Special Investment Facilitation Council: $27bn investments to be materialised in five years: Ahsan

ISLAMABAD: Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that $27 billion investments would be materialised in the country in the next five years under the Special Investment Facilitation Council (SIFC).

“Saudi Arabia will invest $5 billion, the United Arab Emirates (UAE) will invest $10 billion, Kuwait will invest $10 billion and Azerbaijan will invest $2 billion in the next five years. The negotiations processes with these countries are underway. For this purpose, a delegation of Saudi Arabia including businessmen will come in the next few days in Pakistan. The agreements with these countries will be conducted bilateral and business to business. We are moving forward regarding to signing of agreements same as we have done with China for investment,” the minister said in an informal conversation with journalists in his ministry on Thursday.

Answering a question, he said that China has also shown willingness for the second phase of the China-Pakistan Economic Corridor (CPEC), a flagship of Beijing’s Belt and Road Initiative through which it has pledged over $60 billion in investment projects in Pakistan. He said that after 11 years, China’s premier Li Qiang will undertake a bilateral visit to Pakistan on October 14 and memorandums of understanding (MoUs) would be signed on several projects. He said that ML-1 Railway Project would be completed in phases which would be manageable for Pakistan.

He said that we have to enhance exports of the country to stabilise and increase foreign exchange reserves. “Repayments of debts will be a big challenge in future and for this purpose, we have to increase exports, remittances and foreign direct investment. If we could not do so then we have to get more loan for repayments of debts,” he said.

He said that we also could save foreign exchange reserves by introducing such policy with own lane shipping with private partnership.

He said that the government could not increase development budget due to fiscal deficit and short fall of tax net revenue. “The development budget is continuously decreasing and now it reached four percent to GDP,” he said.

He said there is a total of Rs880 billion current expenditures to run the affairs of the government while 54 per cent expenditure to repayment of debts. We are taking measures for right sizing including emerge the departments and to privatise some federal entities including PIA. The government expends Rs100 billion on 16,000 employees of PIA. If an investor buys the share of the PIA, it could make it profitable by purchasing more aircrafts.

Answering another question about trade relations with India, he said that a conducive environment is essential for trade with India. He also discussed the IMF's new three-year programme, calling it “a new insurance policy for Pakistan,” emphasising the need for reforms to avoid future crises.

Answering a question, he said, “Our stance on military neutrality in politics has prevailed. We want trustable relations of civil and military relations. The country can no longer bear any anarchy and protests," he said.

The minister said that economic development in the country is directly linked with political stability, peace and continuity of the policies. He said that uncertainty, political instability and chaotic situation effect the economic development.

Strongly criticising the politics of PTI, he said the party should play its role in the parliament instead of taking to the streets.

He said these are the external opportunities that are knocking at our doors. He said it is our responsibility to take full advantage of these opportunities through continuity of policies and reforms.

He regretted that the PTI was trying to create impediments in the way of this investment by creating a situation of unrest in the country. The minister said that inflation has come down to single digits.

Copyright Business Recorder, 2024