ISLAMABAD – In a significant development, Pakistan’s newly established Special Investment Facilitation Council (SIFC), which functions as a hybrid civil-military forum, has provisionally approved 28 projects worth billions of dollars. These projects will be offered to Gulf countries for investment, with the Diamer-Bhasha dam construction and mining operations at Reko Diq in Balochistan’s Chagai district being among them.
The list of approved projects indicates that, if selected by countries like Qatar, Saudi Arabia, the UAE, and Bahrain, the total investment under the SIFC could exceed the $28 billion invested through the China-Pakistan Economic Corridor (CPEC).
Initially, the approved projects span various sectors, including food, agriculture, information technology, mines and minerals, petroleum, and power. Some of the projects include cattle farms, a $10 billion Saudi Aramco refinery, copper and gold exploration in Chagai, and the Thar Coal Rail connectivity scheme.
The Diamer-Bhasha dam has also been offered to China for investment under CPEC.
To provide legal cover to the SIFC’s operations, several amendments to the Pakistan Army Act and the Board of Investment (BOI) Ordinance were approved by the parliament this week. Amendments to the Election Act were also introduced to ensure continuity in work on these projects during the caretaker government’s tenure. These laws aim to facilitate the swift execution of the initially approved 28 multibillion-dollar investment projects while granting immunity to decision-makers from investigation by anti-graft bodies.
The government is also in the process of establishing the Pakistan Sovereign Wealth Fund, which will provide equity to the SIFC-approved projects for both joint ventures with foreign nations and single ownership schemes. The assets of seven profitable state-owned entities, including blue-chip companies, are being transferred to the wealth fund for utilization on SIFC-approved projects.
Prime Minister Shehbaz Sharif has described the establishment of the SIFC as a move to foster synergy between the federal and provincial governments, facilitate timely decision-making, avoid duplication of efforts, enhance investor confidence, and ensure swift project implementation.
The government has identified 23 countries for presenting these projects, with a particular focus on Saudi Arabia, the UAE, Qatar, and Bahrain. Priority visas will be issued to the citizens of these countries to expedite the execution of the schemes.
While the approved projects hold immense potential, their successful execution will require overcoming challenges similar to those faced by strategic projects like CPEC. Bureaucratic hurdles, geopolitical alignments, and sovereign commitments will need to be effectively managed to ensure the successful implementation of the investment plans.
The SIFC will play a crucial role in attracting investments from Gulf countries, enhancing Pakistan’s non-debt inflows, and reducing reliance on imports. Majority of these projects are expected to be executed on a government-to-government basis, with some being offered for international competitive bidding.