ISLAMABAD: The Finance Ministry is making coercive efforts to utilize funds provided by Saudi Arabia.
In this regard, Pakistan Development Fund Limited (PDFL) has been established where through funds will be utilized to provide long-term commercially viable projects including Private Pubic Partnership (PPP) projects to encourage private sector participation.
A well placed source told Customs Today that Saudi Arabia contributed an amount of $ 1.5 billion to Pakistan two and half years back but this amount had not been utilized so far.
‘Main reason for such a state of affairs is that a proper mechanism / entity was required to be instituted for utilization of funds. Now a company namely Pakistan Development Fund Limited (PDFL); therefore, it is expected that utilization of funds for appropriate projects will commence shortly” the source added.
Moreover, the source said that process for appointment of a Chief Executive Officer of (CEO) PDFL was being pursued vigorously and a suitable person would be appointed very soon.
To a question about measures taken by the ministry to operationalize the company and utilize the funds the source said that PDFL had been registered with Securities and Exchange of Commission of Pakistan (SECP) as a Non-Banking Finance Company (NBFC). Therefore, PDFL has been issued a license to carry out investment finance services.
Moreover, the source said that a Board of Directors had been also been appointed to oversee and supervise the operations of the PDFL in a smooth and transparent members as well as to grant a sense of ownership to the al the decisions of the company.
Similarly, the source said that in a bid to further smooth the functions of company, memorandum and articles of association of the PDFL had been finalized and soon would be presented before the competent authority for approval. On approval they will be provide with legal cover.
The source added that efforts were also underway to associate international development partners as equity holders as well as for additional financing.
