospect of potential default or even a larger balance of payments crisis in the 12 months ahead.
Federal Minister for petroleum claimed that there is a target to attract Foreign investment of USD 112 billion in the next five to seven years.
Pakistan total outstanding public debt at the end of March 2023 amounts to USD 96.82 billion while Public Sector Enterprises, Commercial Banks and Private Sector Debt of USD 7.5 billion, USD 6.0 billion and USD 12.0 billion, respectively is on top of this.
Musadik Masood Malik claimed that “there are commitments (assurances) from numerous countries, especially Saudi Arabia, the United Arab Emirates, Qatar, and some from China.”
“The type of investment and sectors are already been decided with these investors. But the problem is that assurances do not work. They come here and then they are spoiled” Musadik added.
The three countries have allocated investment of USD 20-25 billion in Pakistan. They are saying that we want to invest in agriculture, minerals and IT.
The need for a representative forum like the SIFC has long been felt, given the scale of the economic challenges caused by internal & external factors. The textbook approach to deal with a unique set of problems is not workable anymore. Hence all the more reason to leverage collective wisdom to kick-start the economy to make it self-reliant, export-driven, and robust, capable of withstanding external shocks and upheavals.
Creative ideas offer the solution to our economic problems.
Prime Minister Shahbaz Sharif has formed a special committee for investment in Pakistan from the countries of the Middle East and has also made Army Chief General Asim Munir a part of it.
According to the statement, the purpose of this council, which has been named ‘Special Investment Facilitation Council’, is to improve the process of investment from the Gulf Cooperation Council (GCC) in the fields of defence, agriculture, minerals, IT and energy. .
The Prime Minister has also formed three different committees under this council, in which the first apex committee will be headed by Shahbaz Sharif himself, while Army Chief General Asim Munir has been made a part of it on special invitation.
However, apart from the Prime Minister and the Army Chief, the APEX Committee will include the Federal Ministers for Planning, Finance, IT, National Food and Security, Water and Power and Defence. The Chief Ministers of the provinces will also be a part of this APEX Committee while a National Coordinator of Pakistan Army and a Special Advisor to the Prime Minister, who will also be the Secretary of this Committee, are included in this Committee.
After the Apex Committee, the Executive Committee has been formed which will include the Federal Ministers for Defence, IT, Energy and Ministers of State for Petroleum and Finance.
Apart from them, the provincial ministers for agriculture, minerals, IT, energy, finance, planning and all the chief secretaries will also be part of this committee.
At the third level, an implementation committee has been formed which includes a Director General of the Pakistan Army, a Special Assistant to the Prime Minister and the Secretary of the Council, who will be a 21st grade officer.
