Govt moves to merge Board of Investment with Special Investment Facilitation Council ahead of PM’s China visit

The federal government has decided to accelerate the merger of the Board of Investment with the Special Investment Facilitation Council (SIFC) as part of efforts to strengthen the country’s foreign direct investment strategy ahead of Prime Minister Shehbaz Sharif’s planned visit to China later this month, Business Recorder reported. 

Sources said the merger is expected to be completed before the prime minister’s May 23 visit under the second phase of the China-Pakistan Economic Corridor framework.

Under the new structure, the SIFC will take the lead role in advancing the government’s investment agenda and coordinating efforts to attract foreign investment.

The SIFC has also been tasked with preparing a comprehensive roadmap covering Special Economic Zones, regulatory reforms, the legal framework for investment, implementation of the Foreign Investment (Promotion and Protection) Act 2022 and business facilitation measures.

Minister for Investment Qaiser Ahmed Sheikh, who currently oversees both the BOI and SIFC, confirmed that the merger was being carried out in line with observations made by the International Monetary Fund.

The move follows the IMF’s Governance and Corruption Diagnostic Assessment for Pakistan released in November 2025, which recommended greater public disclosure of SIFC decisions, concessions and beneficiaries.

Qaiser Ahmed Sheikh said the second phase of CPEC would focus more on business-to-business collaboration compared to the earlier government-to-government model.

He said several Chinese firms had expressed interest in investing in Pakistan’s Special Economic Zones, which currently offer nine-year tax holidays.

The minister also linked the recent slowdown in foreign direct investment inflows to Pakistan’s IMF programme and external propaganda by India.

The restructuring comes at a time when questions have emerged regarding the pace and visibility of SIFC’s activities.

According to a report by The News, the SIFC Apex Committee has not publicly held a meeting since January 2, 2025, when its 11th meeting reviewed performance targets for the year.

A senior SIFC official said the Apex Committee had met once after January 2025 but without public disclosure, while the Executive Committee last met in June 2025.

Officials said the Implementation Committee continued to meet regularly and operational work within the SIFC remained active.

The SIFC was launched in 2023 as a fast-track platform designed to attract investment in sectors including defence, agriculture, energy, minerals and information technology through coordination between civilian and military institutions.

While officials maintain the platform remains functional, independent sources say several investment agreements and memorandums of understanding have yet to convert into major projects amid concerns over political uncertainty, bureaucratic delays, security issues and policy inconsistency.