Government to centralize its assets

Government to centralise its assets

The government is planning to create the Pakistan Sovereign Wealth Fund as an independent entity to centralize national assets and boost the economy with foreign direct investments.

Finance Minister Ishaq Dar will present the Pakistan Sovereign Wealth Fund Bill, 2023 in the National Assembly today.

The proposed bill aims to efficiently manage funds and assets, adhering to international best practices and policies for sustainable economic development.

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To raise funds, the government has identified seven state assets with a combined net worth of Rs2.3 trillion to be transferred into the new fund. They plan to sell shares and use the proceeds for capital investments.

Friendly Investment Practise

To make the sovereign fund investor-friendly, the government intends to exempt it from three core laws: the Privatisation Commission Ordinance, Public Procurement Regulatory Authority Ordinance, and State-Owned Enterprises (SOEs) Act, 2023.

The fund will be fully owned by the federal government, with the initial capital provided through transferring shareholding of SOEs like the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and National Bank of Pakistan (NBP).

The creation of the fund aligns with the government’s Economic Revival Plan, which aims to address financial challenges and attract foreign investments.

They have established the Special Investment Facilitation Council (SIFC) to streamline the investment process with the army’s support.

The Prime Minister Shehbaz Sharif approved around 28 projects across various sectors to attract investment from friendly countries, focusing on agriculture, livestock, minerals and mining, information technology, and energy.

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These initiatives demonstrate the government’s commitment to bolstering the economy and creating an investment-friendly environment.

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