PM to visit UAE for investment exploration in two weeks

Prime Minister Shehbaz Sharif is gearing up for an important visit to the United Arab Emirates (UAE) in the coming weeks, with a focus on key economic and investment-related issues on the agenda. According to sources within the Commerce Ministry, the visit is expected to address various matters such as investment in different sectors, the country’s financial affairs, and the pending payment of Pakistan Telecommunication Company Limited (PTCL).

One of the major proposals put forward by the Finance Ministry is the establishment of a Joint Investment Fund, which would be financed by seven country-specific joint investment companies. Ernst & Young (E&Y) has already submitted a feasibility study for the establishment of the Joint Investment Company, with informal consent from the respective boards of these companies, except for the Pak-Iran Joint Investment Company due to sanctions on Iran. The feasibility study has also recommended certain exemptions for the Fund, for which the Federal Board of Revenue (FBR) has been requested to ensure its sustainability.

In terms of investment in the mining sector, the Petroleum Division is in the process of finalizing a term sheet for EL, 302 and EL, 303. Additionally, the Ministry of Maritime Affairs (MoMA) has proposed a revenue-sharing model for port operations projects, while the UAE side prefers a royalty model with an extension in the Concession Agreement.

The Ministry of Climate Change has shared proposals for wastewater treatment projects, including the Mehmood Booti Project in Punjab and the TP-4 project in Sindh, with costs of $180 million and $200 million respectively. However, the UAE side has not shown interest in these projects so far.

Furthermore, the Ministry of National Food Security and Research has established contact with the UAE side for investment cooperation in the food and agriculture sector. Potential projects in this sector have been pitched to the UAE side, with six companies identified for business cooperation.

During a recent meeting on Memorandums of Understanding (MoUs) signed between Pakistan and the UAE, decisions were made to expedite the implementation of MoUs and convert them into marketable projects. Ministries and departments were instructed to liaise with provincial governments to consolidate marketable projects for the UAE side, with a focus on hiring consultants to improve project proposals.

The meeting also addressed concerns regarding communication with the UAE side, particularly in the transportation and infrastructure sectors. It was emphasized that dedicated efforts would be made to enhance bilateral economic cooperation through business-to-business interactions and the sharing of investment proposals in the power sector.

Overall, the upcoming visit of Prime Minister Shehbaz Sharif to the UAE is expected to further strengthen economic ties between the two countries and pave the way for increased investment and cooperation in various sectors. The Special Investment Facilitation Council (SIFC) will play a key role in facilitating these discussions and ensuring the successful implementation of proposed projects.