ISLAMABAD (TNS) Pakistan has created many new chapters of development through the platform of the Special Investment Facilitation Council (SIFC) in collaboration with domestic and foreign investors, institutions and governments.
Thanks to SIFC, Pakistan is not only crossing important milestones in the economic and industrial field but also restoring the confidence of global investors.
On the completion of two years of the establishment of SIFC, a special report has been issued on Pakistan’s economic, industrial and tourism development, which highlighted significant achievements and progress in various sectors.
Remember that Prime Minister Shehbaz Sharif has formed a committee, the Special Investment Facilitation Council, SIFC, to bring investment to Pakistan from Middle Eastern countries and has also made Army Chief General Asim Munir a part of it.
The Special Investment Facilitation Council (SIFC) was formed to facilitate investment from the Gulf Cooperation Council (GCC) in the defense, agriculture, minerals, IT and energy sectors. The plan came at a time when Pakistan was facing a severe economic crisis and fears of the country going bankrupt were growing due to the fading prospects of the IMF program, while the political crisis in the country was also showing no signs of abating. The Prime Minister also formed three different committees under this council, the first of which is headed by Shahbaz Sharif himself, while Army Chief General Asim Munir has been made a part of it on a special invitation. It was not made clear what role the army chief will play in this council. After the Apex Committee, an Executive Committee has been formed, which includes the Federal Ministers for Defense, IT, Energy, as well as the Ministers of State for Petroleum and Finance. In addition to them, the Provincial Ministers for Agriculture, Minerals, IT, Energy, Finance, Planning and all Chief Secretaries are also 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, a 21st grade officer. With the formation of this Council, some countries have pledged significant investments of $20 to $25 billion in Pakistan. The Government of Pakistan approved the establishment of the Special Investment Facilitation Council (SIFC) on June 20, 2023, which will act as a “single window” to facilitate investors, establish cooperation between all government departments and accelerate project development. It is chaired by the Prime Minister and includes members including federal ministers, provincial heads and the army chief. The government established the SIFC to shorten the lengthy business process through a cooperative and collaborative whole-of-government approach with representation of all stakeholders. Its aim is to tap into Pakistan’s untapped potential in key sectors of defense production, agriculture, mining, information technology (IT) and energy through domestic and foreign investment. By 2035, Pakistan’s GDP will triple to $1 trillion and if this happens, it means that there will be no poor in Pakistan, but the current ground situation is that 40 percent of the country’s population lives below the poverty line while Pakistan is currently among the lowest countries in the world in the Ease of Doing Business Index. The formation of the committee is a one-window operation-style plan to facilitate foreign investment. All institutions that are in any way related to investment have been brought together. ‘Committees have been formed for implementation at three levels. One, an Apex Committee has been formed under the chairmanship of the Prime Minister, which will also include cabinet members and the Army Chief, which will initially meet every month. The second is the Executive Committee, which includes ministers and provincial governments, federal government agencies. And the third is the Implementation Committee, which will meet every week.
The aim of this council is that whoever is coming to invest, if there is any legal problem, it should be resolved, if there is a problem with the rules and regulations, it should be resolved, and if there are only slow administrative issues, then those should also be resolved. A program of 112 billion dollars has been presented in the next five to seven years. Three countries have allocated 20-25 billion dollars for investment in Pakistan. They are saying that we want to invest in agriculture, minerals and IT. It has been decided in advance with numerous countries, including Saudi Arabia, the United Arab Emirates, Qatar and China, that you should invest. Due to this plan, some ongoing projects may accelerate. However, to bring foreign investment to the country, the government will first have to convince private investors in its own country to invest in Pakistan, only after that will any foreign investor invest in Pakistan. The path for the revival of oil refinery projects worth $6 billion in the energy sector in Pakistan is being paved. On the recommendation of the Special Investment Facilitation Council (SIFC), the government has issued a directive to amend the Brownfield Refinery Policy, which aims to provide a conducive environment for investment in old refinery projects. Reforms in sales tax, measures to control smuggling of petroleum products and diesel imports are being considered. The aim of the amendment to the energy policy is to make it possible to revive refinery projects through an investment of $6 billion. Consideration is being given to guaranteeing stability in the tax policy for refineries for 7 years. Significant increase in investor confidence is expected. Thanks to the reforms in the tax policy, the path for the upgrading of refineries for the production of quality fuel will be paved. The efforts of the SIFC have established effective communication between the government and the private sector. The implementation of the policy has improved. The government is committed to innovation in the energy sector through financial incentives. Progress in energy projects with the support of SIFC will form the basis for stability and sustainable growth in the country’s economy. Prime Minister of Pakistan Shehbaz Sharif says that Pakistan has made the investment procedure more convenient and improved the overall business environment and promoted transparency through the Special Investment Facilitation Council (SIFC), which has made Pakistan an attractive destination for global investors. Meaningful investment partnership with DP World will help strengthen trade relations between Pakistan and the UAE. The Prime Minister appreciated DP World’s investment in Pakistan and its role in enhancing trade and logistics infrastructure. The Prime Minister reiterated Pakistan’s commitment to early completion of projects under intergovernmental agreements with DP World. Pakistan’s strategic location provides an ideal opportunity for DP World to expand its operations and emulate successful projects like Jebel Ali Port in Pakistan. The Chairman of DP World Group thanked the Prime Minister for the continued support of the Government of Pakistan in advancing mutual cooperation.
The Special Investment Facilitation Council has emerged as a central platform for promoting investment and improving the business environment in Pakistan. It may be recalled that during the budget speech last month, Senator Muhammad Aurangzeb had said that under the Special Investment Facilitation Council, more than 100 strategic greenfield and brownfield projects in various sectors including energy, minerals, agribusiness, IT, fintech, infrastructure, workforce development and tourism were taken forward at a fast pace, resulting in a significant increase in foreign direct investment in the fiscal year 2024-25. The SIFC also played a significant role in privatization and public-private partnership and promotion of the private sector. By improving inter-provincial and inter-ministerial linkages and removing unnecessary regulatory hurdles, the SIFC has restored investor confidence, improved the transport and logistics system and laid a strong foundation for the export-led industrial development agenda for the fiscal year 2025-26.
