THE Senate of Pakistan has currently approved the amendment bill to empower the Special Investment Facilitation Council (SIFC), recently established by putting a joint civil-military effort of the Prime Minister Shehbaz Sharif and the Army Chief General Asim Munir, with a credo to streamline the indicators of our economic growth — thereby laying down its basic structure, working procedures and cooperation mechanisms with various ministries and provincial governments. Thus, the SIFC will ensure the speedy implementation of foreign investment projects in the country.
The SIFC seeks to address essential procedural concerns, facilitate policy reforms and create an environment that is friendly of investors by channelling foreign investment into certain industries. The agricultural sector in Pakistan is essential to the nation’s economy. However, it faces many difficulties, including outmoded farming methods, a lack of water and a lack of technical developments. The SIFC’s emphasis on agriculture demonstrates its commitment to addressing these issues and luring foreign capital to modernize the industry, boost productivity and improve export capabilities. The energy industry is essential to the prosperity of any country. Other than the agriculture sector, the potential sectors that the SIFC has identified are: energy, information technology (IT), mining and resource extraction and defence manufacturing are some of these sectors.
Working modus operandi of the SIFC: Most importantly, it is for the first time in the history of Pakistan that an economic Council has to be equally monitored and survived by both the civil and military establishments since the coordination and planning mechanism is bifurcated in civil and the military arms. The civil arm can plan for revival, as it has, by prioritising foreign investment in agriculture, energy, IT, minerals and defence production. It can also try to formulate policies. But it stumbles when it comes to predictability, continuity and implementation. Investment facilitation is about stable rules of the game and effective institutional delivery. The SIFC is designed to overcome this failure by the inclusion of the military. It will, in the words of the premier, “leverage collective wisdom to kick-start the economy”.
As for the military arm, the Pakistan Army has been given a formal seat at the economic table as it will be the national coordinator for both apex and executive committees of SIFC. Furthermore, the army chief will be a core member of the apex committee while an army official will be appointed as director general of the implementation committee. The military will have a significant role in the new body, with the army chief being a member of its apex committee and the army itself serving as the national coordinator for both the apex and executive committees. An army official will also be the director general of the body’s implementation committee.
General Syed Asim Munir has played a role as one of the leading mentors of the SIFC. The COAS has fervently expressed his sentiments and emphasized that the SIFC will play a pivotal role in revitalizing the economy of Pakistan. The COAS, as the custodian of the national security of Pakistan, made clear the link between economic stability and national security. He emphasized the importance of SIFC as an instrument for fostering economic growth, enhancing global competitiveness, attracting foreign direct investment (FDI) and stimulating job creation – all of which contribute to the overall national stability and security.
SIFC, as an engine of economic growth: Arguably, for a country of 249.5 million with a silver lining of 64 percent young populace, Pakistan is one of the most well-placed tech destinations for the world – without an iota of doubt, we can offer them with one-window under one-roof facilitative, incentivizing and encouraging mechanism to set-up their businesses – which is exactly the core promise of the SIFC. Given the fact that Pakistan is producing high-tech military hardware Information Technology, a viable mechanism is being developed to enhance IT exports, develop the Joint Ventures and attract Foreign Investment in this sector, assured the Planning Minister, Ahsan Iqbal.
It is further emphasized that SIFC aims at streamlining the process for FDI by removing obstacles. He said all the issues related to the issuance of the visas to investors will be resolved under the banner of SIFC. He said it will open new avenues of development for Pakistan. According to the Terms of Reference (ToR), the Council will develop long-term plans for growth, development and investment in the relevant fields while capitalizing on low-hanging fruit. Furthermore, it will raise awareness about Pakistan’s untapped potential in the ‘Relevant Fields’ and explore new opportunities to expand cooperation. That said, the SIFC will also work towards improving the ease of doing business by overcoming systemic and bureaucratic between the federal and provincial levels.
Needless to say, the establishment of the SIFC owes its credit of drawing on insight from the World Economic Forum. The SIFC and CPEC will work in tandem to bring investment opportunities to Pakistan from Gulf countries. Thus, the SIFC can play a crucial role in promoting Pakistan as a desired investment destination and transforming it into a market of the future, thereby addressing the infrastructure gap based on the World Economic Forum’s recommendations, and hence, improving both physical and institutional infrastructure will be a key priority.
In order to achieve its objectives, the SIFC will systematically streamline and simplify business processes by adopting a cooperative and collaborative ‘whole-of-the-government approach’ with representation from all stakeholders. Currently visiting the Gwadar port where the army Chief General Asim Munir also accompanied him, the PM said, “If we follow this vision [SIFC], nothing can impede our progress. This will bring about a revolution. Concerted efforts and true implementation of the SIFC vision would guarantee prosperity for 220 million people of Pakistan.” It is further believed that by achieving a coherent approach within the civilian and military spheres, the SIFC is not merely meant to protect our national security interest, rather is said to be the custodian of fulfilling our national security mission.
—The writer, an independent ‘IR’ researcher-cum-international law analyst based in Pakistan, is member of European Consortium for Political Research Standing Group on IR, Critical Peace & Conflict Studies, also a member of Washington Foreign Law Society and European Society of International Law. He deals with the strategic and nuclear issues.
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