A report prepared by Pakistan’s Ministry of Finance has acknowledged that limited transparency surrounding initiatives undertaken by the Special Investment Facilitation Council (SIFC) could undermine policy predictability and weaken investor confidence. The observation forms part of the Prime Minister’s Economic Governance Reforms Agenda, a 240-page document released last week in line with Pakistan’s commitments under the International Monetary Fund’s Governance and Corruption Diagnostic Assessment.
According to media reports, the document highlights that the absence of structured and publicly available information on strategic investment initiatives, including those facilitated through the SIFC, creates informational gaps that may elevate perceived governance risks. The report notes that investors and other stakeholders face uncertainty due to the lack of clarity around concessions, fiscal implications, and regulatory relaxations linked to such projects.
The governance reforms agenda is part of the conditional framework attached to Pakistan’s $7 billion IMF financing programme. Within this framework, the government has committed to improving transparency and disclosure related to the functioning of the SIFC. The finance ministry stated that limited disclosure weakens the credibility of investment governance mechanisms and could adversely affect confidence at a time when Pakistan is seeking to attract sustained foreign direct investment.
The SIFC was established in 2023 as a single-window platform aimed at streamlining investment facilitation, privatisation, and coordination among federal and provincial institutions. Its creation followed concerns raised by foreign investors about fragmented decision-making processes and overlapping authorities. The council was mandated to support investment across a wide range of sectors, including agriculture, defence, infrastructure, logistics, information technology, telecommunications, energy, mining, and tourism.
Despite this broad mandate, the finance ministry report observed that consolidated public information on investments facilitated through the SIFC remains limited. It noted that without systematic disclosure of tax concessions, policy exemptions, or regulatory relaxations, stakeholders are unable to fully assess the rationale, cost, and outcomes of strategic investment decisions. The report warned that this lack of transparency could blur the line between facilitation and discretion, potentially reducing accountability.
As part of its commitments to the IMF, the government has assured that transparency around SIFC operations will be strengthened. The report stated that a first draft of an annual SIFC report is expected to be submitted by December this year, with a final version due by March 2027. This report is expected to include details of investments facilitated by the council, approved tax concessions, the estimated fiscal value of those concessions, and progress on ongoing projects. A senior SIFC official has stated that the council has not granted any concessions or exemptions to date.
The IMF has also raised concerns about the legal powers granted to the SIFC under the Board of Investment Act. Specifically, Article 10F allows regulatory relaxations for strategic projects, while Article 10G provides broad immunity to officials. According to the IMF, these provisions concentrate authority and could weaken accountability unless accompanied by greater transparency regarding how such powers are exercised.
The finance ministry report emphasized that addressing these risks will require institutionalised transparency, regular publication of structured investment-related information, and greater clarity on the implementation of Article 10F. It also pointed to challenges arising from the parallel existence of the Board of Investment and the SIFC, noting that overlapping mandates can create ambiguity in roles and accountability, potentially undermining broader efforts to improve Pakistan’s investment climate.
The findings underscore the importance of governance reforms as Pakistan seeks to restore investor confidence and meet its commitments under the IMF programme, particularly at a time when attracting long-term investment remains critical for economic stability and growth.
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