- The federal cabinet approved the Pakistan Investment Policy 2023.
- Policy prepared in consultation with financial institutions.
- “Special protection will be given to foreign investors,” say sources.
Islamabad: The Pakistan Democratic Movement (PDM)-led government has approved a major economic policy to attract foreign inflows, sources said. geo news Saturday, when the cash-strapped country is looking for new ways of financing.
Sources said the federal cabinet on Friday through a summary approved the Pakistan Investment Policy 2023, which aims to bring in investments of $20-25 billion.
People familiar with the matter said the policy was drawn up after consultations with the World Bank, the International Finance Corporation and provincial and federal institutions.
Sources said that in the new policy, the minimum equity rate for foreign investment has been abolished. Sources said foreign investors would be allowed to invest in all sectors except six, without specifying in which sectors.
He said that under the new policy, foreign investors would be allowed to remit the entire profit abroad in their country’s currency. “Special protection will be given to foreign investors,” the sources said.
The development comes days after Minister of State for Petroleum Dr. Mossadeq Malik said that Saudi Arabia and the United Arab Emirates are taking keen interest in Pakistan’s information technology, agriculture and mining sectors.
The state minister said in an interview with a private television channel that the kingdom plans to set aside a $24 billion fund for investment purposes, while the UAE has allocated a $22 billion fund to explore opportunities in three areas of Pakistan. Have done
Pakistan is looking for ways to increase its reserves as it is passing through one of its most severe economic crises. The intensity eased after the government signed an agreement with the International Monetary Fund (IMF) last week.
But global rating agencies believe the IMF’s $3 billion stand-by arrangement (SBA) will provide some relief for Pakistan’s strained public finances, but the country faces significant obstacles to maintaining economic stability and growth. have to do.
Pakistan’s economy has been hit by the coronavirus pandemic, floods, high inflation and social unrest. The country’s foreign exchange reserves are meager at $4.46 billion, while its foreign debt payments will remain high for the next few years, with an outstanding of around $25 billion in fiscal year 2024.