Pakistan approves projects worth billions of dollars to Gulf countries for investment purpose

  • July 31, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Pakistan approves projects worth billions of dollars to Gulf countries for investment purpose

Subject :Science and tech

Section: Awareness in IT and computers

Context:

  • In a major development, Pakistan has in principle approved 28 projects worth billions of dollars that would be offered to Gulf countries for investment with the long-term objective to reduce reliance on loans and imports.

Details:

  • A new Special Investment Facilitation Council (SIFC) has been established to address the financial challenges and fast-track the economic development.
  • Countries include: 23 countries are identified, some of which are: Qatar, Saudi Arabia, the UAE and Bahrain.
  • Investment can be greater than $28 billion under the China-Pakistan Economic Corridor (CPEC).
  • The approved schemes are in the food, agriculture, information technology, mines and minerals, petroleum and power sectors.
  • They include: the Diamer-Bhasha dam,cattle farms; the $10 billion Saudi Aramco refinery; explorations of copper and gold in Chagai; and the Thar Coal Rail connectivity scheme.

Special Investment Facilitation Council (SIFC):

  • SFIC is a hybrid civil-military forum.
  • Aim: to foster synergy between the federal and provincial governments to facilitate timely decision making; avoid duplication of efforts; enhance investor confidence, and ensure swift project implementation.
  • To give legal cover to SFIC changes are being made in:
    • Pakistan Army Act
    • The Board of Investment (BOI) Ordinance
    • Amendments to the Election Act have also been introduced to ensure the continuity of work
  • The apex committee of the SIFC approved:
    • A project for corporate farming on 10,000 acres in the Cholistan desert that will be later extended to 85,000 acres.
    • The setting up of a dairy company holding 20,000 Holstein Friesian animals (an international breed of dairy cattle) and the number of farms could be extended to five or more.
    • The establishment of a corporate feedlot farm of 30,000 animals.
    • The establishment of a corporate camel farm of 10,000 animals.
    • The Chiniot Iron Ore project, the Barite-Lead-Zinc project, and the explorations of copper and gold in Chagai as well as lead and zinc in Khuzdar.
    • A Saudi Aramco oil refinery costing $10 billion and the TAPI Gas Pipeline Project for investment.
    • The Solar PV Project at the locations of Layyah and Jhang.
    • A hydropower project at Rajdhani, two transmission Lines from Ghazi Barotha to Faisalabad and Matiari to Rahim Yar Khan.
    • Chashma Right Bank Canal Project.
  • The SIFC had approved the setting up of technology zones, a project for investment in the optical fibre network, the establishment of Cloud infrastructure and a semiconductor designer, manufacturing of smart devices, a global skill hub scheme and various centres of excellence.

About the CPEC:

  • The CPEC is a collection of infrastructure and other projects under construction throughout Pakistan since 2013.
  • CPEC is a 3,000-km long route of infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan.
  • Pakistan and China had planned a total $62 billion investment under CPEC but so far, less than a sum of $28 billion has been materialised.

Pakistan approves projects worth billions of dollars to Gulf countries for investment purpose Science and tech