KARACHI: The Special Investment Facilitation Council (SIFC) has developed an investment pipeline worth approximately $40 billion across key sectors as the government moves to revive stalled and delayed projects involving the United Arab Emirates (UAE) and other GCC countries, SIFC Secretary Jamil Qureshi told the National Assembly Standing Committee on Economic Affairs Division.
The committee met under the acting chairmanship of Mirza Ikhtiar Baig.
Business Recorder reported that the SIFC told the meeting that the emerging pipeline covers industry and production, oil and gas, railways, roads and infrastructure, power, telecommunications and information technology, pharmaceuticals, tourism, food security and agriculture.
The committee was informed that the prime minister had directed authorities to actively pursue stalled and delayed projects involving the UAE and other countries and move them towards implementation through greater coordination and facilitation.
SIFC said delays in responses and coordination at the federal and provincial levels had initially hindered the development of investment proposals. It said improved institutional coordination had since helped build a broader pipeline of investment opportunities.
The committee stressed the need to convert the identified opportunities into concrete projects by resolving regulatory, financial and administrative impediments and improving coordination between federal ministries, provincial governments and implementing agencies.
Separately, the committee termed Pakistan’s target of raising exports to $60 billion by 2030 unrealistic, citing high gas and electricity prices, tight monetary policy and high taxation.
The committee was also briefed on the Main Line-1 (ML-1) railway project, covering approximately 1,800 kilometres. Its estimated cost has been revised to around $6.68-$6.80 billion from an earlier estimate of approximately $9 billion following a reassessment of the project design.
The Asian Development Bank is being considered as the lead financing institution for ML-1, while co-financing commitments have been made by the Asian Infrastructure Investment Bank and the World Bank. The European Investment Bank, Islamic Development Bank and Japan International Cooperation Agency have also expressed interest.
ML-1 infrastructure is being designed to accommodate train speeds of up to 160 kilometres per hour, although the currently envisaged operational speed is up to 120 kilometres per hour. The committee called for the operational parameters to facilitate speeds of 160 kilometres per hour where technically and economically feasible. The envisaged construction period is around three years.
The committee also raised concerns over the K-IV water supply project, which is expected to be completed by April 2029. It was informed that Karachi currently requires more than 1,200 million gallons of water per day, with demand expected to increase further by 2029-30.
On the M-6 Sukkur-Hyderabad Motorway, the committee was informed that the project has been divided into five sections. Sections I and II are proposed under the Public-Private Partnership model, Section III through OPEC funding, and Sections IV and V through the Islamic Development Bank. ADB is serving as financial adviser for the PPP component.
The committee also discussed the Lyari Elevated Freight Corridor, calling for rationalisation of its financing cost and a more proactive role for the Karachi Port Trust in the project’s financing arrangements.
