WASHINGTON, Nov 02 (dna):Pakistan is 'vigorously' pursuing institutional reforms focused on macroeconomic stability and social development, fiscal discipline, absorption of external shocks and improvement in the business climate in a determined bid to boost its under-strain economy, Ambassador Masood Khan told a conference held at an American Think-Tank.“We have outlived many doom and gloom forecasts; and so would we, this time,” the Pakistani envoy to the US said in his keynote address at the Atlantic Council, which organized the ‘Conference on Resilience and Reform in Pakistan’ in partnership with Johns Hopkins School of Advanced International Studies on Wednesday.
Pakistan, he said, has opened new doors for foreign investment in Pakistan in five sectors: IT, energy, agriculture, mining and defence production. A Special Investment Facilitation Council (SIFC) has been created to act as one window for foreign investors to facilitate speedy approval of projects, fast-track project development, and oversee implementation.
“The purpose is to spur economic growth, integrate our economy to international capital markets and guarantee continuity of policies,” the Pakistani envoy said.
At the outset, Ambassador Masood Khan paid tributes to the Principal Deputy Assistant Secretary of State, Elizabeth Horst, who was among the participants, for “keeping the engines of US-Pakistan relations running all the time. She is a force of nature and a force multiplier for our ties.”
Pakistan and the United States, he said, have put their relations on an ‘even keel’ to build on their security ties and forge economic, technological and cultural partnerships.
“We are thankful to the US leadership for catalyzing this change,” he said, adding that several dialogues over the past one year on trade, investment, energy, climate change, health, science and technology, defense, counterterrorism and counternarcotics have created an enabling environment.
“So, I would say, this is a good time for US businesses to increase their investments in Pakistan and Pakistani traders and entrepreneurs to enhance their exposure in the US markets,”Masood Khan told the audience comprising government officials academic, scholars and business leaders.
With World Bank’s help, he said, Pakistan is streamlining its tax system to make it broad-based and equitable in order to finance human development, infrastructure development and climate resilience.
“And overarching reforms being undertaken aim to unlock ease of doing business, enforce intellectual property rights, ensure stable payment cycles and accelerate capital formation”.
” We will stay the course,” he added.
Pakistan is undergoing ‘multiple, wrenching’ transitions and experiencing its share of pain resulting from the crises that hit the world, the ambassador said,
Pakistan has made the choice to stay with democracy, coveting the path of persistence whatever the costs, he said. “Soon we will hold elections to start a new parliamentary cycle and move towards political stability.
Pointing out that Pakistan is already attracting foreign investment, the ambassador said, the first phase of the China-Pakistan Economic Corridor (CPEC) concluded in 2019 with the completion of early harvest energy and infrastructure projects. The second phase that focuses on industrial development, special economic zones, agriculture, IT, vocational training, education, healthcare and poverty alleviation is underway with estimated financing of US $37 billion.
“We are on track,” he said.
Canadian firm Barrick Gold has invested in Pakistan’s Reqo DiQ copper-gold mine, with a capex (capital expenditure) cost of $ 7 billion, he added. Barrick Gold and Saudi wealth fund – Public Investment Fund – are in talks for equity participation in this mine, with Riyadh announcing to set up a $14 billion refinery project; UAE concluding a deal for airport management and other Gulf nations – including Qatar and Bahrain – having shown keen interest in high value IT, agriculture, and airport terminal projects — the estimated cost of all these projects is about $44 billion in coming decades.
Other important brands – Nestle, Huawei and Telenor – are successful in Pakistan, he said
The United States has consistently been one of Pakistan’s largest sources of foreign direct investment, Masood Khan said, noting that US enterprises have, over the past tree years, invested more than $1.5 billion in Pakistan. “Both sides realize that this level of FDI (foreign direct investment) is not enough and needs to be increased”
The US-Pakistan Green Alliance initiative would help enhance Pakistan’s climate resilience and advance its goals to increase the share of clean energy in the energy mix to 60% from its present 34% by year 2030.
Pakistan, he recalled, played a key role in convincing last year’s climate summit participants to create a Loss and Damage Fund, but the G20 countries — the biggest emitters — are not fully prepared to either reduce emissions or bridge climate finance deficits.
“Climate justice is a far cry but awareness has grown that it is not just countries like Pakistan but the entire globe is at risk.”
In his remarks, the ambassador also said that Pakistan tech startups were seeing a dramatic rise. “From a meagre $10 million venture capital funding in 2018 per year, global VCs (venture capital firms) and other investors are pouring in $1 billion annually now. Total tech startup turnover in the last fiscal year is $3 billion; e-commerce in Pakistan earned about $6 billion.
Digitization of the economy, e-commerce and improved supply chains were driving this change, he said.
Above all, the ambassador said that one million strong Pakistani community has become a sturdy bridge between Pakistan and the US and a key stakeholder in Pakistan’s economy with their growing investments in healthcare, education, hospitality, financial services, real estate and social development.
A resilient Pakistan is thus preparing for stellar economic growth to attain human security for its people and shared prosperity in “our extended neighbourhood,” Ambassador Masood Khan said.
