Pakistan's Sovereign wealth fund established to boost mining, agriculture, IT sectors

August 02, 2023 (MLN): The mining sector is one of the key contributors to economic growth, and to exploit this sector along with agriculture and information technology sectors, the government established the Pakistan Sovereign Wealth Fund, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar stated on Tuesday at the closing session of Pakistan Minerals Summit.

Pakistan Sovereign Wealth Fund has been established to exploit the three drivers of growth; mining, agriculture, and information technology.

“These three drivers will be mainly focused in years to come for the country, no matter who is in governance,” the minister said.

Moreover, Dar highlighted that the government was taking crucial measures to aid investors and exploit the resources of the country most efficiently.

Going forward, Dar said that the country is attracting investors through serious actions, and for this purpose, a law of sovereign funds has been established.

The draft legislation for establishing the fund had been tabled in the national assembly and would be moved to the Senate on Wednesday.

“Egypt and Indonesia both the countries have faced similar turbulent situations, both established their sovereign wealth fund and are doing well,” Dar added.

He said the investors would have a choice whether they were interested in a sovereign wealth fund, any sub-fund for a specific sector, or even a corporate structure special vehicle.

The special investment facilitation council (SIFC) is another initiative taken by the government that continues to aid investors through one-window facilitation.

Moreover, in his speech, he addressed that the World Bank has also improved Pakistan’s ranking in ease of doing business, attracting more investor base.

He pointed out that the core inflation was still 17% in rural and 19% in urban areas and as per the projection of the economic team, the core inflation would dip to 7% during the next two years, which would help bring the policy rate down.

The minister said that the country is in the stability phase and through this fund, the targets achieved by the country in FY2016 would be regained and it would go back to becoming a member of G20.

CopyrightMettis Link News