ISLAMABAD: In a major development, Pakistan’s new Special Investment Facilitation Council (SIFC) – a joint civil-military forum – has approved in principle 28 projects worth billions of dollars.
These projects, which will be offered to Gulf countries for investment, include construction of the Diamar-Bhasha Dam and mining projects at Rekodak in Chagai district of Balochistan.
According to the list of approved projects, if all these schemes are taken up by countries like Qatar, Saudi Arabia, UAE and Bahrain, the volume of investment under SIFC could exceed $28 billion, which would be more than the investment under China-Pakistan Economic Corridor (CPEC).
Initially, these schemes cover food, agriculture, information technology, minerals, petroleum and energy sectors. These include cattle farms, the $10 billion Saudi Aramco refinery project, copper and gold exploration in Chagai, and the Thar Coal rail connectivity scheme.
Diamer-Bhasha Dam has also been offered to China for investment under CPEC.
Legal protection and amendments
To provide legal protection to SIFC’s work, Parliament this week approved amendments to the Pakistan Army Act and the Board of Investment (BOI) Ordinance.
Amendments have also been introduced in the Election Act so that these schemes can continue to work during the caretaker government.
The rules will initially help speed up the completion of 28 major investment projects and also grant immunity to decision-makers from investigations by various anti-corruption agencies.
Another law is also being introduced called the Pakistan Sovereign Wealth Fund, which will provide equity capital to SIFC-approved projects.
Assets of seven for-profit public sector enterprises are being pooled in this fund to be used for projects approved by SIFC.
Investment strategies from Gulf countries
Pakistan has adopted a strategy to attract investment from Gulf countries through SIFC. According to Prime Minister Shehbaz Sharif, this forum has been established to create coordination between the federal and provincial governments, increase the confidence of investors and speedy implementation of projects.
According to sources, the government has decided to invite 23 countries to invest in these projects, but the main focus will be on Saudi Arabia, UAE, Qatar and Bahrain.
Pakistan will issue priority visas to the citizens of these countries to ensure speedy implementation of these projects.
Challenges in Implementation
The real challenge will be during the practical implementation of these plans. Even strategic projects like CPEC in the past could not be fully implemented due to various reasons, including bureaucratic hurdles, backtracking on agreements with China, and geopolitical uncertainty.
Pakistan and China had planned to invest a total of $62 billion under CPEC, but so far only $28 billion has been made possible.
Last month, Pakistan narrowly avoided bankruptcy when the prime minister and military leadership struck a new $3 billion deal with the International Monetary Fund (IMF).
More projects under SIFC
A corporate farming project on 10,000 acres in Cholistan, which will later be expanded to 85,000 acres.
A dairy company with 20,000 Holstein Friesian cows, which can be expanded to five or more farms.
A corporate feedlot farm of 30,000 animals, which is likely to be expanded further.
A corporate farm of 10,000 camels, which can be expanded to five or more farms.
Technology zones, investment in optical fiber network, cloud infrastructure, semiconductor designing, and manufacturing projects for smart devices.
Major mineral and energy projects
Chiniot Ironover Project
Barite-Lead-Zinc Project
Gold and copper prospecting in Chagai
Lead and zinc mining in Khuzdar
Major power and energy projects
$10 billion Saudi Aramco oil refinery project
TAPI Gas Pipeline Project
Diamar-Bhasha Dam and Thar Kol Block II
Solar PV projects in Leh and Jhang
Rajdhani Hydropower Project
Two transmission lines from Ghazi Brotha to Faisalabad and Matiari to Rahim Yar Khan
Reactive Power Compensation Devices and Battery Storage for Frequency Regulation
Powers given to SIFC
SIFC will act as a single window authority to facilitate cooperation with Gulf countries and other international investors.
The SIFC is empowered to make policy, approve investments, enter into trade agreements and directly or indirectly enter into contracts.
The SIFC shall have the authority to summon all regulatory bodies, government bodies, and government departments.
SIFC has been given full legal immunity, which means that no investigative body, anti-corruption agency, law enforcement agency, or court can investigate any deal made under SIFC.
The amended BOI Ordinance shall supersede all existing laws.
These projects can play an important role in Pakistan’s economic recovery and investment promotion, but their practical implementation will depend on overcoming government weaknesses and strong policy making.
