Pakistan has shared a plan with the IMF on bridging the external financing gap by attracting foreign direct investment (FDI) in various sectors, including energy, aviation, minerals, and agriculture. According to media reports on Wednesday, the caretaker government expects a significant increase in FDI inflows during the current financial year to help meet the external financing gap. Sources within the Finance Ministry indicate that Saudi Arabia, the United Arab Emirates, and Qatar have expressed strong interest in investing in Pakistan's economy.

Arab countries are particularly keen on investing in energy, aviation, minerals, and agriculture. They are also expected to invest heavily in upgrading Pakistan's airport infrastructure, with the potential outsourcing of Islamabad Airport this month. In addition to attracting FDI, Pakistan has also signed a free trade agreement with the Gulf Cooperation Organization (GCC) and is currently working on a mutual investment agreement. The IMF has requested a briefing from the Finance Ministry on the Special Investment Facilitation Council and its potential impact on tax collection and subsidies.

France, Germany, and South Korea have shown interest in long-term contracts with management control of distribution companies (DISCOs). Consultations are also underway on handing over the management control of the International Finance Corporation DISCOS to the private sector. Sources anticipate a surge in FDI inflows in energy, aviation, minerals, and agriculture starting from January 2024. These investments are expected to play a crucial role in bridging Pakistan's external financing gap and boosting economic growth.

 Credit: Independent News Pakistan (INP)