$100m investment linked to stability

FinMin cites FX buffers, policy predictability as Wafi Energy signals expansion

ISLAMABAD:

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Monday said sustaining macroeconomic stability and strengthening foreign exchange buffers were central to restoring investor confidence, as Wafi Energy Pakistan Ltd indicated it was considering investments of up to $100 million in Pakistan over the next two to three years.

According to a statement issued by the Ministry of Finance, the meeting was held at the Finance Division with a delegation of Wafi Energy Pakistan Ltd led by Javaid Akhtar, Chief Finance Officer of Asyad Group and a board member of Wafi Energy Pakistan Ltd. The delegation also included Zubair Shaikh, Chief Executive Officer, and Zarrar Mahmud, Chief Finance Officer, Wafi Energy Pakistan Ltd. The discussion reviewed the company's existing operations, its investment outlook and broader issues affecting the oil marketing and energy sector.

The finance minister said sustained macroeconomic stability remained the cornerstone of the government's economic strategy and was essential for maintaining and deepening investor confidence. He said recent improvements in foreign exchange availability reflected the impact of macroeconomic discipline and reforms, adding that stronger external buffers would allow smoother facilitation of legitimate business transactions, including dividend repatriation and cross-border payments.

Aurangzeb said improving macroeconomic indicators were already translating into greater confidence among domestic and foreign investors and described these trends as fundamental to a healthy investment climate. He added that stronger participation by local investors helped reinforce foreign investment inflows and contributed to broader market confidence.

The meeting also discussed the role of public-private partnership models and structured finance in delivering large-scale infrastructure projects. The finance minister said experiences at the provincial level had demonstrated the potential of such approaches and underlined the need to encourage structured finance solutions and deeper engagement with the banking sector to support infrastructure development.

The Wafi Energy delegation said the company had benefited from improved operating conditions amid greater macroeconomic stability and shared its intention to expand its retail and storage footprint over the coming years. The delegation said the outlook had improved following greater predictability in the operating environment and noted growing interest among international and regional stakeholders in expanding engagement with Pakistan. The delegation briefed the minister on the company's current operations, saying Wafi Energy Pakistan Ltd operated an extensive nationwide retail network supported by ongoing investments in modernisation and efficiency. It said improved macroeconomic conditions had enabled the company to resume and scale up investment activity following recent business integration.

Wafi Energy Pakistan Ltd informed the minister that it was considering potential investment of up to $100 million over the next two to three years to expand its retail footprint and storage capacity. The planned investments would focus on network growth, infrastructure development and technology-driven improvements aimed at strengthening supply resilience, improving service standards and contributing to long-term growth of Pakistan's energy sector. The delegation said the company had undertaken significant digitisation initiatives across its operations as part of a broader modernisation strategy, citing efforts to improve transparency, operational efficiency and regulatory compliance.

Industry-related issues were also discussed, with the delegation emphasising the importance of a stable, transparent and predictable policy framework for long-term investment decisions in the oil marketing sector. It said clarity and consistency across regulatory, fiscal and operational domains were critical for sustaining investment momentum in a capital-intensive and highly regulated industry.

The delegation raised fiscal and taxation-related considerations and stressed the need for a clear and consistent framework to support business planning and investment confidence. It said continued engagement between the government and industry stakeholders would help align policy measures with broader reform and investment objectives.

Aurangzeb reaffirmed the government's commitment to privatisation and outsourcing as a core policy direction, saying the private sector was better positioned to manage and operate commercial assets efficiently. He said recent privatisation initiatives had attracted strong investor interest and that future transactions would follow transparent, competitive and well-publicised processes.

The minister also highlighted digitisation as a national priority, noting uneven progress across sectors. He said firm policy measures were required to accelerate implementation and ensure transparency and regulatory oversight, adding that sector-related matters would be reviewed with relevant ministries and regulators.

Aurangzeb referred to ongoing high-level engagement with international partners, including Saudi Arabia, and said reforms, privatisation, digitisation and investment facilitation formed interconnected pillars of the government's economic agenda.