Pakistan approves major economic policy to attract foreign flows

Islamabad: The Pakistan Democratic Movement (PDM)-led government has approved a major economic policy to attract foreign flows, according to press reports.

The federal cabinet approved the Pakistan Investment Policy 2023 through the circulation of a brief, which is aimed at generating an investment of $20-25 billion, the sources said, Geo News reported.

People familiar with the matter said the policy was prepared after consultations with the World Bank, the International Finance Corporation and provincial and federal institutions.

In the new policy, the minimum capital rate for foreign investment has been removed, the sources said. Foreign investors will be able to invest in all but six sectors, the sources said, without specifying which ones.

Under the new policy, foreign investors will be able to remit all of their earnings abroad in their own country’s currency, they said.

“Foreign investors will receive special protection,” the sources added, reported Geo News.

The development comes days after Minister of State for Petroleum Musadik Malik said Saudi Arabia and the United Arab Emirates were showing keen interest in Pakistan’s information technology, agriculture and mining sectors.

The kingdom planned to set $24 billion in funds for investment purposes, while the United Arab Emirates allocated $22 billion in funds to explore opportunities in three sectors of Pakistan, the state minister stated in an interview with a TV channel. private, Geo News reported.

Pakistan has been looking for ways to shore up its reserves as it goes 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.