Prime Minister Shehbaz Sharif is set to visit the United Arab Emirates (UAE) in a few weeks. The visit will focus on investment opportunities, financial issues, and PTCL’s pending payment, according to Commerce Ministry reported by Dailydosz.
The Finance Ministry has proposed creating a Joint Investment Fund, financed by seven joint investment companies. Ernst & Young has already submitted a feasibility study for this fund. Most company boards have given informal approval, except for the Pak-Iran Joint Investment Company due to Iran sanctions. The Federal Board of Revenue (FBR) has been asked to provide necessary exemptions.
In the mining sector, the Petroleum Division is finalizing a term sheet for EL 302 and EL 303.
For port operations, the Ministry of Maritime Affairs (MoMA) has proposed a revenue-sharing model for a dredging project, while the UAE prefers a royalty model with an extended concession agreement. The UAE has linked this project to the Coastal Economic Zone and a dedicated freight corridor.
In wastewater treatment, the Ministry of Climate Change has proposed two projects: the Mehmood Booti Project in Punjab ($180 million) and TP-4 in Sindh ($200 million). The UAE has yet to show interest.
MoMA has been tasked with exploring other investment areas under a Memorandum of Understanding (MoU). The Ministry of National Food Security and Research has pitched the food sector to the UAE, leading to discussions with six UAE companies.
Recently, Commerce Minister Jam Kamal led a meeting on MoUs between Pakistan and the UAE. Key decisions included expediting MoU implementation, liaising with provincial governments to market projects, and hiring consultants to improve project proposals. Projects will be categorized by maturity level, with special meetings for less mature ones.
Secretary Railways revealed the UAE has tied the dedicated freight corridor to dredging project negotiations. The UAE will be informed these projects are separate and will be negotiated independently.
The Ministry of Foreign Affairs (MoFA) has been advised to communicate the Ministry of Communication’s concerns to the UAE.
Commerce Minister Jam Kamal suggested inviting the UAE for a meeting to discuss the MoUs or having a Pakistani team visit the UAE. Business-to-business interactions will be encouraged to identify new cooperation areas.
Investment proposals in the power sector, including solar, wind, hydro, and power transmission, will also be discussed during the Prime Minister’s visit.
The Special Investment Facilitation Council (SIFC) has asked all ministries to share project details and updated teasers related to the MoUs with the UAE.