Pakistan’s Special Investment Facilitation Council (SIFC) has identified approximately 38 projects across multiple economic sectors that are expected to attract around $40 billion in investment, as the government continues efforts to improve the country’s investment environment and facilitate foreign capital inflows. The projects cover a broad range of industries, including mining, manufacturing, railways, roads, maritime affairs, power, information technology, pharmaceuticals, healthcare, tourism and food security. The development was shared with the Senate Standing Committee on Cabinet Secretariat during a meeting held on Thursday under the chairmanship of Senator Rana Mehmoodul Hassan. The briefing highlighted the council’s efforts to coordinate investment opportunities, address regulatory obstacles and encourage international investors to participate in Pakistan’s economic development.
During the meeting, SIFC officials informed the committee that the identified projects had reached the finalisation stage and were expected to generate significant investment commitments across the targeted sectors. The proposed investment pipeline reflects the government’s efforts to attract foreign investors into infrastructure, industrial development and resource-based industries. However, officials also acknowledged that the prevailing regional situation, including developments related to the United States-Iran conflict, had disrupted trade and business activities. These uncertainties have made it difficult to provide reliable statistical projections and confirm final investment figures at this stage. The expected $40 billion therefore represents the projected investment associated with the identified projects rather than confirmed investment already received.
The committee was also informed about progress under the Brownfield Refinery Policy, which has received government approval. Five refineries have signed implementation agreements involving proposed investments of approximately $6 billion. The agreements are intended to support investment in existing refinery infrastructure and improve the sector’s operational capabilities. Refinery modernisation remains an important area of focus because of its potential implications for domestic fuel production, energy infrastructure and industrial activity. The proposed investment is part of the broader effort to encourage private sector participation in strategic industries while creating opportunities for international companies to participate in Pakistan’s energy market.
SIFC officials further highlighted ongoing engagement with Chinese companies and investors from Qatar and Kuwait. The council has been working to facilitate foreign investment by simplifying regulatory procedures, improving visa arrangements and introducing single-window operations for investors. These measures are intended to reduce administrative delays and make it easier for international businesses to evaluate and establish investment projects in Pakistan. The officials also discussed improvements in the process of obtaining No Objection Certificates (NOCs), which have historically been identified as a major obstacle for investors. The committee chairman observed that the situation had improved following SIFC’s intervention but stressed that additional measures were necessary to simplify procedures and reduce the regulatory burden.
During the discussion, Senator Saadia Abbasi raised concerns about bureaucratic inefficiency and emphasised that responsibility for administrative shortcomings ultimately rested with the relevant leadership. She also sought details about the specific incentives being offered to attract foreign investors and encourage new business activity. The discussion focused on the need for practical measures that could translate investment proposals into operational projects. Members highlighted that improving investor confidence would require more than identifying investment opportunities, with regulatory consistency, administrative efficiency and clear incentives also playing important roles in attracting long-term capital.
Senator Abdul Qadir highlighted the high cost of doing business in Pakistan compared with other regional economies, particularly regarding energy prices and financing costs. He also raised concerns about multiple regulatory requirements, tax notices, restrictions and difficulties associated with profit repatriation. Competition from smuggled goods was another issue discussed during the meeting, as such activities can affect businesses operating through formal channels and create additional pressure on domestic industries. The senator called for a coordinated relief mechanism involving the federal government and the State Bank of Pakistan (SBP) to address these challenges, improve investor confidence and protect both existing and prospective investments. The committee emphasised that reducing business costs and improving regulatory coordination would be important for strengthening Pakistan’s regional competitiveness.
Alongside investment facilitation, the Senate committee received a briefing from senior officials of the National Electric Power Regulatory Authority (NEPRA) regarding the operational performance and regulatory framework of independent power producers (IPPs). The briefing was delivered in the absence of the NEPRA chairman, who could not attend due to illness. Officials discussed power plant capacity factors, tariff structures, capacity payments and the regulatory arrangements governing electricity generation costs. The committee was informed that several power plants had operated below a 50% capacity factor, primarily because of variations in demand from the national grid. However, no power plant had recorded zero electricity generation during the period under discussion.
NEPRA officials also explained the statutory framework under Section 31 of the NEPRA Act, covering cost recovery, returns on capital and quarterly tariff indexation. The discussion included the National Power Parks Management Company (Balloki) project and the regulatory arrangements governing its electricity tariffs. These issues were relevant to the committee’s broader examination of power sector costs, plant performance and the financial implications of electricity generation agreements.
The committee was further informed that third-party heat rate testing for residual fuel oil (RFO)-based power plants had been awarded to the National Engineering Services Pakistan (NESPAK) through an international bidding process. Committee members stressed that independent verification of the test results would be necessary to ensure transparency and accuracy when evaluating the operational efficiency of these plants. Heat rate assessments are important for determining how efficiently power plants convert fuel into electricity and can provide relevant information for examining generation costs.
The meeting highlighted two interconnected challenges for Pakistan’s investment environment: attracting new foreign capital and improving the operating conditions of existing businesses. While SIFC’s 38 identified projects represent a projected investment opportunity of approximately $40 billion, concerns regarding energy costs, financing expenses, regulatory procedures and regional uncertainty remain relevant to their implementation. The committee underscored the importance of continued coordination between government institutions, regulators and the SIFC to simplify investment procedures, improve business competitiveness and translate proposed projects into actual economic activity.
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