Finance Minister Ishaq Dar on Tuesday said the government would establish sub-funds under the Pakistan Sovereign Wealth Fund (PSWF).
The development comes after the National Assembly on Monday approved legislation to establish PSWF which aims to ensure sustainable economic development through the efficient management of funds and assets, adhering to the highest international standards, according to state-run APP.
The PSWF aims to consolidate the scattered investments of the Pakistani government into a single entity and assess their face value. The fund will be regulated with financial policies, considering the segregated accounts of the government in the form of shares and state-owned companies.
“We have decided to set up the PSWF because Pakistan is an asset-solvent country. We have mineral reserves of $6 trillion as compared to external debt of $130 billion.
“We have proven that Pakistan will not default and it was only matter of financial management,” said Dar.
The finance minister said that government would establish sub-funds under PSWF for agriculture, minerals and mines, IT etc.
“Some friendly countries have expressed interest to invest in these areas. It is the investors’ choice.”
Dar said the SIFC (Special Investment Facilitation Council) would help investors through one-window operation.
“Our goal is to attract investors,” he said.
Dar urged economic experts to be careful as “a little loose talk can cause the country a lot in terms of perception”.
“Agriculture, IT and minerals would emerge as drivers of growth in the coming years,” said Dar, while reiterating the need for a charter for economy.
“I believe that the turbulence is over, and we are in the stability phase and now things are turning towards growth,” said Dar.
Pakistan has the potential and resources to emerge as a G20 nation, he added.