Pakistan’s SIFC Approves $28 Billion Worth of Projects for Gulf Countries’ Investment

(CTN News) – In a significant development, Pakistan has taken a major step towards accelerating economic development and reducing reliance on loans and imports.

The newly established Special Investment Facilitation Council (SIFC), a hybrid civil-military forum, has given the green light to 28 projects worth billions of dollars. These projects are now open for investment by Gulf countries, including Qatar, Saudi Arabia, the UAE, and Bahrain.

The SIFC’s aim is to fast-track economic growth and address the country’s financial challenges. With a diverse portfolio, the approved schemes cover key sectors such as food, agriculture, information technology, mines and minerals, petroleum, and power.

A Wide Array of Investment Opportunities

Among the projects on offer, there are cattle farms, a $10 billion Saudi Aramco refinery, copper and gold explorations in Chagai, and the Thar Coal Rail connectivity scheme. The list also includes the Diamer-Bhasha dam, which has been previously offered to China for investment under the China-Pakistan Economic Corridor (CPEC).

Legal Framework and Sovereign Wealth Fund

To ensure efficient execution and immunity for decision-makers from anti-graft investigations, Parliament has approved amendments to the Pakistan Army Act, Board of Investment (BOI) Ordinance, and Election Act. Additionally, a Pakistan Sovereign Wealth Fund is in the pipeline to provide equity for SIFC-approved projects.

Gulf Countries as Priority Investors

Pakistan has identified 23 countries to pitch these projects, with a special focus on attracting investment from Saudi Arabia, the UAE, Qatar, and Bahrain. Priority visas will be issued to citizens of these countries to expedite project implementation.

Lessons from CPEC and Potential Challenges

While the ambitious China-Pakistan Economic Corridor initially planned for $62 billion investment, only about $28 billion has materialized so far. To avoid similar pitfalls, Pakistan is now determined to jointly run the economy with the involvement of the civil-military leadership.

Emphasis on Agriculture, Mining, and Power

The SIFC’s apex committee has approved projects in corporate farming, dairy and feedlot farms, camel farming, and various mining explorations. In the power sector, the focus is on the Diamer-Bhasha dam, Thar Coal Block II, Solar PV Projects, and hydropower projects, among others.

Promoting Technology and Innovation

Pakistan is keen to develop technology zones, optical fiber networks, cloud infrastructure, semiconductor design, and smart devices manufacturing. Additionally, the establishment of a global skill hub and centers of excellence are part of the plan.

Conclusion

Pakistan’s SIFC is taking a bold step towards bolstering economic growth by inviting Gulf countries to invest in a diverse range of projects. With a well-structured legal framework and priority focus on key sectors, the country aims to achieve economic stability and reduce dependency on loans and imports.

However, efficient execution and addressing potential challenges will be critical to realizing the full potential of these investment opportunities.