By Ayesha Saba

In an effort to boost economic growth and enhance national security, Pakistan has placed a strong emphasis on the establishment and growth of the Special Investment Facilitation Council (SIFC). Director General Pakistan Regulatory Modernisation Initiative (PRMI), Board of Investment (BOI) Zulfiqar Ali said this while talking to WealthPK. “Promoting foreign direct investment (FDI) in Pakistan faces several significant hurdles, which have impeded the nation’s ability to fully tap into its economic potential. These challenges span various domains, encompassing political, security, bureaucratic, and economic aspects, and collectively hinder Pakistan’s ability to attract substantial FDI.

“To address these challenges and to boost FDI, the government recently established the SIFC. It is an important step forward in Pakistan’s quest to boost foreign direct investment, build investor confidence, and strengthen the economy,” he said. “The SIFC is a platform that aims to attract and facilitate the FDI by providing a single window for investors, establishing cooperation among all government departments, and fast-tracking project development,” he added.

“Pakistan has a vast potential for foreign investment in agriculture, mining and minerals, information technology, energy, and defense production. A policy is being devised to boost IT exports, encourage joint ventures in the field, and bring foreign investment into the sector. Furthermore, recognizing substantial potential in the defense production industry, a decision has been made to incorporate it into the SIFC framework.” According to Zulfiqar, Pakistan’s diplomats would streamline the visa process, facilitating foreign businesspeople to enter the country.

If our chambers of commerce or business associations issue a document to a foreign businessman, they will be eligible to obtain a visa easily, he said. “Improving infrastructure and connectivity is also essential for attracting the FDI. The SIFC has also leveraged the CPEC to enhance Pakistan’s connectivity with China and other regions,” he informed WealthPK. “Pakistan has made efforts to address various investment challenges, but sustained progress is essential to unlock its full economic potential and compete effectively for FDI in the global market,” he opined.

With a four-month low FDI of $114 million in June, the investment for the entire FY2023 in different sectors of the economy fell to a four-year low of $1.45 billion. According to the latest State Bank of Pakistan (SBP) data for FY2022-23, the FDI slowed down by a staggering 25% in FY23 as against $1.93 billion in FY22.

Credit: INP-WealthPk