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"Mulk Main Koi Aik Deal Mukamal Hogi Tou bari Sarmaya Kari kay Rastay Khulay Gay"Khaqan Najeeb
"Mulk Main Koi Aik Deal Mukamal Hogi Tou bari Sarmaya Kari kay Rastay Khulay Gay"Khaqan Najeeb
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00:00 Pakistan is looking to open to international investment.
00:05 On the other hand, we are seeing that we are not able to solve our political issues.
00:09 Pakistan's economy is basically a political economy.
00:11 These two things cannot be separated.
00:13 Economy and politics are not there.
00:15 Will we be able to materialize despite the political instability?
00:20 Mr. Anika, it is good that we are discussing this narrative today
00:26 that Pakistan is trying to make India a destination for the FDI.
00:31 So let's think about it this way.
00:33 Pakistan wants an interest in mines and minerals, agriculture, IT, ITEFs and defense production
00:39 and other energy projects.
00:43 So I think we have to make this scenario.
00:46 A country whose investment to GDP is not even 14%,
00:50 China's investment to GDP is 35% for this easy comparison.
00:55 You are very far.
00:56 If you want to give employment to all these people,
00:59 if you want to grow, then you have to do this.
01:01 So it's a good narrative.
01:02 As far as Saudi Arabia is concerned, they need food security.
01:06 If Pakistan's agriculture moves to corporate farming,
01:09 then that's something we can do.
01:11 Recodec or copper mines, of course,
01:14 remember that their big interest in this is that they understand this thing.
01:19 They take out such a big oil reserve from the ground.
01:22 So maybe technological transfer with Barrack Gold,
01:26 if you add them with Barrack Gold,
01:29 then it adds credibility.
01:31 There is a definite scope of mines and minerals in Pakistan.
01:33 These are the two things.
01:35 Now, in this whole scenario, improving Pakistan is a different thing.
01:39 Deregulating Pakistan,
01:41 fixing the energy sector,
01:43 fixing the system of Pakistan's FDI,
01:47 taking discriminatory taxes,
01:49 going into direct taxation instead of PDL.
01:52 PDL is the same for you and me as it is for motorbikes.
01:56 So it's, of course, indirect taxation.
01:58 You have to do all this work.
02:00 As far as political uncertainty or instability is concerned,
02:04 I think the SIFC has made that mechanism.
02:07 If I give it a better name than One Window,
02:10 it's a whole of government approach.
02:12 Whatever the government is,
02:14 means the provinces, Gilgit-Baltistan,
02:16 along with the federal government,
02:18 and the establishment,
02:20 ensuring that there is continuity.
02:22 When I use the word establishment,
02:24 I mean the military and the civil bureaucracy put together.
02:27 This breaks the inertia.
02:29 Anika Sahiba, I've been with the government for so long.
02:32 There is so much inertia in Pakistan,
02:35 especially that it doesn't get challenged in law enforcement.
02:38 SIFC decisions are not challenged.
02:41 You know, you will be surprised.
02:43 In 2019, His Royal Highness came to Pakistan.
02:46 He said that a refinery will be built.
02:50 Today, I'm talking to you in April 2024.
02:53 There is no sign of that refinery.
02:55 No sign of that refinery.
02:57 Mr. Khalqan, the direction you've pointed to is very valid.
03:02 Because the journey from MOUs to on-ground
03:07 is very long.
03:09 And often, governments change in the middle of it.
03:12 We see the loss of continuity in policy.
03:16 It's unfortunate that a political party will come and bring its own policy.
03:20 Will SIFC ensure that there is continuity in policy?
03:24 And because of this, will foreign investors,
03:27 big foreign investors, especially our friends,
03:29 like we're talking about Saudi Arabia,
03:32 and His Royal Highness is also visiting MBS,
03:35 so there is hope.
03:37 In such a situation, the lack of trust,
03:40 that what will happen if the next government comes,
03:42 has it been mitigated?
03:44 Or has it been mitigated in the eyes of foreign investors?
03:48 Sir, excellent question.
03:50 In 2016, we came close to PIA.
03:52 We withdrew.
03:54 And today, in 2024, I'm saying again that it should be done.
03:57 So, if you look at PIA,
03:59 PDM, the old government also did some work.
04:01 Then, it was moved forward in caretaker.
04:03 And now, SIFC is again giving it the strength that it should be done.
04:07 So, I'm giving you an example of a little continuity,
04:10 so that you can see this.
04:12 Look, if you want to deliver on your ending promise,
04:16 that becomes very important,
04:18 that you signal to the world,
04:20 that you end any project, any deal.
04:23 This means that the implementation framework,
04:27 which you were saying, that time is wasted,
04:30 year after year.
04:31 Now, you close something,
04:33 that will signal to the foreign investor,
04:36 that Pakistan now means business,
04:38 as we say in the private sector.
04:40 If a big deal of Pakistan is closed,
04:43 if PIA is sold,
04:44 if investment is made in Recodec,
04:46 if a new copper mine is invested in Pakistan,
04:49 wherever, close something,
04:51 so that you go on the international channel,
04:54 and I can say,
04:55 that Pakistan has now successfully concluded this.
04:58 This will signal to the international.
05:00 The second thing that is missing in this,
05:02 is that where is Pakistan's private sector?
05:05 Look, eventually, these things will be run by them.
05:08 So, in today's conversation, you will have to bring them,
05:11 so that in these companies,
05:12 you have to make multi-billion dollar companies.
05:14 That's your next target.
05:16 Because all the engagement cannot be at the government level.
05:19 That is the second thing, I think, we have to start thinking about.
05:22 Business to business, we have to go towards B2B.
05:24 But, Mr. Ghakhan,
05:25 on one hand, we are obviously talking,
05:27 that we need to at least,
05:28 take it to this direction,
05:30 that one, a deal gets closed.
05:32 On the other hand,
05:33 this time, I am observing,
05:35 that generally, new ideas are pitched,
05:37 new projects are pitched.
05:39 This time, the projects that are pitched,
05:41 are the existing projects,
05:42 the on-ground projects,
05:44 which are substantially present with us.
05:47 So, do you think,
05:48 this is also a trust-building measure?
05:51 Because,
05:52 there is a difference between an object in the air,
05:53 and an object on the ground.
05:55 Sir, excellent question.
05:57 We say, our system is corrupt,
05:59 and it does not let the investor come into the system,
06:02 because the investor has so many rules and regulations,
06:05 so much slow-file movement.
06:08 So, we are saying,
06:09 we call this a brownfield,
06:11 that these are the on-ground projects,
06:12 for example, PIA is present,
06:14 airports are present,
06:15 energy sector projects are present,
06:17 Daimir Basha is being built.
06:18 I am giving an example,
06:19 OGDC is present,
06:20 PSO is present.
06:21 I am giving an example of all those projects,
06:23 in which Saudi Arabia's interest can be there.
06:26 So, we can offload these too.
06:28 So, this is also a privatization,
06:30 but in terms of FDI.
06:31 The second thing is,
06:32 the new projects,
06:33 whether they are copper mine,
06:34 or any other projects,
06:36 which we can pitch,
06:37 are also present in their place.
06:39 So, it's good that we are moving on both areas.
06:41 But, look,
06:42 we have to understand one thing,
06:43 which sectors FDI has to come in,
06:46 this has to be determined by Pakistan.
06:48 Also, remember,
06:49 the country in which FDI comes,
06:51 Anika,
06:52 after that,
06:53 if dividends and profits start going out,
06:55 and export does not match,
06:57 then the country comes in the challenge of balance of payments.
07:00 Look, this is such an important point.
07:02 So, FDI should not be such that,
07:04 you bring a foreign company,
07:06 and they take out the water from Pakistan from our land,
07:08 and bottle it for us,
07:10 and take it out in dividend dollars.
07:12 This is the most easiest example I always give.
07:15 So, which sector has to come in?
07:17 Export has to be picked up along with it.
07:19 The investment of CPEC's infrastructure has come,
07:22 but because we have not matched it with export,
07:24 in terms of manufacturing.
07:25 This could be a challenge in the near future.
07:27 Thank you very much, Saqqana ji,
07:28 [NON-ENGLISH SPEECH]