Exploring investment: PM expected to visit UAE in a couple of weeks
Prime Minister Shehbaz Sharif is expected to visit United Arab Emirates (UAE) within a couple of weeks, wherein issues related to investment in different sectors, country’s financial matters and PTCL’s pending payment are expected to be the top agenda items, well informed sources in Commerce Ministry said.
Finance Ministry has proposed establishment of a Joint Investment Fund to be financed by seven country specific joint investment companies. E&Y has already submitted feasibility for the establishment of Joint Investment Company.
Respective Boards of these companies have already given informal consent for establishment of Joint Investment Fund, except CEO of Pak-Iran Joint Investment Company, keeping in view sanctions on Iran.
A feasibility study has suggested certain exemptions for which FBR has been requested to ensure sustainability of the Fund. On investment cooperation in the port operations projects, Ministry of Maritime Affairs (MoMA) has proposed revenue sharing model to execute the dredging project whereas UAE side prefers the royalty model with extension in Concession Agreement.
MoMA noted that it is ready to consider extension in Concession Agreement but only if revenue sharing model is considered by the UAE side. However, UAE side is not interested in any model other than the royalty model. UAE has clubbed this project with developing Coastal Economic Zone and development of a dedicated freight corridor. MoMA will share the progress with SIFC and concerned Cabinet Committee for further guidance.
On investment cooperation in the wastewater treatment project, Ministry of Climate Change has shared the following two proposals: Mehmood Booti Project under RUDA (Rural Urban Development Authority) Punjab with a cost of $180 million; and TP-4 (Wastewater Treatment Plant 4) Sindh project with a cost of $200 million. UAE side shared both projects with their subsidiary but no interest has been shown so far in them.
MoMA has been directed to explore other areas as well, as the MoU to give the option to explore other opportunities.
The sources said for investment cooperation in food and agriculture sector, Ministry of National Food Security and Research has established contact with the UAE side. Potential of food sector was pitched to the UAE side.
In response, UAE side shared list of six companies for business cooperation. - 19 projects were identified whereas 14 projects were short-listed by the Ministry. Provinces have been asked to make the projects bankable by including land component, business model; etc., as per the guidelines provided by SIFC.
At a recent meeting on MoUs signed between Pakistan and UAE, presided over by the Commerce Minister Jam Kamal as Focal Minister, following decisions were taken: Ministries/ Departments to expedite the implementation of MoUs and suggest way forward to convert these MoUs in marketable projects; Ministries to actively liaise with Provincial Government’s to consolidate marketable projects which can be offered to UAE side; Ministries can hire the services of Consultants to improve quality of project proposals; and projects will be segregated into 2-categories, based on their maturity level.