Pakistan eyes $17 billion in foreign investments after IMF deal

The Special Investment Facilitation Council (SIFC) is optimistic that foreign investors are poised to inject multibillion-dollar investments into Pakistan following the anticipated approval of a $7 billion loan from the International Monetary Fund (IMF). 

According to a news report, Pakistan is aiming to attract $17 billion in foreign investments over several years, with $10 billion expected from the UAE, $5 billion from Saudi Arabia, and $2 billion from Azerbaijan. Investors from the UAE, Saudi Arabia, and Azerbaijan are reportedly waiting for the IMF deal to ensure guarantees for the repatriation of dividends in foreign currency.

While Saudi Arabia has shown interest in acquiring a 15% stake in the Reko Diq mining project and investing in solar panel manufacturing in Pakistan, the kingdom remains hesitant about investing in a refinery. 

The potential signing of a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) could play a crucial role in securing these investments. 

The FTA includes a Bilateral Investment Treaty (BIT) component, which allows for international arbitration through the Permanent Court of Arbitration (PCA) or the International Centre for Settlement of Investment Disputes (ICSID) in case of disputes.

Saudi Arabia’s Manara Minerals Investment Company, a joint venture between Ma’aden and the Public Investment Fund (PIF), is exploring global mining assets, including Pakistan’s Reko Diq. 

The agreement includes provisions for a graduated approach to resolving investment disputes, with an initial eight-month period for domestic resolution before escalating to ICSID if necessary.