SIFC to complement CPEC by attracting investments from Gulf countries

Islamabad: Pakistan’s newly established Special Investment Facilitation Council (SIFC) is set to complement the China-Pakistan Economic Corridor (CPEC) by attracting investments from Gulf countries.

Pakistani Planning Minister Ahsan Iqbal expressed this during the conclusion of a two-day international conference on CPEC and the Belt and Road Initiative (BRI) on Tuesday afternoon, celebrating ten years since its signing between Pakistan and China in 2013.

The SIFC, formed by the Pakistani government in June of the same year, aims to address the country’s economic challenges by promoting business opportunities in agriculture, mining, information technology, and defense production. Iqbal emphasized that SIFC and CPEC are like twin initiatives that will work together to bring investment opportunities to Pakistan from Gulf countries.

CPEC, being a significant part of China’s Belt and Road infrastructure project, involves a US $65 billion network of roads, railways, pipelines, and ports in Pakistan, connecting China to the Arabian Sea and supporting Islamabad in economic expansion and modernization, particularly with the focal point being the Gwadar port city in Balochistan.

As early as 2019, Saudi Arabia expressed interest in investing in CPEC projects, including plans for a $10 billion oil refinery near Gwadar port. Iqbal believes that CPEC can contribute to regional integration, linking South Asia, Central Asia, the Middle East, China, and potentially even Africa.

The minister also mentioned that through CPEC and BRI, Pakistan can foster cultural exchanges, educational collaboration, and tourism between nations, promoting mutual understanding and appreciation.

Due to its competitive labor costs, Pakistan has become an attractive destination for investment, as labor-intensive industries are relocating from China to other countries.

Iqbal highlighted the government’s efforts to complete several unfinished CPEC projects, and he mentioned a major Chinese investment of $3.5 billion in the Chashma Nuclear Power Plant 5, which will produce 1,200 megawatts of energy for Pakistan.

Thanks to government facilitation, the Gwadar Port has witnessed a significant increase in cargo handling, handling more than 600,000 metric tons in 2022 compared to 100,000 metric tons in the previous four years.