SIFC attempts to reopen Pakistan for business

The Shehbaz Sharif government has taken a significant step towards improving the country’s economic solvency by establishing the Special Investment Facilitation Council (SIFC) with technical assistance from Pakistan Army including the security agencies like the ISI. Army Chief Gen Syed Asim Munir in particular will be part of the Apex Body of the SIFC.

The SIFC aims to streamline the process for foreign direct investment (FDI) by routing it through a one-window operation under one roof. This will remove the obstacle of up to 90 government NoCs (No Objection Certificates) that often take over 18 months to process licensing.

The SIFC will focus on defence production, agriculture, mines and minerals, IT and energy sectors, with a target of achieving $100 billion in FDI within three years. The ultimate goal is to achieve a $1 trillion GDP level by 2035. Security agencies will take an active part in cross-frontier operational management to ensure the success of this ambitious plan.

The business community has warmly received this initiative and has provided numerous suggestions. Kashif Anwar, the President of LCCI, has emphasised the importance of expanding the scope of Special Investment Facilitation Council beyond the Gulf Cooperation Council (GCC) countries. While the Council has been successful in attracting investments from GCC nations in sectors such as defence, agriculture, minerals, IT and energy, President LCCI believes it is time to broaden its reach to Africa and Central Asia. He also recommended the SIFC should include sectors such as tourism, housing and construction and food processing in its purview.

This is a momentous occasion for Pakistan, and it is a testament to the vision and leadership of the government and Pak Army. For many years, Pakistan has been struggling to attract FDI, and this new initiative could be the game-changer that the country needs. The SIFC has the potential to attract billions of dollars in investment, which would create jobs, boost economic growth and improve the lives of millions of Pakistanis.

The prospects for the SIFC are very good. Pakistan has a number of attractive investment opportunities, including a young and growing population, a strategic location and a wealth of natural resources. With the right policies and reforms in place, Pakistan could become a major FDI destination in the years to come. The SIFC is a bold and ambitious initiative, but it is one that is worth taking.

Pakistan needs to do everything it can to attract FDI, and the SIFC is a step in the right direction. With the support of the Pak Army, the SIFC has the potential to transform Pakistan’s economy and improve the lives of millions of Pakistanis. The SIFC is likely to face some challenges, such as bureaucratic resistance and corruption. However, if the government is committed to making the SIFC a success, these challenges can be overcome.

The SIFC will need to work closely with the private sector to identify and develop investment opportunities. The private sector will also need to be willing to invest in Pakistan, despite the country’s political and security challenges.

The SIFC’s success will depend on the government’s ability to create a stable and predictable investment climate. The government will need to address issues such as security, corruption and the rule of law and Judicial system.

Pakistan’s state-run enterprises have long struggled with inefficiency, leaving the country in dire need of a solution. One promising option is to sublet management while retaining a controlling share of 51pc versus 49pc. By selling up to 49pc of shares, we can achieve three crucial goals: attract foreign direct investment, acquire the management skills of international entities and put an end to the financial hemorrhaging of the national exchequer.

Recent examples, such as the PIA’s Roosevelt Hotel, Steel Mills leasing to Russia and the UAE’s company in the port business, demonstrate the potential success of this approach. By partnering with international entities, we can tap into their expertise and resources, while still maintaining a significant stake in the management of our own institutions. This strategy promises to improve efficiency and profitability.

Overall, the SIFC is a promising initiative that has the potential to boost Pakistan’s economy exponentially. However, the Council will need to overcome some challenges in order to be successful. Yet it also signals to the global community that Pakistan is now open for business.

Jan Achakzai is a geopolitical analyst, a Balochistan politician and a former media and strategic communications advisor to GOB. He tweets @jan_Achakzai