After decades of carrying a heavy burden of foreign loans from international financial institutions like the International Monetary Fund, World Bank, Asian Development Bank, and several friendly countries, it is indeed quite appreciable that there has been a significant shift in the policy of the federal government, emphasizing investment over aid or loans.
This policy was presented to the nation and the world at large with the establishment of the Special Investment Facilitation Council (SIFC) about a year ago. The SIFC aims to attract investment from Gulf region countries in various fields, including defense, agriculture, minerals and mining, information technology (IT) and telecommunications, energy (power and petroleum), industry, tourism, and privatization.
The SIFC has become quite active and productive within a short period after its organization. The Council is headed by the Prime Minister and includes the Army Chief, key federal ministers, provincial chief ministers, among other concerned members.
It is a major attempt by the federal government to rekindle the shaky national economy through an Economic Revival Plan. The plan aims to attract investments by providing information to prospective investors regarding Pakistan’s vast untapped mineral resources and ensuring they are facilitated to make positive investment decisions in various sectors in Pakistan.
The SIFC has taken root as more measures are being implemented to make it an effective, operational, and deliverable agency at the highest level of the country. For the first time in Pakistan’s politically checkered history, a positive policy shift from loans and aid to investment and collaboration has been duly appreciated by friendly countries, many of whom have shown interest in this initiative.
The SIFC gained greater prominence through frequent meetings involving the civil, military, and political leadership of the country, as well as visits from foreign delegations. Prime Minister Shehbaz Sharif visited Saudi Arabia in early April 2024 to perform Umrah. The Crown Prince of Saudi Arabia and Prime Minister Muhammad bin Salman flew in from Riyadh to Makkah to hold important mutual deliberations on strengthening the warm brotherly relations between Saudi Arabia and Pakistan, and supporting Pakistan to overcome its economic problems and move towards progress and prosperity.
Following this visit, a high-level Saudi delegation, led by the Foreign Minister, arrived in Islamabad under the special instructions of the Saudi Crown Prince. The delegation interacted with their Pakistani counterparts to explore how Saudi Arabia could help Pakistan through investments in various sectors.
Prime Minister Shehbaz Sharif visited Saudi Arabia again in late April 2024 to attend a special session of the World Economic Forum in Riyadh. He thanked the Crown Prince for sending a high-level Saudi delegation to Pakistan and informed him that he had brought relevant federal ministers to hold follow-up meetings in Riyadh. This visit was in the backdrop of prospective Saudi investments of $5 billion in various sectors in Pakistan.
A high-level Saudi delegation of 50 members, including investors and businessmen, headed by the Deputy Minister for Investment, attended a specially organized investors’ conference in Islamabad. They held deliberations with Pakistani businessmen and returned home with a positive indication that they would brief the Saudi Crown Prince on potential investment and collaboration sectors in Pakistan.
Top Pakistani civil and military leadership are eagerly awaiting the upcoming visit of the Saudi Crown Prince, during which several agreements and Memorandums of Understanding (MoUs) are expected to be signed to give practical shape to the $5 billion Saudi investment. However, this visit has been delayed, not postponed, due to the sudden illness of King Salman bin Abdulaziz. Authorities in both Saudi Arabia and Pakistan are in contact to finalize the Crown Prince’s visit as soon as possible, depending on the situation in the Saudi capital.
Prime Minister Shehbaz Sharif also paid a productive visit to the United Arab Emirates (UAE), his first since assuming office. During his meeting with UAE President Sheikh Mohamed bin Zayed Al-Nahyan in Abu Dhabi, he sought investments and collaborations rather than loans. He emphasized the need to promote information technology and artificial intelligence in various sectors of Pakistan’s economy, including agriculture, mines, minerals, and industry, to boost exports. The UAE President responded positively, stating that the UAE would make a significant investment of $10 billion in Pakistan in due course. During this visit, three agreements were signed between Pakistani and UAE companies.
One cannot help but appreciate the Prime Minister’s good, though long-delayed, intention of reworking the economy. However, this can only be considered a success once Pakistan is free from the shackles of the International Monetary Fund (IMF), which continues to dictate budgetary proposals, proving once again that beggars cannot be choosers.
To truly break the begging bowl, Pakistan has a long way to go. The country must work dedicatedly, sincerely, and committedly, keeping collective goals above petty, selfish individual gains. More investments and collaborations in various sectors will come, but for that, we must prove ourselves worthy and trustworthy.
Muhammad Zahid Rifat
The writer is Lahore-based Freelance Journalist, Columnist and retired Deputy Controller (News), Radio Pakistan, Islamabad and can be reached at zahidriffat@gmail.com