Islamabad, Aug 29: Since 2023, the Special Investment Facilitation Council (SIFC) has made significant strides toward removing structural impediments to the nation’s economic expansion and encouraging investment in a range of industries.
In a press release released on Thursday, the SIFC Secretariat stated that the council, working with restricted resources, convened ten meetings of the SIFC Apex Committee, ten meetings of its Executive Committee, five meetings of the Implementation Committee, three meetings of the Special Apex Committee, three meetings of the Special Executive Committee, and more than 300 meetings of Working Groups. These efforts resulted in significant progress in a number of areas.
A number of significant actions were made at that time to remove systemic obstacles that were negatively impacting Pakistan’s economy and causing a persistent structural crisis.The actions included reversing the 2.5% turnover tax and 25% dividend tax on SEZs; reversing the 25% sales tax (previously 8.5%) on hybrid electric vehicles; approving the Khyber Pakhtunkhwa government’s incentives for ITZs in Finance Bill 2024, which reduced the mutation fee to 1%; and creating and disseminating the first draft of a green paper for harmonizing the mineral policy.
Furthermore, it made it possible to start the Geological Survey of Pakistan’s performance audit in March 2024, draft regulations for unmanned aircraft, the national cloud procurement framework, the resolution of the issue of excessive delays in VISA extension cases, the definition of the parameters of the energy sector circular debt reduction plan, and more expanded the exemption from income tax and sales tax for residents of the former FATA and PATA and assisted in the creation of the Land Information Management System, which gave 10 million farmers access to it. The SIFC’s actions also aided in the approval of a new VISA policy, which included the quick 24-hour issuance of a 6-month visa, and their anti-theft power campaigns recovered PKR 85.7 billion as of January 31.
The press release states that the measures also include approval for the creation of the Cannabis Control & Regulatory Authority (CCRA), the National Industrial Development & Regulatory Authority (NID&RA), the Export-Oriented National Industrial Policy (first draft finalized by April 2024), a roadmap for the Auto Sector Localization & Export Policy’s implementation, and a plan to improve the electric vehicle eco-system.
The National Framework for Telecom Infrastructure Sharing has been approved. The Strategic Plan for the Development of 06 Canals has been finalized. The over 70% backlog of funds for repatriation has been cleared, and the export proceeds retention ceiling for IT businesses has been increased from 35% to 50%. SIFC also contributed to the regulatory and legal framework for the minerals sector being harmonized; acceptance of the Wind Power Battery Storage Regulation Framework; The easy-to-create virtual LNG terminal and supply system is the first step towards the virtual LNG journey.
The growth of freelancers includes the creation of new banking facilities with minimal paperwork requirements for them, the creation of the Integrated Labor Market Research Cell (LMRC), the creation of the National Space Policy and rules (approved by the Cabinet), and the creation of the STZA board, whose absence prevented 124 companies from registering in STZs.
Additionally, it made it easier to impose the minimum export price (UST 130 / MT) for Khewra Pink Rock Salt, reform the seed sector, restructure the FSCRD, streamline the National Seed Certification process, establish the National Seed Authority, draft the National Seed Policy, and approve the Agriculture Development Authority Act.
It also made it easier to approve the Uniform Right of Way (ROW) fees, which opened up opportunities for the Telecom Sector, appoint Investment Ombudsmen, and finalize new KPIs for foreign missions. The statement went on to say that FBR changes and the reorganization of the affiliated institutions of the Ministry of National Food Security and Research are among SIFC’s top goals right now in terms of enhancing the investment climate and deepening the reforms that make conducting business easier.
Along with battling national power theft, special taskforces under SIFC are concentrating on dismantling poor seed firms, outlining the parameters of a national industrial development and regulatory framework, and coordinating Pakistan’s national framework for minerals. Numerous investment projects across a range of industries, including trade and connectivity, agriculture, minerals, IT & telecommunication, energy, industry, tourism, privatization, health, and human resource development, have been completed by SIFC.
In addition, the council helped resolve disagreements between PQA and Trans Asia Refinery, Gulf Pet and PEL, and the KE-Board of Directors. In addition, SIFC has helped with the Green Corporate Initiative land allocation and renewal of salt leases, as well as the approvals for Riali HPP and Sapphire Chemicals. It has also resolved PSM land lease difficulties and water allotments.
In addition, SIFC has released held-up doses, started commercial solar plant operations, and helped construct Silicon Village Islamabad and a Chromebook assembly line. The company has also finished deals, signed PCAs and exploration permits, and cleared the way for privatization and divestiture. The approval of a solar captive power project, land cultivation, the identification of provincial barren land, and land leveling initiatives are among other noteworthy accomplishments.
In addition, SIFC built E-Rozgar centers, launched the Pakistan Startup Fund, and inked an MOU for the Reko Diq Project, With multiple key agreements with friendly nations, SIFC has announced various deals that would significantly improve international collaboration.Notably, Hub Solar Salt and Balochistan Mineral Resources Limited (BMRL) have entered into a $75 million joint venture for the completion of a large salt production project by 2025. In addition, a joint venture agreement for the value addition of pink salt has been struck with Miracle Saltworks Collective Inc (USA).
In addition, SIFC and the UAE have inked seven multibillion dollar memorandums of understanding (MOUs) in industries like banking, energy, mining, and food and agriculture. Likewise, seven framework agreements pertaining to water sector projects such as the Ghazi Barotha Hydroelectric project and the exploitation of minerals in Chaghi have been inked with Kuwait.
Additionally, SIFC and KSA have signed an agreement for investments in the telecom industry and a 5G spectrum auction in addition to engaging in G2G and B2B transactions. Significant work has also been made on the TAPI project, with all agreements completed and ready for signature by March 2024. Other noteworthy agreements include the writing of a sexed semen technology agreement with ST Genetics, USA, and the import of ovum pick-up technology from Brazil.
