ISLAMABAD: The Ministry of Finance has acknowledged that the absence of structured transparency in the operations of the Special Investment Facilitation Council (SIFC) could undermine policy predictability and weaken investor confidence.
In its Prime Minister’s Economic Governance Reforms Agenda, prepared under the International Monetary Fund’s (IMF) Governance and Corruption Diagnostic Assessment, the ministry committed to improving transparency in SIFC-related initiatives. The report, released last week, is part of the conditions tied to Pakistan’s $7 billion IMF loan programme.
The report noted that limited public disclosure about tax concessions, regulatory relaxations and fiscal implications of SIFC-facilitated projects creates uncertainty for investors and raises governance risks. It warned that such gaps could weaken the credibility of investment decision-making.
Pakistan established the SIFC in 2023 to fast-track investment and privatisation through a single-window system. While the council helped improve coordination among government departments, the report admitted that major challenges such as high taxes, costly energy and external sector instability continue to deter foreign investment.
Under IMF commitments, the government has agreed to publish SIFC annual reports, with the first draft due by December this year and the final version by March 2027. These reports will include details of investments, tax concessions and project progress.
The IMF has also raised concerns over the wide powers granted to the SIFC and its overlap with the Board of Investment, stressing the need for greater transparency and clearer accountability to strengthen Pakistan’s investment climate.
