Senate Committee Questions SIFC Over Missed $60 Billion Investment Goal

The Senate Standing Committee on Finance opened its session Wednesday by scrutinizing the performance of the Special Investment Facilitation Council (SIFC), which had pledged to attract $60 billion in foreign investment but has so far delivered only about $2 billion. Lawmakers called the shortfall alarming, especially as Pakistan faces mounting economic challenges. Finance officials said most inflows were tied to long-term ventures such as Reko Diq, which had been under development for nearly two decades. The committee then turned its attention to the Finance Ministry’s response to the IMF’s Governance and Corruption Diagnostic Report, which highlighted deep institutional weaknesses and rising corruption across Pakistan’s public sector. Chaired by Senator Saleem Mandviwalla, the session grew tense as senators pressed the government on whether it fully accepted the seriousness of the IMF’s findings. Lawmakers warned that the report had damaged Pakistan’s investment reputation at a time when the economy is already under strain. The IMF diagnostic cited governance failures in tax administration, customs operations, procurement systems, and oversight across state institutions. Senators described the report as an indictment of Pakistan’s governance structure and cautioned that failure to act would further undermine investor confidence. Senator Farooq H. Naek said the report had badly hurt Pakistan’s global standing and demanded clarity on whether the government acknowledged the assessment, arguing that the findings could deter foreign investors who already view Pakistan as a high-risk environment. Finance Ministry officials responded that the report was diagnostic in nature and released ahead of the IMF Board’s review. They said Pakistan had agreed to implement a 15-point reform framework, including digitizing customs processes, expanding e-invoicing, strengthening track-and-trace systems, and enhancing transparency mechanisms. Senator Mandviwalla noted that corruption was continuing to rise rather than decline, a trend echoed by business associations and global watchdogs. Senator Dilawar Khan argued that corruption levels were likely far higher than what the IMF had identified and questioned how much fiscal relief may have been granted in return for the losses highlighted in the report. He also cited a widely reported incident involving an FBR officer allegedly demanding a cut from a senior member during refund processing, saying such cases illustrated deep-rooted institutional dysfunction. Lawmakers pressed the ministry on whether any action would be taken against institutions specifically mentioned in the IMF report. Officials maintained that a structured response plan was being implemented, but senators insisted that governance lapses would continue to hinder economic recovery unless reforms were enforced decisively and transparently. The committee directed the Finance Ministry to present a detailed roadmap at the next meeting, outlining how Pakistan plans to implement the IMF-recommended reforms and address corruption concerns across key institutions.