PM UNVEILS ECONOMIC REVIVAL PLAN AS ARMY VOWS ALL OUT SUPPORT In partnership with
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Wednesday, 21 June, 2023 I 2 Zil Hajj, 1444
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Three-tiers SIFC will include a 6-member Apex committee to be chaired by PM ISLAMABAD
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Executive committee will have eight members, including representatives from Pakistan Army
ShAhzAd pARAchA
HE government of Pakistan has devised a plan to attract investment from Gulf Cooperation Council (GCC) countries as part of the ‘Economic Revival Plan’. As per the plan, the Prime Minister has approved the establishment of the Special Investment Facilitation Council (SIFC). The SIFC will serve as a ‘Single Window’ for multi-domain cooperation in ‘Relevant Fields’ with GCC countries and other countries in general, aiming to facilitate investment and create an enabling policy environment. The SIFC will consist of three tiers, including a six-member Apex committee chaired by the Prime Minister. The executive committee will have eight members, including representatives from the Pakistan Army. Additionally, the implementation committee will comprise five members from both civilian and military leadership. Co-opted members will include the Secretary of Finance, Secretary of Board of Investment, Secretary of Economic Affairs Division (EAD), Chairman of the Federal Board of Revenue (FBR), Deputy Governor, and Provincial focal persons, according to sources. The primary focus of the SIFC will be on investment and privatization, initially targeting five areas: Defense, Agriculture, Minerals, Information Technology and Telecommunication, and Energy. 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. The SIFC will also work towards improving the ease of doing business by
overcoming systemic and bureaucratic hurdles, optimizing horizontal-vertical synergy and coordination between the federal and provincial levels, facilitating timely decision-making, avoiding duplication of effort, and expediting investment and project implementation. To monitor the progress of each sectoral division, the Apex Committee, Ex-
Pakistan and China sign MoU for $3.48b nuclear power project ISLAMABAD
StAff RepoRt
Prime Minister Shehbaz Sharif witnessed the signing of a memorandum of understanding (MoU) between Pakistan and China for the Chashma-5 (C-5) nuclear power project, valued at $3.48 billion. The MoU was signed by Muhammad Saeed ur-Rehman, President of China National Nuclear Corporation Overseas Ltd (CNOS), and Member Power, Pakistan Atomic Energy Commission (PAEC). During the event, Prime Minister Shehbaz Sharif highlighted the significance of the nuclear power project as a major milestone in economic cooperation between the two
countries. He mentioned that the project was initially approved during the government of deposed prime minister Nawaz Sharif, but it was later “put on hold” by the successive government of Pakistan Tehreek-i-Insaf (PTI). Despite the rising global inflation, the Chinese government not only refrained from increasing the project cost but also offered a discount of approximately Rs30 billion, he said. The prime minister expressed his commitment to promptly initiate the project, emphasizing that China’s investment of $3.48 billion in the challenging economic situation of Pakistan demonstrated the trust and confidence Chinese companies and investors have in the
country. Sharif highlighted the strong friendship between Pakistan and China, quoting President Xi Jinping’s reference to their relationship as “iron brothers.” The prime minister also mentioned the recent inauguration of the K-3 nuclear project in Karachi. Addressing the economic challenges faced by Pakistan, he acknowledged the support of international partners such as China, Saudi Arabia, UAE, and Qatar. He particularly thanked President Xi Jinping, Finance Minister Ishaq Dar, Planning Minister Ahsan Iqbal, Power Minister Khurram Dastgir, and the new military leadership for their contributions to the project. The prime minister expressed gratitude to Nawaz for initiating the first nuclear power project agreement with China in 1993. He also highlighted the recent renewal of commercial and sovereign loans from China, underscoring the unparalleled friendship between the two countries. The signing ceremony was attended by Dar, Iqbal, and Dastgir, as well as officials from China including Pang Chunxue and Shen Yanfeng from China National Nuclear Corporation.
Pakistan receives zero bids in latest LNG tender, signaling continued energy crisis g
PLL had issued tender for delivery of 6 cargoes in Oct and Dec; second tender to close on July 14 ISLAMABAD
AhmAd AhmAdAni
Pakistan failed to receive any bids for delivery of six cargoes of liquified natural gas (LNG) in October and December in a sign that the country’s energy crisis may worsen this winter. Pakistan LNG Limited (PLL), a government subsidiary responsible for procuring the commodity from the international market, had issued the tender after a gap of almost a year. It had last issued a tender in July 2022 which failed to receive any bids amid record high LNG prices in the spot market following Russia’s invasion of Ukraine. The latest tender, which closed on June 20, sought 140,000 cubic meters of LNG per cargo on a deliveredex-ship (DES) basis at Port Qasim in Karachi. However, the evaluation report shared by the PLL on its website on Tuesday showed the tender failed to attract any bids. Pakistan relies heavily on LNG for its energy
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needs — it accounts for over a third of the country’s power output — and the latest failure to attract bids raises concerns that the energy crisis could worsen in the upcoming months, with prolonged loadshedding and reduced supply to industries. Pakistan has struggled to meet its LNG requirements due to supply constraints and rising prices as Western countries rushed to buy the commodity following disruptions in the wake of the RussiaUkraine conflict. In 2021, Pakistan imported nine billion cubic meters (bcm) of LNG, a nearly 20% decline from the previous year. The country has long-term supply agreements with Qatar, totaling 6.75 million metric tons per year, and an additional contract with ENI for 0.75 million metric tons per year. However, spot cargoes are essential to meet the country’s growing energy demands. Stakeholders will now closely watch the second tender issued by the PLL for delivery of three cargoes in January and February, which closes on July 14.
ecutive Committee, and Implementation Committee will hold quarterly, monthly, and fortnightly meetings, respectively. The Prime Minister’s office stated that the government of Pakistan has unveiled an elaborate ‘Economic Revival Plan’ in response to the economic challenges faced by the country. The Prime Minister chaired the event, which was attended by the Chief of Army Staff, Chief Ministers, Federal and Provincial Ministers, and high-level government officials. The plan aims to harness Pakistan’s untapped potential in key sectors such as Defense Production, Agriculture/Livestock, Minerals/Mining, IT, and Energy, through indigenous development and investments from friendly countries. To expedite project development, the Special Investment Facilitation Council (SIFC) has been established as a ‘Single Window’ interface for potential investors, promoting a unified approach. The council will streamline and simplify business processes by adopting a cooperative and collaborative ‘whole-of-the-government approach’ with representation from all stakeholders. It aims to foster synergy between the federal and provincial governments, facilitate timely decision-making, avoid duplication of effort, and ensure swift project implementation. The significant participation of federal and provincial governments demonstrates the national commitment to reviving the economy against all odds. The Chief of Army Staff (COAS), speaking at the occasion, assured Pak-
istan Army’s full support to complement the government’s efforts for the Economic Revival Plan, which is considered crucial for the socio-economic prosperity of Pakistanis and reclaiming Pakistan’s rightful stature among nations. The Prime Minister highlighted that his government inherited an economy on the brink of collapse. With bold and difficult decisions, the country is now heading towards growth and development. However, significant challenges lie ahead, and export-oriented foreign direct investments (FDIs) are key to economic revival. Therefore, the government has decided to adopt a holistic and whole-ofgovernment approach that fosters partnerships within federal and provincial governments to ensure effective implementation and execution. The priority will be given to investors, providing them with expedited approvals through a wellcoordinated approach, the Prime Minister added The Prime Minister observed that the expected investments would create jobs and livelihoods for the youth and women. He emphasized the importance of empowering the younger generation and women to realize their full potential. The Prime Minister urged everyone to work together, leaving no stone unturned and remaining focused and determined in their efforts. He expressed the belief that by working hard and staying committed to the path of progress and development, Pakistan’s destiny and the well-being of its people can be transformed. The Prime Minister concluded by stating that Pakistan and its people deserve nothing less than dedicated and diligent administration from those entrusted with the responsibility by Almighty Allah and the people of Pakistan.