Global Rice News

Rice Exporters in Pakistan Playing Key Role in Economic Growth

The economic challenges faced by Pakistan in recent years have been significant, with the country teetering on the edge of default. While there is debate about who is to blame for this situation, it is clear that there is still much work to be done to stabilize the economy. One key player in this effort is the State-owned Infrastructure and Facilities Company (SIFC), which is actively working to boost foreign direct investment (FDI) and restore investor confidence in Pakistan.

Improving the Business Environment in Pakistan

Pakistan currently ranks low in ease of doing business, due to factors such as political instability, bureaucratic red tape, corruption, and challenges in enforcing contractual rights and obligations. However, with the establishment of the SIFC, there is hope for improvement. The SIFC aims to streamline the process of setting up businesses in Pakistan, making it easier for investors to navigate the system and achieve their goals.

The SIFC has already implemented stringent measures to combat issues such as foreign currency hoarding, commodities hoarding, and smuggling. These measures have had positive results, reflected in the performance of the Pakistan Stock Exchange and increased investor confidence in the country.

Promoting Corporate Farming and Agriculture Sector

The SIFC is prioritizing the agriculture sector in its efforts to spur economic growth. Pakistan has vast cultivable land, and corporate farming has the potential to not only ensure food security but also export surplus produce to other countries. With India, the largest exporter of rice, imposing a moratorium on non-basmati white rice exports, Pakistan has a golden opportunity to meet the global demand and increase its rice exports.

The Agriculture sector, along with the expansion of Pakistan’s cultivable area through corporate farming, is expected to play a significant role in achieving the target of 3.5% GDP growth in 2024. The United States Department of Agriculture (USDA) has projected a 40% increase in Pakistan’s rice exports, fetching an additional $1.0 billion in exports in the current fiscal year.

Focus on the IT and Energy Sectors

In addition to agriculture, the SIFC is also concentrating on the IT and energy sectors. The recent decision to allow IT companies to retain 50% of their foreign exchange proceeds is expected to boost IT receipts in the country. The government is also working towards making international payment gateways, such as PayPal and Stripe, available in Pakistan, which will benefit the freelancing community and increase foreign remittances.

The energy sector is also a focal point for the SIFC, with initiatives to increase foreign direct investment in this area. The establishment of refineries will reduce Pakistan’s dependence on imported refined petroleum products, and the country’s potential in renewable energy sources, including biomass, will help alleviate energy shortages and contribute to addressing climate change.

Mines and Minerals Development

The SIFC’s role in mines and minerals development will also play a significant role in Pakistan’s GDP growth. With streamlined operations and an enabling environment for investors, the mineral sector is expected to attract foreign investment. Notably, the growing demand for lithium due to the popularity of electric vehicles presents an opportunity for Pakistan, as regions such as Gilgit-Baltistan and Balochistan are known to have lithium deposits.

Strengthening Political and Democratic Institutions

Ultimately, the SIFC’s active participation in economic decision-making and effective implementation mechanisms will not only boost the GDP of Pakistan but also create fiscal space for social sectors such as education and healthcare. This will empower the people of Pakistan and strengthen political and democratic institutions in the long run.

With the efforts of the SIFC and the government’s commitment to economic growth, it is hoped that Pakistan will overcome its economic challenges and move towards a more prosperous future.

Source: The News