The formation of the 

Special Investment Facilitation

Council (SIFC) — a ‘hybrid’ civil-military forum created to attract
investment from the Gulf countries — anticipates the civilian
leadership’s failure to ensure policy predictability, continuity, or
execution. At the same time, the initiative has “institutionalised”
the army’s increasing role in the country’s economic decision-
making.

The government had rushed a bill through the parliament to amend the Board
of Investment (BoI) law last week to provide a legal cover to the initiative,
which was termed by the political and military leadership as a ‘bigger’
economic project than the China Pakistan Economic Corridor (CPEC) at the
time of the creation of the SIFC in June as part of the new economic revival
plan. The SIFC will serve as an interface for investors and remove all the
bottlenecks to investment with the help of the army.

The army will have a significant role in the new council, with the army chief
being a member of its apex committee along with the prime minister. An army
official will act as the director general of its executive committee and its
national coordinator. The body’s implementation committee will also be
headed by an army officer.

Prime Minister Shehbaz Sharif said the body reflected a “unified approach” to
steer the country out of the economic crisis. Apparently justifying the
assignment of a key role in the body to the army, he has contended that the
initiative represented a “whole-of-the-the-government” approach, set up with
a mandate to frame policies to ensure ‘policy predictability, continuity, and
implementation’ to revive the economy.

‘There was a lot of pressure from Saudi Arabia, Qatar and the UAE for
guarantees for the continuation of policies from the all-powerful army
leadinag to the creation of SIFC’

On another occasion, he said that “collective wisdom” was needed to tackle

economic challenges. Army Chief Asim Munir has also “assured the army’s all
out support to the government’s efforts for economic revival plan, considered
fundamental to the socio-economic prosperity of Pakistan.”

Attracting investment from friendly countries remains one of the key goals of
the SIFC. The immediate task is to increase foreign direct investment to $5bn
and to $100bn in three years, as well as achieve nominal GDP of $1tr by 2035.
According to the statement of objects and reasons, foreign direct investment
(FDI) is crucial for economic growth, but Pakistan faces obstacles in attracting
significant FDI, including bureaucratic hurdles and regulatory complexities.
Comprehensive reforms are needed to simplify regulations, enhance
transparency, and foster a business-friendly environment.

To address these challenges, Pakistan’s government formulated an Economic

Revival Plan to attract investment from GCC countries, establishing the
Special Investment Facilitation Council (SIFC) as a central hub to streamline
cooperation with investor nations.

Under the amendment, the SIFC will facilitate investment and privatisation in
various sectors, including agriculture, infrastructure development,
telecommunication, and energy, among others. It will take all necessary
measures to promote investment opportunities and business in Pakistan.

Additionally, the federal government can notify any other area, sector,
industry, or project as a relevant field, while the provincial government or an
authorised entity can refer sectors or projects to the SIFC for processing under
this chapter.