ISLAMABAD: As cash-strapped Pakistan looks for financing sources, the federal government has approved a major economic policy to attract foreign inflows, sources told JEE News on Saturday.
Sources said the cabinet on Friday approved the Pakistan Investment Policy 2023 through the circulation of a summary, which aims to bring in $20 billion to $25 billion in investment.
People familiar with the matter say the policy was developed after consultation with the World Bank, International Finance Corporation and provincial and federal agencies.
Sources said that in the new policy, the minimum equity rate for foreign investment has been abolished. Foreign investors will be allowed to invest in all but six sectors, sources said.
He said that under the new policy, foreign investors will be allowed to remit the entire profit abroad in their own country’s currency. “Special protection will be given to foreign investors,” the source added.
This development comes a few days after Minister of State for Petroleum Dr. Mossadegh Malik’s statement that Saudi Arabia and the United Arab Emirates are taking keen interest in Pakistan’s information technology, agriculture and mining sectors.
The kingdom plans to set aside $24 billion in funds for investment purposes, while the UAE earmarked $22 billion in funds to explore opportunities in three sectors of Pakistan, the state minister told a private television channel. said while giving an interview.
Pakistan, going through its worst economic crisis, is looking for ways to increase its reserves. The intensity eased after the government signed an agreement with the International Monetary Fund (IMF) last week.
But international rating agencies believe that the IMF’s $3 billion standby arrangement (SBA) will provide some relief to Pakistan’s strained public finances, but will not help the country maintain economic stability and growth. There are significant hurdles to overcome.
Pakistan’s economy has been badly affected by the coronavirus pandemic, floods, high inflation and social unrest. The country’s foreign exchange reserves are very low at $4.46 billion, while its external debt service will remain high for the next few years, with about $25 billion due in fiscal year 2024.
