By News Desk
ISLAMABAD: Pakistan expects to receive over $20 billion in investments from Saudi Arabia, the United Arab Emirates and Qatar in various fields, Arab News reported on Wednesday.
The government set up a Special Investment Facilitation Council (SIFC) this week, giving the army chief a seat on its apex committee and a key role in attracting foreign investment.
Pakistan faces its worst economic crisis to date, with months of delay in securing funding from the International Monetary Fund (IMF) causing its forex reserves to decline rapidly. The country, suffering from months-long political turmoil, has been caught up in an acute balance of payments crisis while inflation remains at an all-time high.
“We have been seeking deposits and loans from our friendly countries, but from now onwards, they will be investing in different fields in Pakistan,” Rana Ihsan Afzal, a coordinator to Prime Minister Shehbaz Sharif on commerce and industry, told Arab News.
“The government is initially expecting over $20 billion in investments from Saudi Arabia, UAE and Qatar. We already have investment pledges from these countries and the constitution of the SIFC would help expedite it.”
Afzal did not provide a specific timeline for when Pakistan would receive the investments. He said the Gulf countries were “keen to invest” in all sectors including energy, agriculture, construction of dams, education and health.
In recent months, Saudi Arabia and the UAE deposited billions of dollars in Pakistan’s central bank to shore up the country’s foreign exchange reserves and keep its economy afloat. In April, both Saudi Arabia and the UAE pledged $2 billion and $1 billion respectively in external financing to Pakistan.
This was one of the IMF’s foremost conditions imposed on Pakistan for the revival of a $6.5 billion bailout program, which has remained stalled since November last year.
The SIFC also gives the military a seat at the economic table, with an army official serving as the director general of its implementation committee.
Pakistan army’s media wing, the Inter-Services Public Relations (ISPR), did not respond to calls and texts seeking comments for this story.
Afzal defended the army’s inclusion in the council, saying it would help expedite the investment process by removing bureaucratic hurdles and security clearances.
“There are multiple NOCs (no objection certificates) and clearances that an investor requires to obtain from security institutions, therefore their presence in the council would help expedite the process,” he said.
Security clearances and NOCs from security institutions for investors usually lead to prolonged delays. American search engine giant Google took over a year to get clearance from security institutions to open its liaison office in Pakistan.
Afzal said the prime minister would preside over a monthly meeting of the council to review its performance and issue further guidelines.
“The forum will not only help GCC investors, but also private investors and other countries interested in investing in Pakistan,” he said.
Economic expert Uzair Younus, however, remained skeptical of the SIFC’s success in attracting foreign investment. He said Pakistan needed to improve its business environment and governance structures instead of creating new bodies.
“The SIFC is another attempt at creating a parallel structure that bypasses existing institutions,” he said. “Pakistan does not need more committees or councils. It needs reforms that make it easier for businesses to operate.”
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