Daily Times

The Special Investment Facilitation Council (SIFC) has made substantial progress in addressing systemic barriers to the country’s economic growth and promoting investment in various sectors since 2023.

According to a press release issued by the SIFC Secretariat here Thursday, the council within limited resources, held ten meetings of the SIFC Apex Committee, ten meetings of its Executive Committee, five Implementation Committee meetings, three Special Apex Committee, three Special Executive Committee meetings, and over 300 Working Group meetings, leading to substantial advancements across various dimensions.

During the period, several noteworthy steps were taken to address systemic barriers that were adversely affecting Pakistan’s economic condition and contributing to a constant structural crisis.

The measures included the reversal of 2.5% turnover tax & 25% dividend tax on SEZs; the reversal of 25 % Sales Tax (previously 8.5 %) on Hybrid Electric Vehicles; approval of incentives for ITZs by Khyber Pakhtunkhwa government in Finance Bill 2024 leading to reduction of mutation fee to 1% and drafting and sharing of Green paper (1st draft) for harmonization of Mineral Policy.

In addition, it enabled the launch of the performance Audit of the Geological Survey of Pakistan in March 2024; the formulation of draft rules for Unmanned Aircraft; enacting national Cloud Procurement Framework; resolved the matter of Inordinate delays in cases of VISA extension; defined contours of energy sector circular debt reduction plan; extended exemption on Sales Tax and Income Tax to residents of erstwhile FATA/ PATA and helped in launching of Land Information Management System to access 10 million farmers. The SIFC steps also helped approval of a new VISA Policy including an immediate issuance of a 6-month VISA in 24 hours while its Anti-Theft Power Campaigns led to a recovery of PKR 85.7 billion (31 Jan).

According to press release the measures also comprise approval for the establishment of the National Industrial Development & Regulatory Authority; establishment of Cannabis Control & Regulatory Authority (CCRA); drafting of Export Oriented National Industrial Policy – by April 2024 – 1st Draft finalized; a roadmap for implementation of Auto Sector Localization & Export Policy; Plan for enhancing Electric Vehicles Eco-system; approval of National Framework for Telecom Infrastructure sharing; finalization of Strategic Plan for Development of 06 Canals; clearance of over 70 percent backlog of Repatriation of Funds and enhancement of export proceeds retention limit from 35% to 50% for IT companies.

SIFC also helped harmonization of Regulatory & legal regime for minerals sector; approval of the regulatory framework for Battery Storage for Wind Power; Journey towards virtual LNG – LNG Easy to establish Virtual LNG Terminal & Supply System; Freelancer Growth including new banking facilities with minimum documentation for freelancers; establishment of Integrated Labor Market Research Cell (LMRC); formulation of National Space Policy and rules (approved by Cabinet); formulation of STZA board, lack of which was hindering registration of 124 companies’ in STZs.

It also facilitated imposition of minimum Export Price (UST 130 / MT) of Khewra Pink Rock Salt; Seed Sector Reforms; restructuring of FSCRD, Streamlining of National Seed Certification, National Seed Authority; drafting of National Seed Policy, and Agriculture Development Authority Act; approval of the Aquaculture Policy to tap into the coastal regions untapped potential ; approval for Uniform Right of Way (ROW) charges, paving way for Telecom Sector; appointment of Investment Ombudsmen and finalization of new KPIs finalized for foreign missions.

The statement added that in the context of improving investment climate and deepening ease of doing business reforms, SIFC’s immediate priorities include FBR reforms and the restructuring of Ministry of National Food Security and Research’s attached institutions.

Special taskforces under SIFC are also combating nationwide electricity theft, focusing on eliminating substandard seed companies, defining the contours of a national industrial development & regulatory framework, and harmonizing Pakistan’s national minerals framework.