The International Monetary Fund has asked the government of Pakistan to provide a detailed briefing on the much-hyped Special Investment Facilitiation Council, sources said on Wendnesday.
Talks between the Fund’s delegation and Pakistani officials continued on Wednesday, as the government seeks to complete its first review and unlock the second tranche of the stand-by agreement signed in July.
Sources said that the talks on Wendesday revolved around the external financing gap which had also been a major point of concern during earlier negotiations as well.
The government reportedly told the Fund delegation that it hopes to see a massive increase in the Foreign Direct Investment over the next year which would be able to bridge the financing gap.
Government sources said that investment is expected from Saudi Arabia, United Arab Emirates and Qatar. The government has already signed a free trade agreement with the Gulf Cooperation Council and is hoping to sign bilateral trade agreements soon.
Energy, aviation, minerals and agriculture are expected to be the main areas where investments will be made. The government is also expecting investments into airports and ports and Islamabad Airport is expected to be outsourced this month.
The government has also received interest from France, Germany and Korea regarding investment in electricity distribution companies.
However, the IMF delegation reportedly questioned the government on the role the SIFC is expected to play in the investment plan and demanded a detailed briefing on the workings of the council.
One of the key questions asked regarding the SIFC was about the effects it could have on taxation and subsidies.
