A delegation from British International Investment (BII) recently met with Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division. The meeting, held on Friday, aimed to discuss opportunities for investment and economic collaboration.
Participants and Overview
The meeting was attended by prominent figures from BII, including CEO Nick O’Donohoe, Chairperson Ms. Diana Layfield, and several other key officials from the organization. The Finance Division officials were also present to engage in discussions.
Pakistan’s Economic Progress
Minister Aurangzeb provided an overview of Pakistan’s economic landscape, highlighting positive indicators such as:
- GDP Growth: Projected at 2.4% for FY 2024, expected to rise to about 3.6% in FY 2025.
- Foreign Exchange Reserves: Reaching USD 9.4 billion.
- Investor Confidence: Revived in capital markets.
- Inflation: Decreased to 12.6% in June 2024.
- Remittances: Increased by 7.7% compared to the previous year.
He also mentioned the successful completion of a 9-month Stand-By Arrangement (SBA) with the IMF and ongoing negotiations for a medium-term program supported by the IMF to ensure sustainable economic growth.
Government Priorities and Initiatives
The minister emphasized the government’s priorities, including:
- Tax Reforms: Aimed at increasing the Tax to GDP ratio to about 13.7% through expanding the tax base and digital transformation of the Federal Board of Revenue (FBR).
- Energy Sector Reforms: Focus on reducing generation costs and privatizing Distribution Companies (DISCOs).
- State-Owned Enterprises (SOEs): Undertaking reforms and rightsizing initiatives.
- Public Private Partnership (PPP): Encouraging investments through PPP in critical sectors like energy, agriculture, and IT.
Role of Foreign Direct Investment (FDI)
The importance of Foreign Direct Investment (FDI) was highlighted, with a specific mention of the Special Investment Facilitation Council (SIFC). The SIFC plays a crucial role in attracting FDI, offering a streamlined process for investors and focusing on priority sectors like energy, agriculture, and IT.
BII’s Interest and Appreciation
The BII delegation appreciated Pakistan’s efforts to stabilize its economy and improve the investment climate. They expressed keen interest in investing in Pakistan’s energy sector, particularly in enhancing the transmission system infrastructure.
Way Forward
Minister Aurangzeb encouraged BII to actively engage with the Special Investment Facilitation Council (SIFC), emphasizing it as a pragmatic platform to facilitate foreign investments. He assured the delegation of the government’s commitment to providing a conducive environment for investments and fostering sustainable economic growth through strategic partnerships.
