Govt to set up pool to centralise its assets

It will then generate liquidity from them to revive economy

ISLAMABAD:

The government is set to establish the Pakistan Sovereign Wealth Fund as an independent entity, aiming to centralize national assets and unlock liquidity to revitalize the economy and attract foreign direct investments. Finance Minister Ishaq Dar will present the Pakistan Sovereign Wealth Fund Bill, 2023 in the National Assembly on Monday (today).

The proposed bill seeks to create a new pool of resources dedicated to contributing to sustainable economic development through efficient management of funds and assets, adhering to international best practices and policies.

To raise funds, the government has identified at least seven state assets with a combined net worth of Rs2.3 trillion to be transferred into the new fund. The plan involves selling shares and using the proceeds for capital investments.

In a bid to make the sovereign fund investor-friendly, the government plans to exempt it from three core laws: the Privatisation Commission Ordinance, Public Procurement Regulatory Authority Ordinance, and State-Owned Enterprises (SOEs) Act, 2023.

The government has sought technical assistance from the $850 billion worth Abu Dhabi Investment Authority (ADIA) in drafting the law, and the federal government will fully own the fund. The initial capital will be provided through transferring shareholding of SOEs like the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and National Bank of Pakistan (NBP).

This initiative comes in the wake of the government's establishment of the Special Investment Facilitation Council (SIFC), a hybrid civil-military forum, designed to implement the 'Economic Revival Plan'. The Economic Revival Plan, presented by the country's top civil-military leadership, is a comprehensive strategy to address financial challenges and unlock the country's potential through local development and foreign investments.

In pursuit of attracting investments from Gulf countries and expediting project implementation, the government established the SIFC to streamline the investment process and overcome financing hurdles with the army's support.

With financial hardships in mind, Prime Minister Shehbaz Sharif formally approved approximately 28 projects across various sectors to attract investment from friendly countries. These projects cover agriculture, livestock, minerals and mining, information technology, and energy, with a focus on providing impeccable facilitation to potential investors interested in actualizing these schemes.

The establishment of the Pakistan Sovereign Wealth Fund and the implementation of the Economic Revival Plan and SIFC demonstrate the government's commitment to bolstering the economy and fostering an environment conducive to investment and growth.