SIFC: special investment facilitation council

It is the idea of current military chief given in in June 2023 adopted by both civilian and military
leadership. There are 3 committees of SIFC being established.
The apex committee; being headed by the PM participated by army chief and cabinet members.
This committee gives the final approval of the projects.
Second committee is executive committee it comprises upon provincial chief minister and
minister for SIFC. This committee finalize the projects between the provinces and the center.
Implementation committee: it comprises of minister of SIFC and secretaries of relevant
departments.
Opportunities under SIFC:
SIFC has offered investment in 4 major areas;
1) Agricultural sector: SIFC has invited investment from China and middle east in the
agriculture sector of Pakistan. China the world largest consumer and importer of agricultural
goods and by 2030 its consumption would be double. In 2015 it was 800b$ which would be
doubled by 2030. China already exhausts its internal agricultural capacity and it is the largest
importer from N-America. Now it wants to invest in agricultural sector of its neighbourhoods
especially south Asia and central Asia. Pakistan is one of the prime attraction for them. As it
can produce agricultural goods amounting more than 100b$ if the land of country is properly
utilized. Secondly, agricultural activities in the middle east countries is not possible because
the land is mostly comprising upon deserts. These countries are financially rich and the major
importer of agricultural goods. Pakistan is one of the major opportunity for these middle
eastern countries to invest.
Pakistan has invited investment from the above mentioned countries in multiple ways in
agriculture sector. First of all, PPP on the land belongs to the state of Pakistan. Secondly, the
arid land provided by local people is on lease to investors, thirdly partnership between the
local farmers and investors on canal based land.
The investors are supposed to invest in the modernization of irrigation techniques like drip
and sprinklers, investment in seed development programs, increase in the volume of irrigated
and agricultural land, increasing per acre crop yield, increase in the livestock specially in the
milk and meat and the development of cold storages etc. there is a possibility of 35-40b$
investment in the agriculture sector of Pakistan. If that happens it would result in the
revolution of agriculture sector of the country and the dream to produce 100b$ of agricultural
products may become a reality.
2) Investment in the Minerals and opportunities ahead: Pakistan is enriched with variety if
minerals. It reserves the worlds 4rth largest coper reserves in the world. One of the largest
marble reserve sin the world, a major producer of salt, chromite etc. Pakistan has invited
investment primarily in coper, mines in the country. Saindek coper mine is already under
exploration by Chinese company MCC (metrological company of China). 200skm area of
Rekodek has already been handed over to Canadian based company called Barack gold. But
 700skm area is still left in Chaghi. And the minimum investment could be 12-15b$ in the
area. There are 60b$ of proven coper reserves in north Waziristan where minimum
investment could be of 2b$. furthermore, Pakistan is one of the largest producers of marble in
the world. The bigger reservoirs of marble are in Balochistan, district Mumand of KP and in
Malanda division of KP. The minimum investment in this sector could be 5-8b$. there are a
long range of other minerals where billions of dollars’ investment could be attracted. Saudi
Arabia, China and UAE have shown interest in the Recodek Coper mine in Balochistan. If
this investment is materialized it would not only help in the exploitation of the minerals but
would also result in establishment of chain if industries in the country. For example, the first
state of industry would be to segregate coper from silver and gold as they exist together. The
second phase of industry would be more specific that is for coper, silver and gold. The more
the production of coper, the more the fulfilment of the need of coper in a series of industries.
Investment in the defense industry. Pakistan for the first time offered the industry for the
production of defense products by the private sector. China, Saudi and UAE are the prime
countries to invest in the defense industry of Pakistan, Pakistan has offered the industries of
small weapons, Artillery, Armored core tanks, warships and submarines and jet fighters. The
defense import of Pakistan would decline, export would be tremendously increased specially
in to middle east. And the local demand would be locally meet. In this areas 15-20b$
investment is expected.
3) Investment in the IT: India earned more than 130b$ from IT in 2022-23. All the developed
and developing economies are earning primarily from the IT sector but Pakistan earned only
around 3b$ in 2022-23. Pakistan is attracting investment in IT sector from china and middle
east countries. Pakistan is major destination as it has IT graduated in abundance and cheap
labor. Pakistan is inviting investment in establishment of IT centers, startup and call centers
etc.
4) Pakistan has offered ease of doing business:
 One window operation
 Lower taxes
 Keeping investment in foreign currency
 The administrative and financial control would be under investor
Hurdles in investment in Pakistan:
The lower and fluctuating GDP growth rate is one of the major hurdle in attracting
investment in Pakistan:
Low GDP growth: investor invest in market where GDP growth is higher and better opportunity
for higher earning. Investment in a market where GDP growth rate is sustainable and predictable.
In Pakistan both doesn’t exist. The current GDP growth rate is around 1%. It cannot attract
investors in magnitude. The GDP growth has been abnormally fluctuating. For example, in FY
2021-22 the GDP growth rate was 5.7% but in 2022-23 it was less than 1%. In such abnormal
fluctuation investors don’t invest. We need sustainable and higher GDP growth rate to attract
investment.
Political instability; leads to the lack of long term unstable policies. The economic situation
become more fluid as there is political uncertainty which discourages the investors to invest.
Physical security; terrorism is once again reviving in the form TTP, ISKP, BLA etc. are
responsible for terrorist attack in country mostly on Chinese. Why should other chinses invest in
such situation and how could other investors be attracted from middle east. Therefore, state has
to improve its security of the state in order to build the confidence of investors.
Conclusions:
Once these above steps are taken only then SIFC can become tangible reality leading to
economic revival of the country.