Senators flag energy costs and taxes as SIFC cites 38-project pipeline

The Special Investment Facilitation Council (SIFC) told the Senate Standing Committee on Cabinet Secretariat on Thursday that it has a pipeline of around 38 projects worth approximately $40 billion. Senators responded that Pakistan's investment drive faces serious obstacles.

The committee, chaired by Senator Rana Mehmood ul Hassan, received a briefing on SIFC's performance over the past three years. According to the reports, the project pipeline covers mining, industry, railways, roads, maritime affairs, power, information technology, pharmaceuticals, health, tourism and food security.

The $40 billion figure is the reported value of a pipeline of projects. It is not confirmed investment already made, and the briefing did not provide a final confirmed investment total.

SIFC said it is working to attract foreign investment by simplifying government procedures, improving visa facilities and providing single window services. It has engaged with Chinese companies and with investors from Qatar and Kuwait.

In the refinery sector, the Brownfield Refinery Policy has been approved. Five refineries have signed implementation agreements involving proposed investments of approximately $6 billion. This amount is proposed, not money already spent.

The committee chairman said that obtaining no objection certificates had been a major obstacle for investors, and that matters improved after SIFC intervened.

Senator Saadia Abbasi questioned how effective government efforts to attract foreign investors have been, and said responsibility for bureaucratic delays rests with the leadership.

Senator Mohammad Abdul Qadir said the cost of doing business in Pakistan is high compared with regional countries, citing energy and financing costs. He also raised questions about the process for transferring profits out of Pakistan and called for a coordinated relief mechanism involving the government and the State Bank of Pakistan.

Officials told the committee that the regional situation had disrupted trade and business activity. They said developments linked to the US-Iran conflict made reliable statistical projections and final investment figures difficult.