Daily Times

Recently making news is the great economic revival plan and the establishment of SIFC (Special Investment Financial Council). With an objective of attracting Foreign Direct Investment of 100 billion dollars over the next three years that will help Pakistan achieve a GDP target of 1 trillion dollars by 2035. Driven by one-window operations, the economic revival plan entails that international businesses become part of the economic engine in the shortest time, an epitome of ease of doing business. All of this under the supervision of Pakistan’s top civil and military leadership would ensure that the Economic Revival Plan is nothing but an astounding success story in the country’s story of reformation and revival.

We will investigate the potential success of the SIFC, but let’s analyze some similar international bodies that have been fairly successful in becoming strong economic engines in their countries. Invest India currently has over 200 billion dollars’ worth of investments in the pipeline with more than 7000 investable projects still looking to attract FDI in the country. The system is powered by the “National Single Window System” that combines over twenty-seven ministries and two hundred fifty approvals into a single system. Th sheer magnitude of the operations is mind-blowing. However, the most interesting aspect of the Invest India initiative is its team of technocrats, “investors’ pro bono guides.” The initiative handpicks business and technical experts from India’s top universities who in turn become the face of the investors. These young and ambitious technocrats work closely with the investors not only taking them through the investment cycle but also localizing it to the market during it. from entry strategy to market research and end-to-end investment handholding and business aftercare, Invest India has produced more than 464 thousand jobs and processed 367 plus thousand business requests. Evolving with global needs, the initiative is now combining global climate and energy targets into its business environment and bridging the gap through its successful governance, policies and homegrown business ideas that continue to attract billions in foreign investment.

If public and civil institutions work seamlessly and harmoniously towards a unified goal, we may be on a path to economic growth.

Another similar splendid example is that of the Singapore Economic Development Board (EDB). Aimed at positioning Singapore on the global business map as desirable, diverse and diligent, EDB highlights countries’ most competitive and attractive local businesses to potential investors. Not only this, EDB has taken it a step further, by facilitating the growth of homegrown Singaporean businesses in “adjacent and disruptive” areas by enhancing their operations outside of the country. Operating under Singapore’s Ministry of Trade and Industry, the businesses under EDB’s purview account for one-third of the country’s GDP. The key success factor for EDB has been its dedicated focus on high-growth technology sectors including Information and Communication Technology (ICT), Emerging Technology (ET) and Healthcare and strategic industries. With persistent efforts of experts across industries since 1961, EDB has made Singapore a global hub for business sectors such as aerospace, technology, Agri-technology, science, biomedical and data and more. In the year 2021, EDB was able to attract 11.8 billion dollars worth of investment in Singapore. In the year 2022, a report revealed that EDB created over 54000 jobs in the last three years by investment attraction, 80 per cent of which were filled by local experts including data scientists, software engineers, lab technicians and consultants, innovation and digital experts and more.

I would encourage you to go through these brilliant economic models and analyze these as a case study to compare with Pakistan. Once we begin to look at these models closely, we can see the gaps and challenges that exist or may arise in the future. Both Invest India and Singapore EDB played to their strengths by identifying and rectifying business gaps in industries, policies and procedures. Developing a one-window solution sounds good on the paper but have we invested in the human resources operating behind these operations? The economic revival of countries demands new energetic blood infused with the will to achieve their goals through efficiency, transparency and accountability. I am afraid that the lack of bureaucratic reforms and technocratic presence might only lead to a surface-level repacking of the same old ineffective and corrupt system. Also, to drive business growth in the local economy, these models have intentionally bred experts in the targeted area simultaneously to ensure that as the industry grows the human resource needs are also met through local experts and the least dependency on foreign talent. The SIFC has targeted energy and agriculture sectors as targets, however, according to research conducted by Pakistan Institute of Development Economics (PIDE), agriculture graduates face a high unemployment rate in Sindh and Punjab even though these provinces are rich in agriculture. The rate of unemployment in agriculture has grown from 11.4 per cent in the year 2018-19 to 29.4 per cent in 2021-22. The study also claims poor education and low skills as primary reasons for the increase in unemployment. Appropriate investment in not only agriculture technology is required but also in Agri-education is needed. On the other hand, we are aware of the challenges Pakistan’s energy sector faces. Coal-powered projects under CPEC, FDI attractions like Reko Diq and the rising energy debt of the IPP have left a sour taste in investors’ mouths – how we turn that into a success factor that will be a real test for the incumbent government? The technology industry of Pakistan, despite its huge and unmatched potential, has been continuously undermined. I do hope the Economic Revival Plan changes that for this sector for good by introducing tax holidays in technology parks and Special Economic Zones (SEZs).

Quintessential to the success of the Economic Revival plan is its ability to bring on board critical governmental bodies such as the Ministry of Commerce, Ministry of Trade, Planning and Development, Board of Investment and more. If public and civil institutions work seamlessly and harmoniously towards a unified goal, we may be on a path to economic growth. Otherwise, this will only be another document and another missed opportunity.

From what I have read and experienced so far by working closely with the government, we have always had the ambition to up our game, but it has always lacked a plan. In the case of SIFC, I am hopeful that is not a game without a plan.

The writer is Foreign Research Associate, Centre of Excellence, China Pakistan Economic Corridor, Islamabad.