According to sources, the Pakistan Democratic Movement (PDM)-led government has adopted a major economic programme to attract foreign inflows, as the cash-strapped country seeks fresh finance options.
According to reports, the federal cabinet adopted the Pakistan Investment Policy 2023 on Friday through the distribution of a summary, which intends to attract $20-25 billion in investment.
According to persons acquainted with the situation, the policy was prepared following meetings with the World Bank, the International Finance Corporation, and provincial and federal organisations.
According to the sources, the new policy eliminates the minimum equity rate for foreign investment. Foreign investors will be able to engage in all areas save six, according to the sources, who did not identify which ones.
According to the new legislation, overseas investors will be able to transfer their entire profit abroad in their own currency. “Foreign investors will be given special protection,” according to the sources.
The news comes only days after Dr. Musadik Malik, Minister of State for Petroleum, stated that Saudi Arabia and the United Arab Emirates are interested in Pakistan’s information technology, agriculture, and mining sectors.
According to the state minister in an interview with a private television channel, the kingdom planned to fix $24 billion in funds for investment objectives, while the UAE provided $22 billion money for investigating potential in three sectors of Pakistan.
As it faces one of its most severe economic crises, Pakistan has been seeking for methods to shore up its reserves. The fervour subsided when the administration reached an agreement with the International Monetary Fund (IMF) last week.
However, global rating agencies estimate that the IMF’s $3 billion stand-by agreement (SBA) will bring some respite to Pakistan’s stressed public finances, but the country still confronts enormous challenges in maintaining economic stability and growth.
The coronavirus pandemic, floods, soaring prices, and social upheaval have all wreaked havoc on Pakistan’s economy. The country’s foreign exchange reserves are very low at $4.46 billion, and its external debt repayments will remain high for the foreseeable future, with over $25 billion due in fiscal 2024.